BY : NIKITA PAREEK SHAGUN BHARDWAJ

MARKET DYNAMICS
The market is dominated by the organised sector. Currently there are 5-6 million homes owing water purifiers out of 220 million households nationwide This amounts to an industry for the organised segment of Rs 1500 crore per annum. Generally the water purifier industry is divided into three basic segments : 1. Reverse osmosis (RO) 2. Ultra Violet (UV) 3. Offline

MARKET SHARE

In 2009 10 1. RO : Sales- 500,000 units , valued Rs 650 crore. 2. UV : Sales- 830,000 units , valued Rs 580crore. 3. Offline: Sales -1.8 million units , valued Rs 270 crore.

PRICE RANGE
Reverse Osmosis: This product cater to the top tier customers , purifiers available in Rs9,000- Rs18,000 . UV The product are retailed in unit price range of Rs4,000 Rs9,000. Offline In offline purifier segment the product price range in Rs500-Rs3,200.

DRIVERS AND CHALLENGERS

1.

Eureka Forbes

Joint venture company in 1982 between Electrolux and Forbes Cambell . First brand name was Aquaguard (used ultraviolet rays to kill bacteria and viruses) Second brand name was PureSip (used polyiodide resin to kill bacteria and viruses) Used 2,500 person sales force (directly on households) to sale Aquaguard and independent dealers to sale PureSip 27 different models available. It has recently launched Aquasure , powered with sure kit sheild.

2.

Kent

Pioneer in bringing revolutionary Reverse Osmosis (RO) technology to India KENT started its operations from Noida, India in 1999 Launch of a water purifier, which combines the best of both RO+UV Technologies while overcoming the limitations of a single technology. 17 different models available in the market with latest technologies( 6 in RO)

3.

Zero b- ion exchange (India) ltd.

Formed in 1964, as a subsidiary of the Permutit Company of UK Technological advancement through R&D Affiliations with the best specialist water treatment companies internationally 10 different models available.

4.

Alfaa

The UV expert specialize in the design, manufacture and sale of a complete range of UV purification systems, for drinking, process and waste water applications. Range to suit most requirements First company to introduce Stainless Steel models 7 different models available.

SOME OTHER COMPETITORS

Usha Brita. ( Waterguard : splash, crystal etc.)

Tata Chemicals. ( Swach Smart and Magic)

Whirlpool.

PROS & CONS

Licensing

pros - Low risk

- Low cost - No need to study India's culture

cons - Cannot control

- Lose image

PROS & CONS (CON.)

Joint

venture & Acquisition

pros cons - High cost - High risk - Low return - Long-term payback period

- Controlable

PORTERS 5-FORCE MODEL

THREAT OF ENTRY OF NEW COMPETITORS

Low dominating companies who already own a huge market share of the industry. developed brand recognition & loyalty and low-cost production and distribution capabilities that cannot be easily matched. expensive to initially develop the infrastructure to produce the product.

THREAT OF SUBSTITUTE PRODUCTS

Low Higher profitability People getting health conscious

BARGAINING POWER OF BUYERS

High no major switching costs for consumers Increased brand loyalty Price difference- not large The products are standard

BARGAINING POWER OF SUPPLIERS

Supplier's product is an important input to the buyers business forward integration Input cost

THREAT OF EXISTING RIVALRY

o

equally balanced competitors Lack of differentiation

CONCLUSION

The Indian water industry is today on the crossroads. In a developing country with core requirements, a need to play socially responsible and proactive role is essential. With proper direction from the government and appropriate steps from the industry leaders, it is poised to take off in the future.

THANK YOU