Professional Documents
Culture Documents
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 2/3 rd 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.
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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.
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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: _______________________________________________________________________ _
A STUDY ON MINERAL WATER BOTTLES ____________________________________________________________________ _ 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.
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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 _______________________________________________________________________ _
A STUDY ON MINERAL WATER BOTTLES ____________________________________________________________________ _ .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.
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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.
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A STUDY ON MINERAL WATER BOTTLES 12 ____________________________________________________________________ _ 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 _______________________________________________________________________ _
A STUDY ON MINERAL WATER BOTTLES ____________________________________________________________________ _ market accounts for Rs. 700 crore and about 700 million litres in volume. Indias 1 billion plus population needs between 1-2 billion litres a day.
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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.
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.
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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
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A STUDY ON MINERAL WATER BOTTLES ____________________________________________________________________ _ YEARS POPULATION 1982 1992 2002 8.5 Million 12.5 Million 15 Million
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AGE 0 - 14 15 - 59 60 Above
NOTE:
A STUDY ON MINERAL WATER BOTTLES ____________________________________________________________________ _ Source: Report On Population, Tata Energy Institute, New Delhi.
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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.
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Various brands that are available in Mumbai. Few of them are as follows: BRANDS Bisleri Kinley Aquafina Bailley Brilliant ** Hello ** Spakel Harnil * Apurva * Bally * Krishna* LITRES - 1 LITRE. ETC Yes Yes Yes Yes Yes No Yes No No No No 20 LITRES Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes
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There are above 1,00,000 retail outlets in Mumbai. SR. NO 1 2 3 4 5 6 7 CLASSIFICATION GROCERY & GENERAL STORES DEPARTMENTAL STORES COLD DRINK HOUSE HOTELS & RESTAURANTS BEER BARS PAN BIDI SHOPS OTHERS PERCENTAGE 40% 03% 02% 5% 02% 28% 20%
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Kinle y 28%
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3. MARKET CATEGORISATION
The market of packaged drinking water is categorized as follows: Theatres / cinema halls/ multiplexes. Corporate. Caterers. Picnic spots, Clubs, Gymkhanas. Hotels, Resorts. Resorts. In-flight kitchens. College canteens. General Stores etc.
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3.1 CATERERS
BrandShare:
24%
3%
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65%
35%
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Payment Terms:
26%
74%
Other Findings:
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A STUDY ON MINERAL WATER BOTTLES 25 ____________________________________________________________________ _ 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:
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A STUDY ON MINERAL WATER BOTTLES ____________________________________________________________________ _ BAILLEY 19% BIS LERI 11%
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Payment Terms: Here payment is done by both the ways i.e. : By CASH -
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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 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 caf. 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 caf to as high as twice a week in case of Amusement parks like Essel world & Water Kingdom where
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9%
4%
36% 21%
30%
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35%
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Small Space Less Quantity and more frequency of purchase Prefer Credit facility Look out for schemes. Bigger Margin, More preferences.
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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. Officer S. Rep. Driver Loader
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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
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.
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A STUDY ON MINERAL WATER BOTTLES ____________________________________________________________________ _ Schemes: One Litre One Box free on 5 Box Half Litre One Bottle free on 1 Box For 20 Litre. jar
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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
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A STUDY ON MINERAL WATER BOTTLES ____________________________________________________________________ _ Manpower per Vehicle 1 loader 1 Driver 1 salesmen
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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.
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Quality: ISI Marked. Packaging: Pet Bottles, Polycarbonate Jars Target Market Segment: Health Conscious people Positioning: Safe Water 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
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A STUDY ON MINERAL WATER BOTTLES ____________________________________________________________________ _ 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
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The Company directly approaches the retailer. They have tracked Mumbai through
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 Manpower per Vehicle 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.
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For 1 Ltr. etc. The Company directly approaches the retailer. They have tracked Mumbai through various routes and accordingly they service. 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.
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For 1 Ltr. etc. The Company directly approaches the retailer. They have tracked Mumbai through various routes and accordingly they service. 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) Manpower per Vehicle 1 loader 1 Driver/salesmen MRP: Rs 60 Net Cost Price to Distributor: Rs. 46-48 Margin to Distributor: Rs. 14 Distribution Weakness: The Company is losing out its share on every front. Lethargic Approach towards Market. No Advertisement, Lack of Aggressiveness.
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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.
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Distribution Weakness: 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
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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)
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* Can be the Biggest Competitor to KINLEY in the near future in the 20-litre segment?
Distribution Weakness: v v Not been able to penetrate in the Market. Low on Advertisement and other awareness program.
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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 Manpower per Vehicle v v v 1 loader 1 Driver 1 salesmen
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5.
SWOT
ANALYSIS
OF
THE
PACKAGED
WATER
INDUSTRY
STRENGTH
The industry is growing @ 40%. In India the market is huge & untapped Growing awareness among the people about the importance of mineral water
WEAKNESS
Many players entering in the race. Any local person can start manufacturing. Rural population is not using the packaged water. Not very economical Quality not properly maintained e.g. Bisleri & hence has bad effect on the whole
OPPORTUNITY
Sustained Market growth increase in coming years Literacy rate growing and hence the awareness of safe drinking water to avoid the diseases. Huge population & untapped market.
THREAT
Many substitutes available Too many players will dilute the market & the profit margin
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6. MARKET SEGMENTATION
The mineral water market is segmented according to the type of consumers:
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.
Domestic Tourists:
Domestic tourists have switched to mineral water mainly because of safety and hygiene factors.
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 2035 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:
500ml bottle: This size has been introduced in the market to target
the individual and local travelers.
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.)
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8. LEGAL REQUIREMENTS
The bottled water industry is governed by PFA and BIS standards. Some of the key highlights of these legislations are: Mineral water is covered under the Prevention of Food Adulteration Act (PFA), while drinking water is not under its preview. 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. 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. 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. The Bureau of Indian Standards (BIS) has provided standards for both drinking water and mineral water but compliance hitherto was voluntary To regulate the quality and price of bottled water, BIS approval has been made mandatory w.e.f. end of 1999 Mineral water shall be packed in clean, colourless, transparent and tamperproof bottles made of polyethylene conforming to the IS 10146 standards. The standards laid down under PFA Act do not prescribe any minimum quantity of minerals to qualify as mineral water. Hitherto Indian laws do not stipulate the minimum mineral content level required for water to be labelled as a mineral water The BIS does not lay down any guideline or practice for processing water. _______________________________________________________________________ _
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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. 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 Both the PFA and BIS lay down standards for metals like lead, mercury, arsenic, aluminium and barium which cause a range of disorders The BIS lays down a minimum of 150mg/l and a maximum of 700 mg/l of TDS for mineral water. The PFA rules do not prescribe any minimum TDS levels but does mention the maximum of 1500mg/l There are no government laboratories for testing water samples for all the parameters involved
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A STUDY ON MINERAL WATER BOTTLES ____________________________________________________________________ _ ADVERTISING services by an identified sponsor. Modes of advertising: Newspapers, billboards, glow signs, banners, inflatable etc. TV. Mails. Radio. Magazines. Newsletters. Brochures. Telephone. Internet.
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Advertising is any paid form of non-personal presentation & promotion of ideas, goods or
Yellow pages.
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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.
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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?
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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. _______________________________________________________________________ _
A STUDY ON MINERAL WATER BOTTLES 59 ____________________________________________________________________ _ 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.
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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.
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BIBLIOGRAPHY:
1. A & M Magazine 2. Financial Express 3. Business world
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