Home Water Purifier Industry

ValueNotes India Market Intelligence Dashboard

Industry
Structure

Concentration

Organized Sector

Data Availability
Macro
Data

Market share of top 5 firms = 65%

Source of Data

Output in organized sector = 75%

Company websites, news

articles, WHO, World Bank

N/A

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Completeness

Quality

Trade interviews , etc

Government
Bodies

Micro
Data

Central Water Board

Recency
Macro Data: Market size, growth, market
shares of key players, customer segments,
key industry metrics
Micro Data: Segmental market size &
growth, financials of key players
Completeness: All data points is available
Quality: Accuracy of data
Recency: Latest period data is available

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2014

Executive
Summary

TOC

Market
Overview

Industry
Structure

Drivers &
Inhibitors

Industry
Trends

Industry
Analysis

Competitive
Environment

Profiles of
key players

Annexure &
Appendix

The home water purifier industry in India is valued at INR 34bn (~USD 567m) in FY 2014 and has been
growing at CAGR 20% for the last three years
Market Size and
Growth

The industry is expected to grow at CAGR of 22% up to FY 2019

ValueNotes estimates that the home water purifier industry will be worth approximately INR 91.9bn (~USD
1.53bn) by FY 2019
Drivers:

Executive Summary

Drivers and
Challenges

Scarcity of clean drinking water, low penetration of water purifiers, and increasing health consciousness of
consumers have led to growth in the industry
Challenges:
The industry lacks government standards for purifiers, and the awareness about the products is low

Industry
Segmentation

Key Players

The RO segment water purifier has the highest contribution i.e. 39% share by value in home purifiers
market, as they are expensive compared to the offline and UV purifiers
The offline water purifiers units are sold more in volume since they are the most economical units available
in the market. This segment is also growing at a fast pace i.e. more than 25% per year, being the most cost
effective way to safe drinking water and better health

More than 75% of the industry is currently organized with Eureka Forbes, Kent RO, HUL, Tata Chemicals and
Ion Exchange being the market leaders. The market share of organized players is expected to grow in the
next five years as water purifiers is a research oriented industry with high capital costs

The home water purifier industry in India has been given an Industry Attractiveness Rating of 7.5 as per the
ValueNotes Industry Attractiveness Rating Evaluation System.

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Industry Structure

Executive
Summary

TOC

Industry
Structure

Market
Overview

Drivers &
Inhibitors

Industry
Trends

Industry
Analysis

Competitive
Environment

Profiles of
key players

Home appliance industry in India

Chapter Home Appliance Industry Structure

Home appliances

Brown Goods

White Goods

Shiny Goods

(Small appliances)

(Major appliances)

(Consumer electronics)

Microwave/ Ovens

Televisions

Large household appliances

like refrigerators, washing
machines, etc.; formerly
finished with white enamel,
but now often colored

These are electronic equipments for

everyday use. This segment
includes devices like phones,
computers, cameras ,etc.

Water Purifiers

Others Heaters, dryers,

Relatively light electronic consumer durables such as TVs, radios and ovens,
which are distinct from heavy consumer durables such as air conditioners
and refrigerators

mixers etc)

11

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Annexure &
Appendix

Executive
Summary

TOC

Market
Overview

Industry
Structure

Drivers &
Inhibitors

Industry
Trends

Industry
Analysis

Competitive
Environment

Profiles of
key players

Annexure &
Appendix

Chapter 1: Evolution of home water purifier industry in India

The home water purifier Industry has under gone a shift in technologies

Earlier
The earliest recorded attempts

Late 1990s
Techniques like sand water

2000 2010
It was discovered that even

Current situation (2011 onwards)

Based on consumers expectation

to generate pure water date

filters, Electric UV water

after water was purified at a

and needs, companies are

back to 2000 BC. Sanskrit

purifiers were used to purify

municipal water treatment

innovating, and products like

writings have also outlined

water

plant, it often picked up lead

mobile water purifiers, RO + UV

and other chemicals when

purifiers have been recently

launched in the market

water purification methods like

As municipal water treatment

boiling or placing hot metal

facilities sought to increase the

traveling through a homes

instruments in water before

quality and purity of public

plumbing system

drinking it

water supplies, more and more

Centuries later Hippocrates,

cities began to implement

designed water filter known as

chlorine into their water

'Hippocratic sleeve' - which is a

treatment process

cloth bag through which water

This led to increased usage of

Bottled water and RO purifiers
In the mid '00s, a range of
offline water purifiers were
introduced

can be poured after boiling

12

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Companies are shifting from the

current direct supply chain and
are experimenting with different
channels such as retail
Entry of new MNC players in the
market is being witnessed

Executive
Summary

TOC

Industry
Structure

Market
Overview

Drivers &
Inhibitors

Industry
Trends

Industry
Analysis

Competitive
Environment

Profiles of
key players

Annexure &
Appendix

Definition of home water purifiers

The water purifiers are machines which aid in the process of eliminating undesirable chemicals, contaminations and sediments from water. The

objective is to produce water fit for a specific purpose.

Chapter 1: Industry Definition

Home water purifiers

Reverse Osmosis (RO)

Ultra Violet (UV)

Offline / Gravity

RO is a method of producing pure water by

forcing saline or impure water through a
semi-permeable membrane across which
salts or impurities cannot pass. Reverse
Osmosis is used for water filtration,
desalination of sea water and in kidney
dialysis machines.
The pressure of water is used to push
across the membrane and the impurities
and dissolved solids are left behind in the
membrane.

UV water purifiers use ultra violet rays.

Ultraviolet systems use special lamps or
bulbs that emit UV light of a particular
wavelength.
Now companies add UV based purification
stage after the initial RO filtration to the
water purifiers. The RO purifiers are good
at removing impurities in water but it may
not be capable of removing micro
organisms.

The storage water filters are the most

economical way of purifying water and
getting safe water to drink. The only
drawback is that they are slow in purifying
water. They use chlorine and carbon based
techniques to purify water. Chlorine kills
pathogens like bacteria and viruses by
breaking the chemical bond of the
molecules.

This report covers:

The current scenario for the domestic water purifier Industry in
India including RO, UV and offline purifiers

This report does not cover:

Commercial / Industrial water purifiers
Water treatment plants and equipments

Water coolers

13

Copyright @ 2014 ValueNotes Database Pvt Ltd. All rights reserved

Executive
Summary

TOC

Industry
Structure

Market
Overview

Drivers &
Inhibitors

Industry
Trends

Industry
Analysis

Competitive
Environment

Profiles of
key players

Annexure &
Appendix

Direct sales plays an important role in educating the consumers in the Industry
Consumption Zone
Suppliers

Intermediaries

Sales channels
Sales person
(~30% sales is
through direct selling)

Chapter 1: Industry Supply Chain

Manufacturers
Distributors

Traditional Retail
outlets

Exports

End Consumers

Organized retail
outlets
Importers

Eureka Forbes is regarded as the pioneer in the direct marketing when it comes to water purifiers in India. Direct marketing has helped the
company gain market leadership position in the water purifiers industry. Later they shifted to retail marketing to increase product visibility and
drive sales
Some companies sell certain products through retail stores, while others that require education or demonstration are sold through direct

marketing
14

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Market Overview

Executive
Summary

TOC

Market
Overview

Industry
Structure

Drivers &
Inhibitors

Industry
Analysis

Industry
Trends

Competitive
Industry
Environment
Attractiveness

Profiles of
key players

Annexure &
Appendix

Home water purifier industry is expected to grow at ~22% CAGR in the next 5 years
Chart 2: Home water purifier market size & growth (INR billion)

Chart 1: Share of home water purifiers in small appliances

CAGR xx%
xx

Chapter 2: Market Size & Growth

Mixer and
grinders
x%

Water
purifiers
x%

Others
x%

xx

xx

xx

xx

Microwaves
x%

FY 2010

xx

FY 2011

FY 2012

xx

xx

FY 2014

Optimistic

xx
xx

xx

xx

FY 2013

xx

xx

xx
xx

CAGR xx%
xx

xx

CAGR x%

xx

xx

CAGR x%

FY 2015

Most Likely

FY 2016

FY 2017

FY 2018

FY 2019

Pessimistic

Others includes heaters, dryers, coffee makers, etc.

Source: Trade interviews, ValueNotes Analysis

Current market

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Estimated growth

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16

Usage of Three point analysis to arrive at growth figures:

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The estimated growth of the home water purifier industry is based on

various factors* including:
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Copyright @ 2014 ValueNotes Database Pvt Ltd. All rights reserved

Executive
Summary

TOC

Industry
Structure

Market
Overview

Drivers &
Inhibitors

Industry
Trends

Industry
Analysis

Competitive
Environment

Profiles of
key players

Annexure &
Appendix

Though the contribution of RO segment is higher, the offline segment is growing fast
Chart 3: Water purifier market in India for FY 2014 segmented by product type

RO Filters

Chapter 2: Industry Segmentation

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Offline, xx%
RO, xx%

UV Filters

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UV, xx%

Offline Filters

Source: Trade interviews, ValueNotes Research

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17

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- Trade interview

- Trade interview

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