Market Potential for Packaged Water Industry in India

Market indigence and Market Potential in Packaged Water Industry in India Packaged water or Bottled water industry, colloquially called, the mineral water industry, is a symbol of new life style emergent in India. Use of mineral water has gradually increased in India due so far-flung shortage of pure hygienic potable water. While a bighearted segment of the population is essay to get access to potable water write out, a new generation especially in the urban atomic number 18as is getting accustomed to bottled water.Drinking water supplies in many parts of India are intermittent. Transmission and diffusion meshs for water are generally old and badly maintained, and as a result, are deteriorating. India is one of the biggest and most(prenominal) attractive water market places in the world. It is considered the 10th largest packaged water consumer country in the world. The boom conviction for Indian bottled water industry is to continue- to a strikinger extent so because the economics are sound, the bottom line is voluptuous and the Indian government hardly cares for what happens to the nations water resources.Corpo target control over water and water dispersion in India is growing rapidly from being confined to the uppermost echelons of society, packaged water has now hold up a commonplace commodity and virtually a necessity in metros. After witnessing historic harvest-time in recent years, it has become a Rs 3,000-Crore industry, one that is slated to only post healthy growth evaluate to become a Rs 10,000-crore business in a short span of time. The market in India has large(p) tremendously over past decade and is said to have a humongous growth rate of 38% per annum as against an international growth rate of 7. %. Market experts observe that there are more than 1800 water brands in India, of which are most are local or shareal brands which are very much classified as unorganized sector. The key brands in the organised sector include Bis leri (Parle), Kinley (Coca-Cola), Oxyrich (Manikchand), Aquafina (Pepsi Foods), etc. In this industry it is popularly said DEMAND OF WATER WOULD neer GO DOWN & WATER WOULD NEVER BE OUT OF BUSINESS While the single largest share in the mineral water market might still belong to an Indian brand Parles $52 million (Rs. . 5 billion) Bisleri brand has a 40 percent share multi-national corporations are not far behind. It has been a pioneer in ledger entry the concept of packaged drinking water in India. It has been so popular with the masses that even now most of the people refer to mineral or packaged water as Bisleri. Nestle and Danone are vying to purchase Bisleri, and Pepsis Aquafina and Cokes Kinley brands have been extremely successful in edging out many of the small and modal(a) players to buy-outs and exclusive licensing deals.In less than two years since its launch, Aquafina has cornered 11 percent of the market and Kinley has almost a third of the market. News reports indi cate that other MNCs like Unilever are also eying the market. Today packaged water is the fastest growing industry in the beverage sector. Western kingdom of India the largest market The occidental region, that is Maharashtra, Gujarat and Goa, accounts for a large chunk of around 35-40% of the overall domestic market.Key players in the western region such(prenominal) as the Manikchand Group, Coca-Cola India, Amul India, are keenly contemplating organic and inorganic growth strategies, launch of new brands, venturing into newer segments and so on. Companies in the region are using a combination of various strategies to tap business opportunities such as tie-ups with cinema halls, retail outlets, hotels, hospitals, super markets, institutions and other distribution channels, which abound in the western region of the country.Managing logistics is at the core for the success of bottled water manufacturers. Indeed, groups like Amul India are deliberating using its existing retail netw ork to market and distribute its bottled water. This region is also poised to make a notable contribution to the great Indian bottled water growth story in terms of taking lead in accounting entry water variants and newer sub-segments like mineral water, spring water, flavored water and so on. Here also Biseri has emerged as a market leader. Further Scope of Growth in the IndustryAs the purchasing power and health and hygiene consciousness of Indian consumers improves, the consumption per person is likely to grow exponentially. Not surprisingly, the market is estimated to form the Rs 5,000 crore mark by 2010. Going a step further, more optimistic market experts anticipate a 20 fold leap from the current market size within the next 10-12 years. Apart from increase affluence among domestic consumers, exports would provide a further trigger to the industry. Exports of natural water, particularly to US and Europe, would bewilder growth for domestic players.As per industry forecasts, the demand for potable water is expected to exceed supply by 2020. Not surprisingly, given the lucrative western market and robust growth prospects, many large Indian corporate houses and multinational companies are interested in acquiring strong Indian brands. The skill of Mount Everest Mineral Water by the Tata group is testimony to this trend under which Tata Tea plans to supplement its existing overseas network to distribute natural water, the world over.Also with the increasing international tourism demand for hygienically packaged water is expected to grow manifolds especially with the Commonwealth Games in October 2010. so despite recording exceptional growth rate in past, packaged water industry has a huge growth potential in terms of market size. There are still awkward and semi rural areas to capture. With 19% share of the unorganized sector low priced segments are still left un captured.