Not surprisingly, various companies involved in water purification and water treatment are aggressively marketing their products. But, in spite of the tremendous potential for expansion and growth, the water purification industry has not had an easy time, partly because a water purifier is still not considered a consumer durable and partly because of issues of pricing, low margins and technology.

The big operators in this segment are market leader Eureka Forbes, a joint venture between Forbes Gokak (part of the Shapoorji Pallonji group), and Electrolux AB of Sweden, Ion Exchange, Permionics India, Softel Machines and Sintex Industries. Besides, there are a number of local and regional players in the unorganised sector. As much as 75 per cent of the market is accounted for by Eureka Forbes with its brand AquaGuard. The rest of the players are fighting for the remaining 25 per cent of the market.

The differentiating factor among various brands is the kind of technology being used. Up to now, the ultra violet or the UV technology, used by companies like Eureka Forbes, Sintex Industries and a several other smaller players, has been the dominant technology. However, ultra filtration membrane technology and reverse osmosis are now being used increasingly.

Adapting to local conditions
The condition of the water and the kind of impurities determine the kind of technology suitable for a particular area. There are three main kinds of impurities — suspended particles, microbiological impurities (which include bacteria, viruses and pyrogens), and excess dissolved salts.

"The ideal water purification system should remove all three kinds of impurities; only membrane technology guarantees that," says Satyajai Mayor, managing director, Permionics India Ltd, a Vadodara-based company which has been in the field of membranes for several years.

Says US-based Munir Cheryan of the University of Illinois, who has written a book, Ultrafiltration and Microfiltration, on membrane technology: "As far as removal of impurities is concerned, UV oxidation is good at removing dissolved organics and bacteria, but is poor at removing dissolved ionised solids and gases, particulates and pyrogens. Ultra filtration membrane devices, on the other hand, are excellent at removing particulates, bacteria, pyrogens and dissolved organics, though they are also poor at removing dissolved ionised solids and gases."

Explaining the difference, Mayor says: "UV rays passing through water render bacteria and viruses inert, but they do not remove them. Moreover, UV rays do not change the composition of the water; the excess dissolved salts remain in your drinking water, as before. A UV-based water purifier requires a certain clarity of water for it to be effective. If the water is turbid, then a UV-based purifier will not be very effective. Inlet water has to be of a certain minimum quality for a UV system to work. On the other hand, ultra filtration membranes address all problems."

UV technology-based companies, though, think otherwise. Says Eureka Forbes CEO (West) S K Palekar: "In what way is the membrane technology superior? How many people can afford to buy it? The membrane technology has a market only where the water taste is bad (total dissolved solids more than 700). It is necessary only for parts of Gujarat and Uttar Pradesh. Moreover, it is a wasteful technology because 70 per cent of the water put into the system is wasted as a backwash and only 30 per cent goes through. In India, the biggest problem for most people is bacteriological contamination, as 80 per cent diseases are water-borne. UV remains the most cost-effective and mass marketable technology that there is."

The question of safety
But does it provide adequately safe drinking water, question various experts. Says Chandra Bhushan, co-ordinator, industry and environment unit, Centre for Science and Environment: "UV purifiers are not able to purify water satisfactorily because they do not get rid of the impurities. I would say that a membrane technology-based purifier is better because the very small pores obstruct the impurities from passing through."

Adds Dr C H Krishnamurthi Rao, the chairman of the Singapore-based Dr Rao Holdings Pte Ltd, which is involved in various aspects of water purification: "In India, depending on the location, we have to choose an appropriate technology. If there are dissolved solids, for example salt water, we have to use reverse osmosis technology to bring down the salt content to potable limits. If it is just removal of bacteria and viruses, which are in the form of suspended solids, then we have to use ultra-filtration membrane technology.

"As far as the UV method of purification is concerned, the problem is that the UV ray intensity should be good enough to kill the bacteria in the water. If there is no sufficient retention time to kill bacteria, then it will not be effective. But then, the million-dollar question is what will happen to the dead bacteria that would still be in the water? Scientifically, it can produce endotoxins."

Says Sanjay Sanghvi, the marketing manager of Pall Pharmalab Filtration Ltd, the Indian subsidiary of the US-based Pall Corporation, a leading global company involved in the field of the filtration, separation and purification of water: "Since membranes physically stop impurities, the water passing through is safer."

The price factor
Another issue in this market is the price. As it is, consumers are already reluctant to shell out more money than is absolutely essential. And this is where the adherents of the UV technology see their advantage. While UV technology is affordable, membranes are expensive. Most of the players who use the membrane technology have to source them from the US and this pushes up the cost.

Thus, while UV-based systems fall in the affordable category, being priced in the Rs 3,000-7,000 range, reverse osmosis and membrane technology systems are priced well above the Rs 10,000-mark. But Permionics is an exception since it manufactures its own membranes and does not need to import them.

While admitting that affordability is a determining factor in expanding the market, Mayor says the low cost of maintenance of membrane technology-based devices should also be taken into account. "Ultra-filtration membrane technology works on normal overhead tank pressure and does not need electricity. Hence, the operational and maintenance costs are very low. As against this, UV systems run on electricity. If there is a power cut, you cannot get pure drinking water."

Keeping in view the price-sensitivity of water purifiers, companies have variants to suit various pockets. But the credit for breaking the price barrier goes to Kalol-based Sintex Industries. Says Dhaval Vedia, manager, sales, consumer products division, Sintex Industries: "Sintex has always believed in giving full value for money to the consumer. The same philosophy is reflected in our water purifiers also. Based on the UV technology, which is the most widely used in India, our extremely light-weight and sleek purifier, Silverline, is priced at a very, very affordable Rs 3,000."

AquaGuard, the most widely sold UV-based purifier comes in two variants — Compact Cartridge and i-Nova, priced at Rs 6,490 and Rs 7,600, respectively. Other UV brands also fall in the below Rs 8,000 category. On the other hand, branded reverse osmosis systems hover around the Rs 15,000-mark.

All players in the industry, however, agree that there is tremendous scope for expanding the market and that there is room for all. The compounded annual growth rate of the industry is 20 per cent and growth has been exhibited even in recessionary times. "If the industry is able to position water purifiers as consumer durables, marketing will become an easier job," says Mayor.

But, as of now, the Indian consumer seems to be content with calling the distributor to have a water purifier installed rather than visiting the showroom for the same.

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