Home Water Purifier Industry

ValueNotes India Market Intelligence Dashboard

t
Concentration Organized Sector Data Availability
Structure
Industry

Macro Micro
Data Data

Completeness
Market share of top 5 firms = 65% Output in organized sector = 75%

Source of Data Trade interviews , etc Quality

Company websites, news

articles, WHO, World Bank
Recency

N/A
Macro Data: Market size, growth, market
shares of key players, customer segments,
key industry metrics
Micro Data: Segmental market size &
growth, financials of key players
Completeness: All data points is available
Government Quality: Accuracy of data
Bodies Central Water Board
Recency: Latest period data is available

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 Executive Industry Market Drivers & Industry Industry Competitive Profiles of Annexure &
TOC
Summary Structure Overview Inhibitors Trends Analysis Environment key players Appendix

 The home water purifier industry in India is valued at INR 34bn (~USD 567m) in FY 2014 and has been
growing at CAGR 20% for the last three years
Market Size and
 The industry is expected to grow at CAGR of 22% up to FY 2019
Growth
 ValueNotes estimates that the home water purifier industry will be worth approximately INR 91.9bn (~USD
1.53bn) by FY 2019

 Drivers:
 Scarcity of clean drinking water, low penetration of water purifiers, and increasing health consciousness of
Drivers and consumers have led to growth in the industry
Challenges
 Challenges:
Executive Summary

 The industry lacks government standards for purifiers, and the awareness about the products is low

 The RO segment water purifier has the highest contribution i.e. 39% share by value in home purifiers
market, as they are expensive compared to the offline and UV purifiers
Industry
Segmentation  The offline water purifiers units are sold more in volume since they are the most economical units available
in the market. This segment is also growing at a fast pace i.e. more than 25% per year, being the most cost
effective way to safe drinking water and better health

 More than 75% of the industry is currently organized with Eureka Forbes, Kent RO, HUL, Tata Chemicals and
Key Players Ion Exchange being the market leaders. The market share of organized players is expected to grow in the
next five years as water purifiers is a research oriented industry with high capital costs

The home water purifier industry in India has been given an Industry Attractiveness Rating of 7.5 as per the
‘ValueNotes Industry Attractiveness Rating Evaluation System’.

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Industry Structure
 Executive Industry Market Drivers & Industry Industry Competitive Profiles of Annexure &
TOC
Summary Structure Overview Inhibitors Trends Analysis Environment key players Appendix

Home appliance industry in India

Home appliances

Brown Goods White Goods Shiny Goods

(Small appliances) (Major appliances) (Consumer electronics)
Chapter Home Appliance Industry Structure

Microwave/ Ovens

Televisions
Large household appliances These are electronic equipments for
like refrigerators, washing everyday use. This segment
machines, etc.; formerly includes devices like phones,
finished with white enamel, computers, cameras ,etc.
but now often colored

Water Purifiers

Relatively light electronic consumer durables such as TVs, radios and ovens,
which are distinct from heavy consumer durables such as air conditioners
and refrigerators
Others Heaters, dryers,
mixers etc)

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 Executive Industry
TOC
Summary Structure
The home water purifier Industry has under gone a shift in technologies
Chapter 1: Evolution of home water purifier industry in India
Earlier
 The earliest recorded attempts
to generate pure water date
back to 2000 BC. Sanskrit
writings have also outlined
water purification methods like
boiling or placing hot metal
instruments in water before
drinking it
Centuries later Hippocrates,
designed water filter known as
'Hippocratic sleeve' - which is a
cloth bag through which water
can be poured after boiling
12
Market Drivers &
Overview Inhibitors
Late 1990s
 Techniques like sand water
filters, Electric UV water
purifiers were used to purify
water
 As municipal water treatment
facilities sought to increase the
quality and purity of public
water supplies, more and more
cities began to implement
chlorine into their water
treatment process
Copyright @ 2014 ValueNotes Database Pvt Ltd. All rights reserved
Industry Industry
Trends Analysis
2000 – 2010
 It was discovered that even
after water was purified at a
municipal water treatment
plant, it often picked up lead
and other chemicals when
traveling through a home’s
plumbing system
 This led to increased usage of
Bottled water and RO purifiers
 In the mid '00s, a range of
offline water purifiers were
introduced
Competitive Profiles of Annexure &
Environment key players Appendix
Current situation (2011 onwards)
 Based on consumers expectation
and needs, companies are
innovating, and products like
mobile water purifiers, ‘RO + UV’
purifiers have been recently
launched in the market
 Companies are shifting from the
current direct supply chain and
are experimenting with different
channels such as retail
 Entry of new MNC players in the
market is being witnessed
 Executive Industry Market Drivers & Industry Industry Competitive Profiles of Annexure &
TOC
Summary Structure Overview Inhibitors Trends Analysis Environment key players Appendix

Definition of home water purifiers

The water purifiers are machines which aid in the process of eliminating undesirable chemicals, contaminations and sediments from water. The
objective is to produce water fit for a specific purpose.

Home water purifiers

Reverse Osmosis (RO) Ultra Violet (UV) Offline / Gravity

Chapter 1: Industry Definition

•RO is a method of producing pure water by
forcing saline or impure water through a
semi-permeable membrane across which
salts or impurities cannot pass. Reverse
Osmosis is used for water filtration,
desalination of sea water and in kidney
dialysis machines.
•The pressure of water is used to push
across the membrane and the impurities
and dissolved solids are left behind in the
membrane.
•UV water purifiers use ultra violet rays.
Ultraviolet systems use special lamps or
bulbs that emit UV light of a particular
wavelength.
•Now companies add UV based purification
stage after the initial RO filtration to the
water purifiers. The RO purifiers are good
at removing impurities in water but it may
not be capable of removing micro
organisms.
•The storage water filters are the most
economical way of purifying water and
getting safe water to drink. The only
drawback is that they are slow in purifying
water. They use chlorine and carbon based
techniques to purify water. Chlorine kills
pathogens like bacteria and viruses by
breaking the chemical bond of the
molecules.

This report covers:

• The current scenario for the domestic water purifier Industry in
India including RO, UV and offline purifiers

• This report does not cover:

• Commercial / Industrial water purifiers

• Water treatment plants and equipments
• Water coolers

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 Executive Industry Market Drivers & Industry Industry Competitive Profiles of Annexure &
TOC
Summary Structure Overview Inhibitors Trends Analysis Environment key players Appendix

Direct sales plays an important role in educating the consumers in the Industry

Consumption Zone

Suppliers Intermediaries Sales channels

Sales person
(~30% sales is
Manufacturers through direct selling)
Chapter 1: Industry Supply Chain

Distributors
End Consumers
Traditional Retail
Exports outlets

Organized retail
outlets
Importers

 Eureka Forbes is regarded as the pioneer in the direct marketing when it comes to water purifiers in India. Direct marketing has helped the
company gain market leadership position in the water purifiers industry. Later they shifted to retail marketing to increase product visibility and
drive sales

 Some companies sell certain products through retail stores, while others that require education or demonstration are sold through direct
marketing

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Market Overview
 Executive Industry Market Drivers & Industry Industry Competitive
Industry Profiles of Annexure &
TOC
Summary Structure Overview Inhibitors Trends Analysis Environment
Attractiveness key players Appendix

Home water purifier industry is expected to grow at ~22% CAGR in the next 5 years
Chart 1: Share of home water purifiers in small appliances Chart 2: Home water purifier market size & growth (INR billion)

CAGR xx%
xx

Mixer and xx
xx
grinders CAGR x%
x% xx xx
CAGR xx%
xx xx xx
CAGR x%
Chapter 2: Market Size & Growth

Others Water
xx xx xx
x% purifiers
xx xx
x% xx
xx
xx xx
xx xx
xx

Microwaves
x%
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Optimistic Most Likely Pessimistic

Others includes heaters, dryers, coffee makers, etc.
Source: Trade interviews, ValueNotes Analysis
Current market Usage of “Three point analysis” to arrive at growth figures:
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The estimated growth of ‘the home water purifier industry’ is based on

Estimated growth various factors* including:
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 Executive Industry Market Drivers & Industry Industry Competitive Profiles of Annexure &
TOC
Summary Structure Overview Inhibitors Trends Analysis Environment key players Appendix

Though the contribution of RO segment is higher, the offline segment is growing fast
Chart 3: Water purifier market in India for FY 2014 segmented by product type
RO Filters

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xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Offline, xx%
Chapter 2: Industry Segmentation

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UV Filters

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UV, xx%
Offline Filters
Source: Trade interviews, ValueNotes Research
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- Trade interview - Trade interview

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