MINERAL WATER MARKET IN MUMBAI

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. Infact 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 feels 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 6bn (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. Infact 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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MINERAL WATER MARKET IN MUMBAI

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.

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MINERAL WATER MARKET IN MUMBAI

Some of the standards governing the bottled water industry in US are:
y

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.

y

Bottled water cannot contain sweeteners or chemical additives (other than flavors, extracts or essences) and must be calorie-free and sugar-free.

y

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.

y

Beverages containing more than the one-percent-by-weight flavor limit are classified as soft drinks, not bottled water.

y y

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

y

not contain chlorine.

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MINERAL WATER MARKET IN MUMBAI

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.

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MINERAL WATER MARKET IN MUMBAI

1.2 HOW IS BOTTLED WATER DEFFERENT 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.

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It must be calorie-free and sugar-free. 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. Flavors. reverse osmosis or other suitable processes can be labeled as purified bottled 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.3 TYPES OF WATER 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. but they must comprise less than one-percent weight of the final product or the product will be considered a soft drink. extracts or essences). Other suitable product names for bottled water treated by one of the above processes may include "distilled water" if it is produced by distillation. 6 . Purified Water: Water that has been produced by distillation. drinking water is water that is sold for human consumption in sanitary containers and contains no added sweeteners or chemical additives (other than flavors. Accordingly.MINERAL WATER MARKET IN MUMBAI 1. or "reverse osmosis water" if the process used is reverse osmosis. Another name for bottled water. Mineral Water: Bottled water containing not less than 250 parts per million total dissolved solids may be labeled as mineral water. "de-ionized water" if the water is produced by deionization. extracts or essences may be added to drinking water. deionization. No minerals can be added to this product.

which taps the water of an aquifer.MINERAL WATER MARKET IN MUMBAI Spring Water: Bottled water derived from an underground formation from which water flows naturally to the surface of the earth. Well Water: Bottled water from a hole bored. drilled or otherwise constructed in the ground. Spring water must be collected only at the spring or through a borehole tapping the underground formation finding the spring. 7 .

which has the pores of .4 PURIFICATION PROCESS Purity and safety are two major factors that should be taken care in sourcing and processing of bottled water. 8 . Reverse osmosis As per the law TDS (total dissolved solids) are required to be maintained at the level of 70 . Area surrounding the water collection tube at the surface is protected and kept clean. Carbon filter After sand filtration water is passed through carbon filter to remove the chlorine that was mixed earlier. This is done to remove bacteria from water. 5.110 ppm. Sand filtration Chlorine mixed water is passed through seven layers of sand in a tank.5 microns. 4. Great care goes in tapping this source. Chlorinisation First of all water is taken out from six borewells and stored in the tank and chlorine is mixed in it. 3. The under ground water goes through seven stages of purification process which is as follows: 1.MINERAL WATER MARKET IN MUMBAI 1. hence through this filter even the remotest bacteria and dust particles are taken out. 2. Ultra filtration Under this method water is passed through a filter. and even the biggest r of bacteria is of . Underground spring is carefully selected based on its potability and pathogen free water. This way all the major bacteria are taken out from water. Under ground water is used by it for filling the water. This is to avoid any surface contamination to percolate and mix with underground water source.2 microns. Only water below 25 meters is tapped. through reverse osmosis TDS is maintained at 100 ppm.

9 . 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. 7. U V filtration Under this method ultra violet rays are passed through the water to kill water.MINERAL WATER MARKET IN MUMBAI 6. Ozonisation Under this method ozone gas is mixed with water. This us basically a precautionary step to purify water as after reverse osmosis no bacteria remain in water.

5 Labeling The standards pertaining to labeling of products in the industry are:            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 10 .MINERAL WATER MARKET IN MUMBAI 1.

6 Mineral Water Market In Mumbai MINERAL WATER MARKET IN MUMBAI Main Players Kinley Aquafina Bailey Bisleri Other Players Krishna Hello Brilliant Apurva New Players Oxyrich 11 .MINERAL WATER MARKET IN MUMBAI 1.

The market is expected to continue to grow at a healthy clip. The prices of soft drinks have. second. 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. PepsiCo.1 Background of Indian Scenario Big Players Keen to Get into Bottled Water The Rs. soft drink manufacturers have priced themselves out by a long shot. and among domestic players UB and Britannia. it has been an underdeveloped business for a while now and. Nestle India is the latest to enter this market with the launch of its brand `Pure Life' in New Delhi last week. Part of the fast moving consumer goods (FMCG) sector. doubled in the last ten years and this has happened because the price of concentrates has shot up during this period. Hindustan Lever (HLL). there has been a doubling of growth. Major players include Parle Bisleri.MINERAL WATER MARKET IN MUMBAI 2 Introduction to the Market 2. The success of bottled water could be attributed to two factors. 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. in fact. In fact. The company is considering whether to set up its own facilities for bottled water or go in for an acquisition. The company has not ruled out acquiring existing brands. Parle Agro. 12 . The product will be available in other cities as well soon. has initiated plans to enter this sector. First. Coca Cola. bottled water is the only segment to have shown phenomenal growth of about 50 per cent in the last one year. in the last two years. It plans to grab a 50 per cent market share in the next two years and emerge as a strong player. the consumer goods giant.

Out of this. 13 . Bisleri offers the maximum number of pack sizes. 17 regional and 167 local brands. 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. Dasna in Uttar Pradesh and Goa. PepsiCo is reportedly contemplating two more pack sizes for its bottled water. which is a 350 ml bottle introduced by Parle Agro.Perrier and San Pellegrino. The company plans to either add more water bottling operations or go for contract bottling as it goes national. two are national brands. But the product is in a different price bracket altogether with the 750 ml Apollinaris Big Apple pegged at Rs. has been introduced close on the heels of Nestle coming out with its sparkling water brands .MINERAL WATER MARKET IN MUMBAI In fact. It is also being launched under the sub-brand of Big Apple and Lemon.10. The water is produced at Coca-Cola's three Greenfield manufacturing plants at Bidadi near Bangalore. Kinley follows it with a 28% share. a natural sparkling mineral water brand. 99 and the one litre Apollinaris Classic sparkling water at Rs. soft drink major Coke launched its Kinley brand of bottled water and Pepsi its global brand Aquafina. with a current market share of 38%. Apollinaris. The other brands including Aquafina and Bailley constitute 11% & 6% per cent market share in the bottled water market. The product is being imported and distributed by the Mumbai based company. Kinley water was launched in August 2000 in one-litre bottles for Rs. Marketing Consultants. Veekay Food & Beverages. 90. Kinley's new product follows the launch of `Chhotu' Bailley. The Samsika survey further says that there are as many as 186 brands in the water market.

The country's bottled water business is estimated to be around Rs.100 crore. of which the branded market accounts for Rs.MINERAL WATER MARKET IN MUMBAI 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. y y y India¶s 1 billion plus populace 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 14 . 700 crore and about 700 million litres in volume. 1.

Season Y-axis ± Sale % 45% 29% 26% Summer Monsoon Winter As we can see from the diagram above that most of the sales of Bottled water comes in the summer season. 15 . the right time to launch such type of product is summer season. In winter season the sales are very low because of climatic conditions. Therefore.2 Mumbai Market Scenario SALES TREND ( SEASONAL ) Mumbai Market 50% 40% 30% 20% 10% 0% X-axis-. 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.MINERAL WATER MARKET IN MUMBAI 2. Therefore. the sales are good in rainy season.

16     30 20 10 0 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 10 4 . 2515 per month Market size by Volume and Value The market size of Packaged Drinking Bottled water is around 11000 crore. which is one of the highest of all industries. Market has grown by around 500 crore in the last few years. and Mumbai market constitute around 10% which is 100 crores. Current growth rate estimated is 55%.04% (Source Financial Express).MINERAL WATER MARKET IN MUMBAI 2.3 INDUSTRY GROWTH RATE (%) % INDUSTRY GROWTH RAT 70 60 50 40 % GROWTH RAT 60 70 66 50 Y ARS Percapita Consumption Overall percapita consumption is merely 0. Percapita income in Mumbai is Rs.

Of these.9 million lived in Greater Mumbai.3 Population Estimates of the present population are in the range of 14 to 15 million.5 million people lived in the Mumbai Metropolitan Region. 9. . The 1991 census found that 12. In the decade between the censuses of 1981 and 1991. 17 .MINERAL WATER MARKET IN MUMBAI 2. Mumbai's population has grown most rapidly in the years after India's independence. there have been some signs of a leveling off in the growth. Market Mumbai Population Estimates of the present population are in the range of 14 to 15 million. Population figures obtained from historical sources and the Indian census summarized in the graph and table below.

43 mn As per Age Composition Population .9 mn 2. Tata Energy Institute.MINERAL WATER MARKET IN MUMBAI Year wise Comparison 1981 1991 2001 : : : 8.Age Classification 5% 37% 0-14 15-69 69 + 58% Age % Population 0-14 15-59 60 Above 37% 58% 5% 8. 18 .7 mn 5.57 mn 4.6 mn 2001 10.55 mn 0.5 mn 12.75 mn * All the figure for 2001 are estimated Source: Report On Population.5 mn 15 mn According to Area 1991 Greater Mumbai : Rest of Mumbai : 9. New Delhi.

Market has grown by around 500 crores in the last few years. and Mumbai market constitute around 10% which is 100 crores. Nearly 80 per cent of the demand for bottled water comes from metros.3 Per capita Consumption Overall per capita consumption is merely 0. 19 . which is one of the highest of all industries. 20-litre jar Mumbai ± South Mumbai 44 Jar per office Mumbai ± North Mumbai - 50 Jar per office Mumbai ± West Mumbai - 48 Jar per office Mumbai ± Central Mumbai - 60 Jar per office Market size by Volume and Value The market size of Packaged Drinking Bottled water is around 1000 crore. Current growth rate estimated is 55%.MINERAL WATER MARKET IN MUMBAI 2.04% (Source Financial Express).

1 litre.5 Brands Available: Various brands are available in Mumbai.MINERAL WATER MARKET IN MUMBAI 2.5 mn 12. Few of them are as follows: Brands Bisleri Kinley Aquafina Bailley Brilliant ** Hello ** Spakel Harnil * Apurva * Bally * Krishna* Litre . Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Year wise Comparison 1981 1991 2001 : : : 8.5 mn 15 mn 20 . Etc Yes Yes Yes Yes Yes No Yes No No No No 20 Litre.

6 Retail Outlets There are above 1.MINERAL WATER MARKET IN MUMBAI 2. Classification Grocery & General Store Departmental Stores Cold Drink House Hotels & Restaurants Beer Bar Pan Bidi Shop Others % 40 03 02 05 02 28 20 21 .000 retail outlets in Mumbai.00.

6 Brand Wise Share BRAND WISE MARKET SHARE(%) Others 17% Bis leri Bailley 6% 38% A quaf ina 11% Kinley 28% The ORG-MARG survey conducted recently shows that the market leader Bisleri is having 37. 22 .2%. One thing is very clear from the two surveys conducted that the market leader is Bisleri with Kinley. and now with Manikchand into mineral water. 5.11%. Aquafina. and Bailley are the trailers. Aquafina. the competition is going to be tough.MINERAL WATER MARKET IN MUMBAI 2. Bailley and others with 28.6% market share followed by Kinley.7% and 17.4% respectively. 11.

Hotels. Resorts. Corporate. Picnic spots. College canteens. In-flight kitchens.MINERAL WATER MARKET IN MUMBAI 3. Gymkhanas. 23 . General Stores etc. Resorts. MARKET CATEGORISATION The market of packaged drinking water is categorized as follows:          Theatres / cinema halls/ multiplexes. Clubs. Caterers.

MINERAL WATER MARKET IN MUMBAI 3.1 Caterers Brand Share: Popularity of various brand among Caterers 24% Bi le i Bailey 44 Kinley s Mc Dow ell 12% Brookes O hers 10% 7% 3% Usage Pattern: Usage pattern in Caterers 35% users non users 65% 24 £ ¢ ¤ ¡ .

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.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. 25 ¥ . They are willing to pay only unto a maximum of Rs 2.Caterers & Gymkhana 26% Cash Credi 74% Other Findings:  Price closely followed by Service. Ease of operation & Availability are the key factors affecting the buying decision process.  Brand name has absolutely no relevance to them.MINERAL WATER MARKET IN MUMBAI Payment Terms: Payment Terms . as they generally do not have the space to stock the bottles. The credit period expected by most was from 15 days to a month. Storage.

2 Cinemas Brand Share: MARKET SHARE OF VARIOUS BRANDS IN CINEMA HALLS IN 1 LITRE PACK BAILLEY 19% BISLERI 11% BISLERI A'FINA 18% KINLEY 52% KINLEY A'FINA BAILLEY Payment Terms: Payment Terms .MINERAL WATER MARKET IN MUMBAI 3.Cinemas Hall & T eatres Credi 30% Credi Cash 70% 26 ¦ ¦ Cash .

The above centers already have the kiosks of the cola companies like Coke.MINERAL WATER MARKET IN MUMBAI Frequency of Visit: Twice a week Other Findings:  Price closely followed by Brand Name. Video game parlors are some places where people generally go to have a nice time. Bowling Alleys. Cyber Cafes. 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 Esselworld & Water Kingdom 27 . & Pepsi along with the vending machine of Nescafe. & Service are the important factors that affect the buying decision process  Cinema halls. Convenience.  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.

Ho e & Res au an 9% 4% Bisleri 36% Kinleys AquaFina Bailey Others 21% 30% Payment Terms: Pay en Te s .Ho e s & Res au an 35% Cash Credit 65% 28 .MINERAL WATER MARKET IN MUMBAI 3.3 Hotel and Restaurant Availability Share: Ava ab y Sha e .

Bisleri had a fair level of unaided recall vis-àvis other brands like Bailey. Taste of water and Ease of operation are the important factors that affect the buying decision process. 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 litre Bisleri bottle as many customers refuse to accept the water offered to them. 29 .MINERAL WATER MARKET IN MUMBAI Service Frequency: Alternative Day Findings:  Price closely followed by Service.  Respondents showed a fair level of brand awareness but there was no distinct preference to any particular brand. etc. Kinley.  Hygiene is a very important factor when a customer decides to snack/eat in a particular outlet.

More preferences.MINERAL WATER MARKET IN MUMBAI 3. 30 . Bigger Margin.4 Retail Outlet Finding:      Small Space Less Quantity and more frequency of purchase Prefer Credit facility Look out for schemes.

P. ate etailer Price . .Network¶ of ³Packed Bottled Water´ Name of Company: Brand: Name of Area: Address & Tel. Officer wn wn : : istributor: Driver Loader ates & argins to arious Intermediaries for ifferent Pack izes 330 ml 500 ml lit 2 lit 5 lit 0 lit 20 lit C& ate istrbr.S. S. No: No. Rep.M.MINERAL WATER MARKET IN MUMBAI 4. of ehicles used: ompan istrib tor Total: ist of taff Appointed for istribution A. Brand Wise details A Survey Format of µDistribution. Percentage arket hare of Company: 31 . S.

Product: Packaged Drinking Water Design: Quality: ISI Marked. Ltd..1 Company: Parle Bisleri Private Limited. Western Eastern Highway. Play safe Campaign. Mobile Van. Stressing on Seal Distribution: Bottling plant (Andheri) Large Vehicle (Nos. 50) For Distributors (Nos. 30) 32 . Brand: Bisleri Address: Parle Bisleri Pvt. Packaging: Pet Bottles Target Market Segment: Health Conscious people Positioning: Safe Water Trade Promotion: Corporate Event. Andheri (E). 80)   For Specific Area (Nos.MINERAL WATER MARKET IN MUMBAI 4.

Their major hub is Santacruz. 16 Average sales per Distributor: 110 Jar per day. The Company directly approaches the retailer. 7 (for Distributor) MRP: Rs. 17 (39. 60 Net Cost Price (for Distributor): Rs. They have tracked Mumbai through various routes and accordingly they service. Vile Parle & Andheri in Suburbs.53%) 33 . Bisleri-DISTRIBUTOR Details for 20 Ltr. jar Bisleri sell their product through their own network and they have also appointed Distributors for each area to sell their product.. Vehicle: Nos.MINERAL WATER MARKET IN MUMBAI For 1 Ltr. 43 Margin of Rs. Schemes: One Litre One Box free on 5 Box Half Litre One Bottle free on 1 Box For 20 Ltr.South Mumbai Distributor: Nos. etc.

MINERAL WATER MARKET IN MUMBAI Bisleri on their Own. 34 . which result in loss of face value and ultimately losing customer. Company does not use Polycarbonate Jars in 20 Litre. 12 Manpower per Vehicle    Schemes: 1 Jar Free on 10 jars. 1 loader 1 Driver 1 salesmen All Schemes are for Distributors in South Mumbai. if bought within 4 days. (South Mumbai) Service Frequency: Alternate days Vehicle: Nos. Distribution channel Distribution Weakness:   Company is not addressing the compliant from distributor and end user. 88 Jars free on 700 jars.

MINERAL WATER MARKET IN MUMBAI 4.2 Company: Hindustan Coca cola Beverages Private Limited Brand: Kinley Product: Packaged Drinking Water Design: 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). 35 . Banking on Parent Brand. Mobile Van.

129)    Vidyavihar (Nos. They have tracked Mumbai through various routes and accordingly they service. Schemes: One Litre One Box free on 2 Box (Net Rs. Thane District) Three C&F for catering Mumbai Market    Vidyavihar Kandivali Sewri Large Vehicle (Nos. 80 per Box) Half Litre No scheme (Nos. 40) Sewri For 1 Ltr. 69) Kandivali (Nos.MINERAL WATER MARKET IN MUMBAI Distribution: Bottling plant (Wada. 40) 36 . etc. The Company directly approaches the retailer.

Service Frequency: Alternate days Manpower per Vehicle    MRP: Rs.MINERAL WATER MARKET IN MUMBAI For 20 Ltr. They have appointed HDA (Home delivery Agent) for some area to sell their product. 50. 65 Lowest Selling Price to Corporate Rs. jar Kinley sell their products through their own network only. 37 . 1 loader 1 Driver/salesmen 1 salesmen Distribution Weakness:  Not been able to penetrate in interior area since they have not appointed Distributors in most of the area.

3 Company: PepsiCo India limited Brand: Aquafina Product: Packaged Drinking Water Quality: ISI Marked Packaging: Pet Bottles Target Market Segment: Health Conscious people Positioning: Safe Water Trade Promotion: Banking on Parent Brand. Roha) Distributor for catering Mumbai Market     Jogeshwari Sewri Chembur. Distribution: Bottling plant (Chembur. Banners.MINERAL WATER MARKET IN MUMBAI 4. Kanjur Marg Resources Large Vehicle (Soft Drink Vehicle) 38 .

Schemes: One Litre One Box free on 3 Box (Net Rs. Aquafina packaged Bottles water is given in a scheme to promote their Beverages 39 . It seems that the Company is not pushing their packaged water brand ³Aquafina´ and concentrating on Beverages market. Many times their products are not available in the market. etc. They have tracked Mumbai through various routes and accordingly they service. 80 per Box) Half Litre No scheme For 20 Ltr jar The Company has not entered the 20-litre Packaged water Market µDistribution Weakness:    brand. The Company directly approaches the retailer.MINERAL WATER MARKET IN MUMBAI For 1 Ltr.

50) 40 . Brand: Bailey Product: Packaged Drinking Water Quality: ISI Marked Packaging: Pet Bottles. 90)   Jogeshwari (Nos. Panvel) Two Godowns to cater Mumbai Market   Jogeshwari Vikroli Large Vehicle (Nos. 40) Vikroli (Nos.4 Company: Parle Agro Private Limited. Polycarbonate Jars Target Market Segment: Health Conscious people Positioning: Safe Water Trade Promotion: Mobile Van Distribution: Bottling plant (Patalganga.MINERAL WATER MARKET IN MUMBAI 4.

MINERAL WATER MARKET IN MUMBAI For 1 Ltr. 14 1 loader 1 Driver/salesmen Distribution Weakness:    The Company is losing out its share on every front. etc. They have appointed Distributors in North Mumbai and other parts. They have tracked Mumbai through various routes and accordingly they service. (20 Ltr jar) Manpower per Vehicle   MRP: Rs 60 Net Cost Price to Distributor: Rs. Vehicles: There are 2 dedicated Vehicles for South Mumbai. For 20 Ltr. Lethargic Approach towards Market. jar Bailey sells their product through their own network in South Mumbai. Service Frequency: Twice in a Week. The Company directly approaches the retailer. Lack of Aggressiveness. 41 . 46-48 Margin to Distributor: Rs. No Advertisement.

MINERAL WATER MARKET IN MUMBAI 4. 15 (One Litre) For 20 Ltr. Polycarbonate Jars Target Market Segment: Health Conscious people Positioning: Mineral Water Trade Promotion: Direct Selling Distribution Channel: Bottling plant (Himachal Pradesh) For 1 Ltr. MRP Rs.5 Company: Balsara Brand: Himalayan Product: Natural Mineral Water Quality: ISI Marked Packaging: Pet Bottles. 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 42 . The Company is targeting Star Hotels and has penetrated in most of the star Hotels. etc. jar They have not ventured the 20 Litre Market.

(Nariman Point. Nepeansea road. 52 Deposit: Rs. Polycarbonate Jars Target Market Segment: Health Conscious people Positioning: Pure Water Trade Promotion: Direct Selling. Push Strategy Distribution: For 1 Ltr. Fort. 350 per jar * Can be the Biggest Competitor to KINLEY in the near future in the 20-litre segment? 43 . 12 (One Litre) For 20 Ltr. The Product is available at very few selected places Company direct handle the distribution of their product.MINERAL WATER MARKET IN MUMBAI 4. 70 Net CP to Distributor: Rs. Central Mumbai) MRP : Rs. Jar They have appointed 4 Distributors in South Mumbai.6 Company: Brilliant Product: Packaged Drinking Water Quality: ISI Marked Packaging: Pet Bottles. MRP: Rs. etc.

MINERAL WATER MARKET IN MUMBAI Distribution Weakness:   Not been able to penetrate in the Market. 44 . Low on Advertisement and other awareness program.

Packaging: Pet Bottles. Dhobitalao) Large Vehicle (Nos. 4) For 1 Ltr. etc. 45 .MINERAL WATER MARKET IN MUMBAI 4. The Company deals only in Jars (24 litre and 20 litre) For 20 Ltr. Target Market Segment: Health Conscious people Positioning: Safe Water Trade Promotion: Direct Selling Distribution: Bottling plant (MIDC. Andheri) Three Company owned Stockist (MIDC. jar Hello sells their product through their own network consuming 1000 jars per day.7 Company: Hello Product: Packaged Drinking Water Quality: ISI Marked. Carbonated Jars.

South Mumbai Stockist: 1 Average sale per Stockist: 350 Jar per day. Vehicle: 1 Large Vehicle for Distributor and 2 three-wheeler. Handle in the Jars. 46 . 60 for 20 Litre Manpower per Vehicle    1 loader 1 Driver 1 salesmen Distribution Weakness:   Lack Aggressiveness Slow and steady approach Other Information USP: 24 Litre Jars. MRP: Rs. 72 for 24 litres MRP: Rs.MINERAL WATER MARKET IN MUMBAI Resources With Hello for 20 Ltr .

9 Distribution Channel of Aquafina BOTTLING PLANT GODOWN JOGESHWARI CHEMBUR SEWRI AREA 1 AREA 2 Mulund Twice a week Vidyavihar Once a week 2 AREA 3 Area: Visit: No .MINERAL WATER MARKET IN MUMBAI 4.of Routes: Ghatkopar Twice a week 4 Not Available Area Covered: Ghatkopar to Mulund including Vidyavihar 47 .

Rural population is not using the packaged water. THREAT Many substitutes available Too many players will dilute the market & the profit margin 48 .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.MINERAL WATER MARKET IN MUMBAI 5. Any local person can start manufacturing. 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. SWOT analysis of the packaged water industry STRENGTH The industry is growing @ 40%. Not very economical Quality not properly maintained e. Huge population & untapped market.

Hotels. Corporates.   500ml bottle: This size has been introduced in the market to target the individual and local travelers.  Domestic Tourists: Domestic tourists have switched to mineral water mainly because of safety and hygiene factors.MINERAL WATER MARKET IN MUMBAI 6. The mineral water market is also segmented along pack sizes:  One litre bottle: it is meant to spell safety and security for consumers.who like to make a fashion statement by drinking mineral water. This segment gets the maximum sales. The mineral water consumer is mainly in the age group of 20-35 years and is an educated middle class person. 49 .  Fashion Conscious: Like soft drinks. drinking mineral water is also considered fashionable by some people. etc. This is also the segment of fruit drinks. These are mainly for institutional sales (Wedding parties. PET bottles: The size of the PET bottles varies from 10 to 20 litres. It is positioned on a prestige platform for the achiever segment . 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. which have usually been positioned as fun and health drink for young adults.

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.  Availability in the chilled form and brand awareness plays a crucial role in purchase decisions.  While there is no aversion to consumption of mineral water by any age group.  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.MINERAL WATER MARKET IN MUMBAI 7. Consumer Habits and Practices  Consumers are growing more health conscious and are more careful of their drinking habits.  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 50 .

MINERAL WATER MARKET IN MUMBAI 8. BIS approval has been made mandatory w.        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. Drinking Water is excluded from the purview of the (PFA) Prevention of Food Adulteration Act. The standards laid down under PFA Act do not prescribe any minimum quantity of minerals to qualify as mineral water. whose stipulation is mandatory. health-related mineral salts. 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. colourless. end of 1999 Mineral water shall be packed in clean. 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. 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 nontoxic. transparent and tamperproof bottles made of polyethylene conforming to the IS 10146 standards. 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. while drinking water is not under its preview. The PFA rule on mineral water is that it must be free from dirt.e. There is no specific industrial licensing policy for the bottled-water sector. 1954.  containers.  The Prevention of Food Adulteration Act (PFA) of 1954. Some of the key highlights of these legislations are:   Mineral water is covered under the Prevention of Food Adulteration Act (PFA). foreign matter or any other ingredients injurious to health and has to be packed in clean and sterile 51 . Legal requirements The bottled water industry is governed by PFA and BIS standards.f.

mercury. arsenic. v. cholera and shigella that cause a range of illnesses such as cholera. faecal streptococci.MINERAL WATER MARKET IN MUMBAI  Both the PFA Act and BIS state that the water must be completely free of bacteria like salmonella. 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. E-coli. typhoid. dysentery and various types of gastro-enteritis     Both the PFA and BIS lay down standards for metals like lead. 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 52 .

Modes of advertising:  Newspapers.  Telephone. banners.MINERAL WATER MARKET IN MUMBAI 9.  Newsletters. inflatable etc.  Magazines. The taxes are as under: SR.  Radio.NO Types of Taxes charged & cost incurred. 53 . 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.  TV. % contribution 4.  Internet.  Mails.5 15 10 12 2-3 40 -- 1 2 3 4 5 6 7 8 Octroi Sales Tax Excise Transportation Distribution Margin CNF¶s Retailers Margin Advertising ± cost varies ADVERTISING Advertising is any paid form of non-personal presentation & promotion of ideas. billboards. glow signs.5 7.  Yellow pages.  Brochures. goods or services by an identified sponsor.

The existing players too are set to expand their distribution network to have their presence across the country. well established distribution network as well as bottling & manufacturing plants. The company has already tasted success of its mass-market brand. 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. As one of the major factors that's important for success in the market is the distribution network. which too has identified the bottled water as a growth area for future. Already Coke has tied up with Yes for manufacturing of its brands in areas where it doesn¶t have presence. The next in queue seems to be HLL. 54 . 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. The company is presently looking or some suitable brand for acquisition. Pure Life in developing countries like Pakistan and Mexico. Britannia too evinced some initial interest in the market but now seems to have postponed its plans. Though Coke and Pepsi have both. is expected to increase to Rs17bn by 2004-5. The market is also expected to undergo a major consolidation phase. 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. The market size of bottled water too is expected to surpass the size of soft drinks market in near future.MINERAL WATER MARKET IN MUMBAI 10. Nestle had made its intentions very clear about its prospective entry into the market early 2000. The next player which is waiting I wings to launch its brand in the market is Nestle. the players with deep pockets are expected to go for acquisition of existing small regional players o spread their network across the country. The company is planning to launch the same brand in first quarter of the current year. Today the demand of bottled water is increasing at a much higher rate that that of carbonated soft drinks.

The Bisleri brand.000 retail outlets spread across the country. Parle Bisleri Ltd. The company now plans to enter areas such as Kerala and Madhya Pradesh where Bisleri's presence is negligible. Chairman. a fleet of 2. The additional Rs 200 crore will be invested in Bisleri's distribution network in the next years spanning 2. said Mr Ramesh Chauhan.20. The fund requirement for this expansion plan will be met mainly through internal accruals. Mr Chauhan said. 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. Pic.000 vehicles over the next two years. is growing at 70 per cent per annum.500 towns and cities in India. The company has introduced home delivery facility for its 20-litre pack which will be delivered by a specially designed fleet. Chairman. Parle Bisleri currently has 25 bottling units.000 vehicles and 1. 55 .: Mr Ramesh Chauhan. which holds a 60 per cent market share in the country's Rs 700-crore branded mineral water industry. 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. 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. This facility will be extended to 50 more centres over the next six months. He said the company is targeting a turnover of Rs 50 crore from its 20-litre jumbo economy pack segment in the first year.000 crore by 2002. The company is targeting a distribution network of 10 lakh retail outlets backed by a fleet of about 5. This investment is expected to facilitate the company to achieve a turnover target of Rs 1.MINERAL WATER MARKET IN MUMBAI Parle Bisleri chalks out Rs 260-cr growth thrust Source : The Hindu Business Line MUMBAI. Mr Chauhan said Bisleri has been growing geographically. at a press conference with the 20-litre mineral water jar. Parle Bisleri Ltd. Unperturbed by the stiff competition from multinational companies. Mr Chauhan said.

MINERAL WATER MARKET IN MUMBAI 11. 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. Conclusion After seeing the different sales trends and market shares graphs. 56 . After the cola wars now as Manikchand is entering it is going to be 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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