With the entry of beverages multinational PepsiCo
into the bulk water market it looks as if the water market
is likely to witness some action soon.
bulk water market includes the home and office delivery
of water, dispensed from coolers, as well as the gallon
or large-sized bottled water sold from retail stores,
while the beverages water market consists of the single-serve
pack. Personal beverage products range in size from 500
ml through 2 litres.
bulk water business accounts for over 40 per cent of the
Rs 1,000 crore water market.
chairman Rajeev Bakshi says the bulk water business is
a low-volume, but a high-value, category and is now growing
faster than the retail segment, attracting a number of
India launched the packaged water bottle brand Aquafina
about two-and-a-half years ago, in a 750-ml pack. The
brand now retails in conventional retail pack sizes of
500-ml and 1-litre bottles.
say PepsiCo India has been investing in additional capacity
at its plants in Bangalore and Chennai for the bulk water
foray and, though details of the venture have not been
finalised, the soft drinks major is expected to introduce
the product under the Aquafina brand.
Aquafina water, in bulk packs of 20 litres, is expected
to hit the market after a couple of months. It will be
up against stiff competition from Parles Bisleri
and Coca-Cola Indias Kinley.
first entrant in the bulk water category was Bisleri,
while Coke, through Kinley, entered the segment two years
ago. Over the past five years or so, Bisleri has become
a major player in the bulk water segment in the water-starved
Bisleri chairman Ramesh Chauhan has gone on record saying
the bulk water market would spearhead Bisleris growth
over the next few years and would account for 80 per cent
of the companys branded water business within the
next five years (double of what it is now).
a month ago, Bisleri announced the re-launch of its 20-litre
home pack with a more consumer-friendly format
in thread fitting and valve cap, against the conventional
snap-on fittings. The existing 20-litre Bisleri packs
are now being withdrawn and the rollout of the new jars,
priced between Rs 40-60, is on.
focus on the bulk water market has grown in the past few
years, mainly owing to the stiff competition posed by
innumerable brands in the packaged bottled water market.
Not only are there big multinational players like Coke
with their huge distribution networks, regional players
exist side by side, enjoying local clout.
Kinley claims leadership in the retail packaged water
segment with a 37-per cent market share, about 6-percentage
points ahead of Bisleri, the company has been aggressively
pushing its 20-litre bulk business. Two years ago, Coke
acquired the businesses of existing packaged drinking
water brands across major cities.
Delhi and Pune, the company finalised a tie-up with Nuchem
Weir and Thermax Culligan Water Technologies, after which
their respective brands Krystal and Good Water were withdrawn.
In Kolkata, a similar contract was signed with a Bisleri
franchisee, and with SR Minerals in Chennai, which was
earlier marketing the Hello brand in the city.
Hyderabad, Coke again signed a contract with the distributors
of the Hello brand. Not only this, it set up a manufacturing
plant through a tie-up with Mittals Himjal Beverages to
manufacture Kinley in pack sizes of 500-ml, l-litre, 2-litre
and 25-litre jars. Coke is providing financial assistance
and the technological know-how for the project.
market share in the retail segment is estimated at about
12 per cent and it remains to be seen how PepsiCo succeeds
in penetrating the bulk water market.