Water Industry

EXECUTIVE SUMMARY
Bottled water market has emerged as
one of the most rapidly growing and
competitive markets worldwide. The
global Bottled Water Industry is a
multibillion dollar industry. It has been
a remarkable growth trajectory for the
sector.
India is among the top ten countries in
terms of bottled water consumption.
Today Bottled Water is one of the

Indias fastest growing industrial

sectors.
On the back of rising health
awareness among citizens and
inability of the Indian government to
provide safe drinking water, bottled
water industry has flourished during
the past decade. Evolving perception
of bottled water has made its
consumption a bare necessity
especially in the water scarce areas of
the nation. And these factors will bring
the next wave of growth in the sector.
Along with these, rising disposable
income, growing organized retail,
rising awareness among the consumer
segment and growing focus on
product extension and quality will
further stimulate the gains for the
industry. Rising urban drift in the

country will also be a wheel of growth

for the industry. We have estimated
the industry to grow at a CAGR of 18%
till 2017 and would be soaring to new
heights. Indian Bottled Water Industry
currently pegged at USD 1454 million
in 2011 will jump to reach USD 3925
million by 2017.
Three major players of indian water
industry are:

Parle Agro
Coca Cola
Pepsico India

BISLERI

Mineral Water under the name 'Bisleri' was first introduced 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 who first brought the idea of selling
bottled water in India.
Parle bought over Bisleri (India) Ltd. In 1969 & started bottling
Mineral water in glass bottles under the brand name 'Bisleri'.
Later Parle switched over to PVC non-returnable bottles & finally
advanced to PET containers.
Since 1995 Mr. Ramesh J. Chauhan has started expanding Bisleri
operations substantially and the turn over has multiplied more
than 20 times over a period of 10 years and the average growth
rate has been around 40% over this period. Presently it has 8
plants & 11 franchisees all over India. It has presence covering
the entire span of India. It commands a 60% market share of the
organized market. Overwhelming popularity of 'Bisleri' & the fact
that it pioneered bottled water in India, has made it synonymous
to Mineral water & a household name.

It has developed 8 unique pack sizes to suit the need of every

individual. It is present in 250ml cups, 250ml bottles, 500ml, 1L,
1.5L, 2L which are the non-returnable packs & 5L, 20L which are

the returnable packs. Till date the Indian consumer has been
offered Bisleri water, however in its effort to bring something
refreshingly new, it has introduced Bisleri Natural Mountain Water
- water brought from the foothills of the mountains situated in
Himachal Pradesh. Hence its product range now comprises of two
variants: Bisleri with added minerals & Bisleri Mountain Water.
Bisleri Water is put through multiple stages of purification,
ozonised & finally packed for consumption. . Rigorous R&D &
stringent quality controls has made it the market leader in the
bottled water segment. Strict hygiene conditions are maintained
in all plants.
In its endeavor to maintain strict quality controls each unit
purchases performs & caps only from approved vendors. It
produces its own bottles in-house. It has recently procured the
latest world class state of the art machineries that put it at par
with International standards. This has not only helped it improve
packaging quality but has also reduced raw material wastage &
doubled production capacity.
"Bisleri enjoys around 65 per cent market share in the nearly Rs
5,000-crore bottled water segment (commonly called mineral
water)
The brand name Bisleri is so popular in India that it is used
as generic name for bottled water.
1967- The first bottling plant to manufacture Bisleri was set
up in Mumbai.
1971- Bisleri was introduced in plastic and pet bottles which
gave a boost to sales.
2002- Bisleris market share came down to 15.8% due to
introduction of Aquafina and Kinley.

 2005- Bisleri launches Break Away Seal, Fear Factor and

Play Safe campaigns to ascertain its purity and safety.
2010- Bisleri launches Vedica Natural Mountain Water.
Now bisleri cover 60% market share of Indian water industry.

Mission
The Aqua Green Revolution urges us to innovate continuously, to
provide every Indian access to scientifically purified and fortified
drinking water that is readily available and easily affordable; and
to support initiatives that rejuvenate the Earth's natural sources
of pristine drinking water.

VISSION
The Aqua Green Revolution began with an ambitious dream: An
India in which every person has uninterrupted access to
scientifically purified and fortified drinking
water, irrespective of geographical barriers or economic
limitations.

CORPORATE STRATEGY
Bisleri has launched a new outdoor campaign titled, Kiss
to Drink. The idea behind this campaign is to focus on
the 500ml bottle size which serves as a personal pack for
the consumer.

ADVERTISING STRATEGIES:
1. The first print ad punch line was kiss to drink.

2. The Play Safe advertisements targeted the youth.

3. Bisleris advertisements focused on strengthening
consumer connect.

SALES PROMOTION:
1.
2.
3.
4.

Bisleri-20% extra free

Increasing volume and then the price
Holding contests
Point of purchase displays

SEGMENTATION:
1.
2.
3.
4.

The need to stay ahead of competition

Demographic segmentation
Geographic segmentation
Psychographic segmentation

DISTRIBUTION STRATEGIES
1.
2.
3.
4.

Retail outlets
Home delivery
Bisleri Shoppe
Direct road transport

Aquafina was first launched in the US in 1994. With its

unique purification system and great taste, Aquafina
soon became the bestselling brand in the country.
In India, Aquafinas journey began with its launch
in Bombay in 1999 and it was rolled out nationally
by 2000. On the strength of its brand appeal and
distribution, Aquafina has become one of Indias
leading brands of bottled water in a relatively
short span of time..
By 2003, it had become USs top selling bottled
water brand.
The water is standard tap water but goes through
an extensive purification process that includes
charcoal fibration, reverse osmosis and ozonation.

Our Mission and Vision

At PepsiCo, we believe being a responsible corporate citizen is not
only the right thing to do, but the right thing to do for our
business.

Our Mission
Our mission is to be the world's premier consumer Products
Company focused on convenient foods and beverages. We seek to
produce financial rewards to investors even as we provide
opportunities for growth and enrichment to our employees, our
business partners and the communities in which we operate. And
in everything we do, we strive for honesty, fairness and integrity.

Our Vision
PepsiCo's responsibility is to continually improve all aspects of the
world in which we operate environmental, social, economic
creating a better tomorrow than today.
Our vision is put into action through programs and a focus on
environmental stewardship, activities to benefit society and a
commitment to build shareholder value by making PepsiCo a truly
sustainable company.

PepsiCo Values & Philosophy

Our values and philosophy are a reflection of the socially and

environmentally responsible company we aspire to be. They are
the foundation for every business decision we make.

Our Commitment
We are committed to delivering sustained growth through
empowered people acting responsibly and building trust.

Corporate Structure
PepsiCo is comprised of four business units:
PepsiCo Americas Beverages (PAB)
PepsiCo Americas Foods (PAF)
PepsiCo Europe
PepsiCo Asia, Middle East & Africa (AMEA)

Key Facts
Global Headquarters: Purchase, N.Y.
Annual Revenue: Approximately $60 billion.
51% beverages, 49% snacks and foods.
53% in the U.S. & Canada, 47% international.
Employees: Nearly 300,000 worldwide.

 Chairman & CEO: Indra K. Nooyi.

Strategies for Growth

PepsiCo has several key strategies for longterm, sustainable grow
th, including:
Building and extending the companys global macro
snack portfolio.
Profitably growing the companys beverage business worldwide.
Building and expanding the companys nutrition business
Leveraging the companys unique Power of One selling model
across foods and beverages.
Delivering on environmental sustainability commitments.
Ensuring prudent, responsible financial management.

Mineral Water Factory Set up Idea

Introduction

Mineral Water originally meant water from various natural springs

which are thought to be having medicinal and curative value. These
spring waters, although contain dissolved chemicals of medicinal
properties, also contain harmful micro-organisms. Besides this the
underground and surface water is also not potable due to hardness as
well as due to presence of toxic substances and Bacteria. This requires
suitable treatment and purification to make it safe and potable drinking
water with long shelf life. The water is packed in suitable food grade
packing generally in PVC or PET Bottles of different capacities.

Product
Water in its pure from is oxide of hydrogen or hydride of Oxygen. It is
transparent and colorless liquid with a melting point of 0C and a
boiling point of 100C. Its refractive index is 1.00 and specific gravity
1.0. Pure water is tasteless, however the presence of minerals and
dissolved salts and gases impart taste in the water. Depending upon
the quality of Raw water, suitable treatment is given to the water to
make it as per the standards and packed in food grade plastic Bottles
with label Indicating details of composition, date of bottling, expiry
date, quantity etc.

Market
The Consumption of Bottled Mineral water is linked mainly with
tourism industry as the concept has virtually been imported from the
western lifestyle. The necessity of safe and hygienic drinking water laid
to an increase of it demand in star Hotels, get together, conferences
and Banquets. The demand for mineral water by the year 2000 is
expected to be about 1200 Lakh Bottles per annum. Parle group
Bisleri and Bailey has about 70% of share of the total market
and the balance is shared among other brands.

Suggested Capacity
The minimum economic capacity for the manufacture of Mineralwater is 15000 Bottles per day or 45 Lakh Bottles per year.
.

Land & Building

The unit requires about 1000 sq. mtrs of land with covered area of 500
sq.mtrs.

Raw Materials
The requirement of raw materials for the manufacture of 45 lakh bottles (one
liter) of Mineral Water per year is as under:PVC Bottles
HDPE Caps
Corrugated Boxes

45 Lakh Nos.

45 Lakh Nos.
:

3.75 Lakh Nos

Utilities
The unit will require a total connected load of 60 KVA and a
maximum demand of 50 KVA. Water requirement is about 11
5000 KL per annum.

Manufacturing Process
Raw water is purified by passing it through sand filter and
Activated carbon filter. Excess hardness is reduced by softener

and the softened water is passed through micron filters to make it

sparkling clear. To make it bacteria free this water is passed
through ultraviolet light radiation. Packing of the water is done by
Bottling System comprising of the facilities of Bottling system
comprising of the facilities of Bottle rinsing, Filling and capping,
Bottled mineral water is packed in the cartons.

Plant & Machinery

Raw water pump

Sand filter
Activated carbon filter
Softener
Micron Filtration system
Ultra Violet System Water Storage Tanks
Automatic bottle Rinsing, filling and capping line

Personnels
The unit requires employing about 20 persons including staff for office and
factory for production supervision and administration.

Estimated cost of the project

The project cost for setting up a unit a manufacture 45 lakh Bottles per annum
is estimated as follows:

1. Land & site development

2. Building
3. Plant & machinery

8571.42
22857.14
42857.14

4. Technical know-how & engineering

fees
5. Other misc. fixed assets
6. Preliminary & preoperative expenses

4285.71
10000
11428.57

7.

Margin money for working capital

8. Contingencies
TOTAL

8571.42
7142.8
115714.28 Rs.

Suggested Means of Financing

1. Long term loan

77142.85

2. State cash subsidy

14285.71

3. Promoters capital

24285.71

TOTAL

115714.28 Rs.

Subsidy is taken as 15% of the Fixed Capital Investment, however it varies

from state to state, ranging from 10% to 25% depending upon the category of
identified backward area.