Analysis of Distribution of Households on source of Drinking water

Out of the total water available in the world – 92% is Salt water, 3% is Icebergs, 5% is
drinkable water (Source: Water war)

Different sources of drinking water for house holds:

• Natural water – underground source

• Packaged Drinking water – disinfected water treated with Filtration, UV or Ozone
treatment, Reverse Osmosis

The amount of natural water available for drinking purposes is limited. So the Increasing
population and consumption demands are depleting the water table under ground. So there
was a shift of population towards the packaged drinking water.

From the graphs below, we can observe that the source of drinking water for households from
Tube / Bore in rural areas account for 53.2% of the total distribution of water from rural
improved source. This is due to India being agricultural driven country uses bore wells in
rural areas.

Bottled water

Rainwater

Protected spring

Protected well Rural

Urban
Tube / bore

Public tap

Piped water

0 20 40 60

Distribution of water in households from improved water sources

 Bottled water

Surface water

Urban
Tanker
Rural
Unprotected spring

Unprotected well

0 5 10 15 20

Distribution of water in households from non improved water source

Rural places uses bore wells primarily for irrigation and drinking purposes. So, there is a need
for increasing the public awareness about the harmful effects of drinking unprocessed water.
Fluorine content in this water drawn from bore wells will affect the health of the people
drinking it. This awareness will create an increase in demand of water purifiers and packaged
drinking water.

ETOP Analysis of Packaged Drinking Water Industry

Market size : around Rs.1500 crores

Market share : Bisleri – 9.4%; Kinley – 9.1%; Aquafina – 8.6%
(Source: Economic Times)
Customer : Mostly Urban areas, rural areas – limited users
Competition : Too many local suppliers
Technology : Reverse Osmosis, Ozone Treatment
Vendor Problems : Transportation costs are the key. Out of Rs. 10-12 per bottle, around
5-6 rupees will be towards transportation (Source: Business line)
Economy : Increasing Demands; Low profit margins
Regulation : Open market
Political : Even government has come up with projects like purification of
rivers such as Ganga, Yamuna etc. Setting up water treatment plants
for purification of river water and rain water harvesting in rural areas.
Socio-cultural : Public needs to be aware of the harmful effects of drinking
unprocessed water
Global : WHO / UN programs for creating awareness of safe drinking water to people

Summary

Increasing demands, open market policies, Low capital costs, health awareness programs
organised by government policies will create immense growth potential of this packaged
drinking water industry.