INTRODUCTION TO MINERAL WATER INDUSTRY
CURRENT SCENERIO
The best beverage for India in the new millennium seems to be water. In recent years, the
bottled driving water market has been witnessing high-decibel levels of activity, with a
host of new entrants swelling the clutter. With over 200 players jostling to be the thirst
quenching favourite 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 ₹1, 100
crore, of which the branded market accounts for ₹700 crore and about 700 million litres
in volume.
In India, the core proposition of bottled drinking water lies in hygiene, as the quality of
tap water is bad and is rapidly deteriorating. This is in stark contrast with the West where
'mineral water' indicates the attendant minerals present in the water. Mineral water in
Western countries is obtained from natural springs and is, generally, named after those
springs. Most of the bottled water passed off as mineral water in India, however, is
filtered, boiled or purified by other means such as reverse osmosis. A better description
of bottled drinking water sold in India therefore, would be 'purified bottled water.
The growth of the category indicates the need for this 'mineral water' and the fact that
heavyweights are eyeing the segment points to the potential that is seen in this market.
Coke's Kinley, Pepsi's Aquafina, Brittania, Nestle, Kingfisher, Auswater-are keen on
raising their stakes in the ₹ 700 crore, 700 million litre market. The entry of Danone’s
brand, Evian, the high-priced mineral water from the French Alps, shows the perceived
potential India presents in this product category. Clearly targeted at the premium segment
of consumers, the brand is being distributed in the country by Britannia Industries.
Currently, Evian has more of an institutional presence (five star hotels) than on the retail
shelves, with a 1-litre bottle being priced a hefty ₹ 80.
The market today has grown to more than Rs15bn. The organised sector -- branded
mineral water -- has only ₹7bn of market share. The rest is accounted for by the
unorganized sector which is dominated by small regional players. The market is still
growing – at a rate greater than 80% per annum.
Today there are more than 200 brands, out of which 10 of them are from top companies.
In the branded segment, Parle’s' Bisleri 'is the market leader with a share of more than
45%. Parle Agro’s' Bailey' comes a close second with market share of 15%. Other
major players in the market are' Yes 'of Kotharis, 'Ganga' of T-Series, 'Himalayan,'
Hello', Prime,' Florida' etc.