Packaged Bottled Water Market in India 2013-2018_Slide Share

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Packaged bottled water market in India 2013 2018

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2 Copyright @ 2014 ValueNotes Database Pvt Ltd. All rights reserved

AndhraPradesh

Arunachal

Pradesh

AssamBihar

Chhattisgarh

Goa

Gujarat

Haryana

Himachal

Pradesh

Jammu

and

Kashmir

Jharkhand

Karnataka

Kerala

Madhya

Pradesh

Maharashtra

Manipur

Meghalaya

Mizoram

Nagaland

Orissa

Punjab

Rajasthan

Sikkim

Tamil

Nadu

Tripura

Uttar Pradesh

Uttaranchal

West

Bengal

• 43 cities in India have a p opulation of 1mn+

• Cities in India are classified on the basis of cost of

living.

•

4 Metros including Mumbai, Delhi,Chennai, Kolkata

• 9 Tier 1 ( +5 million ) cities including Pune,

Ahmedabad and Bangalore

• 22 Tier 2 cities ( 1 million to 5 million )

including Patna, Kochi, Rajkot, Madurai

• 41 Tier 3 cities ( less then 1 million )

including Ranchi, Mangalore, Gwalior,

Roorkee

India - Snapshot

Population growth 1.4% p.a

Land Area 3.29 mn sq km

Population density 324 persons per sq km

Form of government Democracy

Number of States 29 states & 6 union territories

Capital New Delhi

Per capita income Nominal: USD1,124.4 p.a

Religion 6 main religions

Languages

Hindi (national language), English

(business language), 22 (official

languages)

Currency Rupees

Exchange rate (USD

to INR)

1 USD = INR 60.01

(as on 1st April 2014)

Rural-urban mix 68% people reside in rural areas

Households 246 mn

Literacy rate 74.04%

Mumbai Pune

Hyderabad

Bangalore

Jaipur

New Delhi

Kolkata

Chennai

Ahmadabad

West

North

South

East

Source: Government websites

Lucknow

Nagpur

Patna

Surat

Metro cities

Tier-I cities

TOCMarket

Overview

Annexure &

Appendix

Industry

Trends

Competitive

Environment

Industry

Structure

Executive

Summary

Drivers &

Inhibitors

Government

Initiatives

Industry

Attractiveness

India Fact File



Preface to the Report


Who is the Reader?

Any participant or stakeholder in the bottled water industry would benefit from this report

Analysts, industry experts or any person with an interest in tracking the progress of the bottled water industry

Purpose of the Report

The report gives insights on how the bottled water industry is expected to grow in the next five years till 2018. It provides

intelligent insights on the drivers and challenges for the industry; the proposed government and policy initiatives, and their

impact on the industry; and key segmentation i.e. by end-users and geography.

Another important aspect of the report is the profiles of the top industry players in the bottled water industry in India

Scope of the report

This report looks at the current scenario for the bottled water industry in India

Non-branded packaged drinking water or entities supplying the packaged drinking water on a standalone basis do not

come under the purview of this report

TOCMarket

Overview

Annexure &

Appendix

Industry

Trends

Competitive

Environment

Industry

Structure

Executive

Summary

Drivers &

Inhibitors

Government

Initiatives

Industry

Attractiveness



Copyright @ 2014 ValueNotes Database Pvt Ltd. All rights reserved

Executive Summary Slide 10

1 Industry Structure Slide 11

1.1 Bottled water industry structure Slide 12

1.2 Evolution of the bottled water industry in India Slide 13

1.3 Bottled water industry classification Slide 14

1.4 Industry supply chain Slide 16

2 Industry Overview Slide 17

2.1 Market size & growth Slide 18

2.2 Industry segmentation Slide 19

2.2.1 - By product type Slide 19

2.2.2 - By type of SKUs Slide 20

2.3 Imports Slide 21

2.4 Exports Slide 22

2.5 Seasonal analysis Slide 23

2.6 Price analysis Slide 24

2.7 Geographical analysis Slide 25

3 Drivers & Inhibitors Slide 26

3.1 Driver 1: Rise in income & consumption Slide 28

3.2 Driver 2: Sound economics & high profitability Slide 30

3.3 Driver 3: Increasing consumer awareness on health issues Slide 31

3.4 Driver 4: Growth in foreign tourists & expatriate population Slide 32

3.5 Inhibitor 1: Inefficient transport infrastructure Slide 33

3.6 Inhibitor 2: Low entry barriers & threat of low quality products Slide 34

3.7 Inhibitor 3: Increasing use of water purifiers Slide 35

4 Government Initiatives & Policies Slide 36

4

TOCMarket

Overview

Annexure &

Appendix

Industry

Trends

Competitive

Environment

Industry

Structure

Executive

Summary

Drivers &

Inhibitors

Government

Initiatives

Industry

Attractiveness

T a b l e o f C o n

t e n t s



Copyright @ 2014 ValueNotes Database Pvt Ltd. All rights reserved

5 Industry Trends Slide 38

5.1 Recent trends witnessed Slide 39

5.2 M&A and recent developments Slide 40

6 Industry Analysis Slide 41

6.1 Porter’s analysis Slide 42

6.2 Industry attractiveness index Slide 43

7 Competitive Environment Slide 44

7.1 Industry segmentation – by players Slide 45

7.2 Market share of players Slide 46

7.3 Brand positioning - Price& quality analysis Slide 47

7.4 Competitive benchmarking Slide 48

7.5 Competitor profiles Slide 49

7.5.1 Bisleri International Pvt. Ltd. Slide 50

7.5.2 Pepsico India Holdings Pvt Ltd Slide 52

7.5.3 Coca Cola India Pvt. Ltd. Slide 54

7.5.4 Dhariwal Industries Ltd. Slide 56

7.5.5 Parle Agro Pvt. Ltd. Slide 58

8a Annexure Slide 60

8a.1 Water situation in India Slide 61

8b Appendix Slide 70

8b.1 Research Methodology Slide 71

8b.2 Abbreviations & Bibliography Slide 72

8b.3 Glossary Slide 73

5

TOCMarket

Overview

Annexure &

Appendix

Industry

Trends

Competitive

Environment

Industry

Structure

Executive

Summary

Drivers &

Inhibitors

Government

Initiatives

IndustryAttractiveness

T a b l e o f C o n

t e n t s


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TOCMarket

Overview

Annexure &

Appendix

Industry

Trends

Competitive

Environment

Industry

Structure

Executive

Summary

Drivers &

Inhibitors

Government

Initiatives

Industry

Attractiveness

T a b l e o f C o n t e n t s | L i s t o

f C h a r t s & T a b l e s

Chart 25 Porter’s analysis of the bottled water industry in India Slide 42

Chart 26 Bottled water market segmentation - by type of players (in Value) Slide 45

Chart 27 Market share of key players (in Value) Slide 46

Chart 28 Price and quality perception of bottled water Slide 47

Chart 29 Annual Turnover of Bisleri International Pvt. Ltd. (INR Millions) Slide 51

Chart 30 Key Manufacturing Locations – Bisleri Slide 51

Chart 31 Annual Turnover of Pepsico India Holdings Pvt. Ltd. (INR Millions) Slide 53

Chart 32 Key Manufacturing Locations – Pepsico Slide 53

Chart 33 Annual Turnover of Coca Cola India Pvt. Ltd. (INR Millions) Slide 55

Chart 34 Key Manufacturing Locations – Coca Cola Slide 55

Chart 35 Annual Turnover of Dhariwal Industries Ltd. (INR Millions) Slide 57

Chart 36 Key Manufacturing Locations – Dhariwal Slide 57

Chart 37 Annual Turnover of Parle Agro Pvt. Ltd. (INR Millions) Slide 59

Chart 38 Key Manufacturing Locations – Parle Slide 59

Chart 39 Annual precipitation & total water reserves Slide 62

Chart 40 Percentage breakup of “Net Groundwater Availability” Slide 63

Chart 41 Level of groundwater development Slide 64

Chart 42 River basins of India Slide 65

Chart 43 Water resource potential of major river basins (BCM) Slide 66

Chart 44 Water demand (in BCM) Slide 67

Chart 45 Break up of demand by sector in 2010 Slide 67

Chart 46 Percentage break up by domestic activities (urban)* Slide 67

Chart 47 Per capita consumption of bottled water in India and across globe Slide 68

k &I d C i idi i &


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Table 1 Government initiatives for boosting packaged drinking water market in India Slide 37

Table 2 Mergers & Acquisitions in 2013 in the bottled water industry Slide 40

Table 3 Recent developments in the bottled water industry Slide 40

Table 4 Competitive benchmarking of top players in India Slide 48

Table 5 Financial indicators of Bisleri International Pvt. Ltd. Slide 51

Table 6 Financial indicators of Pepsico India Holdings Pvt. Ltd. Slide 53

Table 7 Financial indicators of Coca Cola India Pvt. Ltd. Slide 55

Table 8 Financial indicators of Dhariwal Industries Ltd. Slide 57

Table 9 Financial indicators of Parle Agro Pvt. Ltd. Slide 59

Table 10 “Net Groundwater Availability” and “Annual Groundwater Draft” Slide 63

Table 11 Per capita availability of surface water Slide 66

Table 12 Sector wise future demand estimates (BCM) Slide 68

TOCMarket

Overview

Annexure &

Appendix

Industry

Trends

Competitive

Environment

Industry

Structure

Executive

Summary

Drivers &

Inhibitors

Government

Initiatives

Industry

Attractiveness

T a b l e o f C o n t e n t s | L i s t o

f C h a r t s & T a b l e s


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Market Anne re &Industry CompetitiveInd strE ec ti e Dri ers & Go ernment I d t



Market Size and

Growth

Drivers and

Challenges

Industry Scenario

The bottled water industry in India has been growing at a CAGR of 15% for the last three years, and is

currently valued at INR 60bn (~USD 1bn) in FY 2013

The industry is expected to grow at a CAGR of 22% in the next five years till FY 2018, due to the influx of

overseas tourists, a rise in per capita income, changes in lifestyle, etc

ValueNotes estimates that the industry will be worth approximately INR 160bn (~USD 2.67bn) by FY 2018

Driver:

Rising health concerns as well as improving standard of living amongst consumers is likely to boost the

consumption of packaged water in India

Inhibitor:

Traditional water purifying methods and an increase in the use of water purifiers, which need a one time

investment, are a big threat to the growth of the bottled water market in India

The bottled water industry in India is dominated by the top five large players, but they struggle to

penetrate the smaller non-tier I cities because of poor infrastructure. This is giving an opportunity for small

regional players to build their market share in regional markets.

The market share of unorganized players is anticipated to grow if the demand for bottled water keeps pace.

This could severely affect the revenues of organized players, as these small local players eat into their

market by imitating their brands and charging similar prices in the market.

Policy Changes

The implementation of FSS regulation has resulted in BIS inspecting and testing water samples from the

market to maintain the quality of licensed products as per Indian Standards (IS).

The implementation of IS14543: 2004 for packaged drinking water (PDW) & IS13428: 2005 packaged

natural mineral water (PNMW) has resulted in:

• 18 BIS licensees engaged in PNMW

• ~2,300 licensees engaged in PDW through reverse osmosis

• ~600 licensees engaged in bottling PDW from natural resources


E x e c u t i v e S u m

m a r y

The bottled water industry in India has been given an Industry Attractiveness Rating of 7.5 as per the

‘ ValueNotes Industry Attractiveness Rating Evaluation System’

TOCMarket

Overview

Annexure &

Appendix

Industry

Trends

Competitive

Environment

Industry

Structure

Executive

Summary

Drivers &

Inhibitors

Government

Initiatives

Industry

Attractiveness


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Market Annexure &Industry CompetitiveIndustryExecutive Drivers & Government Industry




A p

p e n d i x | A b b r e v i a t i o n s & B i b l i o g r a p h y

Abbreviations

BIS Bureau of Indian Standards

bn Billion

FSSR Food Safety and Standards Regulations

FDI Foreign Direct Investment

FTA Foreign Tourist Arrivals

INR Indian Rupee

Ltr Liter

mn Million

NSTFDCNational Scheduled Tribe Finance and

Development Corporation

PDW Packaged Drinking Water

PNMW Packaged Natural Mineral Water

PoU Point of Use

SKU Stock Keeping Unit

USD Unites States Dollar

Beverage Marketing Corporation

Bureau of Indian Standards

Central Ground Water Authority

Centre for Science & Environment, India

Department of Commerce

DNA India

FnB News: BIS formulates Indian packaged drinking water and PNMW stds under FSSR

Foodnavigator-asia.com

IBEF - India Now Magazine June-July 2012

India Environment Portal

Indian Council for Medical Research

Kerala Bottled Water Manufacturers Association

McKinsey Global Institute

Ministry of Tourism

National Scheduled Tribe Finanance and Development Corporation

Tamil Nadu Packaged Drinking Water Manufacturers Association

The National Green Tribunal

World Bank

Bibliography

ValueNotes conducted secondary research to obtain information on bottled water

industry in India and referred to following sources:

TOCMarket

Overview

Annexure &

Appendix

Industry

Trends

Competitive

Environment

Industry

Structure

Executive

Summary

Drivers &

Inhibitors

Government

InitiativesIndustry

Attractiveness

Abbreviations used in the bottled water report include:

Market Annexure &Industry CompetitiveIndustryExecutive Drivers & Government Industry




A p p e n d i x | G l o s s a r y

FSSR ActFood Safety and Standards (Prohibition and Restriction on Sales) (Amendment) Regulations, 2011 with

respect to PDW & PNMW

Foreign Tourist Arrivals

International inbound tourists (overnight visitors) are the number of tourists who travel to a country other

than that in which they have their usual residence, but outside their usual environment, for a period not

exceeding 12 months and whose main purpose in visiting is other than an activity remunerated from within

the country visited

Incredible Indiainternational marketing campaign by the Government of India to promote tourism in India in 2002 to a

global audience

IS13428: 2005 The BIS standard for packaged natural mineral water

IS14543: 2004 The BIS standard for packaged drinking water

Natural mineral water Water containing less than 250ppm of total dissolved solids are defined as natural mineral water

Off-trade This includes the retail industry consisting of modern trade and traditional kirana stores

On-trade This channel represents sales to hotels, restaurants/cafes, airlines, hospitals, colleges, etc.

Packaged drinking water

Packaged drinking water means water derived from any source of potable water and subjected to various

treatments to meet the prescribed standard before being packed in a plastic or glass container

TOCMarket

Overview

Annexure &

Appendix

Industry

Trends

Competitive

Environment

Industry

Structure

Executive

Summary

Drivers &

Inhibitors

Government

Initiatives

Industry

Attractiveness

Packaged Bottled Water Market in India 2013-2018_Slide Share

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