Water Selling Better Than Gutka

Newindpress:

How many of us know that there are 1,600 players operating in the bottled drinking water segment with only 5 major players?

The Rs 1,800-crore industry, which has been growing at an annual growth rate of 40% per annum, piggyback on the acute water shortage of potable drinking water in the country. It is expected to continue its momentum with water shortage spearheading growth.

At a rough estimate, the country which had 5,177 cubic metres per person per year in 1951 faced a 25% water deficit in 2003 at a rate of 1,500 cubic metres per person per year. The deficit is projected to rise to 33% by 2025, according to the Executive Intelligence Review of March 2006.

A recent entrant has been the Rs 800 crore Pune-based Manikchand Group which diversified its operations from gutka to the drinking water business under the brand name of Oxyrich, taking advantage of the low entry barriers and the huge demand for drinking water.

The company holds a process patent over its oxygenated packaged drinking water technology which it claims is the first in the country. ‘The technology enables 300% more oxygen to be dissolved in water and processed without the use of chemicals. This ensures freshness for 6 months,’ Project Head, Balajith B Shetty said.

The technology is based on the use of pressure for liberating gases like nitrogen and carbon dioxide between molecules in water and filling them with oxygen from an oxygen cylinder.

In 2008, Oxyrich plans to expand its presence to Kerala, Mumbai, Lucknow, Ahmedabad, Rajasthan and West Bengal. All are planned on the franchisee model. In Kerala the factory will be either at Kochi or in Thiruvananthapuram on an area of 25,000 sq ft and is planned over the next 3 months.