A STUDY REPORT ON STATEGIC MARKETING OF PAKAGED

MINERAL WATER

EXECUTIVE SUMMARY

Bottled Mineral water in India was first introduced in Mumbai in glass

bottles in 1965 by Bisleri Ltd., a company of Italian origin. In 1967
Bisleri set up a bottling plant for manufacturing and marketing its mineral
water but failed. The brand was later sold off to Parle in 1968-69. Bisleri
re-launched its bottled water in 1994. By this time with exposure of media
and exposure to international life styles, deteriorating levels of potable
water, increase in a number of water borne cases, increase in awareness
about health and hygiene and other related factors led to acceptability of
concept of mineral water.

India today is the tenth largest bottled water consumer in the world.
Currently, the market for mineral bottle water in India is estimated around
1800 crore and is expected to grow 5000 crore in year 2010. With over a
thousand bottled water producers, the Indian bottled water industry is big
by even international standards. And with more than 250 brands, bottled
water is one of India's fastest growing industrial sectors. This sector is
dominated by the big players - Parle Bisleri, Coca-Cola, PepsiCo, Parle
Agro, and so on. Even some new players have entered into this sector such
as manikchand, Godrej, etc.

This study on mineral water bottles include the structure, sales, brand wise
share, market categorization, brand wise details, legal requirements and
market segmentation of mineral bottle water industry.

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 Today the demand of bottled water is increasing at a much higher
rate that of carbonated soft drinks. However, In comparison to global
standards India's bottled water segment is largely unregulated. Safe water
is rated with a different yardstick in different countries. In India, the aspect
has been overlooked for long. Indian consumers tend to believe that any
bottled water is safe water. This may not be the case. Several small players
have entered the trade in India to capitalize on the craze, with no check on
them. Some serious doubts have been raised about the safety of so-called
bottled water available. There has hardly been an involvement of any
statutory body in defining specific standards. After analysing 30 brands of
packaged drinking water the CSE lab found the samples to contain a
deadly cocktail of pesticide exceeding the standards specified as safe for
drinking water and it had include the big players Bisleri, Kinley, Bailley,
etc.Therefore, India will face a turbulent water future. Unless water
management practices are changed soon.

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 TABLE OF CONTENT

SR.
TITLE PAGE NO:
NO.
INTRODUCTION ON MINERAL BOTTLED WATER
INDUSTRY.
1.1 History of mineral bottled water.A. International
1 1-8
scenario.B. The exploding bottle water industry.
1.2 Types of Water.
1.3 Purification process.
II. BACKGROUND OF INDIAN SCENARIO.
2.1 Structure and economics of Indian bottled water industry.
2.2 Big players keen to get into mineral bottled water.
2 2.3 Standards governing bottled water industry. 9-19
2.4 Sales of mineral water season wise.
2.5 Brand wise share.

III. MARKET CATGORISATION.

3.1 Caterers.
3 3.2 Cinemas. 20-27
3.3 Hotel and Restaurant.
3.4 Retail outlet finding.
IV. BOTTLED WATER MARKET IN MUMBAI
4.1 Per capita consumption.
4 28-31
4.2 Brands available.
4.3 Retail outlets.
V. BRANDWISE DETAILS
5.1 Parle Bisleri Private Ltd.
5.2 Hindustan Coca Cola Beverages Private Ltd.
5 5.3 Pepsi co. India Ltd. 32-44
5.4 Parle Agro Private Ltd.
5.5 Mount Everest Mineral Water Ltd.

VI. SWOT ANALYSIS OF PACKAGED WATER

6 INDUSTRY 45
.
VII. MARKET SEGMENTATION.
7 46
VIII. CONSUMER HABITS AND PRACTICES
8 47
9 IX. LEGAL REQUIREMENTS. 48-49

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 X. PACKAGING AND LABELLING
10 50
XI. TAXES AND ADVERTISING.
11 51-52
12 XII CASE STUDIES
FUTURE OUTLOOK
14 53
15 GOVERNMENT APATHY 54

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1 INTRODUCTION

Water forms an essential part of every living being. After air, water is the most
important necessity for life. Water plays a number of functions for the body. It
serves as the body's transportation system, it acts as a lubricant, it regulates the
body temperature etc. The eulogy for water is an unending thing. In fact more than

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2/3rd of the human body is made of water. The importance of water for human
body can be well accessed from the fact that if the amount of water in our body is
reduced by just 1-2%, we feel very thirsty. If it's reduced by 5%, our skin will
shrink and we will have difficulty moving our muscles and if it's reduced by 10%,
we will die.
Moreover with this commodity being a human necessity it makes best sense to
do business in. As a normal human being requires on an average needs 2-3 litres of
water everyday and world population is more than 8 billion (growing at 2-3%
annually), the business opportunity is humongous and the potential is largely
untapped. The facts about UNDP estimates, around 1.5 billion people worldwide
lack access to clean drinking water. Today, there are more people in the worlds
hospitals suffering from waterborne diseases than any other ailment. Some 6,000
children die of such diseases every day. In India over 1,600 Indians reportedly die
every day because of waterborne diseases all these have made the bottled water
business quite lucrative. In addition with getting pure drinking water from
municipal taps in cities and towns becoming a luxury the scenario has become so
lucrative in business sense that the opportunity is being misused by a number of
companies especially in our country. These companies are selling tap water under
the name of mineral water and are be-fooling consumers. The situation has got
aggravated by lack of awareness among common people and also due to lack of
initiatives on part of the government both on count of setting stringent norms as
well as on taking action against non-compliers. In fact one of the major factor for
flourishing of the sector is the public fear that water supplied by civic bodies is
impure.

1.1 HISTORY OF MINERAL WATER

INTERNATIONAL SCENARIO:

POPULARITY OF MINERAL WATER:

The tradition of bottled water and mineral water is not very old. Even in western
countries the practice of bottled drinking water started in 1950s. The trend of having
mineral water gained grounds in the market.

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Since ancient time people have used water from mineral springs, especially hot springs,
for bathing due to its supposed therapeutic value for rheumatism, arthritis, skin
diseases, and various other ailments. Depending on the temperature of the water, the
location, the altitude, and the climate at the spring, it can be used to cure different
ailments. This started the trend of using mineral water for drinking purpose to exploit
the therapeutic value of the water. This trend started gaining momentum in mid 1970s
and since then large quantities of bottled water from mineral springs in France and
other European countries are exported every year.

The concept of bottled has been quite prevalent in western countries due to greater
health consciousness and higher awareness about health and hygiene. The international
standards regarding bottled water are so stringent that for a particular brand of water to
be certified as bottled water it has to get approvals on four levels: federal, state, trade
association and individual company levels.

Worldwide there are thousands of companies bottling water for profit. Many of these
corporations have grown exponentially. Almost all of these corporations make
phenomenal amounts of money on a resource they pay very little for. Some leaders in
bottled industry across the globe are Thames Water, Perrier, Vivendi, Suez, Pepsi and
Coca-Cola.

In United States, the bottled water industry is regulated on four levels: federal (by the
U.S. Food and Drug Administration as a food product), state, industry association, and
individual company. EPA (Environment Protection Agency) regulates public water
systems. FDA regulates bottled water that crosses state lines.

According to the study, the US is the world's largest consumer of bottled water and
Italians drink the most per person. Annual sales of bottled water increase at an annual
average of 10%. India is tenth highest bottled water consumer across the globe. Most
multi-national (MNC) companies view India as the next big market with a lot of
potential and growth possibility. Several MNCs are waiting in the wings to expand a

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$ 287 billion global water market into India.

THE EXPLODING BOTTLE WATER INDUSTRY

. Over the years bottle water has grown exponentially. Over the last five years, global
bottled water sales have recorded an average annual growth rate of 10%, outpacing the
soft drinks category as a whole, which grew annually at 6%. Today bottled water is the
fastest-growing beverage category in the world and the preferred beverage of choice in
our present on-the-go society.

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 In next few years, up to and probably beyond 2010, the growth rate will accelerate, and
that Asia Pacific will become the world's largest regional market for packaged water.
Growth is observed by watching the major multinational players as they move into
these areas, establishing joint ventures with leading local suppliers and bottlers as well
as through acquisitions.

1.2 TYPES OF WATER

1) ARTESIAN WELL WATER:

Bottled water from a well that taps a confined aquifer (a water-bearing
underground layer of rock or sand) in which the water level stands at some height
above the top of the aquifer. Another name for bottled water. Accordingly, drinking
water is water that is sold for human consumption in sanitary containers and
contains no added sweeteners or chemical additives (other than flavors, extracts or

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essences). It must be calorie-free and sugar-free. Flavors, extracts or essences may
be added to drinking water, but they must comprise less than one-percent weight of
the final product or the product will be considered a soft drink.

2) MINERAL WATER:
Bottled water containing not less than 250 parts per million total dissolved solids
may be labeled as mineral water. Mineral water is distinguished from other types of
bottled water by its constant level and relative proportions of mineral and trace
elements at the point of emergence from the source. No minerals can be added to
this product.

3) PURIFIED WATER:
Water that has been produced by distillation, deionization, reverse osmosis or other
suitable processes can be labeled as purified bottled water. Basically, this just means
that the bacteria and dissolved solids have been removed from the water by some
process, making it "purified." Other suitable product names for bottled water treated
by one of the above processes may include "distilled water" if it is produced by
distillation, "de-ionized water" if the water is produced by deionization, or "reverse
osmosis water" if the process used is reverse osmosis.

4) SPARKLING WATER:
Water that after treatment and possible replacement with carbon dioxide contains
the same amount of carbon dioxide that it had at emergence from the source.
Sparkling bottled waters may be labeled as sparkling drinking water, sparkling
mineral water, sparkling spring water, etc.

5) SPRING WATER:
Bottled water derived from an underground formation from which water flows naturally
to the surface of the earth. Spring water must be collected only at the spring or through a

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borehole tapping the underground formation finding the spring.

6) WELL WATER:
Well water is exactly what it sounds like- water from a hole made in the ground that
taps the water source.

1.3 PURIFICATION PROCESS

Purity and safety are two major factors that should be taken care in sourcing and
processing of bottled water. Under ground water is used by it for filling the water.
Underground spring is carefully selected based on its portability and pathogen free
water. Great care goes in tapping this source. Only water below 25 meters is tapped.
This is to avoid any surface contamination to percolate and mix with underground
water source. Area surrounding the water collection tube at the surface is protected and
kept clean.

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The under ground water goes through seven stages of purification process which is as
follows:

1) CHLORINISATION :
First of all water is taken out from six bore wells and stored in the tank and chlorine is
mixed in it. This is done to remove bacteria from water.

2) SAND FILTRATION:
Chlorine mixed water is passed through seven layers of sand in a tank. This way all the
major bacteria are taken out from water.

3) CARBON FILTER:
After sand filtration water is passed through carbon filter to remove the chlorine that
was mixed earlier.

4) ULTRA FILTRATION:
Under this method water is passed through a filter, which has the pores of 0.2 microns,
and even the biggest of bacteria is of 0.5 microns, hence through this filter even the
remotest bacteria and dust particles are taken out.

5) REVERSE OSMOSIS:
As per the law TDS (total dissolved solids) are required to be maintained at the level of
70 - 110 ppm, through reverse osmosis TDS is maintained at 100 ppm.

6) OZONISATION:
Under this method ozone gas is mixed with water.

7) ULTRA FILTRATION:
Under this method ultra violet rays are passed through the water to kill water. This is
basically a precautionary step to purify water as after reverse osmosis no bacteria
remain in water.

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After whole this process at last step bottles are passed through a white screen where a
quality in charge inspect each and every bottle to ensure that there are no dust particles
in the bottles and if they are found then those bottles are rejected.

2 .BACKGROUND OF INDIAN SCENARIO

India has 16 percent of the world's population, 2.5 percent of the land mass and 4
percent of the world's water resources. These limited water resources are depleting
rapidly while the demands on them are increasing. Drinking water supplies in many
parts of India are intermittent. Transmission and distribution networks for water are
generally old and badly maintained, and as a result, are deteriorating.

Looking at this situation Mineral Water under the name Bisleri was first introduced in
India was in Mumbai in glass bottles in two varieties Bubbly & still in 1965 by Bisleri
Ltd., a company of Italian origin. This company was started by Signor Felice Bisleri

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who first brought the idea of selling bottled water in India. In 1967 Bisleri set up a
bottling plant for manufacturing and marketing its mineral water but failed. The brand
was later sold off to Parle in 1968-69. Mineral water market had its seeding as early as
1968-69 when Parle Group acquired the Bisleri brand from Bisleri of Italy for
launching Soda water but later launched bottled water also. The launch at that time was
a big flop as concept of buying water that too in bottled form was not accepted by the
Indian public and this category had no target market since bottled water is colourless,
tasteless and odourless, it was not an easy product to advertise. The market remained
dormant for quite long (for a period of 20 years or so). The market through out this
period was formed only by the premium products that too available through 5-star
hotels.

However, the real boost to mineral water came in the early-to-mid-1980s when they
switched to PVC packaging and later to PET bottles. The PET packaging did not just
ensure better transparency -- but could show sparkling clear water to the consumers. It
also meant better life for the water. Then there was a clear opportunity of building a
market for bottled water. The quality of water available in the country was bad.

In early 1990s with onset of liberalization policy by the Indian government, coming in
of cola majors, sell off of local soft drink brands of Campa, Thumps up, Gold Spot etc
by Parle to Coke and other factors led Bisleri to test waters again. Bisleri re-launched
its bottled water in 1994. By this time with exposure of media and exposure to
international life styles, deteriorating levels of potable water, increase in a number of
water borne cases, increase in awareness about health and hygiene and other related
factors led to acceptability of concept of mineral water. The market has not looked back
ever since then and has grown leaps and bounds to such an extent that a number of
genuine as well as fly-by -night operators have entered it to milch it.

In the year 1999 the bottled water market was estimated at about Rs 300 crore, of which
Bisleri commanded a dominant 80 per cent share and had some 18 manufacturing

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locations spread across the country.

2.1 THE STRUCTURE AND ECONOMICS OF THE INDIAN

BOTTLED WATER INDUSTRY.

At the fourth World Water Forum held in Mexico City in March 2006, the 120-nation
assembly could not reach a consensus on declaring the right to safe and clean drinking
water a human right. Millions of people the world over do not have access to potable
water supply. But it is good times for the bottled-water industry, which is cashing in on
the need for clean drinking water and the ability of the urban elite to pay an exorbitant
price for this very basic human need.

The fortunes of this more-than-$100-billion global industry are directly related to the
human apathy towards the environment - the more we pollute our waterbodies, the
more the sales of bottled water. It is estimated that the global consumption of bottled

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water is nearing 200 billion litres - sufficient to satisfy the daily drinking water need of
one-fourth of the Indian population or about 4.5 per cent of the global population.

In India the total annual bottled

water consumption has risen
rapidly in recent times - it has
tripled between 1999 and 2004 -
from about 1.5 billion litres to five
billion litres. These are boom times
for the Indian bottled water
industry. India is the tenth largest
bottled water consumer in the
world. In 2002, the industry had an
estimated turnover of Rs.10 billion (Rs.1, 000 crores) and now in year 2006 the market
for bottled water is 1800 crore and expected to reach Rs. 5,000 crores by 2010.

Today it is one of India's fastest growing industrial sectors. Between 1999 and 2004,
the Indian bottled water market grew at a compound annual growth rate (CAGR) of 50
per cent.

With over a thousand bottled water producers, the Indian bottled water industry is big
by even international standards. There are more than 250 brands, nearly 80 per cent of
which are local. Most of the small-scale producers sell non-branded products and serve
small markets. In fact, making bottled water is today a cottage industry in the country.
Leave alone the metros, a bottled-water manufacturer can even be found even in a one-
room shop, in every medium and small city and even some prosperous rural areas there
are bottled water manufacturers.

Despite the large number of small producers, this industry is dominated by the big

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players - Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, and so on. Parle was the first
major Indian company to enter the bottled water market in the country when it
introduced Bisleri in India.

The rise of the Indian bottled water industry began with the economic liberalisation
process in 1991. The market was virtually stagnant until 1991, when the demand for
bottled water was less than two million cases a year. However, since 1991-1992 it has
not looked back, and the demand in 2004-05 was a staggering 82 million cases.

The major growth in packaged water, however, was in the bulk water segment.
According to estimates, bulk water packs of 20 litres, targeted at the institutional and
home segments, grew at a rate of 30-40% in 2002 alone. Bisleri re-invented its 20-litre
jumbo home pack, fitted with a spout, to acquire a more consumer-friendly image.

Bottled water is sold in a variety of packages: pouches and glasses, 330 ml bottles, 500
ml bottles, one-litre bottles and even 20- to 50-litre bulk water packs. The formal
bottled water business in India can be divided broadly into three segments in terms of
cost: premium natural mineral water, natural mineral water and packaged drinking
water.Premium natural mineral water includes brands such as Evian, San Pelligrino and

Perrier, which are imported and priced between Rs.80 and Rs.110 a litre. Natural
mineral water, with brands such as Himalayan and Catch, is priced around Rs.20 a litre.
Packaged drinking water, which is nothing but treated water, is the biggest segment and
includes brands such as Parle Bisleri, Coca-Cola's Kinley and PepsiCo's Aquafina.
They are priced in the range of Rs.10-12 a litre. Consumption of bottled water in India
is linked to the level of prosperity in the different regions. The western region accounts
for 40 per cent of the market and the eastern region just 10. However, the bottling
plants are Concentrated in the southern region - of the approximately 1,200 bottling
water plants in India, 600 are in Tamil Nadu.

Today India is one of the biggest and most attractive water markets in the world. The
boom time for Indian bottled water industry is to continue- more so because the

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economics are sound, the bottom line is fat and the Indian government hardly cares for
what happens to the nation's water resources. Most multi-national (MNC) companies
view India as the next big market with a lot of potential and growth possibility. Several
MNCs are waiting in the wings to expand a $ 287 billion global water market into
India. There is a huge market being exploited by the packaged water industry, and it's
growing at 50% per annum.

2.2 BIG PLAYERS KEEN TO GET INTO MINERAL

BOTTLED WATER

The Rs. 1800 crore bottled water market is witnessing hectic activity with many
players entering the fray in the last one-year and still more to come. Part of the fast
moving consumer goods (FMCG) sector, bottled water is the only segment to have
shown phenomenal growth of about 50 per cent annually.

The market is expected to continue to grow at a healthy clip. In fact, in the last two
years, there has been a doubling of growth. The single largest share in the mineral water
market might still belong to an Indian brand -- Parle's Bisleri brand which has
differentiate. It has now donned green colours to sell natural mineral water and has a 40

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percent share -- multi-national corporations are not far behind. Now coke and Danone
are vying to purchase Bisleri.

The success of bottled water could be attributed to two factors. First, it has been an
underdeveloped business for a while now and, second, soft drink manufacturers have
priced themselves out by a long shot. The prices of soft drinks have, in fact, doubled in
the last ten years and this has happened because the price of concentrates has shot up
during this period.

Nestle India entered into this market with the launch of its brand `Pure Life' in New
Delhi. It plans to grab a 50 per cent market share in the next two years and emerge as a
strong player. The company has not ruled out acquiring existing brands. The water is
bottled at Nestls new plant at Samalkha in Haryana. Nestle has already launched two
of its global premium mineral water brands `Perrier' and `San Pellegrino' which are
targeted at niche markets.

In fact, soft drink major Coke launched its Kinley brand of bottled water and Pepsi
its global brand Aquafina. Pepsico is reportedly contemplating two more pack sizes for
its bottled water. Kinley's new product `Chhotu' Bailley, which is a 350 ml bottle, is
introduced by Parle Agro. Kinley water was launched in August 2000 in one-litre
bottles For Rs.10. The water was produced at Coca-Cola's three Greenfield
manufacturing plants at Bidadi near Bangalore, Dasna in Uttar Pradesh and Goa in its
first two years. Currently, Kinley is being manufactured in 15 bottling plants across the
country and according to Coca-Cola India. Hindustan Coca-Cola Bottling (HCCB), the
bottling unit of Coca-Cola in India, is going to launch Bonaqua, a water brand from
Cokes global stable. Bonaqua in all probability will end up competing with Cokes
existing water brand Kinley.

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Now even Godrej group of foods and beverages is all set to enter into the mineral
water segment with its exclusive range of bottled mineral water 'Aava', currently being
sold in limited regions in the country. Bottled mineral water by Godrej, 'Aava' is
sourced from the Aravalli and is currently being retailed in Gujarat, Mumbai and Pune.
However, the company plans to market it at a much larger scale. Aava is available in
four different sizes. Cup-Cap Bottle (one litre bottle with a unique cup for drinking),
Sports Bottle (750 ml bottle with unique "pull-push cap"), Aava Mini (200/300 ml
bottle that's easy to carry), and Family Pack (20 litre pack with spill-proof cap for home
or office use).

With more than 200 players jostling to be the thirst-quenching favorite 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 Rs. 1,800/- crore of which
the branded market accounts for Rs. 1200 crore. since bottled water started out as a
prestige product in India, companies offered retail margins of 20% to 40% against 8%
to 10% on soft drinks.

2.3 SOME OF THE STANDARDS GOVERNING THE BOTTLED

WATER INDUSTRY ARE:

Water is classified as bottled water or drinking water, if it meets all applicable

federal and state standards, is sealed in a sanitary container and is sold for
human consumption.

Bottled water cannot contain sweeteners or chemical additives (other than

flavors, extracts or essences) and must be calorie-free and sugar-free.

Flavors, extracts and essences -- derived from spice or fruit -- can be added to
bottled water, but these additions must comprise less than one percent by weight

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 of the final product.

Beverages containing more than the one-percent-by-weight flavor limit are

classified as soft drinks, not bottled water.

Bottled water may be sodium-free or contain "very low" amounts of sodium.

Tap water uses Chlorine as disinfectant bottled water uses Ozone as a

disinfectant.

Bottled water should not contain chlorine

2.4 BOTTLED WATER SALES SEASONWISE

Indias population which is more than 1 billion needs between 2-3 billion litres a day.

More than 250 brands of bottled water are being retailed across the country.

An estimated 900 million liters of bottled water is bought every year.

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As we can see from the diagram above that most of the sales of Bottled water comes in
the summer season. Therefore, the right time to launch such type of product is summer
season.

In monsoon time also a good response can be generated because there are people who
are very much conscious of their health and this makes them to go for packaged water.
Therefore, the sales are good in rainy season.

In winter season the sales are very low because of climatic conditions.

2.5 BRAND WISE SHARE

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BRAND WISE MARKET SHARE %
The Indian bottled water market, which has more than 250 brands. According to
industry estimates, the main consumers of packaged water are no longer restricted to
the upper class but include middle class and lower-middle class families as well. The
'rural' market is currently dominated by tourists and travelers; packaged water is now
beginning to be seen as an essential appendage to any form of travel.

The ORG-MARG survey conducted recently shows that the market leader Bisleri is
having 40% market share and have an annual sales of around 500-600 crore. Kinley
follows it with a 24% share. The other brands including Aquafina and Bailley constitute

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12% & 7% per cent market share in the bottled water market.The Samsika survey
further says that there are more than 250 brands in the water market. Out of this, two
are national brands, 17 regional. One thing is very clear from the two surveys
conducted that the market leader is Bisleri with Kinley, Aquafina, and Bailley are the
trailers, and now with Manikchand into mineral water, the competition is becoming
tough.

The South, which is prone to water shortages, is one of the industrys largest markets.
Chennai alone accounts for a quarter of the revenue of the Rs 1,800-crore packaged
water industry. More than nine hundred thousand litres of water are sold in this city
every day, of which 300,000 litres and 200,000 litres are reportedly supplied by
multinational water brands and Parles Bisleri, respectively

3. MARKET CATGORISATION

The market of packaged drinking water is categorized as follows:

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 o Theatres / cinema halls/ multiplexes.

o Corporate.

o Caterers.

o Picnic spots, Clubs, Gymkhanas.

o Hotels.

o Resorts.

o In-flight kitchens.

o College canteens.

o General Stores etc.

3.1 CATERERS

Brand Share:

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POPULARITY OF VARIOUS BRANDS AMONG CATERERS

PAYMENT TERMS:

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 PAYMENT IN TERMS - CATERERS & GYMKHANA

26%

Cash
Credit

74%

Other Findings:

Price closely followed by Service, Storage, Ease of operation & Availability are
the key factors affecting the buying decision process. They are willing to pay only
unto a maximum of Rs 2.50 per liter which is too below the price that any branded
player can afford to sell

Credit is a key factor that was revealed by most contractors after intensive
probing. The credit period expected by most was from 15 days to a month. They
mostly avoid dealing directly with companies for this very reason & prefer to buy
through the company intermediaries who provides them the necessary credit

Most contractors expect the provider to supply directly to the wedding/party site,
as they generally do not have the space to stock the bottles.

Brand name has absolutely no relevance to them

3.2 CINEMAS

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Brand Share:

MARKET SHARE OF VARIOUS BRANDS IN CINEMA HALLS IN 1 LITRE

PACK

PAYMENT TERMS - IN CINEMA HALLS

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 Credit
30%

Cash
Credit

Cash
70%

Frequency of Visit: Twice a week.

Other Findings:

Price closely followed by Brand Name, Convenience, & Service are the important
factors that affect the buying decision process

Cinema halls, Cyber Cafes, Bowling Alleys, Video game parlors are some places
where people generally go to have a nice time.

The average time that a person spends at the above ranges between 2-5 hours for a
cinema hall to an hour for a cyber caf.

The above centers already have the kiosks of the cola companies like Coke, & Pepsi
along with the vending machine of Nescafe. Thus there definitely is a potential for the
introduction of a kiosk vending pure water in these categories of outlets

Purchase frequency would vary to as low as thrice a month in a cyber caf to as high
as twice a week in case of Amusement parks like Essel world & Water Kingdom

3.3 HOTEL AND RESTAURANT

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MARKET SHARE OF VARIOUS BRANDS IN HOTELS AND
RESTUARANT

PAYMENT TERMS- IN HOTELS & RESTAURANTS

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 35%

Cash
Credit
65%

PAYMENT TERMS - HOTELS & RESTAURANTS

Service Frequency: Alternative Day

Findings:
Price closely followed by Service, Taste of water and Ease of operation are the
important factors that affect the buying decision process.
Hygiene is a very important factor when a customer decides to snack/eat in a
particular outlet. More so when we interviewed food stalls in Juhu Chowpatty a
majority of the food stall owners said that they now provide their customers
with the 1 liter Bisleri bottle as many customers refuse to accept the water
offered to them.
Respondents showed a fair level of brand awareness but there was no distinct
preference to any particular brand. Bisleri had a fair level of unaided recall vis-
-vis other brands like Bailey, Kinley, etc.

3.4 RETAIL OUTLET FINDING:

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 Small Space

Less Quantity and more frequency of purchase

Prefer Credit facility

Look out for schemes.

Bigger Margin, More preferences.

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 4. BOTTLED WATER MARKET IN MUMBAI

MUMBAI MARKET POPULATION :

Estimates of the present population are in the range of 18 to 19 million. Mumbai's
population has grown most rapidly in the years after India's independence.mumbai
accounts 12 percent population of Maharashtra.

YEAR WISE COMPARISON:

4.1 PER CAPITA CONSUMPTION

Nearly 80 per cent of the demand for bottled water comes from metros.

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20 LITRES JAR:

SR . NO CITY / AREA JAR PER OFFICE

1 SOUTH MUMBAI 48

2 NORTH MUMBAI 54

3 WEST MUMBAI 52

4 EAST MUMBAI 64

5 TOTAL 218 JAR PER OFFICE

MARKET SIZE BY VOLUME AND VALUE :

The market size of Packaged Drinking Bottled water is around 1800 crore, and Mumbai
market constitute around 10% which is 180 crores. Market has grown by around 500
crores in the last few years. Current growth rate estimated is 50%, which is one of the
highest of all industries.

4.2 BRANDS AVAILABLE :

Some of brands that are available in Mumbai. Few of them are as follows:

BRANDS LITRES - 1 LITRE. ETC 20 LITRES

Bisleri Yes Yes

Kinley Yes Yes

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Aquafina Yes No

Bailley Yes Yes

Brilliant Yes Yes

Hello No Yes

Spakel Yes Yes

Harnil No Yes

Apurva No Yes

Bally No Yes

Krishna No Yes

4.3 RETAIL OUTLETS

There are above 1,00,000 retail outlets in Mumbai.

SR. NO CLASSIFICATION PERCENTAGE

1 GROCERY & GENERAL STORES 40%

2 DEPARTMENTAL STORES 03%

3 COLD DRINK HOUSE 02%

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4 HOTELS & RESTAURANTS 5%

5 BEER BARS 02%

6 PAN BIDI SHOPS 28%

7 OTHERS 20%

5. BRAND WISE DETAILS

5.1 PARLE BISLERI PRIVATE LIMITED

Company: Parle Bisleri Private Limited.

Brand: Bisleri

Address: Parle Bisleri Pvt. Ltd., Western Eastern Highway, Andheri (E).

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Product: Packaged Drinking Water

Design:

Quality: ISI Marked.

Packaging: Pet Bottles
Target Market Segment: Health Conscious people
Positioning: Safe Water
Trade Promotion: Corporate Event, Play safe Campaign, Mobile Van,
Stressing on Seal

BRAND DETAILS:
It have developed 8 unique pack sizes to suit the need of every individual and are
present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable
packs & 5L, 20L which are the returnable packs. Parles bisleri have an annual sales
of around 500-600 crore. In terms of volumes, the North and West remain Bisleri's
biggest performing markets, despite the brand's sustained national-level presence. It's
headquarters are in Mumbai. It's operations run throughout the subcontinent of India
and is one of the leading Mineral Water supplying companies in India. Currently Bisleri
has 8 plants & 11 franchisees all over India. Today, Bisleris distribution is well into the
villages and the paan-walas are one of our biggest distributors.
Bisleri have launched it new product 'Bisleri Natural Mountain Water'. The pioneer

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of the bottled water in India has also gone for a makeover, changing its corporate
colour from blue to aquagreen.
.

DISTRIBUTION: Bottling plant (Andheri)

For selling 1 Litre, etc.

The Company directly approaches the retailer. They have tracked Mumbai through
various routes and accordingly they service. Their major hub is Santacruz, Vile Parle &
Andheri in Suburbs.

Schemes: One Litre:

One box free on five box

Half Litre:

One Bottle free on 1 Box

For 20 Litre. Jar.

Bisleri sell their product through their own network and they have also appointed
Distributors for each area to sell their product.

Bisleri-DISTRIBUTOR Details for 20 Ltr: - South Mumbai

Distributor: Nos. 16

Average sales per Distributor: 110 Jar per day.

MRP per jar: Rs. 60

Net Cost Price (for Distributor): Rs. 43

Margin of Rs. 17 (28.33%)

Bisleri on their Own. (South Mumbai)

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Service Frequency: Alternate days

Vehicle: Nos. 12

Manpower per Vehicle

1 loader

1 Driver

1 salesmen

Schemes:
1 Jar Free on 10 jars.
88 Jars free on 700 jars, if bought within 4 days.

All Schemes are for Distributors in South Mumbai.

Distribution Weakness:
Company is not addressing the compliant from distributor and end user.
Company does not use Polycarbonate Jars in 20 Litre, which result in loss of
face value and ultimately losing customer.

5.2 HINDUSTAN COCA COLA BEVERAGES PRIVATE LIMITED

Company: Hindustan Coca cola Beverages Private Limited

Brand: Kinley

Product: Packaged Drinking Water

Design:

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Quality: ISI Marked.

Packaging: Pet Bottles, Polycarbonate Jars

Target Market Segment: Health Conscious people

Positioning: Safe Water

Trade Promotion: Effective TV ads (Boond Boond mein vishwas), Banking on Parent
Brand, Mobile van.

BRAND DETAILS:
Currently, Kinley is being manufactured in more than 18 bottling plants across the
country. According to Coca-Cola Coke had invested nearly $1 billion in India between
entering the market in 1993 and December 2001. Hindustan Coca-Cola Bottling
(HCCB), the bottling unit of Coca-Cola in India, is now going to launch Bonaqua, a
water brand from Cokes global stable. Bonaqua in all probability will end up

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competing with Cokes existing water brand Kinley.

DISTRIBUTION: Bottling plant (Wada, Thane District)

For selling 1 Litre. etc.

The Company directly approaches the retailer. They have tracked Mumbai through
various routes and accordingly they service.

Schemes: One Litre:

One Box free on 2 Box (Net Rs. 80 per Box)

Half Litre:

No scheme

For 20 Litre. Jar

Kinley sell their products through their own network only. They have appointed HDA
(Home delivery Agent) for some area to sell their product.

Service Frequency: Alternate days

Manpower per Vehicle

1 loader
1 Driver/salesmen
1 salesmen

MRP per jar : Rs. 65

Net cost price (Distributor):Rs. 50.

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Margin: RS. 15 ( 23.1%)

Distribution Weakness:
Not been able to penetrate in interior area since they have not appointed Distributors in
most of the area.

5.3 PEPSICO INDIA LIMITED

Company: PepsiCo Ltd.

Brand: Aquafina

Product: Packaged Drinking Water.

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Design:

Quality: ISI Marked

Packaging: Pet Bottles

Target Market Segment: Health Conscious people

Positioning: Safe Water

Trade Promotion: Banking on Parent Brand, Banners.

BRAND DETAILS:
PepsiCo India launched the packaged water bottle brand Aquafina in the year 2000 in a
750-ml pack. It have now developed 4 unique pack sizes and are present in 500ml,
750ml,1 litre, 2 litre. Aquafina is manufactured in more than 15 plants across the
country.

DISTRIBUTION: Bottling plant (Chembur, Roha)

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For 1 Ltr. etc.
The Company directly approaches the retailer. They have tracked Mumbai through
various routes and accordingly they service.

Schemes:
One Litre

One Box free on 3 Box (Net Rs. 80 per Box)

Half Litre

No scheme

For 20 Ltr jar

The Company has not entered the 20-litre Packaged water Market

Distribution Weakness:
It seems that the Company is not pushing their packaged water brand
Aquafina and concentrating on Beverages market.
Many times their products are not available in the market.
Aquafina packaged Bottles water is given in a scheme to promote their
Beverages brand.

5.4: PARLE AGRO PRIVATE LIMITED.

Company: Parle Agro Ltd.

Brand: Bailley

Product: Packaged Drinking Water

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Design:

Quality: ISI Marked

Packaging: Pet Bottles, Polycarbonate Jars

Target Market Segment: Health Conscious people

Positioning: Safe Water

Trade Promotion: Mobile Van

BRAND DETAILS:
Bailley have developed 4 pack sizes of bottled mineral water and they are present in
330ml, 1 litre, 1.5 litre, 20 litre jars this company have taken full advantage of the
distribution network that was set up to market the hugely successful mango drink
Frooti. It has 18 operational units and all but two of them manufacture bottles as well.
Bailley have used the franchising route to ensure wider geographical coverage and to
augment capacities.Bailley has 16 franchisees and it plans to add another six soon.

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DISTRIBUTION: Bottling plant (Patalganga, Panvel)

For 1 Ltr. etc.

The Company directly approaches the retailer. They have tracked Mumbai through
various routes and accordingly they service.

For 20 Ltr. jar

Bailey sells their product through their own network in South Mumbai. They have
appointed Distributors in North Mumbai and other parts.

Service Frequency: Twice in a Week.

Manpower per Vehicle

1 loader

1 Driver/salesmen

MRP per jar: Rs 60

Net Cost Price to Distributor: Rs. 46-48

Margin to Distributor: Rs. 14(23.3%)

Distribution Weakness:
The Company is losing out its share on every front.

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 Lethargic Approach towards Market.

No Advertisement, Lack of Aggressiveness.

5.5 MOUNT EVEREST MINERAL WATER LIMITED

Company: Mount Everest Mineral Water Ltd.

Brand: Himalayan

Product: Natural Mineral Water

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Design:

Quality: ISI Marked

Packaging: Pet Bottles, Polycarbonate Jars

Target Market Segment: Health Conscious people

Positioning: Mineral Water

Trade Promotion: Direct Selling

BRAND DETAILS:
Himalayan Natural Mineral water is the only internationally accepted quality natural
mineral water from India. It have developed 3 pack sizes and are present in 500ml, 1
litre, 1.5 litre. It is graded equivalent to "Evian" and "Vittal" from France. CSE test
results also show that the brand 'Himalayan' is one of the safest mineral water brands.
This company is an ISO-9002 company. It is also exported to USA, Japan, France and
other developed countries.

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DISTRIBUTION: Bottling plant (Himachal Pradesh)

For 1 Ltr. etc.

The Company is targeting Star Hotels and has penetrated in most of the star Hotels.
MRP Rs. 15 (One Litre).

For 20 Ltr. jar

They have not ventured the 20 Litre Market.

Distribution Weakness:
Not been able to penetrate in the Market
Failed to create awareness for their USP
Low on Advertisement and other awareness program

Other Information
It is an ISO-9002 certified Company
The Company is one of the integrated natural Mineral water bottling plant in
Asia
It is a subsidiary of Balsara group for Companies

6. SWOT ANALYSIS OF THE PACKAGED WATER

INDUSTRY

STRENGTH

The industry is growing @ 50%.

In India the market is huge & untapped.
Growing awareness among the people about the importance of mineral water.

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 pure drinking water from municipal taps in cities and towns becoming luxury.

WEAKNESS

Many players entering in the race.

Any local person can start manufacturing.
Rural population is not using the packaged water.
Not very economical.
Quality not properly maintained e.g. Bisleri & hence has bad effect on the
whole.

OPPORTUNITY

Sustained Market growth increase in coming years

Literacy rate growing and hence the awareness of safe drinking water to avoid
the diseases.
Huge population & untapped market.

THREAT

Many substitutes available

Too many players will dilute the market & the profit margin

7. MARKET SEGMENTATION

The mineral water market is segmented according to the type of consumers:

Foreign Tourists:
Foreign tourists have been the main consumers of the mineral water as
they face a lot of digestion problems due to different food habits.

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 Domestic Tourists:
Domestic tourists have switched to mineral water mainly because of
safety and hygiene factors.

Fashion Conscious:
Like soft drinks, drinking mineral water is also considered fashionable by
some people.
The mineral water consumer is mainly in the age group of
20-35 years and is an educated middle class person. This is also the
segment of fruit drinks, which have usually been positioned as fun
and health drink for young adults.

The mineral water market is also segmented along pack sizes:

One litre bottle: It is meant to spell safety and security for
consumers. It is positioned on a prestige platform for the achiever
segment - who like to make a fashion statement by drinking mineral
water. This segment gets the maximum sales.
500ml bottle: This size has been introduced in the market to target
the individual and local travelers.
PET bottles: The size of the PET bottles varies from 10 to 20 litres.
These are mainly for institutional sales (Wedding parties, Hotels,
Corporates, etc.)

8. CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of
their drinking habits.

Brand loyalty is very low as all the products taste the same so they can buy
just any product which is on the shelf, same as that of soft drinks and fruit
beverages.

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 Availability in the chilled form and brand awareness plays a crucial role in
purchase decisions.

While there is no aversion to consumption of mineral water by any age

group, this product is mainly consumed by the people in the age group of
20-35 years who have less attraction of soft drinks or other synthetic drinks
whereas youngsters look in for soft drinks and fruit beverages to quench
their thirst.

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of
them

9. LEGAL REQUIREMENTS

The bottled water industry is governed by PFA and BIS standards. Some of the key
highlights of these legislations are:

Mineral water is covered under the Prevention of Food Adulteration Act

(PFA), while drinking water is not under its preview.

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 Drinking Water is excluded from the purview of the (PFA) Prevention of
Food Adulteration Act, 1954 accept for the specification that water used in
the preparation of a food article shall be free from micro organisms likely to
cause diseases and should be free from chemical constituents that might
impair health.

The PFA rule on mineral water is that it must be free from dirt, foreign
matter or any other ingredients injurious to health and has to be packed in
clean and sterile containers.

The Bureau of Indian Standards (BIS) has provided standards for both
drinking water and mineral water but compliance hitherto was voluntary.

To regulate the quality and price of bottled water, BIS approval has been
made mandatory w.e.f. end of 1999.

Mineral water shall be packed in clean, colourless, transparent and tamper-

proof bottles made of polyethylene conforming to the IS 10146 standards.

The standards laid down under PFA Act do not prescribe any minimum
quantity of minerals to qualify as mineral water.

Hitherto Indian laws do not stipulate the minimum mineral content level
required for water to be labelled as a mineral water

The BIS does not lay down any guideline or practice for processing water.

There is no specific industrial licensing policy for the bottled-water sector.

Thus any one can set up a plant can do so without establishing the source of
the water and the technology used to purify it.

Both the PFA Act and BIS state that the water must be completely free of

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 bacteria like salmonella, E-coli, faecal streptococci, v. cholera and shigella
that cause a range of illnesses such as cholera, typhoid, dysentery and
various types of gastro-enteritis

Both the PFA and BIS lay down standards for metals like lead, mercury,
arsenic, aluminium and barium which cause a range of disorders.

The BIS lays down a minimum of 150mg/l and a maximum of 700 mg/l of
TDS for mineral water.

The PFA rules do not prescribe any minimum TDS levels but does mention
the maximum of 1500mg/l.

10. PACKAGING AND LABELLING

PACKAGING
The product shall be packed in sealed retail containers suitable for preventing the
possible adulteration or contamination of water and shall be in accordance with the
applicable sections of the (Draft) Code of Hygienic Practice for Packaged (Bottled)
Drinking Waters.

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STANDARD PERTAINING TO LABELING OF PRODUCT IN THE
INDUSTRY:

Label should have consumer brand name.

Label should have the name of the product category.
Label should have name and address of the manufacturer.
Label should have net weight or volume.
Label should have the batch number.
Label should have the name of source or place of origin of the product.
Label should have the date of packaging.
Label should have the date of expiry.
Label should have direction for storage.
Label should have treatment for disinfections.
Label should have the license or certification from the concerned authority.

11. TAXES & ADVERTISING

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The raw material cost is just 0.02-0.03 Paise and treatment and purification involves 25
paisa per litre. The next cost is the cost of bottle, cap and carton, label cost, which is
Rs.2.50 at lower end. But the biggest cost is the transportation and marketing cost
which forms a huge chunk of the price.

All the tax charges are quite high. The taxes are as under:

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 SR. Types of Taxes charged & %
NO cost incurred. contributi
on
1 Octroi 4.5
2 Sales Tax 7.5
3 Excise 15
4 Transportation 10
5 Distribution Margin 12
6 CNFs 2-3
7 Retailers Margin 40
8 Advertising cost varies --

ADVERTISING
Advertising is any paid form of non-personal presentation & promotion of ideas, goods
or services by an identified sponsor.

Modes of advertising:
Newspapers, billboards, glow signs, banners, inflatable etc.
TV.
Mails.
Radio.
Magazines.
Yellow pages.
Newsletters.
Brochures.
Telephone.
Internet.

12. FUTURE OUTLOOK

Today the demand of bottled water is increasing at a much higher rate that of
carbonated soft drinks. The market size of bottled water too is expected to

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 surpass the size of soft drinks market in near future. The next player which is
waiting to launch its brand in the market is Nestle. Nestle had made its
intentions very clear about its prospective entry into the market early 2000.
The company has already tasted success of its mass-market brand, Pure Life
in developing countries like Pakistan and Mexico. The next in queue seems to
be HLL, which too has identified the bottled water as a growth area for
future. The company is presently looking or some suitable brand for
acquisition. Britannia too evinced some initial interest in the market but now
seems to have postponed its plans.

The existing players too are set to expand their distribution network to have
their presence across the country. The market is also expected to undergo a
major consolidation phase. As one of the major factors that's important for
success in the market is the distribution network, the players with deep
pockets are expected to go for acquisition of existing small regional players
and spread their network across the country. Already Coke has tied up with
Yes for manufacturing of its brands in areas where it doesnt have presence.
Though Coke and Pepsi have both, well established distribution network as
well as bottling & manufacturing plants, they seems to be at an advantage but
players like HLL and Nestle with strong financial muscle can easily turn the
tables in their favour through acquisition route acquisitions. It is expected that
the market would continue to grow at a healthy rate of 50 %. In year 2006 the
market for bottled mineral water in India is estimated around 1800 crore and
expected to reach Rs. 5,000 crores by 2010

15. CASE STUDY

I. ISI 'QUESTION' MARK ON BOTTLED WATER

Is the 'ISI' mark of quality issued by the Bureau of Indian Standards (BIS) for
bottled water losing its relevance?

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The BIS granted a record 428 fresh licences for manufacturing bottled water in a single
year (2006-07). This is over and above some 1,800 licences that exist in the market
today. This means, there are in excess of 1,800 brands of bottled water across the
country.

In 2005-06, the BIS had granted some 250 licences for bottled water manufacturing. In
the year prior to that, about 179 licences were given by BIS. The rate at which fresh
licences are being issued year after year goes on to prove a few points.

One, that there is a surging demand for bottled water in the country. Two, this is a result
of rising aspirations among consumers who have graduated to bottled water.

And, three, it would be a daunting task for the government to keep tabs on misuse of
the ISI mark or the possibility of fake ISI marks being generated by those who wish to
cash in on the rising demand.

Industry sources indicated that going by the number of existing licences, the total size
of the bottled water market is around Rs 2,000 crore.

Industry experts said it was difficult to comprehend what standards were being
followed by the growing number of manufacturing facilities.

Even though BIS tries its best to keep a vigil, experts feel that the ISI mark is spreading
itself thin across a large number of brands of bottled water, which may further confuse
the consumer.

Bisleri International chairman Ramesh Chauhan, who has a share of around 40% in the
bottled water market, said: "In this industry the cost of entry and the cost of exit is low.
One does not require much equipment to make bottled water."

BIS records show that while a large number of fresh licences are issued, there are a
number of old licences which expire too. While some of these come up for renewal,
others probably opt for the exit route.

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 "In a country where just over two decades ago people would frown at the idea of selling
as basic a commodity as water, it is quite astounding that so many bottled water brands
actually thrive today," said an industry observer. Leading brands of bottled water
include, Bisleri, Kinley, Aquafina, Himalayan, among others.

II. BIG PLAYERS KEEN TO GET INTO IN BOTTLED WATER

In 1998, the branded mineral water market in India had grown to a 424 million litre
business, valued at Rs 4 billion. There were 200 brands available in the country. In their
bid to garner greater market share, many companies, including Parle Bisleri tried to
make quality and the purification processes they used their unique selling proposition
(USP).

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In 2000, the branded water market had grown to Rs 7 billion. New players like Pepsi's
Aquafina, Coca-Cola's Kinley and Nestle's Pure Life entered the market. As product
differentiation on the basis of quality became increasingly difficult, with each company
claiming that its brand was safe and pure, companies began to use packaging to
differentiate their products. Bisleri introduced a tamper proof seal in the 500 ml bottle.
However, analysts felt that Bisleri's efforts to reinforce its pure and safe image with a
tamper proof seal may not be all that effective as competitors also had similar tamper
proof sealed bottles. They felt that it was companies with strong distribution channels
that would do well in the long run. Pepsi's Aquafina was strongly placed because it had
the backing of Pepsi's distribution network in the country.

In August 2000, Coca-Cola India launched its bottled water brand, Kinley. Some
analysts said that it would be difficult for Kinley to make a dent in the branded water
market in India because it was already overcrowded and highly competitive.
Commenting on Kinley's launch, Ramesh Chauhan (Chauhan), CEO of Parle Bisleri
Ltd said, "It will be tough for anyone to beat us in this game. We will remain market
leaders.

By 2001, the mineral water market was worth Rs 10 billion and was growing at the rate
of 40% a year. Kinley and Aquafina made inroads into the market and by March 2001,
Kinley had a 10% market share, Aquafina had 4% and the share of Bisleri had come
down to 51%. By June 2001, Bisleri's market share was 47% and Aquafina and Kinley
together accounted for over a third of the market.

In 2001, both Kinley and Aquafina were making huge investments in bottling plants
and distribution. By 2002, Coca-Cola India planned to double the number of water
bottling plants to 16 and Pepsi announced that it would add seven more plants to the
existing five. In contrast, Bisleri had only 15 bottling plants and three franchisees.
Kinley had 500,000 outlets compared to Bisleri's 350,000.

However, one area in which Bisleri seemed to have an advantage over Kinley
and Aquafina was the bulk segment. In 2000 Bisleri's 5 and 20 litres packs

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 accounted for 20% of its sales. In 2001, the company planned to have 75%
of its sales from bulk packs of 5 and 20 litres.According to analysts the bulk
segment had vast potential, and was expected to grow fast. In 2000, 40% of
the branded water consumption was in eateries, homes and restaurants.
Large shops and commercial complexes were fast emerging as attractive
targets for mineral water marketers and Bisleri wanted to be the first to
establish itself in the bulk pack segment.

Bisleri reportedly wanted to focus on the bulk segment because Pepsi and
Coca-Cola seemed to be strong in the retail segment and would take some
time to strengthen their presence in the bulk segment.

13. THE GOVERNMENT APATHY

The government of India announced a new water policy based on privatization.

The social activists allege that this policy was shaped entirely by the World Bank
recipes for the water sector.

In comparison to global standards India's bottled water segment is largely

unregulated. Safe water is rated with a different yardstick in different countries. In
India, the aspect has been overlooked for long. Indian consumers tend to believe
that any bottled water is safe water. This may not be the case.

Several small players have entered the trade in India to capitalize on the craze,
with no check on them. Some serious doubts have been raised about the safety of
so-called bottled water available. There has hardly been an involvement of any
statutory body in defining specific standards. The Bureau of Indian Standards
(BIS) has just recently got involved in the process.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM)

have proposed expediting setting up of Water Regulatory Authority, urging the

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 Planning Commission to build a strong case for its creation to the government.
The Chamber's proposal which will be submitted to the Deputy Chairman,
Planning Commission, Dr. Montek Singh Ahluwalia by its President, Anil K.
Agarwal, stresses that water is crucial and hardly any good job is being done in
this area. As only a third of country is under irrigation with assured canal water or
ground water supplies. Maintenance of irrigation system is poor which is partly
because water tariff are very low and do not cover the costs of tariff and
maintenance, said the Chamber proposal.

CONCLUSION

After seeing the different sales trends and market shares graphs, one can easily derive
that at present the foreign brands like Kinley & Aquafina are going share equally the
market share and the Indian companies like Bisleri which show a good market share
would surely come down as the modern marketing skills and technologies used by
Coke & Pepsi would cover the large part of the market. According to Health Minister
Mineral water today is not just a status symbol but also a necessity for homes and
offices. With an increasing demand for clean drinking water, more and more
manufacturers of bottled water are joining the lucrative mineral water business. Today
mineral water has become an integrated part of our social life. Mineral water can be
defined as potable water containing the necessary mineral nutrients required by the
body and beneficial to human metabolism.

TURBULENT FUTURE

However, India will face a turbulent water future. Unless water management

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practices are changed soon - India will face a severe water crisis within the next two
decades and will have neither the cash to build new infrastructure nor the water needed
by its growing economy and rising population. "India right now, especially with the
technology centers that are being built, will have a real driving force in the global water
business as far as infrastructure, water delivery, membrane filtration and chemical use.

Climate change projections show that India's water problems are only likely to
worsen. With more rain expected to fall in and the rapid melting of glaciers - especially
in the western Himalayas - India will need to gear up to tackle the increasing incidence
of both droughts and floods.

India can still store only relatively small quantities of its fickle rainfall. Whereas
arid rich countries (such as the United States and Australia) have built over 5,000 cubic
meters of water storage per capita, and China can store about 1,000 cubic meters per
capita, India's dams can store only 200 cubic meters per capita. Moreover, India can
store only about 30 days of rainfall, compared to 900 days in major river basins in arid
areas of developed countries.

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BIBLIOGRAPHY:
1. Financial Express
2. Business world

WEBSITES:
1. www.google.com
2. www.rediff.com
3. www.search37.com
4. www.yahoo.com
5. www.parleagro.com/Bailey.html

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