Bottled Water in India

2010 PRESENTED BY  SUBHENDU MISHRA  REGD.NO.-1001247128 PGDM-SEC(B) REGINOAL COLLEGE OF MANAGEMENT AUTONOMUS BHUBANESWAR

BOTTLED WATER IN INDI INDIA-2010 A-2010 y

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Drinking-water needs depending on the climate, physical activity & the body culture. The growing growing number of  cases of water born diseases, increasing water pollution,increasing scarcity of pure & safe  water etc. have made the bottled water business just like other consumer items.

INTRODUCTION y

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More

than 200 bottled water brands in India I ndia and among them nearly 80% are local brands. Indian market is estimated estima ted at about Rs 1000 crore c rore and is growing at whopping rate rate of 40%. By 2010,it will reach reach Rs 4000-5000 4000-5000 Crore with 33% market for natural mineral water. India ranks in the top 10 larg l argest est bottled water consumer in the world.

Cont.. Between 1999 and 2004, the Indian Ind ian bottled water water market grew at a compound compound annual annual growth rate ( CAGR) of 25%-the highest highest in the world. world. The total annual bottled water consumption in india had tripled tripled to 5 billon litres litres in 2004 2004 from from 1.5 1.5 billon litres litres in 1999. 1999.  Almost all the major international & national brands water water bottles are availabl availablee in indian indian market.

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HISTORY bottled water in India under the name Bisleri Bisleri was first introduce in Mumbai by Bisleri Ltd., a company company of Italian Italian origin in 1965. Mineral bottled bottled water were were in glass bottles in two  varieti  varietieses- bubbly and still still in 1965. This company was started by SIGNOR FELICE F ELICE  who first brought the idea of selling sell ing bottled water in India.

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Mineral

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In 1969, Parle started bottling Mineral water in glass glass bottles bottles under under the brand name Bisleri Bisleri. Later Parle switched over to PVC non-returnable bottles and finally f inally advanced to PET containers. .

Since 1995 Mr. Ramesh Ramesh J. Chauha Chauhan n has starte started d expanding expanding Bisleri Bisleri operatio operations ns substa substanitia nitially lly and the turn over over has multiplied multiplied more than 20 times over a period period of 10 years and and average average growth growth rate has been 40% over over this period.

Bottled Water Industry in India y

The top players in bottled  water industry industr y in India are are the major international gain gaints ts lik like Coca cola, Pepsi, Nestle and noticeable presence of  national player like Mount Everest, Manikchand, Kingf is isher, Mohan Meakins, SKN Breweries, Indian R ail w  way so on.

Cont y

Top multinational multinational players such as Coca-cola and Pepsi Co have been trying for the past decade to capture the Indian bottled water market.  With increasing competition, this sector will register a robust growth growth in 2010, predict predict industry  analysts. There are about 1200 bottling water plants in India, 600 6 00 are in Tamil Tamil Nadu. o

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Bisleri Bisleri command command a 60% market share of the organized market. Presently it have have 8 plants plants and 11 franchisees franchisees all over over India Kinley Kinley and Aquafin Aquafinaa are are fast fast cathing cathing up, up, with with Kinley  holding 20-25 % of the market and Aquafina appro approximately  ximately  10%. The rest, including including the smaller small er players, have have 20-25 % of the market share. share.

TOP THREE PLAYERS IN THE INDUSTRY 

1-BISLERI - 1965

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Founded

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Headquarters  India

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Ramesh J. Chau Chauhan han (Chair (Chairman man Ke y people - Mr. Ramesh Bisleri Internat International ional Pvt.Ltd.) Pvt.Ltd.) Products - Drinking Water

BISLERI Bisleri Bisleri is a brand brand of  mineral mineral water water. It is available in 8 pack sizes:250ml cups, 250ml bottles, 500ml, 500ml, 1L, 1.5L, 2L, 5L, and 20L. It's headquarters headquarters are in Mumbai, India.

Composition  The composition of         

liter liter (mg/ (mg/l): l): 160-TDS 7.2-ph factor 13.6-Calcium 22-Chlorides 58-Bicarbonate 7.8-Magnesium 2-Nitrate 19.3-Sulphates 66.1-Hardness

Bisleri Bisl eri Water in milligrams per

PRODUCTS y y

Bisleri Mountain ountain Water Water Bisleri Mineral ineral Water Water

2- AQUAFINA

Type ype : Water ater Bevera Beverage ge Manufacturer : PepsiCo, Inc. Country of origin : United States Introduced : 1994  Aquafina  Aquafina is a brand brand of of bottled bottled  water and skincare. skincare. products manufactured manufactured by PepsiCo, PepsiCo, Inc

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OMPOSITION  C OMPOSITION   The composition         

(mg/l): 162-TDS 7.2-ph factor 13.68-Calcium 23-Chlorides 57.5-Bicarbonate 7.75-Magnesium 2-Nitrate 18.93-Sulphates 65.19-Hardness

of Aquafina Aquafin a Water in milligrams per liter

PRODU C  T CTS   S y

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 Aquafin  Aquafinaa Sparkli Sparklingng- carbon carbonat ated ed fla f lavvored ored wat water, er, available in Berry Blast (Raspberry), and Citrus Twist  Aqua  A quafina fina Flav FlavorSplash orSplash-- f lav lavored ored wate waterr (witho (without ut carbonation), and artificially sweetened sweetened with Sucralose, available in Grape, Citrus Blend, Wild Berry, Strawberry Strawberry Kiwi, Raspberry and Lemon.  Aquafina  Aquafina AliveAlive- a low calorie, vitamin-en vitamin-enhanc hanced ed wate waterr beverage, available in Berry Pomegranate, Peach Mango, Lemon and Orange Lime.

INLEY  3-K INLEY  y y

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PRODUCT OF : COCA COLA LTD The Coca-Cola Coca- Cola Company is the w worlds orlds largest largest beverage company; largest largest manufacturer, manufacturer, distributor distributor and marketer of non-alcoholic non-alcoholic beverage beverage concentrates and syrups. Kinley is a brand brand of still or carbonated carbonated water water owned by  Coca Cola India Private Limited (Coca (Coc a Cola), a subsidiary of the Coca Cola Company 

Composition  The         

composition composition of Kinley Water in milligrams milligrams per liter (mg/l): 161-TDS 7.2-ph factor 13.72-Calcium 23-Chlorides 60-Bicarbonate 8.3-Magnesium 2-Nitrate 18.37-Sulphates 67.1-Hardness

PRODUCTS y

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Coca Cola offers two types of drinks:one is high quality  bottled water . the other is carbonated carbona ted  water with a wide array  of variants such as tonic, bitter lemon, club soda and fruit flav f lavored. ored.

MARKET ANALYSIS

OF BOTTLED

WATER INDUSTRY y

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The Bottled water market in India is estimated esti mated at about Rs 1,000 Crore and is growing growing at whopping rate rate of 40 per cent.By 2010, it will will reach Rs 4,000 -5,000 Crore with 33 per cent cent market market for natural natural mineral  water  According to a national-le nationa l-level vel study, study, there are more mo re than 200 bottled water brands in India and among them nearly 80 per pe r cent are local local brand

Cont. y

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India ranks in the top 10 largest largest bottled water water consumers in the world, its per pe r capita capita per annum consumption consumption of bottled water is estimated to be five litres which is comparatively comparatively lower than the global global average average of 24 litres litres Today it is one of India's India's fastest growing bottled bottl ed water industrial sectors. The western western region accounts for 40 per cent of the market and the eastern eastern region just 10. 1 0.

SWOT ANALYSIS y

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strength The industry industr y enjoy a huge customer base The industry industr y has a good brand image image Quality of product is of highest quality  For example ;Bisleri has a very good distribution distribution structure in india It enjoys monopoly in metropolitian and tier1 and tier2 cities.

Weakness y y y

water distinctly lacks Mineral water

insales promotion . It is expensive to common people. peopl e. It is not easily outside outside metropolitian metropolitian and other big cities .

Opportunity y

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It can explore international markets specially  developing market To minimize cost it can can introduce introduce pouches to reach common people It should should spend more on sales promotion to reinforce its brand image image in the market

Threats y

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Other indian and international bottled water water players, players, cola drinks ,juices and beverages beverages Small-scale producers and and vendors who sell nonbranded products products and serve ser ve small markets Rigid government trade policies are big threat which are hampering growth of this industry  Bisleri counterfeits counterfeits are eating up its revenue revenue and damaging its goodwill in the market

PES EST TLE ANALYSIS

Political y

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There is stable stabl e government government at the centre centre with liberal liberal policies. There are are various political parties protesting against the pricing of o f mineral water. water. The government government has imposed impose d price ceiling on bottled bo ttled  water.

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There is an increase in per capita income. people are from middle and upper middle Most of the people class. Expansion of multinationals, IT and BPO companies in Tier 1 and 2 cities. There is no licensing policy policy adopted in this sector. sector. There is availability availability of cheap labor labor..

Social y

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Bottled water was earlier considered as a status statu s symbol. Bottled water is now the only source of pure pu re drinking  water in areas where there is scarcity of water. The bottled bottled water is considered to be safe as compared to ordinary ordinar y tap water. water. There in increase in health consciousness of people.

Technological y

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The bundling of technologies like distillation, reverse osmosis, osmosis, activated carbon filter fil ter,, etc helps in better be tter quality quality of water. water. There has been a shift in packaging from bottles made of glass glass to bottles made made of PET. PET. This helps in recycling and reducing environmental pollution.

Legal y y

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Governed by PFA PFA and BIS BIS standard. standard. BIS has provided standards for mineral and drinking  water.  water. The BIS approval was made mandatory mandator y from 1999. Mineral water should be packed in clean, colorless, transparent, transparent, odorless, tamper proof bottles made up of  polyethylene. PFA PF A and BIS lays standard for metal metalss like lead, mercury, arsenic, aluminium and barium.

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The use of Plastic for bottled water increases environmental environmental pollution. pol lution. The increase in consumption of bottled water causes depletion of valuable fossil fuels.

FUTURE OUTL OUTLOO OOK : y

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 ANALYSIS SHOWS THAT BOTTLED WATER INDUSTRY  IN INDIA IN DIA WILL GROW GROW AT THE RA R ATE OF 20-25% PER   YEAR . CONSUMPTION OF BOTTLED WA WATER ALSO WILL WI LL INCREASE FROM 1.0MILLION CASES TO 9.0 MILLION CASSES AT THE END OF 2011. BOTTLED BOTTLED WATER WATER INDUST INDUSTRY RY CO CO. ST STARTED TARGETING TARGETIN G TO OPEN THEIR OUTLET IN DIFFERENT RURAL AREAS  AND ALSO IN DIFFERENT CITIES. GOVT. GOVT. ALSO ALS O STARTED STARTED TAKING INITIATIONS FOR THE T HE RECTIFICATIONS IN THE TAX SYSTE MS SO S O THAT THAT POOR LINE PEOPLE AISO GET BETER WATER FOR  DRINK AT A LOW COST.

C ON  C LUSION  ON C  LUSION  y

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India has more more than more than120 crores crores of  population.This means that opportunities for investment in bottled water industry industr y sector are immense.Though Indian bottled bottled water water industry  growing at 20-25% this not no t enough. So the govt. govt. Has to take so major dicisions dicisions for the growth growth of the industry. industry. Encourage Encourage for drinking pure,mineral water in in a form of  bottled water water so that there will no water deases in India