: The Biggest Water Market In The World
! Investors !!
certainly beckons you at least for one reason -because this is one of the biggest
water markets in the world.The overall water market is growing at 15-20 percent
per annum. A $ 287 billion global water market into India is projected
to expand and even
if this target is reached within a decade, according
to a report recently published by the Delhi office of the international NGO, WaterAid,,
"29% of the rural population, or 244 million people, and 23% of the urban
population, or 90 million people, would still lack access to adequate safe, sustainable
per William Brennan, Portfolio Manager of the Praetor Global Water Equities Fund
and Managing Director of Equities at Boenning and Scattergood - "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. China, on the other hand, has
really emerged as a significant player in the water market over the last two years.
As China goes through its industrialization, they will become more and more dependent
on fresh water and will become a significant consumer of water and related products
Dr. Uday Lal Pai, a well known financial writer based in India, says - "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.
While the single largest share in the mineral water market might still belong
to an Indian brand -- Parle's $52 million Bisleri brand has a 40 percent share
-- multi-national corporations are not far behind. Nestle and Danone are vying
to purchase Bisleri, and Pepsi's Aquafina and Coke's Kinley brands have been extremely
successful in edging out many of the small and medium players to buy-outs and
exclusive licensing deals.Kinley
and Aquafina are fast catching up, with Kinley holding 20-25 per cent of the market
and Aquafina approximately 11 per cent. The rest, including the smaller players,
have 20-25 per cent of the market share. News reports indicate that other MNCs
like Unilever are also eying the market.
Currently, Kinley is being manufactured
in 15 bottling plants across the country and according to Coca-Cola India President
Alex von Behr, Coke had invested nearly $1 billion in India between entering the
market in 1993 and December 2001. Behr says that Coke expects a significant portion
of our turnover to be accounted by pure water business.
Almost all major national
and international brands have taken a plunge. Parle's Bisleri that virtually monopolized
the bottled water market is now vying with Nestle, Coca Cola, PepsiCo, Manikchand,
UB and Britannia. According to a national-level study, there are close to 200
bottled water brands in India. Nearly 80 per cent of these are local brands.Premium
natural mineral water includes brands such as Evian, San Pelligrino and Perrier,
which are imported and priced between $2 - 2.5 a litre. Natural mineral water,
with brands such as Himalayan and Catch, is priced around 40 cents a liter.
Indian bottled water market, which has more than 250 brands, is expected to undergo
a major consolidation phase, and the need for standards and regulations is of
great importance, according to Ita Thaher, Secretary General of the Asian Bottle
Water Association (ABWA).
She said that the Indian bottled water market is
valued at more than $250 million and is growing at a rate of 60 per cent.
major growth in packaged water, however, was in the bulk water segment. According
to estimates, bulk water packs of 20 liters, 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.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."
no doubt it's a wake up call for Indian Investors too and investing in Water &
Waste Water Management will certainly be very very worthfull.