Project On Mineral Water Industry

A STUDY ON MINERAL WATER BOTTLES 1
____________________________________________________________________
_
Om I wil give le
1 INTRODUCTION
Water forms an essential part of every living being. After air, water is the most
important necessity for life. Water plays a number of functions for the body. It serves
as the body's transportation system, it acts as a lubricant, it regulates the body
temperature etc. The eulogy for water is an unending thing. In fact more than 2/3rd of
the human body is made of water. The importance of water for human body can be
well accessed from the fact that if the amount of water in our body is reduced by just
1-2%, we feel very thirsty. If it's reduced by 5%, our skin will shrink and we will
have difficulty moving our muscles and if it's reduced by 10%, we will die.
Moreover with this commodity being a human necessity it makes best sense
to do business in. As a normal human being requires on an average needs 2-3 litres
of water everyday and world population is more than 6 billion (growing at 2-3%
annually), the business opportunity is humongous and the potential is largely
untapped. These facts about water added to the growing number of cases of water
borne diseases, increasing water pollution, increasing urbanization, increasing
scarcity of pure and safe water etc. have made the bottled water business quite
lucrative. In addition with getting pure drinking water from municipal taps in cities
and towns becoming a luxury the scenario has become so lucrative in business sense
that the opportunity is being misused by a number of companies especially in our
country. These companies are selling plain tap water under the name of mineral
water and are be-fooling consumers. The situation has got aggravated by lack of
awareness among common people about mineral water and also due to lack of
initiatives on part of the government both on count of setting stringent norms as well
as on taking action against non-compliers. In fact one of the major factor for
flourishing of the sector is the public fear that water supplied by civic bodies is
impure.
_______________________________________________________________________
_
____________________________________________________________________
_
1.1 HISTORY OF MINERAL WATER
INTERNATIONAL SCENARIO:
POPULARITY OF MINERAL WATER:

The tradition of bottled water and mineral water is not very old. Even in western
countries the practice of bottled drinking water started in 1950s. The trend of having
mineral water gained grounds in the market.
Since ancient time people have used water from mineral springs, especially hot springs,
for bathing due to its supposed therapeutic value for rheumatism, arthritis, skin diseases,
and various other ailments. Depending on the temperature of the water, the location, the
altitude, and the climate at the spring, it can be used to cure different ailments. This
started the trend of using mineral water for drinking purpose to exploit the therapeutic
value of the water. This trend started gaining momentum in mid 1970s and since then
large quantities of bottled water from mineral springs in France and other European
countries are exported every year.
The concept of bottled has been quite prevalent in western countries due to greater health
consciousness and higher awareness about health and hygiene. The international
standards regarding bottled water are so stringent that for a particular brand of water to be
certified as bottled water it has to get approvals on four levels: federal, state, trade
association and individual company levels.
In United States, the bottled water industry is regulated on four levels: federal (by the
U.S. Food and Drug Administration as a food product), state, industry association, and
individual company. EPA (Environment Protection Agency) regulates public water
systems. FDA regulates bottled water that crosses state lines.
_______________________________________________________________________
_
____________________________________________________________________
_
SOME OF THE STANDARDS GOVERNING THE BOTTLED WATER INDUSTRY IN

US ARE:
 Water is classified as bottled water or drinking water, if it meets all applicable

federal and state standards, is sealed in a sanitary container and is sold for human
consumption.
 Bottled water cannot contain sweeteners or chemical additives (other than flavors,
extracts or essences) and must be calorie-free and sugar-free.
 Flavors, extracts and essences -- derived from spice or fruit -- can be added to
bottled water, but these additions must comprise less than one percent by weight
of the final product.
 Beverages containing more than the one-percent-by-weight flavor limit are
classified as soft drinks, not bottled water.
 Bottled water may be sodium-free or contain "very low" amounts of sodium.
 Tap water uses Chlorine as a disinfectant bottled water uses Ozone as a
disinfectant.
 Bottled water should not contain chlorine.
_______________________________________________________________________
_
____________________________________________________________________
_
1.2 HOW IS BOTTLED WATER DIFFERENT FROM TAP WATER?
Consistent quality and taste are two of the principal differences between bottled
water and tap water. While bottled water originates from protected sources - largely from
underground aquifers and springs - tap water comes mostly from rivers and lakes.
Another factor to consider is the distance tap water must travel and what it goes through
before it reaches the tap. In compliance with international regulations, bottled water is
sealed and packaged in sanitary containers. If a bottled water product is found to be
substandard, it can be recalled. This can't happen in case of tap water.
According to regulations in the US, when bottled water is source from a community
water system the product label must state so clearly. However, if the water is subject to
distillation, deionization or reverse osmosis, it can be categorized that way, and does not
have to state on its label that it is from a community water system or from a municipal
source.
Processing methods such as reverse osmosis remove most chemical and microbiological
contaminants.
_______________________________________________________________________
_
____________________________________________________________________
_
1.3 TYPES OF WATER
1. ARTESIAN WELL WATER:

Bottled water from a well that taps a confined aquifer (a water-bearing underground
layer of rock or sand) in which the water level stands at some height above the top of
the aquifer. Another name for bottled water. Accordingly, drinking water is water that
is sold for human consumption in sanitary containers and contains no added
sweeteners or chemical additives (other than flavors, extracts or essences). It must be
calorie-free and sugar-free. Flavors, extracts or essences may be added to drinking
water, but they must comprise less than one-percent weight of the final product or the
product will be considered a soft drink.
2. MINERAL WATER:
Bottled water containing not less than 250 parts per million total dissolved solids
may be labeled as mineral water. Mineral water is distinguished from other types of
bottled water by its constant level and relative proportions of mineral and trace
elements at the point of emergence from the source. No minerals can be added to this
product.
3. PURIFIED WATER:
Water that has been produced by distillation, deionization, reverse osmosis or other
suitable processes can be labeled as purified bottled water. Other suitable product
names for bottled water treated by one of the above processes may include "distilled
water" if it is produced by distillation, "de-ionized water" if the water is produced by
deionization, or "reverse osmosis water" if the process used is reverse osmosis.
4. SPARKLING WATER:
_______________________________________________________________________
_
____________________________________________________________________
_
Water that after treatment and possible replacement with carbon dioxide contains the
same amount of carbon dioxide that it had at emergence from the source.
5. SPRING WATER:
Bottled water derived from an underground formation from which water flows naturally to
the surface of the earth. Spring water must be collected only at the spring or through a
borehole tapping the underground formation finding the spring.
6. WELL WATER:
Bottled water from a hole bored, drilled or otherwise constructed in the ground, which taps
the water of an aquifer.
_______________________________________________________________________
_
____________________________________________________________________
_
1.4 PURIFICATION PROCESS
Purity and safety are two major factors that should be taken care in sourcing and
processing of bottled water. Under ground water is used by it for filling the water.
Underground spring is carefully selected based on its portability and pathogen free water.
Great care goes in tapping this source. Only water below 25 meters is tapped. This is to
avoid any surface contamination to percolate and mix with underground water source.
Area surrounding the water collection tube at the surface is protected and kept clean.
The under ground water goes through seven stages of purification process which is as
follows:
1) CHLORINISATION :
First of all water is taken out from six bore wells and stored in the tank and chlorine is
mixed in it. This is done to remove bacteria from water.
2) SAND FILTRATION:
Chlorine mixed water is passed through seven layers of
sand in a tank. This way all the major bacteria are taken out from water.
3) CARBON FILTER:
After sand filtration water is passed through carbon filter to remove the
chlorine that was mixed earlier.
4) ULTRA FILTRATION:
Under this method water is passed through a filter, which has the pores of
_______________________________________________________________________
_
____________________________________________________________________
_
.2 microns, and even the biggest r of bacteria is of .5 microns, hence
through this filter even the remotest bacteria and dust particles are taken out.
5) REVERSE OSMOSIS:
As per the law TDS (total dissolved solids) are required to be maintained at
the level of 70 - 110 ppm, through reverse osmosis TDS is maintained at
100 ppm.
6) OZONISATION:
Under this method ozone gas is mixed with water.
7) ULTRA FILTRATION:
Under this method ultra violet rays are passed through the water to kill water. This is
basically a precautionary step to purify water as after reverse osmosis
no bacteria remain in water.
After whole this process at last step bottles are passed through a white screen where a
quality in charge inspect each and every bottle to ensure that there are no dust particles in
the bottles and if they are found then those bottles are rejected.
_______________________________________________________________________
_
____________________________________________________________________
_
1.5 LABELLING
STANDARD PERTAINING TO LABELING OF PRODUCT IN THE INDUSTRY:
Label should have consumer brand name.

Label should have the name of the product category.
Label should have name and address of the manufacturer.
Label should have net weight or volume.
Label should have the batch number.
Label should have the name of source or place of origin of the product.
Label should have the date of packaging.
Label should have the date of expiry.
Label should have direction for storage.
Label should have treatment for disinfections.
Label should have the license or certification from the concerned authority.
_______________________________________________________________________
_
____________________________________________________________________
_
2 BACKGROUND OF INDIAN SCENARIO
In 1967 Bisleri set up a bottling plant for manufacturing and marketing its mineral water
but failed. The brand was later sold off to Parle in 1968-69. Mineral water market had its
seeding as early as 1968-69 when Parle Group acquired the Bisleri brand from Bisleri of
Italy for launching Soda water but later launched bottled water also. The launch at that
time was a big flop as concept of buying water that too in bottled form was not accepted
by the Indian public. The market remained dormant for quite long (for a period of 20
years or so). The market through out this period was formed only by the premium
products that too available through 5-star hotels. In early 1990s with onset of
liberalization policy by the Indian government , coming in of cola majors, sell off of local
soft drink brands of Campa, Thumps up, Gold Spot etc by Parle to Coke and other factors
led Bisleri to test waters again. Bisleri re-launched its bottled water in 1994. By this time
with exposure of media and exposure to international life styles, deteriorating levels of
potable water, increase in a number of water borne cases, increase in awareness about
health and hygiene and other related factors led to acceptability of concept of mineral
water. The market has not looked back ever since then and has grown leaps and bounds
to such an extent that a number of genuine as well as fly-by -night operators have entered
it to milch it.
_______________________________________________________________________
_
____________________________________________________________________
_
2.1 BIG PLAYERS KEEN TO GET INTO BOTTLED WATER
The Rs. 500 crore bottled water market is witnessing hectic activity with many players
entering the fray in the last one-year and still more to come. Part of the fast moving
consumer goods (FMCG) sector, bottled water is the only segment to have shown
phenomenal growth of about 50 per cent in the last one year.
Hindustan Lever (HLL), the consumer goods giant, has initiated plans to enter this sector.
The company is considering whether to set up its own facilities for bottled water or go in
for an acquisition.
Nestle India is the latest to enter this market with the launch of its brand `Pure Life' in
New Delhi last week. It plans to grab a 50 per cent market share in the next two years and
emerge as a strong player. The company has not ruled out acquiring existing brands. The
product will be available in other cities as well soon. The water is bottled at Nestlé’s new
plant at Samalkha in Haryana. Nestle has already launched two of its global premium
mineral water brands `Perrier' and `San Pellegrino' which are targeted at niche markets.
The market is expected to continue to grow at a healthy clip. In fact, in the last two years,
there has been a doubling of growth. Major players include Parle Bisleri, Parle Agro,
Coca Cola, PepsiCo, and among domestic players UB and Britannia. The success of
bottled water could be attributed to two factors. First, it has been an underdeveloped
business for a while now and, second, soft drink manufacturers have priced themselves
out by a long shot. The prices of soft drinks have, in fact, doubled in the last ten years and
this has happened because the price of concentrates has shot up during this period.
In fact, soft drink major Coke launched its Kinley brand of bottled water and Pepsi its
_______________________________________________________________________
_
____________________________________________________________________
_
global brand Aquafina. Pepsico is reportedly contemplating two more pack sizes for its
bottled water. Kinley's new product follows the launch of `Chhotu' Bailley, which is a
350 ml bottle introduced by Parle Agro. Kinley water was launched in August 2000 in
one-litre bottles for Rs.10. The water is produced at Coca-Cola's three Greenfield
manufacturing plants at Bidadi near Bangalore, Dasna in Uttar Pradesh and Goa. The
company plans to either add more water bottling operations or go for contract bottling as
it goes national.
Marketing Consultants, with a current market share of 38%, Bisleri offers the maximum
number of pack sizes. Kinley follows it with a 28% share. The other brands including
Aquafina and Bailley constitute 11% & 6% per cent market share in the bottled water
market.
The Samsika survey further says that there are as many as 186 brands in the water
market. Out of this, two are national brands, 17 regional and 167 local brands.
Apollinaris, a natural sparkling mineral water brand, has been introduced close on the
heels of Nestle coming out with its sparkling water brands - Perrier and San Pellegrino.
The product is being imported and distributed by the Mumbai based company, Veekay
Food & Beverages. It is now available at restricted retail outlets in Mumbai and Delhi
and a separate sub-brand is simultaneously being launched to take care of institutional
sales.
It is also being launched under the sub-brand of Big Apple and Lemon. But the product is
in a different price bracket altogether with the 750 ml Apollinaris Big Apple pegged at
Rs. 99 and the one litre Apollinaris Classic sparkling water at Rs. 90.
With over 200 players jostling to be the thirst-quenching favorite of the Indian consumer,
the business is growing at a rate of over 50 per cent annually. The country's bottled
water business is estimated to be around Rs. 1,100/- crore, of which the branded
_______________________________________________________________________
_
____________________________________________________________________
_
market accounts for Rs. 700 crore and about 700 million litres in volume.
India’s 1 billion plus population needs between 1-2 billion litres a day.
More than 200 brands of bottled water are being retailed across the country.
An estimated 850 million liters of bottled water is bought every year.
sales
100
80
60
sales
40
20
0
rainy winter summer
As we can see from the diagram above that most of the sales of Bottled water comes in
the summer season. Therefore, the right time to launch such type of product is summer
season.
In monsoon time also a good response can be generated because there are people who are
very much conscious of their health and this makes them to go for packaged water.
Therefore, the sales are good in rainy season.
In winter season the sales are very low because of climatic conditions.
_______________________________________________________________________
_
____________________________________________________________________
_
2.2 POPULATION
MUMBAI MARKET POPULATION :

Estimates of the present population are in the range of 14 to 15 million. The 1992
census found that 12.5 million people lived in the Mumbai Metropolitan Region. Of
these, 9.9 million lived in Greater Mumbai.
Mumbai's population has grown most rapidly in the years after India's independence.
In the decade between the censuses of 1982 and 1992, there have been some signs of
a leveling off in the growth.
YEAR WISE COMPARISON:
YEAR WISE POPULATION
2005
2000
1995
1990
1985
1980
8.5 MN 12.5 MN 15 MN
_______________________________________________________________________
_
____________________________________________________________________
_
YEARS POPULATION
1982 8.5 Million
1992 12.5 Million
2002 15 Million
POPULATION ACCORDING TO AREA:
YEARS GREATER MUMBAI REST OF MUMBAI

1992 9.9 Million 2.6 Million
2002 10.5 Million 4.43 Million
_______________________________________________________________________
_
____________________________________________________________________
_
POPULATION AS PER AGE COMPOSITION:
Population - AgeClassification
5%
37% 0-14
15-69
69 +
58%
AGE PERCENTAGE POPULATION

0 - 14 37% 8.7 Million
15 - 59 58% 5.55 Million
60 Above 5% 0.75 Million
NOTE:
* All the figure for 2002 are estimated
_______________________________________________________________________
_
____________________________________________________________________
_
Source: Report On Population, Tata Energy Institute, New Delhi.
2.3 PER CAPITA CONSUMPTION
Overall per capita consumption is merely 0.04% (Source Financial Express). Nearly 80
per cent of the demand for bottled water comes from metros.
20 LITRES JAR:
SR . NO CITY / AREA JAR PER OFFICE
1 SOUTH MUMBAI 44
2 NORTH MUMBAI 50
3 WEST MUMBAI 48
4 EAST MUMBAI 60
5 TOTAL 202 JAR PER OFFICE
MARKET SIZE BY VOLUME AND VALUE :
The market size of Packaged Drinking Bottled water is around 1000 crore, and Mumbai
market constitute around 10% which is 100 crores. Market has grown by around 500
crores in the last few years. Current growth rate estimated is 55%, which is one of the
highest of all industries.
_______________________________________________________________________
_
____________________________________________________________________
_
2.4 BRANDS AVAILABLE :
Various brands that are available in Mumbai. Few of them are as follows:
BRANDS LITRES - 1 LITRE. ETC 20 LITRES
Bisleri Yes Yes
Kinley Yes Yes
Aquafina Yes No
Bailley Yes Yes
Brilliant ** Yes Yes
Hello ** No Yes
Spakel Yes Yes
Harnil * No Yes
Apurva * No Yes
Bally * No Yes
Krishna* No Yes
_______________________________________________________________________
_
____________________________________________________________________
_
2.5 RETAIL OUTLETS
There are above 1,00,000 retail outlets in Mumbai.
SR. NO CLASSIFICATION PERCENTAGE

1 GROCERY & GENERAL STORES 40%
2 DEPARTMENTAL STORES 03%
3 COLD DRINK HOUSE 02%
4 HOTELS & RESTAURANTS 5%
5 BEER BARS 02%
6 PAN BIDI SHOPS 28%
7 OTHERS 20%
_______________________________________________________________________
_
____________________________________________________________________
_
2.6 BRAND WISE SHARE
Others
17%
Bisleri
Bailley 38%
6%
Aquafina
11%
Kinley
28%
BRAND WISE MARKET SHARE %
The ORG-MARG survey conducted recently shows that the market leader Bisleri is
having 37.6% market share followed by Kinley, Aquafina, Bailley and others with 28.2%,
11.11%, 5.7% and 17.4% respectively.
One thing is very clear from the two surveys conducted that the market leader is Bisleri
with Kinley, Aquafina, and Bailley are the trailers, and now with Manikchand into
mineral water, the competition is becoming tough.
_______________________________________________________________________
_
____________________________________________________________________
_
3. MARKET CATEGORISATION
The market of packaged drinking water is categorized as follows:

Ø Theatres / cinema halls/ multiplexes.
Ø Corporate.
Ø Caterers.
Ø Picnic spots, Clubs, Gymkhanas.
Ø Hotels, Resorts.
Ø Resorts.
Ø In-flight kitchens.
Ø College canteens.
Ø General Stores etc.
_______________________________________________________________________
_
____________________________________________________________________
_
3.1 CATERERS
BrandShare:
24%
Bisleri
44%
Bailey
Kinleys
McDowell
12%
Brookes
Others
10%
7% 3%
POPULARITY OF VARIOUS BRANDS AMONG CATERERS
_______________________________________________________________________
_
____________________________________________________________________
_
Usage Pattern:
USAGE
65%
users
non users
35%
USAGE PATTERN IN CATERERS
_______________________________________________________________________
_
____________________________________________________________________
_
Payment Terms:
PAYMENT IN TERMS - CATERERS & GYMKHANA
26%
Cash
Credit
74%
Other Findings:
_______________________________________________________________________
_
____________________________________________________________________
_
 Price closely followed by Service, Storage, Ease of operation & Availability are the
key factors affecting the buying decision process. They are willing to pay only unto a
maximum of Rs 2.50 per liter which is too below the price that any branded player can afford
to sell
 Credit is a key factor that was revealed by most contractors after intensive probing.
The credit period expected by most was from 15 days to a month. They mostly avoid dealing
directly with companies for this very reason & prefer to buy through the company’
intermediaries who provides them the necessary credit
 Most contractors expect the provider to supply directly to the wedding/party site, as
they generally do not have the space to stock the bottles.
 Brand name has absolutely no relevance to them
3.2 CINEMAS
Brand Share:
MARKET SHARE OF VARIOUS BRANDS IN CINEMA HALLS IN 1 LITRE

PACK
_______________________________________________________________________
_
____________________________________________________________________
_
BIS LERI
BAILLEY
11%
19%
BISLERI
A'FINA
KINLEY
18%
A'FINA
BAILLEY
KINLEY
52%
Payment Terms:
Here payment is done by both the ways i.e. :
By CASH -
PAYMENT TERMS - IN CINEMA HALLS
_______________________________________________________________________
_
____________________________________________________________________
_
Credit
30%
Cash
Credit
Cash
70%
Frequency of Visit: Twice a week
Other Findings:
Price closely followed by Brand Name, Convenience, & Service are the important factors that
affect the buying decision process
Cinema halls, Cyber Cafes, Bowling Alleys, Video game parlors are some places where
people generally go to have a nice time.
The average time that a person spends at the above ranges between 2-5 hours for a cinema hall
to an hour for a cyber café.
The above centers already have the kiosks of the cola companies like Coke, & Pepsi along with
the vending machine of Nescafe. Thus there definitely is a potential for the introduction of a
kiosk vending pure water in these categories of outlets
Purchase frequency would vary to as low as thrice a month in a cyber café to as high as twice a
week in case of Amusement parks like Essel world & Water Kingdom
_______________________________________________________________________
_
____________________________________________________________________
_
3.3 HOTEL AND RESTAURANT
Availability Share:
4%
9%
36% Bisleri
21% Kinleys
AquaFina
Bailey
Others
30%
AVAILABILITY SHARE - HOTELS & RESTAURANTS
Payment Terms:
_______________________________________________________________________
_
____________________________________________________________________
_
35%
Cash
Credit
65%
PAYMENT TERMS - HOTELS & RESTAURANTS
Service Frequency: Alternative Day
Findings:
 Price closely followed by Service, Taste of water and Ease of operation are the
important factors that affect the buying decision process.
 Hygiene is a very important factor when a customer decides to snack/eat in a
particular outlet. More so when we interviewed food stalls in Juhu Chowpatty a
majority of the food stall owners said that they now provide their customers with
the 1 liter Bisleri bottle as many customers refuse to accept the water offered to
them.
 Respondents showed a fair level of brand awareness but there was no distinct
preference to any particular brand. Bisleri had a fair level of unaided recall vis-à-
vis other brands like Bailey, Kinley, etc.
_______________________________________________________________________
_
____________________________________________________________________
_
3.4 RETAIL OUTLET FINDING:
Small Space
Less Quantity and more frequency of purchase
Prefer Credit facility
Look out for schemes.
Bigger Margin, More preferences.
_______________________________________________________________________
_
____________________________________________________________________
_
4. BRAND WISE DETAILS
A Survey Format of ‘Distribution- Network’ of “Packed Bottled Water”
Name of Company:
Brand:
Name of Distributor:
Area:
Address & Tel. No:
No. of vehicles used:

Company Owned:
Distributor Owned:
Total:
List of Staff Appointed for Distribution

A.S.M. S. Rep. Driver Loader
S. Officer
_______________________________________________________________________
_
____________________________________________________________________
_
4.1 PARLE BISLERI PRIVATE LIMITED
Company: Parle fisleri Private Limited.

Brand: Bisleri
Address: Parle Bisleri Pvt. Ltd., Western Eastern Highway, Andheri (E).
Product: Packaged Drinking Water
Design:
Quality: ISI Marked.

Packaging: Pet Bottles
Target Market Segment: Health Conscious people
Positioning: Safe Water
Trade Promotion: Corporate Event, Play safe Campaign, Mobile Van,
Stressing on Seal
Distribution:
q Bottling plant (Andheri)
For 1 Litre, etc.

The Company directly approaches the retailer. They have tracked Mumbai through
various routes and accordingly they service. Their major hub is Santacruz, Vile Parle &
Andheri in Suburbs.
_______________________________________________________________________
_
____________________________________________________________________
_
Schemes:
One Litre
One Box free on 5 Box
Half Litre
One Bottle free on 1 Box
For 20 Litre. jar
Bisleri sell their product through their own network and they have also appointed
Distributors for each area to sell their product.
Bisleri-DISTRIBUTOR Details for 20 Ltr.- South Mumbai
Distributor: Nos. 16
Average sales per Distributor: 110 Jar per day.
Vehicle: Nos. 7 (for Distributor)
MRP: Rs. 60
Net Cost Price (for Distributor): Rs. 43
Margin of Rs. 17 (39.53%)
Bisleri on their Own. (South Mumbai)
Service Frequency: Alternate days
Vehicle: Nos. 12
_______________________________________________________________________
_
____________________________________________________________________
_
Manpower per Vehicle
1 loader
1 Driver
1 salesmen
Schemes:
1 Jar Free on 10 jars.
88 Jars free on 700 jars, if bought within 4 days.
All Schemes are for Distributors in South Mumbai.

Distribution channel
Distribution Weakness: Company is not addressing the compliant from distributor and
end user.
Company does not use Polycarbonate Jars in 20 Litre, which result in loss of face value
and ultimately losing customer.
_______________________________________________________________________
_
____________________________________________________________________
_
4.2 HINDUSTAN COCA COLA BEVERAGES PRIVATE LIMITED
Company: Hindustan Coca cola Beverages Private Limited
Brand: Kinley
Design:

Packaging: Pet Bottles, Polycarbonate Jars
Trade Promotion: Effective TV ads (Boond Boond mein vishwas), Banking on Parent
Brand, Mobile Van.
Distribution:
q Bottling plant (Wada, Thane District)
Three C&F for catering Mumbai Market

Vidyavihar
Kandivali
Sewri
_______________________________________________________________________
_
____________________________________________________________________
_
For 1 Litre. etc.
various routes and accordingly they service.
Schemes:
One Litre
One Box free on 2 Box (Net Rs. 80 per Box)
Half Litre
No scheme
For 20 Litre. Jar

Kinley sell their products through their own network only. They have appointed HDA
(Home delivery Agent) for some area to sell their product.
Service Frequency: Alternate days

1 loader
1 Driver/salesmen
1 salesmen
MRP: Rs. 65
Lowest Selling Price to Corporate Rs. 50.
Distribution Weakness:
Not been able to penetrate in interior area since they have not appointed Distributors in
most of the area.
_______________________________________________________________________
_
____________________________________________________________________
_
4.3 COMPANY: PEPSICO INDIA LIMITED
Brand: Aquafina
Quality: ISI Marked
Packaging: Pet Bottles
Trade Promotion: Banking on Parent Brand, Banners.
Distribution:
 Bottling plant (Chembur, Roha)
 Distributor for catering Mumbai Market
o v Jogeshwari
o v Sewri
o v Chembur, Kanjur Marg
 Resources
o v Large Vehicle (Soft Drink Vehicle
_______________________________________________________________________
_
____________________________________________________________________
_
For 1 Ltr. etc.
Schemes:
One Litre
One Box free on 3 Box (Net Rs. 80 per Box)
Half Litre
No scheme
For 20 Ltr jar

The Company has not entered the 20-litre Packaged water Market
‘Distribution Weakness:
It seems that the Company is not pushing their packaged water brand “Aquafina” and
concentrating on Beverages market.
Many times their products are not available in the market.
Aquafina packaged Bottles water is given in a scheme to promote their Beverages brand.
_______________________________________________________________________
_
____________________________________________________________________
_
4.4 COMPANY: PARLE AGRO PRIVATE LIMITED.
Brand: Bailey
Quality: ISI Marked
Trade Promotion: Mobile Van
Distribution:
q Bottling plant (Patalganga, Panvel)
q Two Godowns to cater Mumbai Market

Jogeshwari
Vikroli
_______________________________________________________________________
_
____________________________________________________________________
_
For 1 Ltr. etc.

For 20 Ltr. jar

Bailey sells their product through their own network in South Mumbai. They have
appointed Distributors in North Mumbai and other parts.
Service Frequency: Twice in a Week.
Vehicles: There are 2 dedicated Vehicles for South Mumbai. (20 Ltr jar)
1 loader
1 Driver/salesmen
MRP: Rs 60
Net Cost Price to Distributor: Rs. 46-48
Margin to Distributor: Rs. 14
The Company is losing out its share on every front.
Lethargic Approach towards Market.
No Advertisement, Lack of Aggressiveness.
_______________________________________________________________________
_
____________________________________________________________________
_
4.5 COMPANY: BAISARA
Brand: Himalayan
Product: Natural Mineral Water
Quality: ISI Marked

Positioning: Mineral Water
Trade Promotion: Direct Selling
Distribution Channel:
q Bottling plant (Himachal Pradesh)
For 1 Ltr. etc.
The Company is targeting Star Hotels and has penetrated in most of the star Hotels.
MRP Rs. 15 (One Litre)
For 20 Ltr. jar

They have not ventured the 20 Litre Market.
_______________________________________________________________________
_
____________________________________________________________________
_
 Not been able to penetrate in the Market
 Failed to create awareness for their USP
 Low on Advertisement and other awareness program
Other Information
 It is an ISO-9002 certified Company
 The Company is one of the integrated natural Mineral water bottling plant in Asia
 It is a subsidiary of Balsara group for Companies
_______________________________________________________________________
_
____________________________________________________________________
_
4.6 COMPANY: BRILLIANT

Quality: ISI Marked
Positioning: Pure Water
Trade Promotion: Direct Selling, Push Strategy
Distribution:
For 1 Ltr. etc.
The Product is available at very few selected places Company direct handle the
distribution of their product.
MRP: Rs. 12 (One Litre)
For 20 Ltr. jar

They have appointed 4 Distributors in South Mumbai. (Nariman Point, Nepeansea road,
Fort, Central Mumbai)
MRP : Rs. 70
Net CP to Distributor: Rs. 52
_______________________________________________________________________
_
____________________________________________________________________
_
Deposit: Rs. 350 per jar
* Can be the Biggest Competitor to KINLEY in the near future in the 20-litre segment?
v Not been able to penetrate in the Market.
v Low on Advertisement and other awareness program.
_______________________________________________________________________
_
____________________________________________________________________
_
4.7 COMPANY: HELLO
Packaging: Pet Bottles, Carbonated Jars.
Trade Promotion: Direct Selling
Distribution:
1. Bottling plant (MIDC, Andheri)

2. Three Company owned Stockist (MIDC, Dhobitalao)
3. Large Vehicle (Nos. 4)
For 1 Ltr. etc.
The Company deals only in Jars (24 litre and 20 litre)
For 20 Ltr. jar

Hello sells their product through their own network consuming 1000 jars per day.
_______________________________________________________________________
_
____________________________________________________________________
_
Resources With Hello for 20 Ltr - South Mumbai
Stockist: 1
Average sale per Stockist: 350 Jar per day.
Vehicle: 1 Large Vehicle for Distributor and 2 three-wheeler.
MRP: Rs. 72 for 24 litres
MRP: Rs. 60 for 20 Litre

v 1 loader
v 1 Driver
v 1 salesmen
v Lack Aggressiveness
v Slow and steady approach
Other Information
USP:
24 Litre Jars.
Handle in the Jars.
_______________________________________________________________________
_
____________________________________________________________________
_
5. SWOT ANALYSIS OF THE PACKAGED WATER

INDUSTRY
STRENGTH
ØThe industry is growing @ 40%.
ØIn India the market is huge & untapped
ØGrowing awareness among the people about the importance of mineral water
WEAKNESS
Ø Many players entering in the race.
Ø Any local person can start manufacturing.
Ø Rural population is not using the packaged water.
Ø Not very economical
Ø Quality not properly maintained e.g. Bisleri & hence has bad effect on the whole
OPPORTUNITY
Ø Sustained Market growth increase in coming years

Ø Literacy rate growing and hence the awareness of safe drinking water to avoid the
diseases.
Ø Huge population & untapped market.
THREAT
Ø Many substitutes available

Ø Too many players will dilute the market & the profit margin
_______________________________________________________________________
_
____________________________________________________________________
_
6. MARKET SEGMENTATION
The mineral water market is segmented according to the type of consumers:

Ø Foreign Tourists:
Foreign tourists have been the main consumers of the mineral water as they
face a lot of digestion problems due to different food habits.
Ø Domestic Tourists:
Domestic tourists have switched to mineral water mainly because of safety
and hygiene factors.
Ø Fashion Conscious:
Like soft drinks, drinking mineral water is also considered fashionable by
some people.
The mineral water consumer is mainly in the age group of 20-
35 years and is an educated middle class person. This is also the
segment of fruit drinks, which have usually been positioned as fun
and health drink for young adults.
The mineral water market is also segmented along pack sizes:

Ø One litre bottle: it is meant to spell safety and security for
consumers. It is positioned on a prestige platform for the achiever
segment - who like to make a fashion statement by drinking mineral
water. This segment gets the maximum sales.
Ø 500ml bottle: This size has been introduced in the market to target
the individual and local travelers.
Ø PET bottles: The size of the PET bottles varies from 10 to 20 litres.
These are mainly for institutional sales (Wedding parties, Hotels,
Corporates, etc.)
_______________________________________________________________________
_
____________________________________________________________________
_
7. CONSUMER HABITS AND PRACTICES
Ø Consumers are growing more health conscious and are more careful of their
drinking habits.
Ø Brand loyalty is very low as all the products taste the same so they can buy
just any product which is on the shelf, same as that of soft drinks and fruit
beverages.
Ø Availability in the chilled form and brand awareness plays a crucial role in
purchase decisions.
Ø While there is no aversion to consumption of mineral water by any age

group, this product is mainly consumed by the people in the age group of 20-
35 years who have less attraction of soft drinks or other synthetic drinks
whereas youngsters look in for soft drinks and fruit beverages to quench their
thirst.
Ø Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them
_______________________________________________________________________
_
____________________________________________________________________
_
8. LEGAL REQUIREMENTS
The bottled water industry is governed by PFA and BIS standards. Some of the key
highlights of these legislations are:
Ø Mineral water is covered under the Prevention of Food Adulteration Act
(PFA), while drinking water is not under its preview.
Ø Drinking Water is excluded from the purview of the (PFA) Prevention of Food
Adulteration Act, 1954. Except for the specification that water used in the
preparation of a food article shall be free from micro organisms likely to cause
diseases and should be free from chemical constituents that might impair
health.
Ø The Prevention of Food Adulteration Act (PFA) of 1954, whose stipulation is
mandatory, has set standards only for mineral water and defines it as water
obtained directly from potable natural or drilled sources that contain a
substantial amount of non-toxic, health-related mineral salts.
Ø The PFA rule on mineral water is that it must be free from dirt, foreign matter
or any other ingredients injurious to health and has to be packed in clean and
sterile containers.
Ø The Bureau of Indian Standards (BIS) has provided standards for both
drinking water and mineral water but compliance hitherto was voluntary
Ø To regulate the quality and price of bottled water, BIS approval has been made
mandatory w.e.f. end of 1999
Ø Mineral water shall be packed in clean, colourless, transparent and tamper-
proof bottles made of polyethylene conforming to the IS 10146 standards.
Ø The standards laid down under PFA Act do not prescribe any minimum
quantity of minerals to qualify as mineral water.
Ø Hitherto Indian laws do not stipulate the minimum mineral content level
required for water to be labelled as a mineral water
Ø The BIS does not lay down any guideline or practice for processing water.
_______________________________________________________________________
_
____________________________________________________________________
_
Ø There is no specific industrial licensing policy for the bottled-water sector.

Thus any one can set up a plant can do so without establishing the source of
the water and the technology used to purify it.
Ø Both the PFA Act and BIS state that the water must be completely free of
bacteria like salmonella, E-coli, faecal streptococci, v. cholera and shigella
that cause a range of illnesses such as cholera, typhoid, dysentery and various
types of gastro-enteritis
Ø Both the PFA and BIS lay down standards for metals like lead, mercury,
arsenic, aluminium and barium which cause a range of disorders
Ø The BIS lays down a minimum of 150mg/l and a maximum of 700 mg/l of
TDS for mineral water.
Ø The PFA rules do not prescribe any minimum TDS levels but does mention
the maximum of 1500mg/l
Ø There are no government laboratories for testing water samples for all the
parameters involved
_______________________________________________________________________
_
____________________________________________________________________
_
9. TAXES & ADVERTISING STRATEGIES
The cost of processing the water is around 20-30 paise/litre the major cost is of the
taxes
Also the taxes are quite high. The taxes are as under:
SR.N Types of Taxes charged & %

O cost incurred. contributio
n
1 Octroi 4.5
2 Sales Tax 7.5
3 Excise 15
4 Transportation 10
5 Distribution Margin 12
6 CNF’s 2-3
7 Retailers Margin 40
8 Advertising – cost varies --
_______________________________________________________________________
_
____________________________________________________________________
_
ADVERTISING
Advertising is any paid form of non-personal presentation & promotion of ideas, goods or
services by an identified sponsor.
Modes of advertising:
Ø Newspapers, billboards, glow signs, banners, inflatable etc.
Ø TV.
Ø Mails.
Ø Radio.
Ø Magazines.
Ø Yellow pages.
Ø Newsletters.
Ø Brochures.
Ø Telephone.
Ø Internet.
_______________________________________________________________________
_
____________________________________________________________________
_
10. CSE REPORT ON MINERAL WATER BRANDS
Your bottled water is contaminated by pesticides. Gaping holes in regulations and

corporate irresponsibility in the fastest growing segment of the beverage industry
make a mockery of public health
New Delhi, February 4, 2003: We take it for granted that the bottled water we drink is
safe. But a Down To Earth exposé, based on tests conducted by the Pollution Monitoring
Laboratory of the Centre for Science and Environment (CSE) shows otherwise.
After analysing 17 brands of packaged drinking water sold in and around Delhi and 13
brands from the Mumbai region, the CSE lab found the samples to contain a deadly
cocktail of pesticide exceeding the standards specified as safe for drinking water.
The samples had enough poison to cause in the long term, cancer, liver and kidney
damage, disorders of the nervous system, birth defects, and disruption of the immune
system. Pesticides do not kill immediately, but can cause irreparable health disorders as
they accumulate in the body fat.
The CSE lab tested for two types of pesticides: organochlorine and organophosphorus.
The findings were appalling. The four most commonly found pesticide residues were
lindane, DDT, malathion and chlorpyrifos. Using European Economic Commission
norms for maximum permissible limits for pesticides in packaged water, the CSE lab
tests of samples from the Delhi region showed that on average, each sample contained
36.4 times more pesticides than the stipulated levels. The Mumbai samples were a shade
better, primarily because the source water used by the industry was relatively less
contaminated.
CSE used European norms because the standards set for pesticide residues by the Bureau
of Indian Standards (BIS) are vague and undefined. The standards say, "pesticide
residues shall be below detectable limits". This, one would assume, means that there
ought to be no pesticide residues at all in the bottled water. But no, it actually means that
_______________________________________________________________________
_
____________________________________________________________________
_
one should not be able to find the pesticide residues in the water. The BIS has specified
the methodology for detecting pesticide residues and this methodology, which is not very
sensitive, does not detect pesticides unless present in extremely high quantities.
Even for drinking water, the BIS norms specify that pesticide residues should be
"absent". What is plainly absurd is that if drinking water norms specify that pesticides
should not be present, how can packaged drinking water norms be so vague, and use a
non-quantifiable phrase, such as "below detectable limits"? Even going by drinking water
norms, all the bottled water brands tested by the CSE lab would fail the test of quality.
What was found?

Top seller Bisleri was third from the bottom, with pesticide concentration levels 79 times
higher than the stipulated limits (see graph). Kinley had concentration levels 14.6 times
above the maximum permissible amounts. Aquaplus — favoured by the Indian Railways
— topped the dubious list, crossing the limit by 104 times!
Contamination levels were significantly lower in packaged natural mineral water brands
Himalayan and Catch from Himachal Pradesh, a state with lower pesticide use.
In the Mumbai region, the worst brand was Oxyrich, with 16.7 times higher pesticide
concentration levels than the prescribed standards. Bisleri and Kinley fared better in the
Mumbai samples – they were ranked 7th and 4th respectively.
The lab also collected raw water from bottling plants to verify its findings. In all cases,
tests showed that the pesticides found in the source water matched the toxins found in the
bottled water — proof that the source of the pesticide residues is contaminated
groundwater. Plants manage to eliminate somewhere between 20 and 80 per cent of the
residues. But no regulations exist to ensure that bottled water plants are set up in clean
groundwater zones.
_______________________________________________________________________
_
____________________________________________________________________
_
The study is important because of the implications for public health. Pesticides ingested
in small quantities over time are known to have severe effects on the human immune
system. What will it take for regulatory bodies to tighten controls? Should the bottled
water industry be allowed to play havoc with public health and breach consumer trust?
_______________________________________________________________________
_
____________________________________________________________________
_
11. FUTURE OUTLOOK
While the unimaginable growth rates of more than 60% and even 100% can be
explained due to lower base the present growth rate of 25-30% is sustainable
for another 5-6 years. Today the demand of bottled water is increasing at a
much higher rate that that of carbonated soft drinks. The market size of bottled
water too is expected to surpass the size of soft drinks market in near future.
The next player which is waiting I wings to launch its brand in the market is
Nestle. Nestle had made its intentions very clear about its prospective entry into
the market early 2000. The company has already tasted success of its mass-
market brand, Pure Life in developing countries like Pakistan and Mexico. The
company is planning to launch the same brand in first quarter of the current
year. The next in queue seems to be HLL, which too has identified the bottled
water as a growth area for future. The company is presently looking or some
suitable brand for acquisition. Britannia too evinced some initial interest in the
market but now seems to have postponed its plans. The existing players too are
set to expand their distribution network to have their presence across the
country. The market is also expected to undergo a major consolidation phase.
As one of the major factors that's important for success in the market is the
distribution network, the players with deep pockets are expected to go for
acquisition of existing small regional players o spread their network across the
country. Already Coke has tied up with Yes for manufacturing of its brands in
areas where it doesn’t have presence. Though Coke and Pepsi have both, well
established distribution network as well as bottling & manufacturing plants,
they seems to be at an advantage but players like HLL and Nestle with strong
financial muscle can easily turn the tables in their favour through acquisition
route acquisitions. It is expected that the market would continue to grow at a
healthy rate of 25-30% for few years from now and the market size too, is
expected to increase to Rs17bn by 2004-5.
_______________________________________________________________________
_
____________________________________________________________________
_
Parle Bisleri chalks out Rs 260-cr growth thrust
Source : The Hindu Business Line

MUMBAI, March 9
THE Rs 400-crore Parle Bisleri Ltd will be investing Rs 260 crore for expanding its
facilities including its bottling capacity and distribution network.
This investment is expected to facilitate the company to achieve a turnover target of Rs
1,000 crore by 2003, said Mr Ramesh Chauhan, Chairman, Parle Bisleri Ltd.
The company will initially invest Rs 60 crore in expanding its bottling capacity from the
current 50 million cases to 200 million cases a day. The additional Rs 200 crore will be
invested in Bisleri's distribution network in the next years spanning 2,500 towns and
cities in India.
The fund requirement for this expansion plan will be met mainly through internal
accruals; Mr Chauhan said adding that plans for going for an initial public offering would
be taken up 2-3 years later if the need arises.
Parle Bisleri currently has 25 bottling units, a fleet of 2,000 vehicles and 1,20,000 retail
outlets spread across the country.
The company is targeting a distribution network of 10 lakh retail outlets backed by a fleet
of about 5,000 vehicles over the next two years.
The Bisleri brand, which holds a 60 per cent market share in the country's Rs 700-crore
branded mineral water industry, is growing at 70 per cent per annum, Mr Chauhan said.
_______________________________________________________________________
_
____________________________________________________________________
_
The company has introduced home delivery facility for its 20-litre pack which will be
delivered by a specially designed fleet, Mr Chauhan said.

He said the company is targeting a turnover of Rs 50 crore from its 20-litre jumbo
economy pack segment in the first year. This facility will be extended to 50 more centres
over the next six months.
Unperturbed by the stiff competition from multinational companies, Mr Chauhan said
Bisleri has been growing geographically. The company now plans to enter areas such as
Kerala and Madhya Pradesh where Bisleri's presence is negligible.
Pic.: Mr Ramesh Chauhan, Chairman, Parle Bisleri Ltd, at a press conference with the
20-litre mineral water jar.
_______________________________________________________________________
_
____________________________________________________________________
_
11. CONCLUSION
After seeing the different sales trends and market shares graphs, one can easily derive that
at present the foreign brands like Kinley & Aquafina are going share equally the market
share and the Indian companies like Bisleri & Bailey who show a good market share
would surely come down as the modern marketing skills and technologies used by Coke
& Pepsi would cover the large part of the market.
After the cola wars now as Manikchand has entered it has

become water wars. With Manikchand entering the industry with its excellent marketing
staff, latest technology & the financial strength I can see the shares of Kinley & Bisleri
going down & Manikchand is becoming the future leader after three yrs from launch.
_______________________________________________________________________
_
____________________________________________________________________
_
BIBLIOGRAPHY:
1. A & M Magazine
2. Financial Express
3. Business world
WEBSITES:
1. www.google.com
2. www.rediff.com
3. www.lycus.com
4. www.search37.com
5. www.yahoo.com
_______________________________________________________________________
_

Project On Mineral Water Industry

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Project On Mineral Water Industry

Uploaded by

Copyright:

Available Formats

A STUDY ON MINERAL WATER BOTTLES 1

1.1 HISTORY OF MINERAL WATER

POPULARITY OF MINERAL WATER:

SOME OF THE STANDARDS GOVERNING THE BOTTLED WATER INDUSTRY IN

 Water is classified as bottled water or drinking water, if it meets all applicable

1.2 HOW IS BOTTLED WATER DIFFERENT FROM TAP WATER?

1.3 TYPES OF WATER

1. ARTESIAN WELL WATER:

1.4 PURIFICATION PROCESS

STANDARD PERTAINING TO LABELING OF PRODUCT IN THE INDUSTRY:

Label should have consumer brand name.

2 BACKGROUND OF INDIAN SCENARIO

2.1 BIG PLAYERS KEEN TO GET INTO BOTTLED WATER

An estimated 850 million liters of bottled water is bought every year.

MUMBAI MARKET POPULATION :

YEAR WISE COMPARISON:

YEAR WISE POPULATION

POPULATION ACCORDING TO AREA:

YEARS GREATER MUMBAI REST OF MUMBAI

POPULATION AS PER AGE COMPOSITION:

AGE PERCENTAGE POPULATION

2.3 PER CAPITA CONSUMPTION

SR . NO CITY / AREA JAR PER OFFICE

5 TOTAL 202 JAR PER OFFICE

MARKET SIZE BY VOLUME AND VALUE :

2.4 BRANDS AVAILABLE :

BRANDS LITRES - 1 LITRE. ETC 20 LITRES

Bisleri Yes Yes

Kinley Yes Yes

Bailley Yes Yes

Brilliant ** Yes Yes

Spakel Yes Yes

There are above 1,00,000 retail outlets in Mumbai.

SR. NO CLASSIFICATION PERCENTAGE

BRAND WISE MARKET SHARE %

The market of packaged drinking water is categorized as follows:

POPULARITY OF VARIOUS BRANDS AMONG CATERERS

USAGE PATTERN IN CATERERS

PAYMENT IN TERMS - CATERERS & GYMKHANA

 Brand name has absolutely no relevance to them

MARKET SHARE OF VARIOUS BRANDS IN CINEMA HALLS IN 1 LITRE

PAYMENT TERMS - IN CINEMA HALLS

Frequency of Visit: Twice a week

3.3 HOTEL AND RESTAURANT

AVAILABILITY SHARE - HOTELS & RESTAURANTS

PAYMENT TERMS - HOTELS & RESTAURANTS

Service Frequency: Alternative Day

Less Quantity and more frequency of purchase

Prefer Credit facility

Look out for schemes.

Bigger Margin, More preferences.

4. BRAND WISE DETAILS

A Survey Format of ‘Distribution- Network’ of “Packed Bottled Water”

No. of vehicles used:

List of Staff Appointed for Distribution

Company: Parle fisleri Private Limited.

Quality: ISI Marked.

For 1 Litre, etc.

For 20 Litre. jar

Bisleri-DISTRIBUTOR Details for 20 Ltr.- South Mumbai

Average sales per Distributor: 110 Jar per day.

Vehicle: Nos. 7 (for Distributor)