126783500 Mineral Water Shaheen Main

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INDEX

Sr.No TITLE Page No.

01 Introduction

02 How Is Bottled Water Different From Tap Water

03 Types Of Bottled Water

04 Bottled Water Industry in India

05 New Development in Bottled Water Industry

06 Introduction of Bisleri

07 Growth In Bottled Water Industries

08 SWOT Analysis

09 Bisleri Today

10 Marketing Mix

11 Case Study

12 Conclusion

13 Research Design and Methodology

14 Bibliography


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CHAPTER 1

INTRODUCTION


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INTRODUCTION

Water is the most important necessity for life. The drinking-water needs for

individuals vary depending on the climate, physical activity and the bodyculture. But for average consumers it is estimated to be about two to four litres

per day. The growing number of cases of water borne diseases, increasing water

pollution, increasing urbanization, increasing scarcity of pure and safe water etc.

has made the bottled water business just like other consumer items. Scarcity of

potable and wholesome water at railway stations, tourists spots, and role of

tourism corp. etc. has also added to the growth. Indians currently spending

about $330m a year on bottled water, analysts estimate. The packaged water

market constitutes 15 per cent of the overall packaged beverage industry, whichhas annual sales of at least $2.6bn, Deepak Jolly, a spokesperson for Coca-Cola

India said. Naveen Luthra, CEO,Mulshi Springs says," the bottled water market

in India, selling an estimated million bottles a day, makes the natural bottled

water market a mere 6% of the total bottled water market in India. The natural

bottled water market is growing at a phenomenal 40-50% a year".

Almost all the major international and national brands water bottles areavailable in Indian market right from the malls to railway stations, bus stations,

grocery stores and even at panwala's shop. Before few years bottle water was

considered as the rich people's choice, but now it is penetrated even in rural

areas. The growth and status of Indian Bottled Industry in comparison with

Western or Asian market, India is far behind in terms of quantum,

infrastructure, professionalism and standards implementation. The per capita

consumption of mineral water in India is a mere 0.5-liter compared to 111 liter

in Europe and 45-liter in USA. Also As per UN study conducted in 122countries, in connection with water quality, India's number was dismal 120. In

comparison to global standards India's bottled water segment is largely

unregulated.

Former President Dr. A.P.J. Abdul Kalam has urged youngsters on July 17,

2010 to be aware of water conservation techniques to avoid grave water crisis in

future. It is so sad that today, people are forced to buy water in plastic bottles.

I am told that bottled water industry is worth nearly 10000 crore rupees and


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even big companies like the Coke and Pepsi are involved in this bottling of

water and making money. So, it is imperative that we ought to save water," he

added. Do not be surprise if today's bottles water industry becomes next Oil

industry by 2025.

If oil is the focal point of world conflict now, it is possible that water will be the

next battleground among monopoly capitalists and even among nations. Prices

of water and water services keep on increasing because most of our public water

utilities have already been privatized by the government.

Private beverage and water companies have been granted by the government

with permits to practically control and operate our natural springs and watersources in natural parks and protected areas for water production and processing

plants.

The bottled water category is growing at a rapid pace. Thebranded market is

40 % of the category and non- branded contributes to 60% of the market. The

category is growing at a rate of 30%. Bisleri is the market leader in mineral

water in India with a 60% market share within organized mineral water

category. Three key players mainly dominate the Indian Bottled Water Market

Parle Bisleri, Coca Cola India Inc. Kinley and PepsiCo India Holdings Pvt.

Limited. This market is expected to grow at a 30% rate in the next 7 years. In

2010 the revenue generated by this market was over $250 million.


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CHAPTER 2

HOW IS BOTTLED WATER DIFFERENT FROM TAPWATER


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How Is Bottle Water Different From Tap Water?

Consistent quality and taste are two of the principal differences between bottled

water and tap water. While bottled water originates from protected sources -

largely from underground aquifers and springs - tap water comes mostly fromrivers and lakes.

Another factor to consider is the distance tap water must travel and what it goes

through before it reaches the tap. In compliance with international regulations,

bottled water is sealed and packaged in sanitary containers. If a bottled water

product is found to be substandard, it can be recalled. This cant happen in case

of tap water.

According to regulations in the US, when bottled water is sourced from a

community water system the product label must state so clearly. However, if the

water is subject to distillation, de ionization or reverse osmosis, it can be

categorized that way, and does not have to state on its label that it is from a

community water system or from a municipal source.

Processing methods such as reverse osmosis remove most chemical and

microbiological contaminants

Competition

The bottled water industry has two other industries as its biggest competitors in

from of Water purifiers industry and the soft drinks industry. Though the water

purifier industry should be credited to have done the spadework, for setting up

the foundation of bottled water industry but still it acts as competitors especially

in the household and institutional consumption market. So the water purifier is a

strong competitor in household and institutional market the soft drinks market is

a strong rather very strong competitor in the retail consumption market. Bottledwater became a product in the West during the 1920s and developed rapidly.


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Huge market size, numerous local brands and controlled price mechanism are

some of the features of the market there. Consumers in the West are quality

conscious and display brand loyalty. Indian consumers lack on both the counts.

In Asia, Indonesia is the largest and the oldest market for bottled water. In

India, bottled water is still not perceived as a product for masses though; the

scene is changing slowly thanks to low pricing and aggressive marketing

strategy adopted by new entrants. Some surveys show that truck drivers on

highways form a major chunk of bottled water drinkers. Penetration in rural

areas is another significant factor that is likely to play a key role in the

development of the bottled water trade.

In comparison to global standards Indias bottled water segment is largely

unregulated. Safe water is rated with a different yardstick in different countries.

In India, the aspect has been overlooked for long. Indian consumers tend to

believe that any bottled water is safe water. This may not be the case.


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CHAPTER 3

TYPES OF BOTTLED WATER


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TYPES OF BOTTLED WATER

There are several different varieties of bottled water. The product may belabeled as bottled water, drinking water or any of the following terms.

Artesian Well Water: Bottled water from a well that taps a confined aquifer (a

water bearing underground layer of rock or sand) in which the water level

stands at some height above the top of the aquifer.

Drinking Water: Drinking water is another name for bottled water. Accordingly

drinking water is water that is sold for human consumption in sanitary

containers and contains no added sweeteners or chemical additives (other than

flavors, extracts or essences). It must be calorie-free and sugar- free, Flavors,

extracts or essences may be added to drinking water, but they must comprise

less than one-percent- byweight of the final product or the product will be

considered a soft drink.

Mineral Water: Bottled water containing not less than 250 parts per million total

dissolved solids may be labeled as mineral water. Mineral water is distinguished

from other types of bottled water by its constant level and relative proportionsof mineral and trace elements at the point of emergence from the source. No

mineral can be added to this product.

Purified Water: Water that has been produced by distillation, deionization,

reverse osmosis or other suitable process can be labeled as purified bottled

water. Other suitable product names for bottled water treated by one of the

above processes may include distilled water if it is produced by distillation,

de-ionized water if the water is produced by deionization, or reverse osmosiswater if the process used is reverse osmosis.

Sparkling Water: Water that after treatment and possible replacement with

carbon dioxide contains the same amount of carbon dioxide that it had at

emergence from the source.

Spring Water: Bottled water derived from an underground formation from

which water flows naturally to the surface of the earth.


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Spring water must be collected only at the spring or through a borehole tapping

the underground formation finding the spring.

Well Water: Bottled water from a hole bored drilled or otherwise constructed in

the ground, which taps the water of an aquifer.


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CHAPTER 4

BOTTLED WATER INDUSTRY IN INDIA


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BOTTLED WATER INDUSTRY IN INDIA

The overall packaged bottled water in India is estimated to touch the Rs

10,000 crore mark in the 2012-13 fiscal, growing at a compound annual growthrate (CAGR) of 19%, says a new report by Ikon Marketing Consultants.

Presently, this market is estimated at Rs 8,000 crore, and could touch Rs15,000

crore by 2015, the report adds. While Bisleri continues as the top brand with a

36% share among national players, Coca-Cola's Kinley follows with 25% share,

followed by Aquafina at 15%. Other smaller brands include Parle Argos

Bailey, Kingfisher and McDowells No. 1, according to the report. The global

bottled water market, which saw an increase of 40-45% over the past five years,

is currently valued at close to US$ 85-90 billion, the report adds.

The domestic market is split between three sets of players -- national brands

with a pan India presence worth around Rs 4,000 crore, local brands

manufactured by registered plants but restricted to regions estimated to have a

combined turnover of Rs 2,400 crore and unorganized local brands estimated at

Rs 1,600 crore. The report estimates that there are over 2,500 brands in this

category, of which over three-fourths are local.

The non-traditional category, or bulk packs, (with over 5 litre capacity) is

growing rapidly, and has a current share of over 40% share. "The rising trend of

bulk water consumption in homes and institutional segments will pave the way

for bulk water packs to acquire half of the total bottled water market within next

four-five years," the report adds. According to a national-level study, making

bottled water is today a cottage industry in the country. Leave alone the metros,

where a bottled-water manufacturer can be found even in a one-room shop, in

every medium and small city and even rural areas there are bottled water

manufacturers

.

While India ranks in the top 10 largest bottled water consumers in the world, its

per capita per annum consumption of bottled water is estimated to be five litres

which is comparatively lower than the global average of 24 litres. Today it is

one of India's fastest growing industrial sectors. Between 1999 and 2004, the


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Indian bottled water market grew at a compound annual growth rate (CAGR) of

25 per cent - the highest in the world. The total annual bottled water

consumption in India had tripled to 5 billion liters in 2004 from 1.5 billion liters

in 1999. Global consumption of bottled water was nearing 200 billion liters in

2006.

Bottled Water Top Players in India

The market leader is Bisleri International, which boasts a 40 per cent share. It is

followed by Coca- Cocas Kinley (around 25 per cent) and PepsiCos Aquafina

(around 10 per cent). The top players in bottled water industry in India are the

major international giants like Coca cola, Pepsi, Nestle and noticeable presence

of national players like Mount Everest, Manikchand, Kingfisher, Mohan

Meakins, SKN Breweries , Indian Railways so on. With increasing competition,

this sector will register a robust growth in 2010, predict industry analysts. To

take on rivals in this sector, PepsiCo India is drawing up a fresh game plan

which includes investment in capacity enhancement, packaging initiatives and

below-the-line activities to pump up volumes in the over-crowded category.

Meanwhile, swadeshi major Parle Agro is extending the manufacturing facility

for Bailley from 29 to 60 plants this year. While swadeshi major Bisleri

International is beefing up its distribution, manufacturing and marketing

operations, Coca-Cola India is sharpening its focus on packaging initiatives of

Kinley to woo new consumes. In essence, the packaged water industry in India

will soon witness a major tussle between swadeshi and videshi players to gain

market and mind share.

The western region accounts for 40 per cent of the market and the eastern region

just 10. However, the bottling plants are concentrated in the southern region - of

the approximately 1,200 bottling water plants in India, 600 are in Tamil Nadu.

But a major problem is southern India, especially Tamil Nadu, is water starved.

Top multinational players such as Coca-Cola and PepsiCo have been trying for

the past decade to capture the Indian bottled water market. Today they havecaptured a significant portion of it. However, Parle Bisleri continues to hold 40


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per cent of the market share. Kinley and Aquafina are fast catching up, with

Kinley holding 20-25 per cent of the market and Aquafina approximately 10 per

cent. The rest, including the smaller players, have 20-25 % of the market share.


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History of Bottled Water in India

Bisleri

Mineral bottled water in India under the name 'Bisleri' was first introduced inMumbai by Bisleri Ltd., a company of Italian origin in 1965. Mineral bottledwater were in glass bottles in two varieties - bubbly and still in 1965 Thiscompany was started by Signor Felice who first brought the idea of selling

bottled water in India.

Parle

Parle bought over Bisleri (India) Ltd. In 1969 and started bottling Mineral waterin glass bottles under the brand name 'Bisleri'. Later Parle switched over to PVCnon- returnable bottles and finally advanced to PET containers. Since 1995Mr.Ramesh J. Chauhan has started expanding Bisleri operations substantiallyand the turnover has multiplied more than 20 times over a period of 10 yearsand the average growth rate has been around 40% over this period. Presently ithave 8 plants and 11 franchisees all over India. Bisleri command a 60% marketshare of the organized market.

Bailley

Currently, Bailley has a national presence in 5 lakh retail outlets across thecountry. We plan to increase manufacturing plants for Bailley from 29 to 60,

presently 40 plants are operational and few more will be ready for operationsover the next few months, informed Nadia Chauhan, joint managing director ofParle Agro.


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Variety of packages

Bottled water is sold in a variety of packages: pouches and glasses, 330 ml

bottles, 500 ml bottles, one- litre bottles and even 20- to 50-litre bulk water

packs. The formal bottled water business in India can be divided broadly into

three segments in terms of cost: premium natural mineral water, natural mineral

water and packaged drinking water.

Premium natural mineral water includes brands such as Evian, San

Pelligrino and Perrier, which are imported and priced between Rs.80 and

Rs.110 a litre. Natural mineral water, with brands such as Himalayan

and Catch, is priced around Rs.20 a litre. 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. They

are priced in the range of Rs.10-12 a litre. The FDA also classifies some bottled

water according to its origin. Artesian well water Water from a well that taps

an aquifer--layers of porous rock, sand and earth that contain water--which is

under pressure from surrounding upper layers of rock or clay.

Mineral water. Water from an underground source that contains at least 250

parts per million total dissolved solids. Minerals and trace elements must come

from the source of the underground water. They cannot be added later.

Spring water Derived from an underground formation from which water flows

naturally to the earth's surface. Spring water must be collected only at the spring

or through a borehole tapping the underground formation feeding the spring. If

some external force is used to collect the water through a borehole, the water

must have

the same composition and quality as the water that naturally flows to the

surface.

Well water. Water from a hole bored or drilled into the ground, which taps into

an aquifer.

Tap Water Some bottled water also comes from municipal sources--in other

words--the tap. Municipal water is usually treated before it is bottled


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Why Bottled water?

Millions of people, both in rural and urban India, suffer from inadequate or no

tap water supply. Even some parts of Mumbai, the country's financial capital,

get a mere two hours of daily water supply. The city's Virar suburb gets 45

minutes. So bottled water is much in demand by residents - even though the

businesses profiting from the sales are thriving from access to public water

sources.

Bottled water fills a void created by government failure to address basic

services, Peter Gleick of the Pacific Institute writes in its World Water report.

"In many parts of the world, tap water is not available or safe to drink," writes .

"In these regions, the failure of governments to provide basic water services has

opened the door to private companies and vendors filling a critical need, albeit

at a very high cost to consumers." The institute reasons that governments should

tap into spending on commercial water by consumers to secure funds to provide

safe water at fraction of the cost.

Bottled water has been treated by distillation, reverse osmosis, or other suitable

process and that meets the definition of "purified water". The bottled water

treatments include:

* Distillation. In this process, water is turned into a vapor. Since minerals are

too heavy to vaporize, they are left behind, and the vapors are condensed into

water again.

* Reverse osmosis. Water is forced through membranes to remove minerals in

the water.

* Absolute 1 micron filtration. Water flows through filters that remove

particles larger than one micron in size, such as "Cryptosporidium", a parasitic

protozoan.

* Ozonation. Bottlers of all types of waters typically use ozone gas, an

antimicrobial agent, to disinfect the water instead of chlorine, since chlorine can

leave residual taste and odor to the water.

Bottled Water: How Safe?

The bottled water industry has spent billions over the past decade to sell you on

the idea that bottled water is better than tap water. Well the short answer is they

are both unhealthy. One of the most ironic parts of the bottled water tragedy is

that the water bottling industry gets the water free, filters it, bottles it and sells it

back to us at 1,900% profit. The ironic part is that tap water is legislated to be

7.0 pH neutral. They first dump a TON of cholrine in the water to kill off all thebad bacteria, this makes it highly acidic.


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In India around 100 companies sell an estimated 424 million litres of bottled

water valued at around Rs 200 crore in the country annually. Most bottlers

claim that their water is 100 per cent bacteria-free, safe, tastier and healthier.

But is the water in these bottles really safe to drink? Do they conform to

international or national standards?

Water resources over-exploited

The majority of the bottling plants are dependent on groundwater. They create

huge water stress in the areas where they operate because groundwater is also

the main source - in most places the only source - of drinking water in India.

This has created huge conflict between the community and the bottling plants.Private companies in India can siphon out, exhaust and export groundwater free

because the groundwater law in the country is archaic and not in tune with the

realities of modern capitalist societies. The existing law says that "the person

who owns the land owns the groundwater beneath". This means that,

theoretically, a person can buy one square metre of land and take all the

groundwater of the surrounding areas and the law of land cannot object to it.

This law is the core of the conflict between the community and the companies

as they are making the business of bottled water in the country highly lucrative.Take for instance the case of Coca-Cola's bottling plant in drought-prone Kala

Dera near Jaipur. Coca-Cola gets its water free except for a tiny cess (for

discharging the wastewater) it pays to the State Pollution Control Board - a little

over Rs.5,000 a year during 2000-02 and Rs.24,246 in 2003. It extracts half a

million litres of water every day - at a cost of 14 paise per 1,000 litres. So, a

Rs.10 per litre Kinley water has a raw material cost of just 0.02-0.03 paise. (It

takes about two to three litres of groundwater to make one litre of bottled

water.)On April 7, more than 1,500 villagers defied a police cordon and marched to

Coca-Cola's bottling plant in Mehdiganj village, Varanasi, in Uttar Pradesh

state, demanding that the company immediately shut down its bottling plant. In

January, the New Delhi-based Energy and Resources Institute (TERI) advised

Coca-Cola to shut a bottling plant in the drought-stricken state of Rajasthan.

India's Ministry of Water Resources has ranked 80% of ground water resources

in Rajasthan as "over- exploited" and nearly 34% resources as "dark/ critical",

the gravest ranking across the country.


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Bottled water companies earn high profits

What is amazing is that people are prepared to pay Rs. 12 for a liter of water-in

India especially when the cost of material input (0.25 paisa per liter excluding

labors cost) pales into insignificance before the price of the product.

Up to 40% of bottled water comes from the same source as tap water, but is sold

back to consumers at hundreds of times the cost, says the website of the North

American "Think Outside the Bottle" campaign. Not only the Coca-Cola but

there are thousands of brands in India's $445 million packaged water industry.

Not just bottlers are involved. In south India, thousands of fuel trucks converted

to be water carriers sell ground water to households and establishments at about

$10 for 5,000 liters. More than 13,000 tankers carry water drawn from farmland

surrounding Chennai, according a social activist R Srinivasan. He estimates a

$148 million tanker industry is cashing in on Chennai's acute water scarcity.

The story is replicated across India, including in New Delhi.

Plastic Bottles Pollution

Tap water is a local product that needs no packaging. Globally, bottled water

accounts for as many as 1.5 million tons of plastic waste annually, according to

the Sierra Club. In addition, billions of bottles end up in the ground every year.

Sadly, only 20% ever get recycled, according to the Container Recycling

Institute. The other 80%, besides landfills, many bottles end up in oceans,posing a risk to marine life. By purchasing bottled water, youre indirectly

raising the price of gasoline and contributing to Global Warming and climate

change.

In 2007, the manufacturers of plastic water bottles generated more than 2.5

million tons of carbon dioxide emissions and required the equivalent of more

than 17 million barrels of oil, according to the Pacific Institute. Americans

drank more than 30 billion single-serving bottles of water last year. Yet the vastmajority of us have an unlimited source of clean, EPA-regulated tap water

flowing from our faucets.

Plastic Bottles requires costly Oil

Making the plastic in the bottles requires 47 million gallons of oil annually. And

that doesnt include the jet fuel and gasoline required to transport the bottles-

sometimes halfway around the world.
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The anti-bottling protests

The anti-bottling protests in India against Pepsi and Coca-Cola echo increased

concern in Europe and the United States over the proliferation of bottled water,

including the creation of billions of soon unwanted plastic containers. In India,

protests against the bottling plant in drought-prone Kala Dera near Jaipur focus

on the source of the packaged

water and how bottling companies are grabbing underground water. The truth

is, many water companies get their water from sources in developing countries,

such as India and Fiji. In those places, the companies take water that once

belonged to an entire village and buy it for themselves, forcing the villagers to

pay for water that they used to be able to use as a community, free of charge.

On February 25, 2011 the Indian state of Kerala has passed a bill allowingcompensation claims against soft drink giant Coca-Cola over alleged

environmental damage caused by a bottling plant. The legislation adopted by

the state assembly on Thursday creates a tribunal empowered to process claims

for alleged losses resulting from violations of environmental regulations. The

Palakkad bottling factory in Kerala was closed in 2005 after protests from

activists and residents. A high-level state panel concluded last year that the

plant had caused environmental and soil degradation as well as water

contamination, and recommended a fine of 47 million dollars. Coca-Cola deniedall the allegations.

Pro-tap water consciousness

The London Evening Standard newspaper ran a "Water on Tap" campaign in

April to have tap water available for drinking in city restaurants and bars. The

tabloid reported getting support for its anti-packaged water campaign from the

London Chamber of Commerce and Industry, the mayor's office, leading

restaurants and chains such as Starbucks, Costa Coffee and McDonald's.Following growing pro-tap water consciousness, bottled water sales in Britain

dipped 9% in the year to March 08. Economists at the California-based Pacific

Institute that estimated the $100 billion value of the global industry, ask why

consumers are readily paying for bottled water typically costing a thousand

times more per liter than high-quality municipal tap water.

"Are consumers willing to pay this price because they believe that bottled water

is safer than tap water?" Pacific Institute experts ask. "Do they have a real taste

preference for bottled water? Or is the convenience of the portable plastic bottlethe major factor?
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Are they taken in by the images portrayed in commercials and on the bottles?"

The study, conducted by the US-based Earth Policy Institute, says the global

consumption of bottled water has grown by 57 per cent over the past five years,

despite the fact that the product is often no healthier than tap water and costs up

to 10,000 times more. Emily Arnold, the author of report, says that the $100

billion spent each year on bottled water is nearly 7 times the sum invested in

providing safe drinking water in developing countries.

Bottled Water law in India

The term "mineral water" is misleading because our laws do not stipulate the

minimum mineral content level required for water to be labelled as such.

Ahmedabad-based Consumer Education and Research Society

(CERS), an independent non-profit institution with a sophisticated product-testing laboratory, recently carried out a detailed study on 13 major brands of

bottled water available in the country. As many as 10 of the 13 brands had

foreign floating objects in clear violation of norms found in the survey. The

CERS study indicates that there is an urgent need to revise standards for bottled

water.

Health Issue-Purity of bottled water

City water systems must issue right to know reports about whats in the water.Bottlers successfully killed this requirement for bottled water. Up to 70% of

bottled water is unregulated by the Food & Drug Administration. Acceptance of

the supposed purity of bottled water is being undermined in India by the

government Health Department's warning of pesticides and contaminating

organisms being present in some bottled products.

The notion that commercial products taste better has also taken a knock from

Decanter, a British magazine, which last December featured top wine tasters

testing unmarked samples of water from 22 brands, along with tap water fromutility company Thames Water and water from the Decanter office water cooler.

The Decanter panel ranked serviced tap water third in the list, above the world's

leading brand, Evian (15th), and the world's most expensive bottled water 420

Volcanic (18th) and Bling H20 (22nd out of 24 brands tasted). 420 Volcanic

sells at $99 a liter, and Bling H20 (in Swarovski crystal-studded bottles) at $79

a liter. Decanter editor Guy Woodward said the tasting test exposed the

"outrageous" prices of mineral water.


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Traditional Indian methods of cooling and purifying water

Now people of India turning their backs on the country's ancient methods of

cooling and purifying water. Stored in earthen pots, for instance, it is not only

refreshingly cool and tasty but is said to become bacteria-free. Yet the common

summer sight of water matkas (earthen pots) in public offices and spaces is

giving way to upturned plastic drums dispensing packaged water.

Rainwater is safe, doesnt bring about adverse effects.

For centuries people have thought rainwater as unsafe, but contrary to their

beliefs, as per an Australian study, drinking of untreated rainwater is safe for

human health. The study was conducted under the auspices of eminent

researchers from Melbournes Monash University. The entire team took a lookat 300 homes that used rainwater collected in water tanks as their primary

drinking source.This endeavor has been described as a world first study that

comes in the midst of growing criticism of bottled water.


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CHAPTER 5

NEW DEVELOPMENT IN BOTTLED WATER

INDUSTRY


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NEW DEVELOPMENT IN BOTTLED WATER INDUSTRY

November 15, 2012:Anand Shahs Sarvajal came with the invention of the

Water ATM.

October 19, 2012: Lady Gaga to launch water brand.

October 15, 2012: Amity scientists develop low cost, pocket friendly and

reusable water purifier using Silver Nano particles.

October 12, 2012: The stock of Tata Global Beverages has appreciated 26 per

cent in the last three weeks hitting a new high of Rs 163.30 today.

September 16, 2012: Coca-Cola to re-align India, SWA business unit

operations

August 27, 2012: Central Ground Water Authority (CGWA) has notified 82

areas for regulation of ground water being used in the business of bottled water.

In these areas, installation of new ground water abstraction structures is not

permitted without prior specific approval of the Authority / Authorized officer.

June 22, 2012: Thirty-two packaged water units seized in Karimnagar district

for not possessing BIS certificates as part of the Food Safety and standards Act

2006.

June 20, 2012: Japanese conglomerate Suntory, known for its whiskies and

beers, has picked up majority stake in a subsidiary of Mumbai-based Narang

Group to enter India's non-alcoholic beverage market.


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May 10, 2012: Spectators will be banned from taking bottles of water into the

Olympic Park in case they are used to conceal so-called "liquid bombs".

April 17, 2012: The Coca-Cola Company Reports First Quarter 2012- -Strongglobal volume growth of 5% in the quarter, with growth across every

geographic operating group. North America volume grew 2% and international

volume grew 6% in the quarter.

April 16, 2012: After a hiatus of 19 long years, when it closed its operation in

1993, the indigenous of all the soft drinks Campa-Cola, is making a comeback

in the state. And if, everything goes by the plan, Campa would be available toits connoisseurs by August. Founded in 1942, Pure Drinks Group has leased out

to franchisee Yash Raj Beverages and Agro Products Pvt. Limited in the state,

which is coming up with a bottling plant in Banthra's Bhauka village on Harauni

Road.

March 29, 2012: Tata Global Beverages (TGB), India-based Tata groups

consumer goods flagship, plans to acquire 4.17% stake in Mount Everest

Mineral Water (MEMW) for INR280m ($5.5m). MEMW manufactures the

premium brand of 'Himalayan' mineral water.

March 25, 2012: Coca Cola India will roll out 7.2 lakh `golden cans' featuring

batting maestro Sachin Tendulkar to commemorate his historic 100th

international century. The golden cans will be available for Rs20.

March 23, 2012: No Coca-Cola, Pepsi', Sri Lankan protestors demand ban on

American goods after UN resolution

February 16, 2012:The joint venture (JV) between Tata Global Beverages and

PepsiCo India, has launched a new packaged water brand, Tata Water Plus, in

India. Tata Water Plus joins the company's existing portfolio of Tata Gluco Plus

(a glucose based, lemon flavored drink) and Himalayan Natural Mineral water.


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February 3, 2012: Food & beverage major PepsiCo, which has a joint venture

called NourishCo. with Tata Global Beverages (TGB) to develop and market

good-for-you beverages, has indicated that packaged water brand "Himalayan"

is still part of the JV despite the announcement by the Tata-Starbucks combine

to sell the product at cafes in India.

February 1, 2012: The Ahmadabad-based Sheelpe Enterprises has launched

Aava natural mineral water in Goa.

January 20, 2012: Luthra Water Systems, promoted by Mumbai-based Naveen

Luthra, plans to invest INR30-35 crore ($5m-$6m) to set up a bottling plant inAhirwadi village near Lonavla in the Sahyadri mountain range in India. The

upcoming unit is the third plant dedicated to bottle natural spring water brand

Mulshi Springs for the European market.

January 18, 2012: Dharampal Satyapal (DS Group), producer of Catch natural

mineral water, is celebrating their 11th year as a NSF Certified Brand. Catch

Natural Spring Water is bottled at the source without being subjected to any

chemical treatment. As the only NSF-Certified Indian brand of pure and natural

spring water, Catch has enjoyed a distinct competitive advantage in India's

marketplace as their NSF Certification communicates their commitment to

producing a safer, higher-quality product to consumers worldwide.

November 22, 2011: The railways had decided to set up packaged drinking

water bottling plants on Design, Build, Finance, Operate and Transfer (DBFOT)

basis and were seeking proposals from interested private parties for the same.

The plan was meant to be implemented in March this year.

October 20, 2011: Juvenex Inc. announces the introduction of KarmaLife

Coconut Water, the first line of Indian Coconut Water available to US

consumers. Unique to the category, KarmaLife uses only Coconut Water from

India. Indian Coconut Water has the best taste among coconut waters given the

indigenous soil and growing conditions.


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October 2, 2011: Red Lion has come up with a new campaign for mineral

water brand Bisleri that features a new thought 'Stay Protected'. The baseline

remains 'The sweet taste of purity'. Ramesh Chauhan, chairman, Bisleri

International, explained, "'The sweet taste of purity' is still there as a baseline,

being the product attribute.

Bottled water company SCPF sets up microbreweries in West Bengal:

August 25 , 2011: Shivsu Canada Pure Fillers Pvt.Ltd. (SCPF) a bottle water,

soft drink and juice maker, announced that it is setting up "microbreweries and

brew pubs" in West Bengal . We expect 5 Microbreweries and 5 Brew pubs to

be opened in the next 6 months through prospective investors, said an official

spokesperson here on Saturday. According to latest data, Indias demand forbeer is growing at the rate of 25 to 30% per annum.

PepsiCo sales growing twice as fast as Coca-Cola:

August 10, 2011: In the Rs 11,000-crore soft drinks market, where volume

growth is significantly lower than two years back in any case, PepsiCo reported

17% volume growth during April-June while Coca-Cola grew 8%. This is the

biggest gap in growth between the two cola rivals in the past 3-4 years whenthey were growing neck-to-neck.

Eureka Forbes to enter packaged drinking water market:

MUMBAI: July 15, 2011: Water purification appliances-maker Eureka Forbes

is making a foray into the packaged water segment and will roll out the bottled

water product on a pan-India basis by next year, a top company official

said. The company will sell the product under the brand name 'AquaSure', in 20-

litre and one-litre bottles, but has not divulged the prices.

Bisleri looking to enter Middle East countries;

NEW DELHI, June 30, 2011: Bottled water major Bisleri International said it is

looking at entering Middle East countries as part of its strategy to expand its

overseas presence. As part of the plan, the company said it will consider setting

up more manufacturing facilities outside India.


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Egypt, India plan $160 mln PET plant in Ain Sokhna:

June 21, 2011: A joint Indian-Egyptian venture will see the construction of a

polyethylene terephthalate (PET) plant in Ain Sokhna at a cost of $160 million,

officials said. The factorys production capacity will reach 1,200 metric tons per

day producing about 420,000 metric tons of PET plastic chips per year. These

plastic products will include bottles, food containers, bottled water, bottled

drinks, shampoos and cosmetics.

Railways hikes capacity of Rail Neer plant at Khagau:

June 8, 2011: The Rail Neer (mineral water) plant at Khagaul has proved to be a

good revenue earner for the railways. The railway has increased its production

capacity to one lakh bottles daily to cope with the growing demand in otherzones.

Coca-Cola Company looking ahead for water:

Coca-Cola uses 309 billion liters of water annually to produce its beverages.

That's about what Atlanta uses in five months, according to the city's

Department of Watershed Management. In 2008, the company said, Coca-Cola

used 2.43 liters of water to produce an average one-liter beverage. One litergoes into the beverage itself, and 1.43 liters are used for manufacturing

processes such as rinsing, cleaning and cooling. The company says its global

system of about 1,000 bottling plants is on track to improve water efficiency by

20 percent between 2004 and 2012.

India to Serve as Hub for Imported Alaskan Water:

S2C Global Systems, based in San Antonio, Texas, has announced plans to

export 12 billion gallons of water per year from the Blue Lake Reservoir in

Sitka, Alaska, to a new, yet-to-be-built water hub on the west coast of India

The first shipment to the new hub in Indiawhose location remains

undisclosed for security reasonsis at least 18 months away, Rod Bartlett,

president and CEO of S2C Global, told India-West October 15, 2010.

The water hub will be built in the next six months, while custom-built water-

transport tankers, costing about $75 million, will be built over the next 18

months. Existing oil tankers cannot be used because of potential contamination

from leftover oil residues, he explained. The water will be packaged at the hub,


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and then distributed in India as well as several GCCGulf Cooperation

Councilcountries, including Saudi Arabia, Iraq and UAE.


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CHAPTER 6

INTRODUCTION

TO

BISLERI


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INTRODUCTION OF BISLERI

In 1967, Bisleri an Italian company, started by Signor Felice Bisleri, first

brought the idea of selling bottled water in India. It started a company called

Bisleri India. In 1969, Ramesh Chauhan, the Chairman of Parle Exports, boughtover the brand. In those days, Bisleri packaged drinking water was available in

glass bottles.

Being a returnable package owing to various other problems such as breakage

and weight, in 1972-73, Bisleri was made available in PVC (Poly Vinyl

Chloride) bottles. After this plastic packaging was introduced, things started to

change, and sales increased rapidly.

The upsurge in the sales of Bisleri started in 1993 as Ramesh Chauhan sold off

the Parle stable of brands, including Thums Up, Limca and Gold Spot.

Recognizing the potential of the packaged drinking water market, he then went

on to concentrate on making Bisleri a top selling brand in India.

Marketing and Brands Blog:-

Bisleri a brand name synonymous to mineral water in India. It has

approximately 60% market share in packaged drinking water in country. Brandis owned by Parle Company, which bought over Bisleri in 1969 from Italian

company. Initially, Bisleri faced the problems of acceptance from consumers. It

was difficult to advertise for a company something as bottled water, which is

colourless, tasteless and odourless. In mid-eighties company changed its

packaging to PET bottles which shows transparency and clear water to

consumers. This gave mineral water market a boost

In India, water is scarce and quality is poor so initially the consumers were onlyforeigners and NRIs. Therefore, to increase its customers base, company came

up with comfortable and affordable price bottle which was a great success and

showed 400% growth.

India bottled water market is approx. is worth Rs 1,000-1,200 crore (Rs 10-

12billion). Seeing this growth over the years, many new players have entered

the market. Amongst them Kinely from Coke, Aquafina from Pepsi, kingfisher

and now Himalayan from Tata are main players of industry. There are many ups

and down in last couple of years but brand recall of Bisleri is amazing which


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helped company. In order to differentiate form other players company tries to

come up with different and new campaigns on regular intervals

In case of food and water, whenever people are suspicious of the quality of

product they dont eat unhygienic food and instead of having non purified waterthey prefer to stay thirsty. Bisleri itself seems to play on this need for safety,

coining the popular tag-line Play it safe. The advertising helped differentiate

the product from its competitors who, more or less, communicated nothing.

Bisleris seal was also breakaway (hence irreplaceable), even though this

manufacturing process of sealing seems to be slow and could clog up the

assembly line.

Somewhere along the now that space was occupied by Aquafina and Kinley.The safe breakaway seal was replaced by a regular seal, but the change wasnt

communicated and more variants (packaging) emerged. Some of these variants

were sold simultaneously. They were manufactured in different parts of Delhi,

and one had the website www.bisleri.com printed on it, while the other had

www.bisleri.co.in printed.

So, the mistake was a complete lack of communication on Bisleris part. Now

they have a new product out - a mineral water brand (as opposed to a packaged

drinking water brand), and they are advertising it. Still, there are three types of

Bisleri bottles in the market in Delhi right now.

Now again Bisleri changed its packaging and came up with a new bottle. It has

been general feeling that Kinleys new packaging is more acceptable by the

people as it is easy to grip it. In a packaged water market, where the product is

not so differentiated, the company has to constantly innovate new branding

techniques, distribution channels, advertising and in fact new packaging

techniques.

According to the Bureau of India [Images] n Standards there are 1,200 bottled

water factories all over India (of which 600 are in one state -- Tamil Nadu).

Over 100 brands are vying for the Rs 1,000-crore (Rs 10 billion) bottled water

market and are hard selling their products in every way possible -- better

margins to dealers, aggressive advertising, catchy taglines.... In such a scenario,

The Strategist takes a look at how it all started -- with Bisleri -- and how

Ramesh Chauhan, chairman, Parle Bisleri created a market out of pure water.Excerpts from a conversation with Prerna Raturi:


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Western Express Highway in Mumbai has been the route to success for two

well-known men. One was the make-believe super biker cum thief Kabir aka

John Abraham in the Bollywood flick Dhoom; and the other is the crafty

Ramesh Chauhan, who has masterminded the runaway success of the Rs.500

crore bottled water brand, BISLERI in the country, from his 1st floor office in

the sparkling green aqua fill BISLERI building.

BISLERI was originally an Italian Company created by Signor Felice BISLERI

who first brought the idea of selling bottled water in India. BISLERI then was

introduced in Mumbai in glass bottles in two varietiesbubbly & still in 1965.

Parle bought over BISLERI (India) Ltd. in 1969 & started bottling Mineral

water in glass bottles under the brand name BISLERI. Later Parle switchedover to PVC non-returnable bottles & finally advanced to PET containers. Since

1995, Mr. Ramesh. J. Chauhan has started expanding BISLERI operations. In

2003 BISLERI announced its venture to Europe.

For over 30 years, BISLERI has been the pioneer in the bottled water industry

with its innovations and an eye for perfection. And ever since it was established

in 1969, BISLERI has constantly searched for inspiration in nature


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MISSION STATEMENT

To provide the highest quality product, keeping in mind all

aspect including freshness purity and safety and making it easy available to

the consumer at very affordable price.

RAMESH CHAUHAN


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The Journey til l Now:-

1969: Buys Bisleris bottled water from an Italian company, Felice Bisleri. It

was bottled in glass bottles then.

Early-1980s: Shifts to PVC bottles. Sales surge

Mid-1980s: Switches to PET bottles, which meant more transparency and life

for water.

1993: Sells carbonated drink brands like Thums Up, Gold Spot and Limca to

Coca-Cola for Rs 400 crore.

1995: Bisleri launches a 500 ml bottle and sales shoot up by 400 per cent.

2000: Introduces the 20-litre container to bring prices down from Rs 10 a litre to

Rs 2 a litre.

1998: Introduces a tamper-proof and tamper-evident seal.

2000: BIS cancels Bisleri's licence of a water bottling in Delhi [ Images ] since

some of the bottles did not carry ISI label; the licence is restored one-and-a-half

months later.

2002: Kinley overtakes Bisleri. The national retail stores audit by ORG-MARG

show Kinley's market share at 35.1 per cent compared to Bisleri's 34.4 per cent.


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CHAPTER 7

GROWTH IN BOTTLED WATER INDUSTRIES


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GROWTH IN BOTTLE WATER INDUSTRIES

It was in 1967 that BISLERI set up a bottling plant for manufacturing and

marketing its mineral water, which failed badly.

In 1968-69 the brand BISLERI was sold to the Parle group by the Italian

company, Parle group launched BISLERI soda and mineral water, but again the

concept failed as the Indian customer was not ready to buy water in bottled

form.

The market remained dormant for the next two decades (i.e. from 1970 to 1990)

the market throughout this period was formed mainly by the premium segment

like five- star hotels.

In the early 1990s was the onset of liberalization policy, and sell-off of major

soft drinks brands, BISLERI was compelled to test the waters again.

Today the demand of bottled water is increasing at a much higher rate that of

carbonated soft drinks. The market size of bottled water too is expected to

surpass the size of soft drinks market in near future. HLL, which too has

identified the bottled water as a growth area of future, is presently looking or

some suitable brand for acquisition. Britannia too evinced some initial interestin the market but now seems to have postponed its plans. The existing players

too are set to expand their distribution network to have their presence across the

country.

The market is also expected to undergo a major consolidation phase. As one of

the major factors that are important for success in the market is the distribution

network, the players with deep pockets are expected to go for acquisition of

existing small regional players to spread their network across the country.Already Coke has tied up with Yes for manufacturing of its brands in areas

where it doesnt have presence.

Though Coke and Pepsi have both, well established distribution network as well

as bottling & manufacturing plants, they seems to be at advantage but players

like HLL and Nestle with strong financial muscle can easily turn the tables in

their favor through acquisition route.


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The following table shows the growth in the package drinking water industry

Year Growth rate

1996-97 3-4 %1997-00 10 %

2000-02 50 %

2002-04 70 %

2004-09 90%

1996-97

1997-00

2000-02

2002-04

2004-09


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CHAPTER 8

SWOT ANALYSIS


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SWOT ANALYSIS

STRENGTH

1. QUALITY STANDARD:-

Every bottle of BISLERI is put through a rigorous Multi stage

purification processes which includes micron filtration and ozonation.

It acquires 6 stages of purification processes which ensure quality water which

is pure and safe for drinking purpose. Good manufacturing are the strength all

the time processing in religiously monitored at every stage.

2. TRUST FOR BRAND:-

More than 50 lakhs people trust the BISLERI. They buy only

BISLERI water because it has became generic name for mineral water. For

example: - When people go to buy the mineral water many of them ask forBISLERI, even though they get other brand.

3. LARGE RANGE OF PRODUCTS:-

BISLERI offers a large range of products which attracts consumer

of all categories. For example: - 1 litre or 500 ml pack is useful for individual

buyers, 12 litres or 20 litres is useful for organization. Therefore it attracts large

number of customer.


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4. MARKETING:-

BISLERI is promoted by an aggressive print & TV. TV is backed

by a Hoarding & pointofsale material. Every interface with customer is

used as an opportunity to reinforce. For example: - All vehicles used for supply

have been painted in light green, bears the BISLERI logo & sport catchy

baseline likes drink and drive

5. DISTRIBUTION SYSTEM.

With little belief in the distributor system, the company leverage

its large fleet of truck to supply bottled water directly to retailers through a

system called Route Selling where the driver of truck is trained to be a service

person. This ensures that water supplied is fresh and bottles are in good shape.

BISLERI has more than 80,000 outlets in the country.

6. EXPERIENCE OF MR.CHAUHAN (M.D OF BISLERI)

From the vast experience of marketing Gold Spot and Thums

Up, Mr. Chauhan knows that distribution plays a crucial role in the successful

marketing of bottled drinks. He knows that making fresh water available within

a particular period of time is crucial for its success. He is pursuing a multi- pack

and multi- price strategy.

7. BULKSEGMENT IS USEFUL FOR HOUSEHOLDS ALSO:-

Households in certain parts of the country spend a huge amount of

money on fuel in order to purify the water. They are supposed to buy the impurewater and then they have to spend money to purify it.


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For instance the water scarce south people spend large some of money to buy

water and still more to purify it. The 12 litre product is hit in various cities of

south.

8. GROWING POPULARITY:-

The popularity of BISLERI is increasing rapidly day by day.

People in the market when it comes to mineral water a person goes to any shop

and asks for BISLERI as his/her first preference. BISLERI is seeing a growth of

almost 50% per year. With the small pack being popular among individuals user

its bulk pack is also generating the huge demand which is capturing the market

for BISLERI. Today 60-70 % of total income of BISLERI comes from its bulk

segment and the company is planning to increase it up to 80%.

9. THE BREAK AWAY SEAL:-

Keeping in mind the consumers need to recognize a genuine

product that cannot be tempered with. The unique cap has been patented and

cannot be duplicated. This technical strength ensures that the consumer will

only get a high safe product when they will drink BISLERI.


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WEAKNESS

1.METHOD ADOPTED FOR DISTRIBUTION:- THE

ROUTESELLING policy adopted by BISLERI for distribution is more

expensive than more commonly followed method of appointing distributors

in different towns. This reduces the profit of company. The dealer margin is

reduced due to this .therefore not many dealer keeps BISLERI in many

areas. Indirectly this is reducing the coverage of BISLERI.

2. REUSE OF BOTTLE BY LOCAL SELLERS AND ILLEGAL

MANUFACTURERS:- Market research conducted by BISLERI revealed

that the other overriding concern for this set of buyers is the tampering of

seal and the reuse of bottles. Many have witnessed used bottles being refilled

at railway stations. This deteriorates the brand image of BISLERI.

For example: - local sellers fill the bottle of BISLERI with impure water

and the bottles are purchased by illiterate customers as BISLERI water but

they buy water of low quality. In this way brand of BISLERI gets affected.

3. FAULTS IN PRODUCTION:-Tests conducted by various authorities

shows that it contains pesticides. In 2002 the 2cm long insect was found in

the bottle of BISLERI. This has affected its sales and reputation. The license

of its two factories one at Noida and other at Bangalore has been cancelled

because of fault in production.


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4. PRESSURE BY GOVERNMENT AUTHORITY:- After insect was

found in the bottles, FDA (Food & Drug Adulteration) has cancelled the

production of BISLERI. Afterwards it was allowed to resume it but in this

period its customer were moved towards other products. It is constantly

under check by various authorities.

5. NOT MEETING THE DEMAND OF THE CUSTOMER:-In certain

parts of south in our country big bottles of BISLERI are in huge demand but

the company is unable to meet the demand of the consumers. This is

affecting the demand for the product. So People are forced to use other

brands of mineral water.


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OPPORTUNITY

1. FAST GROWING FIELD:- The best beverage for India in the new

millennium seems to be water. In recent years, the bottled drinking water

market has been witnessing high decibel level of activity, with a host of new

entrants. The bottled water market which worth Rs. 1000 crore is expected to

be Rs. 5000 crore by 2010. This will increase a lot of scope for bottled water

market.

2. BISLERI CAN UTILISE ITS DISTRIBUTION CHAIN:- With

BISLERI becoming a generic name for bottled drinking water. If company

can manage the distribution chain of the product to make it available where

the consumer needs it the most, the company may well succeed in his

gamble with water. For this the company can connect it with dealers and

other distributors who will market the products for them all around the

world.

3. EXPANSION IN EUROPE:-The launch of BISLERI in the European

market on 4th

September, 2003 has created a lot of scope for BISLERI in the

field. This will also compensate the deterioration of image; BISLERI has

suffered after insect was found in the bottle. It will silence the critics and it

will also increase the faith of the customer for the brand. It will create an

international brand image and the quality will increase.


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4. LAUNCH OF PREMIUM PACK:- The company also has its premium

product range. This is prepared keeping 5-star hotels and other premium

customer. This pack will be sold at Rs. 20 per litre. This will give a tough

competition to the EVIAN, the biggest player in the premium water range

which sells its 1 litre water at a hefty of Rs.85 per litre.

5. CHANGE OF IMAGE:-The Company has changed the colour of the

product. It has changed from blue to green. By changing the colour, the

company has provided a new product to the consumers; they will be getting

a new and a refreshing product.

6.INCREASE IN PRODUCTION:-BISLERI is eyeing the Market and is in

the process of increasing the production by setting 4 new plants adding to its

23plants. This will increase the production capacity of the company.


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THREAT

1. MARKET IS EYED BY THE BIG PLAYERS:-The growth of the market

indicates the need for the mineral water. Due to this the heavy weights are

eyeing the market. Coke, Pepsi, Britannia, Nestle, Auswateris keen on

raising their stakes in this market. With the cut throat competition between

Coke and Pepsi, BISLERI is not safe.

2. ENTERING OF NEW PLAYERS:- To get some share in the market

many new players are entering in the market. Among them major names are

Godrej, which is launching its product AQUA-PURE and Tata-Tea is

looking forward to but Himalayan, this will increase the competition. Also

Britannia which is distributing EVIAN is planning to launch its own brand.

There are also new entrants ATCO with BRILLIANT water, DS FOODS

with CATCH are also coming. Even Hindustan lever is planning to enter

into the market. This is give a tough competition to the current water brands

including BISLERI.

3. WATER FILTER MANUFACTURERS:-BISLERI is not only getting

competition from mineral water maker but is also facing a tough

competition from various water filter manufacturers such as Eureka Forbes

(Aqua guard). They have been marketing there purifiers in the market which

has decreased the sales of bottled water supply to homely customers.

4. ILLEGAL MANUFACTURERS:- Company is facing a tough

competition from illegal manufacturers in the rural areas. The illegal

manufacturers provide water at a very cheaper rate then the branded


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manufacturers. There are 1000s of illegal manufacturers which are

providing the water at a very cheaper rate. This is a serious problem for

branded manufacturers. This companies also use the fake name of branded

bottled water i.e. BISLERI and supply their products in the market.

5. STRONG DISTRIBUTION CHANNEL OF THE OTHER

MANUFACTURERS:-Analysts feel that BISLERIS break away seal will

not at all be effective the company having strong distribution channel willonly survive. This rings the warning bell for BISLERI because among other

players Kinley and Aquafina are having a strong distribution network of

Coke and Pepsi. Nestle will be banking on its chocolate distribution

network. Even though the BISLERI has a strong networks but its

concentration on bulk segment can lead to improper network.

For example: - A chemist who is selling the 1 litre pack may not sell the 20

litre pack. This could disturb the network.

6. NEW GOVERNMENT POLICY:- For preparing 1 litre of mineral water3 litre of ground water is required. Government was not charging tax on the

extraction of the ground water. Now by introducing the new policy

government is going to impose tax on the extraction of the ground water,

this will increase the production cost because of which the companies will

be forced to increase the price which all consumers of all categories cannot

afford. The companies can compensate the high production cost by reducing


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their marketing expenses but this will keep the consumer unaware about the

product. This also affects the quality of the bottled water.


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CHAPTER 9

BISLERI TODAY


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BISLERI TODAY

BISLERI values its customers & therefore has developed 8 unique pack sizes to

suit the need of every individual. We are present in 250ml cups, 250ml bottles,

500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L which arethe returnable packs. Till date the Indian consumer has been offered BISLERI

water, however in our effort to bring to you something refreshingly new, we

have introduced BISLERI Natural Mountain Water - water brought to you from

the foothills of the mountains situated in Himachal Pradesh. Hence our product

range now comprises of two variants: BISLERI with added minerals &

BISLERI Mountain water

It is capturing its market in India as well as other continents. BISLERI has been

no 1 and is capturing Indian market by providing best quality over a period of

long time. None of the water products in line are able to compete with BISLERI

and thus BISLERI stand unique in the market.

Bisleris commitment is to offer every Indian pure & clean drinking water.

BISLER water is put through multiple stages of purification, ozonised & finally

packed for consumption. . Rigorous R&D & stringent quality controls has made

BISLERI a market leader in the bottled water segment.

BISLERIS endeavor to maintain strict quality controls each unit purchases

performs & caps only from approved vendors. BISLERI produces their own

bottles in-house; & have recently procured the latest world class state of the art

machineries that puts them at par with International standards. This has not only

helped them improve packaging quality but has also reduced raw material

wastage & doubled production capacity. You can be rest assured that you are

drinking safe & pure water when you consume BISLERI. BISLERI is free of

impurities & 100% safe. Enjoy the Sweet taste of Purity !


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Manufacturing Process

BISLERI manufacturers its own products and has its own manufacturing unit

which includes various machines, the whole manufacturing process is carried on

by BISLERI at its plant. The whole manufacturing process is divided intodifferent parts and it consists of different activities like water purification

treatment, blowing of the bottles, filling of the bottles, packing of the bottles

etc.

The manufacturing process of BISLERI is carried on in different parts:

Storing Of Water:-The water is taken from the boring well and then isstored in huge tanks, BISLERI has 6 tanks of 50,000 litres each, and

water is first taken from the boring well and stored in these tanks.

Tanks in which water is Stored


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6 STAGES OF WATER TREATMENT PLANT:

OZONATION FILTERATION CARBON FILTERATION RESERVE OSMOSIS SYSTEM MICRO FILTERATION OZONE TREATMENT

OZONATION:

The process of ozonation ensures that the water remains free from bacteria, so

that the water can have a longer life and the machine used for this process of

ozonation is called ozonator.

FILTERATION:

The process of filteration removes suspended particles from the water by sandfilteration.

CARBON FILTERATION:

The stage of carbon filteration removes bad odour and colour from water and

purifies it.


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REVERSE OSMOSIS SYSTEM:

This stage of reserve osmosis system controls all the dissolves solid particlesand it converts hard water into soft water.

MICRO FILTERATION:

Under this stage of micro filteration additional safety measures are taked toguarantee purity of water. In this stage addition of mineral magnesium sulphate

and potassium bicarbonate is processed.

OZONE TREATMENT:

The ozone treatment increases the shelf life of water. To ensure mineral water is

held safe free from contamination, ultraviolet treatment and ozonation process iscarried out. Ozone is unstable trivalent oxygen, a very powerful bactericide with

no side effect, as it disintegrates into oxygen within couple of hours.

Sterilization effect of ozonized water continues even after water is packaged,

thereby ensuring safety of Mineral Water up to its final packing. To ensure high

quality of packing materials, components like caps and bottles are manufactured

in-house from resins of quality suppliers.

Good Manufacturing Practices are stringently followed at all times. Processing

is religiously monitored at every stage. Testing source water, processing

parameters, microbial quality, packaging material integrity and finally, shelf life

studies, forms an integral part of quality and safety assurance plan.


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Distribution:-

Bisleri to have own distribution network

PARLE Drinks plans to put up its own distribution network across the countryfor the Bisleri mineral water brand.

The company will invest approximately Rs. 200 crores to procure 2,000 trucks

and hire the same number of sales people by end-2000 to extend the penetration

of the brand.

Mr. Ramesh Chauhan, Chairman, Parle Drinks, said he expects an almost 400

per cent growth in business when the number of trucks transporting Bisleri

mineral water doubles from the current 1,000.

Predicting that he expects his company's turnover to touch Rs. 1,000 crores

within the next two years, he said the idea is to ensure that the Bisleri brand

reaches every nook and cranny of the country. He said: ``The key to success in

any business is the distribution and if you have that in your control, you have

won more than half the battle.''

Meanwhile, Mr. Chauhan, who puts Parle's 1999-2000 turnover at Rs. 350crores (up from Rs. 160 crores last fiscal), also plans to grow the market with

the five-litre value pack, targeted mainly at homes and institutions.

This bottle, priced at Rs. 25, essentially makes mineral water available to the

consumer at Rs. 5 a litre. The one-litre bottle is available at Rs. 12, while the

half-litre one is priced at Rs. 5. Mr. Chauhan is now on the look-out for high-

quality cups to make the water available in smaller quantities.

Consumers who buy the five-litre value pack have to pay a Re. 1 deposit to the

retailer, which can be redeemed once the bottle is returned. The five-litre packs,

launched last December in Goa, are currently available in six cities, including

Delhi, Bombay and Bangalore, and sell over 5,000 bottles a day, according to

Mr. Chauhan.

The company hopes to make the value packs available across India in the next

couple of months,'' he added.


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He is, meanwhile, dispatching people to Japan this week to procure a recycling

plant for the PET bottles and said at least two such plants would be set up in

Chennai and Delhi at the cost of Rs. 5 crores each, by the end of the year.

Crushed and compacted bottles from other parts of the country will betransported to the two plants, Mr. Chauhan said, adding that a better part of the

compacted PET will go into the manufacture of polyester yarn: I have already

discussed with Reliance and a couple of other manufacturers the possibility of

selling the polyester yarn thus manufactured. He hopes to ensure that all used

Bisleri bottles come back to retailers by offering incentives.

The company plans to double its advertising budget from the Rs. 3 crores of last

year to Rs. 6 crores next year, according to Mr. Chauhan, who said it will alsopromote the five-litre pack with events and PoP displays.

With business growing exponentially, Mr. Chauhan is convinced that water is

the business to be in: ``Bisleri is almost a generic name, the No. 2 in the

business is way behind me, and I hope to keep it that way.''


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BLOWING PROCESS:

A small tube like plastic which is known as PRE-FORM is blown with the

help of a machine called SIDEL which has a temperature of about 80 to 90

degree Celsius, when this PRE-FORM is put into the SIDEL machine it isblown up by its heat and turns out into a bottle in a specific shape according to

the mould plates available in the SIDEL machines which gives the bottles a

specific shape

PRE-FORM


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BLOWING PART:

The small tube made from plastic known as PRE-FORM; initially was

manufactured but due to hygienic reasons it was stopped and now it is got from

outside and is out sourced. The SIDEL machine is only used for blowing theempty bottles. Even the caps of the bottles are outsourced as the manufacturing

of the caps would involve a lot of time. So the SIDEL machine only helps in the

blowing of the bottle according to mould plates available in it which give it a

perfect shape and the PRE-FORM and the bottle caps are outsourced.

SIDEL


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FILLING PART:

Once the empty bottles are made and blown up the water is filled into it. The

machine used for filling the water in the blown bottle is called Dynathronic.

The speed of this Dynathronic machine is that in one minute 110 bottles can befilled.

There are 7 stages to the filling process; they are:

The bottle is sterilized with air pressure

Then the bottle is filled with water

The bottle is sealed with a cap

Labeling of the bottle takes place

All mandatory information such as marking the batch number, manufacturing

date, expiry date and MRP.

Inspection of the bottle such as checking, sealing, printing and filling.

Lastly the bottle is packed.


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CHAPTER 10

MARKETING MIX


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MARKETING MIX:-

According to Philip kotler marketing mix is the mixture of controllablemarketing variables that the firm uses to pursue the sought level of sales in the

targeted market

In simple words marketing mix is the combination of four basic elements /

ingredients under one head. The 4Ps i.e. Product, Place, Price, and Promotion.


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PRODUCT:

Types of products

BISLERI values their customers & therefore have developed 8 unique packsizes to suit the need of every individual. They presently have 250ml cups,

250ml bottles, and 500ml, 1L, 1.5L and 2L which are the non-returnable packs

& 5L, 20L which are the returnable packs.

Products Produced by BISLERI

BISLERI with added Minerals BISLERI Mineral Water contains minerals such

as magnesium sulphate and potassium bicarbonate which are essential minerals

for healthy living. They not only maintain the pH balance of the body but also

help in keeping you fit and energetic at all times.

Bisleris Mountain Water:-

BISLERI Natural Mountain emanates from a natural spring, located in

Uttaranchal and Himachal nestled in the vast Shivalik Mountain ranges. Lauded

as today's 'fountain of youth', BISLERI Natural Mountain Water resonates with

the energy and vibrancy capable of taking you back to nature. BISLERI Natural

Water is bottled in its two plants in Uttaranchal and Himachal Pradesh and is

available in six different pack sizes of 250ml, 500ml, 1 litre, 1.5 litre, 2 litre and

5 litres.


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Himalayan Water The water that almost descends from the Gods: The

Himalayas, the abode of the Gods, where the earth meets the heavens and where

in lies nature's untouched bounty. White glaciers, snow-capped mountains and aplethora of exotic herbs and other flora that have therapeutic properties. This is

where you'll find a treasure trove of hidden natural spring water that flows

through natural purifying filters, mineral rich rocks and herbs from which it

absorbs many healing properties. We bottle this pristine spring water directly at

source, at the foothills of the Himalayas.

And now the customers will get every drop of purity, right here, in this bottle.

BISLERI Mountain Water is available in 500ml. bottles & 1 litre bottles.

Quality:-

In endeavor to maintain strict quality controls each unit purchases pre-forms &

caps only from approved vendors. BISLERI produces its own bottles in-house;

they have recently procured the latest world class state of the art machineries

that put them at par with International standards. This has not only helped

BISLERI improve its packaging quality but has also reduced raw material

wastage & doubled production capacity. You can be rest assured that you are

drinking safe & pure water when you consume BISLERI. BISLERI is free of

impurities & 100% safe. Enjoy the Sweet taste of Purity!

Rigorous Research and Development and stringent quality controls have made

BISLERI market leaders in the bottled water segment. BISLERI has always

been committed to offering every Indian pure and clean drinking water. Hence

BISLERI water is put through multiple stages of purification, Ozonisation and

is hygienically packed for final consumption.

The machines which are used for the blowing and filling of the bottles are also

cleaned twice a month. All the tanks are also cleaned by the use of chemicals.

There is an online monitoring system where the batches of bottles are shown

and once the batch crosses a certain limit, an alarm is heard. Everyday almost

one lakh bottles are passed through the monitoring system. Moreover, in case

there is a problem regarding the batch for example, the cap seal of a particularbottle is not there or labeling is not done properly, the system records that and


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immediately the production is halted. This is followed as per the Bureau

Standards and if any mistake occurs then the whole batch is discarded.

This shows that the whole batch is replaced and stopped which indicates high

quality control. Even practically every 2 days testing and sampling of the waterand its bottles are done in the market and in their Quality Department to check

in case anything is wrong or not. In fact there is a quality checker under the

quality department for the final checking done of the water before it is entered

the market.

There is also a warehouse where the 20 litre bottles are kept for 48 hours to

allow the ozone to settle in it. This helps in prevention of any germs or harmful

chemicals and also purifies the water. The cost of quality undoubtedly is veryefficiently taken care of in BISLERI, there are times when the cost of quality

increases i.e. in the rainy seasons the cost increases because the water is purified

twice than the normal seasons as sometimes the water might be dirty due to the

rains, Bislerisdoesnt take any risks and does not compromise with their

quality.

Online Monitoring System


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Design/Creativity:

BISLERI has a separate creative department which promotes the different sizes

of the bottles. They have introduced new mountain water which is in hexagon

shaped bottle and is a new up gradation done by them. This helps in attractingnew customers and creates a new sensation in the market. Also 2 years ago a

new soda bottle was introduced which was named as BISLERI Fizzy bringing a

huge demand among customers.

Moreover, the creative department has an expansion scheme which was

introduced in October 2008 which was a compact and ideal gift for the

customer. This includes a 20litre bottle, 2 fridge bottles, 1.5 litre bottle and a

250 ml bottle with a fridge stand .This was experimented for a month and whichresulted in the lot of demand.

Value Engineering is redesigning the product already existing. The redesigning

of the bottle has definitely taken place in BISLERI. Earlier they had a blue

coloured bottle and then to bring in a different change, BISLERI decided to

redesign the bottle to green colour.

Old Bottle New Bottle

Labeling


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Labeling plays a very important role BISLERI takes good care about the

labeling as it tries to create and come up with an exciting and attractive label as

it will attract the customers; also labeling plays an important role as it gives a

lot of information about the product; like what are the contents of a bottle how

is it made what does it consist etc. Also labeling gives a lot of information about

the product i.e. the price of the product; manufacturing date; expiry date etc.

PRICE:-

Price plays as very important role as it is the only P which helps in getting

revenue:

Firstly one can explain the factors which affect the pricing decision i.e.

Price is directly related to:-

1. Demand

2. Competition

3. Break-even Point.

Secondly, if there is a novel product or almost no competition, one can Go for

higher price in the beginning, make good profits to face Competition and

innovations at a later date.

However if you are entering a competitive market your entry price should be

low to ensure big volumes to earn reasonable profits.

In the beginning BISLERI had no competition, so the price of BISLERI was

high, gradually the promoters dropped the price.

Buy Huge quantity at cheap rate, after confirming demand and sell at cheap

price, make them addictive, then gradually increase price)


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BRAND PACKAGINGS PRICE (in Rs.)

Per bottleBISLERI

20 litre 70

5 litre 50

1.5 litre 22

1 litre 18

500 ml 10

330ml 8

250 ml cup 5

Customer Delight

BISLERI is in the business to serve the customer. It deserves the best quality

and presentation at a worth of the price. They have world class quality, at the

lowest production & distribution cost. This makes them unbeatable leaders, and

helps them in having satisfied loyal customers.

BISLERI values its customers & therefore have developed 8 unique pack sizes

to suit the need of every individual. At present they provide 250ml cups, 250ml

bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L

which are the returnable packs. For the customers Bisleris has come up with a

new scheme called the REDUMTION scheme designed especially for the

customers. In the Redumption scheme BISLERI provides for Rs 300 a 20lt

BISLERI bottle, 2 fridge bottles, a 1.5l bottle, a 250ml bottle and a fridge stand.

PLACE

BISLERI has a specific distribution channel which they follow:


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Distribution Channel

From the manufacturing plant the bottles will come directly to the stockiest.

Taking out the C&F agent from the distribution channel, so as to increase the

margin to other elements in the chain.

The whole MUMBAI area is been divided into 4 zones: SOUTH, WEST,

CENTRAL and NORTH.

The total number of stockiest would be 12.

In the area of SOUTH MUMBAI there would be 2 stockiest, one in the area ofFORT and other in the area of MUMBAI CENTRAL. In the case of FORT it

will require 5 distributors covering the area from DADAR to C.S.T and

WADALA to C.S.T. The other stockiest at MUMBAI CENTRAL will require 2

distributors to cover the area from DADAR to CHURCHGATE.

In the area of west MUMBAI there would be 3 stockiest in the area of

ANDHERI, BORIVALI & VIRAR, Covering the area from MAHIM to

DHANU road. In the area of Mahim to Andheri 5 distributor would be there, in


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the area of Jogeshwari to Dahisar 5 distributor would be there, in the area of

DAHISAR to DAHANU road 4 distributor would be there.

In the area of CENTRAL MUMBAI 4 stockiest would be needed. The stockiest

would be in GHATKOPAR, KALYAN, AMBERNATH, and TITWALA. Thestockiest in the GHATKOPAR would cover the area between MATUNGA to

MULUND. The stockiest in KALYAN would cover the area between THANA

to KALYAN and it would require 3 distributors. The stockiest in

AMBERNATH would cover the area from KALYAN to KARJAT. A stockiest

in TITWALA would cover the area from KALYAN to KASARA and would

require 3 distributors.

In the case of NORTH MUMBAI there would be 3 stockiest. It would coverarea of PANVEL, URAN, ALIBAUG, PENN, MAHAD, and VASHI. In the

area of PANVEL stockiest 3 distributor would be needed and in the area of

MAHAD stockiest it would require 3 distributor and same is the case with

Vashi. In the ca

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126783500 Mineral Water Shaheen Main