2010 PRESENTED BYSUBHENDU MISHRA REGD.NO.-1001247128 PGDM-SEC(B) REGINOAL COLLEGE OF MANAGEMENT AUTONOMUS BHUBANESWAR

BOTTLED WATER IN INDIA-2010y Drinking-water needs depending on the climate, physical activity & the body culture. y The growing number of cases of water born diseases, increasing water pollution,increasing scarcity of pure & safe water etc. have made the bottled water business just like other consumer items.

INTRODUCTIONy More than 200 bottled water brands in India and

among them nearly 80% are local brands. y Indian market is estimated at about Rs 1000 crore and is growing at whopping rate of 40%. y By 2010,it will reach Rs 4000-5000 Crore with 33% market for natural mineral water. y India ranks in the top 10 largest bottled water consumer in the world.

Cont ..y Between 1999 and 2004, the Indian bottled water

market grew at a compound annual growth rate ( CAGR) of 25%-the highest in the world. y The total annual bottled water consumption in india had tripled to 5 billon litres in 2004 from 1.5 billon litres in 1999. y Almost all the major international & national brands water bottles are available in indian market.

HISTORYy Mineral bottled water in India under the name

Bisleri was first introduce in Mumbai by Bisleri Ltd., a company of Italian origin in 1965. y Mineral bottled water were in glass bottles in two varieties- bubbly and still in 1965. y This company was started by SIGNOR FELICE who first brought the idea of selling bottled water in India.

Cont ..y In 1969, Parle started bottling Mineral water in

glass bottles under the brand name Bisleri. y Later Parle switched over to PVC non-returnable bottles and finally advanced to PET containers.y.

Since 1995 Mr. Ramesh J. Chauhan has started expanding Bisleri operations substanitially and the turn over has multiplied more than 20 times over a period of 10 years and average growth rate has been 40% over this period.

Bottled Water Industry in Indiay The top players in bottled water industry in India are the major international gaints like Coca cola, Pepsi, Nestle and noticeable presence of national player like Mount Everest, Manikchand, Kingfisher, Mohan Meakins, SKN Breweries, Indian Railway so on.

Conty Top multinational players such as Coca-cola and

Pepsi Co have been trying for the past decade to capture the Indian bottled water market. oWith increasing competition, this sector will register a robust growth in 2010, predict industry analysts. There are about 1200 bottling water plants in India, 600 are in Tamil Nadu.

Bisleri command a 60%

market share of the organized market. y Presently it have 8 plants and 11 franchisees all over India y Kinley and Aquafina are fast cathing up, with Kinley holding 20-25 % of the market and Aquafina approximately 10%. y The rest, including the smaller players, have 20-25 % of the market share.

TOP THREE PLAYERS IN THE INDUSTRY

1-BISLERIy Founded -

1965

y Headquarters India y Key people - Mr. Ramesh J. Chauhan (Chairman

Bisleri International Pvt.Ltd.)y Products - Drinking Water

BISLERI Bisleri is a brand of

mineral water. It is available in 8 pack sizes:250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L, 5L, and 20L. It's headquarters are in Mumbai, India.

Composition The composition of Bisleri Water in milligrams per

liter (mg/l): 160-TDS 7.2-ph factor 13.6-Calcium 22-Chlorides 58-Bicarbonate 7.8-Magnesium 2-Nitrate 19.3-Sulphates 66.1-Hardness

PRODUCTSy Bisleri Mountain Water y Bisleri Mineral Water

2- AQUAFINA

y Type

: Water Beverage y Manufacturer : PepsiCo, Inc. y Country of origin : United States y Introduced : 1994 y Aquafina is a brand of bottled water and skincare. products manufactured by PepsiCo, Inc

COMPOSITION The composition of Aquafina Water in milligrams per liter (mg/l): 162-TDS 7.2-ph factor 13.68-Calcium 23-Chlorides 57.5-Bicarbonate 7.75-Magnesium 2-Nitrate 18.93-Sulphates 65.19-Hardness

PRODUCTSy Aquafina Sparkling- carbonated flavored water,

available in Berry Blast (Raspberry), and Citrus Twist y Aquafina FlavorSplash- flavored water (without carbonation), and artificially sweetened with Sucralose, available in Grape, Citrus Blend, Wild Berry, Strawberry Kiwi, Raspberry and Lemon. y Aquafina Alive- a low calorie, vitamin-enhanced water beverage, available in Berry Pomegranate, Peach Mango, Lemon and Orange Lime.

3-KINLEYy PRODUCT OF : COCA COLA LTD y The Coca-Cola Company is the worlds largest beverage

company; largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups. y Kinley is a brand of still or carbonated water owned by Coca Cola India Private Limited (Coca Cola), a subsidiary of the Coca Cola Company

Composition The composition of Kinley Water in milligrams per liter (mg/l): 161-TDS 7.2-ph factor 13.72-Calcium 23-Chlorides 60-Bicarbonate 8.3-Magnesium 2-Nitrate 18.37-Sulphates 67.1-Hardness

PRODUCTSy Coca Cola offers two

types of drinks:y one is high quality bottled water . y the other is carbonated water with a wide array of variants such as tonic, bitter lemon, club soda and fruit flavored.

MARKET ANALYSIS OF BOTTLED WATER INDUSTRYy The Bottled water market in India is estimated at

about Rs 1,000 Crore and is growing at whopping rate of 40 per cent.By 2010, it will reach Rs 4,000 -5,000 Crore with 33 per cent market for natural mineral water y According to a national-level study, there are more than 200 bottled water brands in India and among them nearly 80 per cent are local brand

Cont .y India ranks in the top 10 largest bottled water

consumers in the world, its per capita per annum consumption of bottled water is estimated to be five litres which is comparatively lower than the global average of 24 litres y Today it is one of India's fastest growing bottled water industrial sectors. y The western region accounts for 40 per cent of the market and the eastern region just 10.

SWOT ANALYSISy strength The industry enjoy a huge customer base The industry has a good brand image Quality of product is of highest quality For example ;Bisleri has a very good distribution

structure in india It enjoys monopoly in metropolitian and tier1 and tier2 cities.

Weaknessy Mineral water distinctly lacks insales promotion . y It is expensive to common people. y It is not easily outside metropolitian and other big

cities .

Opportunityy It can explore international markets specially

developing markety To minimize cost it can introduce pouches to reach

common peopley It should spend more on sales promotion to reinforce

its brand image in the market

Threatsy Other indian and international bottled water players,

cola drinks ,juices and beverages y Small-scale producers and vendors who sell nonbranded products and serve small markets y Rigid government trade policies are big threat which are hampering growth of this industry y Bisleri counterfeits are eating up its revenue and damaging its goodwill in the market

PESTLE ANALYSISPoliticaly There is stable government at the centre with liberal

policies. y There are various political parties protesting against the pricing of mineral water. y The government has imposed price ceiling on bottled water.

Economicaly There is an increase in per capita income. y Most of the people are from middle and upper middle

class. y Expansion of multinationals, IT and BPO companies in Tier 1 and 2 cities. y There is no licensing policy adopted in this sector. y There is availability of cheap labor.

Socialy Bottled water was earlier considered as a status

symbol. y Bottled water is now the only source of pure drinking water in areas where there is scarcity of water. y The bottled water is considered to be safe as compared to ordinary tap water. y There in increase in health consciousness of people.

Technologicaly The bundling of technologies like distillation, reverse

osmosis, activated carbon filter, etc helps in better quality of water. y There has been a shift in packaging from bottles made of glass to bottles made of PET. y This helps in recycling and reducing environmental pollution.

Legaly Governed by PFA and BIS standard. y BIS has provided standards for mineral and drinking

water. The BIS approval was made mandatory from 1999. y Mineral water should be packed in clean, colorless, transparent, odorless, tamper proof bottles made up of polyethylene. y PFA and BIS lays standard for metals like lead, mercury, arsenic, aluminium and barium.

Environmentaly The use of Plastic for bottled water increases

environmental pollution. y The increase in consumption of bottled water causes depletion of valuable fossil fuels.

FUTURE OUTLOOK:y ANALYSIS SHOWS THAT BOTTLED WATER INDUSTRY IN INDIA WILL GROW AT THE RATE OF 20-25% PER YEAR . y CONSUMPTION OF BOTTLED WATER ALSO WILL INCREASE FROM 1.0MILLION CASES TO 9.0 MILLION CASSES AT THE END OF 2011. y BOTTLED WATER INDUSTRY CO. STARTED TARGETING TO OPEN THEIR OUTLET IN DIFFERENT RURAL AREAS AND ALSO IN DIFFERENT CITIES. y GOVT. ALSO STARTED TAKING INITIATIONS FOR THE RECTIFICATIONS IN THE TAX SYSTEMS SO THAT POOR LINE PEOPLE AISO GET BETER WATER FOR DRINK AT A LOW COST.

CONCLUSIONy India has more than more than120 crores of

population.This means that opportunities for investment in bottled water industry sector are immense.Though Indian bottled water industry growing at 20-25% this not enough. So the govt. Has to take so major dicisions for the growth of the industry. y Encourage for drinking pure,mineral water in a form of bottled water so that there will no water deases in India