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Packaged Drinking Water

Water is the necessity of our daily life, it’s so important for us that we need clean, safe and sanitary water every day, and usually there’s a more strict inspection standard in the more advanced country. Potable spring waters containing, sulphur, iron, magnesium and other mineral salts occurring in certain regions are claimed to be beneficial to human metabolism. There are two kinds of drinking water in the market. One is the natural water, which is called mineral water. The other is processed water coming from underground or from the pipe of water plant, which is called R.O. water, space water or pure water. Mineral water comes from natural springs. It contains a lot of various kinds of chemical goods such as potassium, magnesium and calcium, which are healthy to our body. After the water is filtered and sterilized properly, it’s our first choice to use it. However, the shortcoming is that the source of mineral water is limited. On the other side, pure water doesn’t contain any nutrition, but it’s easy to be obtained and very clean after being processed. It tastes good with PH value 5-7?that’s the reason why people like it very much. Pure water is processed through different stages of a filter system such as sand, carbon, and Reversed Osmosis System. The water is passed from 5 micron through 1 to 0.2 micron filter. After that, pure water can be filtered to remove harmful materials with an efficiency of 96%. Uses Mineral water is bottled under very hygienic conditions under strict quality control before being marketed. Its major use is in five star Hotels and Hospitals where good quality pure water is required for potable purposes. It is marketed at places and regions where hygienic drinking water is not freely available. Market Survey Bottled Water Bottled water industry, colloquially called, the mineral water industry, is a symbol of a new lifestyle and health-consciousness emerging in India. While a large segment of the population is struggling to get access to potable water supply, a new generation - especially in the urban areas - is getting accustomed to bottled water paying handsome prices. The total size of the bottled water market in India is estimated at Rs 20 bn. What is amazing is that people are prepared to pay Rs 10 or more for a litre of 'simple' water - especially when the cost of material input is negligible. The cost of packaging can be as high as 15% to 35% of the price of the product. In bottled water market, the cost of entry and the cost of exit is low. One does not require much equipment to make bottled water. The bottled water market is growing at a rapid rate of around 20% a year (down from 50 to 60%). At this growth rate, the market is estimated to overtake the soft drinks market soon. Multi-nationals Coca-Cola, Pepsi, Nestle and others are trying to grab a significant share of the market. There are more than 1800 brands in the unorganized sector. The small players account for nearly 19% of the total market. Nevertheless, per capita consumption of bottled water in India is less than half a litre per year, compared to 111 litres in France and 45 litres in the US. The consumption of smaller packs (500 ml) has increased perceptibly by around 140%. Even school children are carrying the 500-ml packs in their school-bags. The 20 litre jars have found phenomenal acceptance in households and in work places. The growth trends in packaged drinking water and a growing demand is indicative of the fact that water and its variants will be the single largest beverage category, growing and becoming at least 20 times of the current market size within the next 10-12 years. The BIS certification was made mandatory for the segment from April 2001. The bottled water was classified as food and has been brought under the Prevention of Food Adulteration Act. The producers have to adhere to rules pertaining to colour, odour, taste, turbidity, total dissolved solids and aerobic microbial count. Few Major Players are as under:- Ajay Enterprises Ltd. Akash Housing Ltd. [Merged] Aradhana Snack Foods Co. Bikaji Marketing Ltd. Bisleri International Pvt. Ltd. Durgapur Projects Ltd. G E I Foods Ltd. Golden Anchor Pvt. Ltd. Jagatjit Industries Ltd. Keventer Agro Ltd. Mohan Meakin Ltd. Mount Everest Mineral Water Ltd. N E P C Agro Foods Ltd. Nuway Organic Naturals India Ltd. Orient Beverages Ltd. Parle Bisleri Pvt. Ltd. [Merged] Parle International Pvt. Ltd. Pepsico India Holdings Pvt. Ltd. Pondicherry Agro Service & Inds. Corp. Ltd. Rose Valley Inds. Ltd. Sparkle Foods Ltd. Sri Sarvaraya Sugars Ltd. Surat Beverages Ltd. Vaarad Ventures Ltd. Vijay Shanthi Builders Ltd.
Plant capacity: 210 Lakhs Nos. /annumPlant & machinery: Rs. 719 Lakhs
Working capital: -T.C.I: Cost of Project: Rs. 1736 Lakhs
Return: 25.00%Break even: 56.00%
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