rm mineral water report

8/12/2019 RM Mineral Water Report

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Report

on

Bottled mineral water

submitted to

dr. S K Laroiya

Faculty ABS Noida

Amity University

march 10 2014

by

Aamir Malik(43)

Sudip Mazumdar (44)

Piyuesh Pandey (52)

Anuj dubey (55)

Zain ul Abdeen (61)

Harish Vangla

AMITY UNIVERSITY UTTAR PRADESH


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ACKNOWLEDEMENT

It is a matter of great pleasure & satisfaction to present this project report on Bottled

Mineral water". We take this opportunity to owe our thanks to all our faculty members for

their encouragement & able guidance at every stage of this project report.

I thank Dr. S K Laroiya sir, our faculty guide for providing us his visionary guidance through

which we were able to present our knowledge & skills.

We express our gratitude towards all those people who have helped us directly or indirectly

in completing this report.

Aamir Malik(43)

Sudip Mazumdar (44)

Piyuesh Pandey (52)

Anuj dubey (55)

Zain ul Abdeen (61)

Harish Vangla


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Abbreviations not described in the text


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Chapter 1

Introduction:

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

depending on the climate, physical activity and the body culture. but for average consumers itis 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

Clean and Safe Drinking Water Quality etc. have 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. Thepackaged water market constitutes 15 per cent of the overall packaged beverage industry,which has 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 anestimated 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 phenomenal40-50% a year".

Almost all the major international and national brands water bottles are available in Indianmarket 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, butnow it is penetrated even in rural areas. The growth and status of Indian Bottled Industry incomparison 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 litres in Europe and 45-liter inUSA. Also As per UN study conducted in 122 countries, in connection with water quality,

APJ Abdul Kalam Ex-President of India has urged youngsters on July 17, 2010 to be awareof water conservation techniques to avoid grave water crisis in future. `"It is so sad thattoday, people are forced to buy water in plastic bottles. I am told that bottled water industry isworth nearly 10,000 crores rupees and even big companies like the Coke and Pepsi areinvolved in this bottling of water and making money. So, it is imperative that we ought tosave water," he added. Do not be surprise if today's bottles water industry becomes next Oilindustry by 2025.

If oil is the focal point of world conflict now, it is possible that water will be the nextbattleground among monopoly capitalists and even among nations. Prices of water and waterservices keep on increasing because most of our PepsiCo's first premium water to makeAquafina water utilities have already been privatized by the government. Private beverageand water companies have been granted by the government with permits to practically controland operate our natural springs and water sources in natural parks and protected areas forwater production and processing plants.

The bottled water category is growing at a rapid pace. The branded market is 40 % of thecategory 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 sharewithin organized mineral water category. Three key players mainly dominate the Indian


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Bottled Water Market Parle Bisleri, Coca Cola India Inc Kinley and PepsiCo India HoldingsPvt. Limited. This market is expected to grow at a 30% rate in the next 7 years. In 2010 therevenue generated by this market was over $250 million.

Bottled Water Industry in India

The overall packaged bottled water in India is estimated to touch the Rs 10,000 crores markin the 2012-13 fiscal, growing at a compound annual growth rate (CAGR) of 19%, says anew report by Ikon Marketing Consultants. Presently, this market is estimated at Rs 8,000crores, and could touch Rs15,000 crores by 2015, the report adds. While Bisleri mineralWater continues as the top brand with a 36% share among national players, Coca-Cola'sKinley follows with 25% share, followed by Aquafina at 15%. Other smaller brands includeParle Argo's Bailley, Kingfisher and McDowell's No. 1, according to the report. The global

bottled water market, which saw an increase of 40-45% over the past five years, is currentlyvalued at close to US$ 85-90 billion, the report adds.

The domestic market is split between three sets of players -- national brands with a panIndia presence worth around Rs 4,000 crores, local brands manufactured by registered plants

but restricted to regions estimated to have a combined turnover of Rs 2,400 crores andunorganised local brands estimated at Rs 1,600 crores. The report estimates that there areover 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 inhomes and institutional segments will pave the way for bulk water packs to acquire half ofthe total bottled water market within next four-five years," the report adds. According to anational-level study, making bottled water is today a cottage industry in the country. Leavealone 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 capitaper annum consumption of bottled water is estimated to be five litres which is comparativelylower than the global average of 24 litres. Today it is one of India's fastest growing industrialsectors. Between 1999 and 2004, the Indian bottled water market grew at a compound annualgrowth rate (CAGR) of 25 per cent - the highest in the world. The total annual bottled waterconsumption in India had tripled to 5 billion litres in 2004 from 1.5 billion litres in1999. Global consumption of bottled water was nearing 200 billion litres in 2006.

Bottled water top players in India`

The market leader is Bisleri International, which boasts a 40 per cent share. It is followedby 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 likeCoca cola, Pepsi, Nestle and noticeable presence of national players like Mount Everest,Manikchand, Kingfisher, Mohan Meakins, SKN Breweries , Indian Railways so on. Withincreasing competition, this sector will register a robust growth in 2010, predict industryanalysts.


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To take on rivals in this sector, PepsiCo India is drawing up a fresh game plan whichincludes, investment in capacity enhancement, packaging initiatives and below-the-lineactivities to pump up volumes in the over-crowded category. Meanwhile, swadeshi majorParle 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 initiativesof Kinley to woo new consumes. In essence, the packaged water industry in India will soonwitness 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 approximately1,200 bottling water plants in India, 600 are in Tamil Nadu. But a major problem is southernIndia, especially Tamil Nadu, is water starved.

Top multinational players such as Coca-Cola and PepsiCo have been trying for the pastdecade to capture the Indian bottled water market. Today they have captured a significant

portion of it. However, Parle Bisleri continues to hold 40 per cent of the market share. Kinley

and Aquafina are fast catching up, with Kinley holding 20-25 per cent of the market andAquafina approximately 10 per cent. The rest, including the smaller players, have 20-25 % ofthe market share.

History of Bottled water in India

Mineral bottled water in India under the name 'Bisleri' was first introduced in Mumbai byBisleri Ltd., a company of Italian origin in 1965. Mineral bottled water were in glass bottlesin two varieties - bubbly and still in 1965 This company was started by Signor Felice whofirst brought the idea of selling bottled water in India.

Parle bought over Bisleri (India) Ltd. In 1969 and started bottling Mineral water in glassbottles under the brand name 'Bisleri'. Later Parle switched over to PVC non- returnablebottles and finally advanced to PET containers. Since 1995 Mr.Ramesh J. Chauhan hasstarted expanding Bisleri operations substantially and the turnover has multiplied more than20 times over a period of 10 years and the average growth rate has been around 40% over this

period. Presently it have 8 plants and 11 franchisees all over India. Bisleri command a 60%market share of the organized market.

Currently, Bailley has a national presence in 5 lacs retail outlets across the country. Weplan to increase manufacturing plants for Bailley from 29 to 60, presently 40 plants areoperational and few more will be ready for operations over the next few months, informed

Nadia Chauhan, joint managing director of Parle Agro.

Variety of packages

Bottled water is sold in a variety of packages: pouches and glasses, 330 ml bottles, 500 mlbottles, one- litre bottles and even 20- to 50-litre bulk water packs. The formal bottled waterbusiness in India can be divided broadly into three segments in terms of cost: premiumnatural 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,


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Bisleri, Coca-Cola's Kinley and PepsiCo's Aquafina. They are priced in the range of Rs.10-12a 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, sandand 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 theunderground 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 boreholetapping the underground formation feeding the spring. If some external force is used tocollect the water through a borehole, the water must havethe 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--thetap. Municipal water is usually treated before it is bottled.

Daab water in bottles:Chief minister Mamata Banerjee's focus on small investors will soonsee packaged coconut water in local stores in 2013. The state food processing department iscurrently studying a state-of-the-art technique for packaging bottles of daab water. It willcollaborate with the Indian Institute of Packaging to sell coconut water and highlight that factthat one portion of coconut water is equivalent to three portions of water.

Why Bottled water?

Millions of people, both in rural and urban India, suffer from inadequate or no tap watersupply. Even some parts of Mumbai, the country's financial capital, get a mere two hours ofdaily water supply. The city's Virar suburb gets 45 minutes. So bottled water is much indemand by residents - even though the businesses profiting from the sales are thriving fromaccess to public water sources.

Bottled water fills a void created by government failure to address basic services, PeterGleick 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 ofgovernments 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 reasonsthat governments should tap into spending on commercial water by consumers to securefunds to provide safe water at fraction of the cost.

Bottled water has been treated by distillation, reverse osmosis, or other suitable process andthat meets the definition of "purified water". The bottled water treatments include:

* Distillation. In this process, water is turned into a vapour. Since minerals are too heavy tovaporize, they are left behind, and the vapours 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 largerthan one micron in size, such as "Cryptosporidium", a parasitic protozoan.


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* 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 tothe water.

Bottled Water: How Safe?

The bottled water industry has spent billions over the past decade to sell you on the ideathat 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 industrygets the water free, filters it, bottles it and sells it back to us at 1,900% profit. The ironic partis that tap water is legislated to be 7.0 pH neutral. They first dump a TON of chlorine in thewater to kill off all the bad bacteria, this makes it highly acidic.

In India around 100 companies sell an estimated 424 million litres of bottled water valued ataround Rs 200 crores in the country annually. Most bottlers claim that their water is 100 percent bacteria-free, safe, tastier and healthier. But is the water in these bottles really safe todrink? Do they conform to international or national standards?

To find out, the Ahmadabad-based Consumer Education and Research Society (CERS), anindependent non-profit institution with a sophisticated product-testing laboratory, recentlycarried out a detailed study on 13 major brands of bottled water available in the country. Thenational brands -- Bisleri (separate samples were taken from their units in Bangalore,Ghaziabad, Calcutta and Baroda) and Bailley (Mumbai and Surat) -- were selected on the

basis of their dominant position in the overall market. Bisil (Mehsana), Golden Eagle(Chennai), Aquaspa (Mumbai),Saiganga (Ahmednagar), Nirantar (Thane), Trupthi (Chennai)and Yes (Nadiad) were included because of their regional popularity. To conform tointernational standards for such testing, 21 bottles of each brand were tested in the CERSlaboratory against "analytical" and "sensory" parameters as well as for "microbiological"contamination. To ensure fairness, the results were sent to the individual companies for theircomments.

So how safe is bottled water? Not that safe, says the CERS survey. As many as 10 of the 13brands had foreign floating objects in clear violation of norms. Again during a surpriseinspection by the health committee chairman Manjunatha Reddy and team at two mineralwater units in the Bangalore on January 11, 2011, it was found that mineral water productionunit owners were bottling bore well water. The units were also illegally using several brandedlabels on the bottles to market the water. The standing committee visited a mineral water

production unit called AM Enterprises and found the owner selling water without an ISI markfrom the Bureau of India Standards. He was found mixing mineral water with bore well water

and selling it in cans to the public.

Water resources over-exploited

The majority of the bottling plants are dependent on groundwater. They create hugewater stress in the areas where they operate because groundwater is also the main source - inmost 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 thegroundwater 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 ownsthe groundwater beneath". This means that, theoretically, a person can buy one square metre


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of land and take all the groundwater of the surrounding areas and the law of land cannotobject to it. This law is the core of the conflict between the community and the companies asthey 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 nearJaipur. 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 andRs.24,246 in 2003. It extracts half a million litres of water every day - at a cost of 14 paisa

per 1,000 litres. So, a Rs.10 per litre Kinley water has a raw material cost of just 0.02-0.03paisa. (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'sbottling plant in Mehdiganj village, Varanasi, in Uttar Pradesh state, demanding that thecompany immediately shut down its bottling plant. In January, the New Delhi-based Energyand 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 gravestranking across the country

Bottled water companies earn high profits

What is amazing is that people are prepared to pay Rs. 12 for a litre of water-in Indiaespecially when the cost of material input (0.25 paisa per litre excluding labours cost) palesinto 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 toconsumers at hundreds of times the cost, says the website of the North American "ThinkOutside the Bottle" campaign. Not only the Coca-Cola but there are thousands of brands inIndia's $445 million packaged water industry.

Not just bottlers are involved. In south India, thousands of fuel trucks converted to bewater carriers sell ground water to households and establishments at about $10 for 5,000litres. 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 iscashing 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 foras many as 1.5 million tons of plastic waste annually, according to the Sierra Club. Inaddition, billions of bottles end up in the ground every year. Sadly, only 20% ever getrecycled, according to the Container Recycling Institute. The other 80%? Besides landfills,many bottles end up in oceans, posing a risk to marine life and and our Planet from Plastic

pollution. 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 ofcarbon dioxide emissions and required the equivalent of more than 17 million barrels of oil,


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according to the Pacific Institute. Americans drank more than 30 billion single-servingbottles of water last year. Yet the vast majority 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 aroundthe world.

The anti-bottling protests

The anti-bottling protests in India against Pepsi and Coca-Cola echo increased concernin Europe and the United States over the proliferation of bottled water, includingthe 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 thepackaged

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 anentire 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, 2011the Indian state of Kerala has passed a bill allowing compensationclaims 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 tribunalempowered to process claims for alleged losses resulting from violations of environmentalregulations. The Palakkad bottling factory in Kerala was closed in 2005 after protests fromactivists and residents. A high-level state panel concluded last year that the plant had causedenvironmental and soil degradation as well as water contamination, and recommended a fineof 47 million dollars. Coca-Cola denied all the allegations.

Reports on April 18, 2013 that Coca-Cola plans to use surface water from Yamuna for itsupcoming bottling plant near Dehradun have raised concern about power production fromhydel projects on the river. "If water is taken by Coke from Yamuna at Vikasnagar, it willsurely affect the power production of our five major hydel projects," said G P Patel,

managing director of the state-run UJVN Ltd, which produces 475 Mw.

Pro-tap water consciousness

The London Evening Standard newspaper ran a "Water on Tap" campaign in April to havetap water available for drinking in city restaurants and bars. The tabloid reported gettingsupport for its anti-packaged water campaign from the London Chamber of Commerce andIndustry, the mayor's office, leading restaurants and chains such as Starbucks, Costa Coffeeand McDonald's. Following growing pro-tap water consciousness, bottled water sales inBritain dipped 9% in the year to March 08.
http://www.gits4u.com/water/water15.htmhttp://www.gits4u.com/water/water15.htm


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Economists at the California-based Pacific Institute that estimated the $100 billion valueof the global industry, ask why consumers are readily paying for bottled water typicallycosting a thousand times more per liter than high-quality municipal tap water. /p>

"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 bottledwater? Or is the convenience of the portable plastic bottle the major factor? 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 consumptionof 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 7times 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 minimummineral content level required for water to be labelled as such, Ahmadabad-based ConsumerEducation and Research Society (CERS), an independent non-profit institution with asophisticated 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 foreignfloating objects in clear violation of norms found in the survey. The CERS study indicatesthat 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 isunregulated by the Food & Drug Administration. Acceptance of the supposed purity of

bottled water is being undermined in India by the government Health Department's warningof pesticides and contaminating organisms being present in some bottled products.The notion that commercial products taste better has also taken a knock from Decanter, aBritish magazine, which last December featured top wine tasters testing unmarked samples ofwater from 22 brands, along with tap water from utility company Thames Water and waterfrom 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) andBling H20 (22nd out of 24 brands tasted). 420 Volcanic sells at $99 a litre, and Bling H20 (inSwarovski crystal-studded bottles) at $79 a litre. Decanter editor Guy Woodward said thetasting test exposed the "outrageous" prices of mineral water.

Traditional Indian methods of cooling and purifying water

Now people of India turning their backs on the country's ancient methods of cooling andpurifying water. Stored in earthen pots, for instance, it is not only refreshingly cool and tastybut is said to become bacteria-free. Yet the common summer sight of water matkas (earthenpots) in public offices and spaces is giving way to upturned plastic drums dispensing

packaged water.


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Rainwater is safe, doesnt bring about adverse effects.

For centuries people have thought rainwater as unsafe, but contrary to their beliefs, as peran Australian study, drinking of untreated rainwater is safe for human health. The study wasconducted under the auspices of eminent researchers from Melbournes Monash University.

The entire team took a look at 300 homes that used rainwater collected in water tanks as theirprimary drinking source. This endeavour has been described as a world first study that comesin the midst of growing criticism of bottled water

New development in bottled water industry

September 15, 2013:Jayalalithaa launches low-cost mineral water scheme

August 25, 2013: MARKFED to launch Sohna as mineral water brand

June 24, 2013: Bisleri to venture into flavoured water category.

June 23, 2013: Tamil Nadu Chief Minister J Jayalalithaa announced that state transportcorporations will set up mineral water plants and sell bottled water at Rs10 per litre.

May 15, 2013: Health Minister writes to food regulator on bottled water safety.

April 5, 2013: Bisleri launches digital campaign for 500 ml bottle.

March 30, 2013: Illegal bottled water units booming in Noida: At least 34 packageddrinking water units have been instructed by court to shut down their units for "exploiting"underground water and operating without permission of any of the competent authorities.

March 19, 2013:TGBL has launched two brands Tata Gluco Plus and Tata Water Plus inselect cities in India.

February 5, 2013: Danone wanted to launch water-based flavored restorative drink Blue.

December 25, 2012: Mohan Meakin, maker of the world's largest-selling dark rum, OldMonk, plans into mineral water with its brand, Golden Eagle.

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

October 19, 2012: Lady Gaga to launch water brand.
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October 15, 2012:Amity scientists develop low cost, pocket friendly and re-usable waterpurifier using Silver Nano.

October 12, 2012: The stock of Tata Global Beverages has appreciated 26 per cent in thelast 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 specificapproval of the Authority / Authorized officer.

June 22, 2012: Thirty-two packaged water units seized in Karimnagar district for notpossessing BIS certificates as part of the Food Safety and standards Act 2006.

June 20, 2012: Japanese conglomerate Suntory, known for its whiskies and beers, haspicked up majority stake in a subsidiary of Mumbai-based Narang Group to enter India's non-alcoholic beverage market.

May 10, 2012: Spectators will be banned from taking bottles of water into the Olympic Parkin case they are used to conceal so-called "liquid bombs".

April 17, 2012: The Coca-Cola Company Reports First Quarter 2012- -Strong globalvolume 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.


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Chapter 2

Review of the literature

IS Advisors (2013) states that On the back of rising health awareness among citizens and

inability of the Indian government to provide safe drinking water, bottled water industry hasflourished during the past decade. Evolving perception of bottled water has made its

consumption a bare necessity especially in the water scarce areas of the nation. And these

factors will bring the next wave of growth in the sector.

Along with these, rising disposable income, growing organized retail, rising awareness

among the consumer segment and growing focus on product extension and quality will

further stimulate the gains for the industry. Rising urban drift in the country will also be a

wheel of growth for the industry. We have estimated the industry to grow at a CAGR of 18%

till 2017 and would be soaring to new heights. Indian Bottled Water Industry currently

pegged at USD 1454 million in 2011 will jump to reach USD 3925 million by 2017.

Gyan Research and Analytics Pvt. Ltd (2012) has assessed that the overall bottled water

industry in India is expected to reach USD 2,980 million by 2018. The global bottled water

market has seen an overwhelming increase of 40-45 percent in the last five years. The

domestic market is segmented into three kinds of players, namely the national brands with a

presence all over India, local brands manufactured by registered plants and unorganised local

brands. The entry of new competitors at regular intervals has expanded the horizon of bottled

water to include packaged drinking water, bottled mineral water, natural spring water andfortified water.

The inconsistent and poor quality of water supplied by civic authorities has given the water

purifier market a huge opportunity for constant growth. It is expected to reach USD 2,134

million by 2018. The water purifier segment in India is growing at a compounded annual

growth rate (CAGR) of about 26 percent, largely driven by rising sales of low-cost variants

generated by extreme shortage of drinking-water and diminishing water table. This has

created a huge gap in the demand-supply of clean water, endangering normal life.

Canadean ( 2013)The Packaged Water Category Profiles report series provide an analysis of

the drivers behind category performance in the respective markets, covering for example the

impact of the economic environment, rising/falling consumer disposable income levels,

pricing challenges, environmental issues etc.

Sharma S K (2010)consumption trends for all commercial beverage categories and forecast

trends five years into the future. Product analysis is broken down in to 21 categories:

packaged water, bulk/HOD water, carbonates, juice, nectars, still drinks, squash/syrups, fruit

powders, iced/ tea drinks, iced/ coffee drinks, sports drink, energy drinks, hot tea, hot coffee,

beer, wine, spirits, fortified wine, dairy drinks (white milk, fermented milk, drinking yogurt,flavoured milk, soymilk, evaporated and condensed milk).


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IS Advisors (March 2013) states that the Bottled water market has emerged as one of the

most rapidly growing and competitive markets worldwide. The global Bottled Water Industry

is a multibillion dollar industry. It has been a remarkable growth trajectory for the sector.

India is among the top ten countries in terms of bottled water consumption. Today Bottled

Water is one of the Indias fastest growing industrial sectors.

On the back of rising health awareness among citizens and inability of the Indian government

to provide safe drinking water, bottled water industry has flourished during the past decade.

Evolving perception of bottled water has made its consumption a bare necessity especially in

the water scarce areas of the nation. And these factors will bring the next wave of growth in

the sector.

Along with these, rising disposable income, growing organized retail, rising awareness

among the consumer segment and growing focus on product extension and quality will

further stimulate the gains for the industry. Rising urban drift in the country will also be awheel of growth for the industry. We have estimated the industry to grow at a CAGR of 18%

till 2017 and would be soaring to new heights. Indian Bottled Water Industry currently

pegged at USD 1454 million in 2011 will jump to reach USD 3925 million by 2017.

IKON Marketing Consultants (2012) concludes that the Indian bottled water market is

unveiling its thirst by growing at a whooping rate and expected to continue its remarkable

double-digit growth in years to come, may likely to become worth Rs 10,000 Cr by current

fiscal (2012-13) itself. The increasing health consciousness among the Indian consumers and

rise in spending capacity and increasing scarcity of pure drinking water had speed up the

growth of bottled water market in India. The report begins with the overview and currentscenario of bottled water market in India with the market segments & structure, market

growth and size in terms of value and volume, pack wise, Urban Rural market segment wise,

Region wise, State wise and major cities wise along with the global bottled water market

scenario. Chapter 2 highlights the current market trends in terms of pricing, packaging,

distribution, promotion, consumer behaviour and per capita consumption, use of private label,

international trade and emerging new market opportunities. The chapter 3 gives overview of

the competition in market including segment wise major players competing with each other

along with their market share. Also provided how the packing and regions are competing.

Chapter 4 gives indication of future of market and Chapter 5 and 6 are dealing with majormarket drivers and challenges respectively. Chapter 7 deals with strategic recommendations

for the manufacturer/suppliers and potential investors/entrants. Chapter 8 highlights few of

the key development in the market and Chapter 9 includes brief profiles of key players.

Netscribes (2013) states that The shortage of safe drinking water around the world,

especially in the third world countries, has opened up new avenues of opportunity for the

bottled water industry. Bottled water is drinking water that has been treated to make it clean

and packaged in plastic or glass bottles meant for sale. Bottled water industry caters to one of

the most thriving markets within the country. Right from the year 1995, the bottled water

industry has witnessed healthy growth in terms of the number of licensed units and marketsize. The consumption of smaller bottled water units of 500 ml capacity has increased by
http://www.marketresearch.com/IS-Advisors-v3900/http://www.marketresearch.com/IKON-Marketing-Consultants-v3903/http://www.marketresearch.com/Netscribes-India-Pvt-Ltd-v3676/http://www.marketresearch.com/Netscribes-India-Pvt-Ltd-v3676/http://www.marketresearch.com/IKON-Marketing-Consultants-v3903/http://www.marketresearch.com/IS-Advisors-v3900/


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around 140% perceptibly. The 20-liter bulk water jars have found phenomenal acceptance in

households and at workplaces. Due to the growing market size, one can expect a substantial

increase in employment opportunities within the bottled water segment in the near future.

The bottled water industry is also witnessing rapid global market growth owing to rising

health concerns of the ever-increasing population. India is a country that has witnessed one of

the fastest rates of growth in Asia, at more than 20% per annum. Identification of product

innovation opportunities by key players has also led to a surge in demand for bottled water.

The extensive use of advanced technology in water purification methods is yet another move

of strategic importance. The report also identifies a few pain points in the industry that

include spurious product differentiation and low rural penetration. The Bureau of Indian

Standards has formulated the following standards which provide quality norms for packaged

water.

Euromonitor (2013) concludes that High awareness for safety and hygiene and increases in

disposable income are driving sales of bottled water in India. With an increase in the number

of waterborne diseases, consumers are concerned about safety and do not mind spending on

bottled water. In fact bottled water has become a necessity when travelling. There is

increasing awareness, even in rural areas and small towns, of the need for safe drinking

water, which coupled with the acute water shortage in many areas in the country, is...

Euromonitor International's Bottled Water in India report offers a comprehensive guide to the

size and shape of the market at a national level. It provides the latest retail sales data (2008-

2012), allowing you to identify the sectors driving growth. It identifies the leadingcompanies, the leading brands and offers strategic analysis of key factors influencing the

market be they legislative, distribution, packaging or pricing issues. Forecasts to 2017

illustrate how the market is set to change. Product coverage: Carbonated Bottled Water,

Flavoured Bottled Water, Functional Bottled Water, Still Bottled Water.


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Chapter 3

Methodology

Need and justification of the study

o Rationale of the study

Believe behind choosing this as a research topic: To understand the various factorswhich are fuelling the growth and those which are/will be critical for the bottled waterindustry performance in the near future.

To study all the aspects required to understand the industry performance and futureprospects.

To assess the current market scenario of the industry and forecasts key parameterswhich helps to anticipate the industry performance.

Objectives and proposed outcomes of the study

Objectives : The basic objectives of this study are as follows:

1. To analyse present status and scenario of the bottled water industry, development andfuture programs of the industry.

2. To assess whether there is any direct relation between the income level and purchase

decision of the consumer.

3. To examine whether there is any relation between the age and the buying decision of

the consumer.

Proposed outputs and future perspective of study:

Indian Bottled Water Industry at a glance Emerging trends in the industry like mushrooming bulk segment, Investments,

Flavoured water etc Demand Supply scenario encompassing consumption numbers, region wise data,

number of licensees and projections Factors driving growth, Issues & Challenges Government Regulations & Initiatives in Indian market Major players Forecasts


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Limitation of the study

1. The study will not cover the whole community in depth but cover only as per use for

development issue.

2. It will be difficult to generalise the model for the whole population because of difference insocial systems and mindset of different people.

3. Availability of bottled Mineral water is generally restricted to tier 1 or tier 2 cities, so it

will be difficult to cover the whole geographical area so primary data will be covered only

from upmarket and downtown localities of Delhi NCR.

RESEARCH METHODOLOGY

Sample unit: the sample unit for the survey is household or a family from the metro city of

Delhi NCR. A household or a family means the no of separate food cooking arrangement. In

the survey we are taking representative household who will represent all sections and layers

of households of the city.

Proposed location and sample size for study: proposed locations for this study are 3

districts of Delhi, Uttar Pradesh, namely New Delhi, Noida and Ghaziabad which will be

collectively termed as Delhi NCR further in the study. From each district 4 random colonies

will be chosen and from each residential colony 30 respondents will be picked. The

approximate sample size would be 400 in this study.

Count Household Colonies District State Country

Total number 30 3 3 3 1

Criteria of sample selection: Selection of Districts will be based on different parameters of

development and density of urban population in the district. We will take only districts which

have more than 40% urban population in the population of district. Out of 3 district we will

take 1 district which is good in Human development index, 2 which is in mid condition and 1

which are not so good in development. Block, colonies and localities will be chosen in the

same way. In household selection representation of each social and economical group will be

taken. At least 75% respondent will be from urban nuclear families of the overall household.

Selection of the sample will be based on representation method in which we first code

household by social mapping then take respective representation from each and every

category with meeting out our requirement.


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Data collection tools and techniques

Primary data collection: the primary data will be collected with use of an integrated process

of different tools and techniques as transact walk, rapport building, observation, house hold

interviews and social mapping.

Transact walk: The surveyor will move around the village and will take a look of the

different resources available in the colonies. It will help the surveyor in knowing the real

condition of the localities for it the surveyor will take any of the resident who can tell him

about different portions of the localities. In nut shell it creates a better understanding of the

surveyor about the area.

Rapport building: it is an activity to make the surveyor familiar with the locality and

residents. For report building first of all the surveyor needs to meet with the Resident WelfareAssociation (RWA) members, teachers and other known residents.

Observation: Most of the time surveyor needs not to write what other is saying but he needs

to observe the real situations. He did it all the time at the time of transact walk, household

interview, rapport building etc.

Household interview: it is the most important tool. All other tools are the supportive tool of

household interview. In this interview the interviewer will take the information related to the

family of the interviewee.

Secondary data collection

Government reports and journals: the analyzer will collect information regarding

different programs running in the area and about analysis part of the survey.

Internet: we will collect secondary data related to water quality and water

consumption etc. from different websites of government departments and other

agencies websites.

Literature like Books, generals, magazines etc.

Data from previous studies on similar topics.


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Strategy for data collection and analysis

Planning of survey: for planning of the survey we will select residential colonies for survey

then we will make a visit to the localities we have selected and will analyze that our selection

should not be biased. If it is not than they will make a complete area wise schedule ofworking with the time line. We will develop tools and techniques for research work and will

also develop schedule and questioners.

Pilot testing of survey: Before doing the survey in the mass area. We will conduct a pilot

testing of the survey tools and according to the result the whole survey procedure will be

corrected.

Discussion and training of surveyors: after pilot testing a one day discussion will be done

among the surveyors. In this discussion surveyors will be informed about the results and

observations we want to know about the residents of colonies through the questioner so therewill be a proper understanding of the questions they will be asked. A little background will

also be discussed with the surveyors.

Data collection from the field: For data collection we will go in the group of two. We will

collect the data from both primary and secondary source. In the evening the collected data

will be verified.

Encoding of data, Data entry and verification: Before data entry the data will be verified

with surveyors with a mutual understanding of data entry members. Then the data will be

encoded to make the data entry and analysis easy. After completion of the data entry the

tabulated data will be handed verified. The tabulated data will again will be verified with the

help of data entry team, surveyors and other members.

Analysis of data: We will analyze the data with the help of tabulated data and support of

supporters. We will show the results in the form of different charts, graphs, images etc. We

will do this analysis with the help of SPSS software.

Preparation of evaluation report: We will form a analysis report and will take printout of

the report

Time Line of the Study:Total time for the research report is 2months as a part students of

2nd semester students of MBA. So the time line will be as below:


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S.N

o

Activity Sub-Activity 1

Q

2

Q

3

Q

4

Q

5

Q

6

Q

7

Q

8

Q

9

Q

10

Q

11

Q

12

Q

1 Synopsis Synopsis

writing

2 Synopsispresentation

3 Study in

regular

classes

Study of

research

tools

4 Research

planning

5 Relevant

literature

and activity

study

6 Secondar

y data

collectio

n and

study

Interviews

with

different

organisation

s

7 Interviews

withdifferent

RWA

members

8 Data

collection

from

different

departments

9 Data

collection

from other

sources

10 Primary

Data

collectio

n

Data

collection

from

questionnair

es11 Data


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collection

from

observation

12 Data

feeding andanalysis of

data

13 Binding

work of data

collection

15 Thesis

writing

Backward

work of

study

Compilation

of work

Finalisation

of work

Correction

of work

SCHEME OF CHAPTERISATION OF STUDYo Title Page

o Abstract / Summary

o Acknowledgements

o Abbreviations not described in the text

o Contents

Chapter -1 Introduction

Chapter- 2 Review of Literature

Chapter-3 Methodology

Chapter- 4 Data presentation and analysis

o Discussion (including Conclusions, Recommendations)

o References / Bibliography / Literature Cited

o Appendices


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Chapter 4

Data Presentation and analysis

Following are some frequency distribution

Will you change your brand for a lower price?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Yes 165 47.1 47.3 47.3

No 182 52.0 52.1 99.4

4 2 .6 .6 100.0

Total 349 99.7 100.0

Missing System 1 .3

Total 350 100.0


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What will you prefer at the same price?


Percent

Valid

Quality of water 271 77.4 77.4 77.4Quantity of water 77 22.0 22.0 99.4

3 2 .6 .6 100.0

Total 350 100.0 100.0


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Frequency of my mineral water purchase is


Percent

Valid

Daily 61 17.4 17.4 17.4Twice a week 86 24.6 24.6 42.0

once a week 103 29.4 29.4 71.4

twice a month 38 10.9 10.9 82.3

once a month 28 8.0 8.0 90.3

others 34 9.7 9.7 100.0

Total 350 100.0 100.0

What Size of mineral water bottle purchased do you buy normally ?

Frequency Percent Valid Percent Cumulative Percent

Valid

500ml 52 14.9 14.9 14.9

1lt 258 73.7 73.7 88.6

20lt 22 6.3 6.3 94.9

4 17 4.9 4.9 99.7

5 1 .3 .3 100.0

Total 350 100.0 100.0


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Which brand of mineral water do you prefer ?


Percent

Valid

Aquafina 101 28.9 28.9 28.9Bisleri 153 43.7 43.7 72.6

Bailey 16 4.6 4.6 77.1

Kinley 61 17.4 17.4 94.6

Himalaya 15 4.3 4.3 98.9

Others 4 1.1 1.1 100.0

Total 350 100.0 100.0

The reason why you buy mineral water is


Percent

Valid

Convenient 35 10.0 10.0 10.0

Safe 180 51.4 51.4 61.4

Affordable 28 8.0 8.0 69.4

Clean 90 25.7 25.7 95.1Other 17 4.9 4.9 100.0

Total 350 100.0 100.0


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Advertisement has influence on your choice of mineral water

Frequency Percent Valid Percent Cumulative Percent

Valid

Strongly Disagree 48 13.7 13.7 13.7

Disagree 121 34.6 34.6 48.3

Neutral 107 30.6 30.6 78.9

Agree 67 19.1 19.1 98.0

Strongly Agree 7 2.0 2.0 100.0

Total 350 100.0 100.0


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Income Level * Frequency of my mineral water purchase is Cross tabulation

Count

Frequency of my mineral water purchase is Total

Daily Twice a

week

once a

week

twice a

month

once a

month

others

Income

Level

Less than

10,000

19 27 26 15 5 10 102

10,000-25000 2 16 15 4 3 4 44

25,000-50,000 19 10 22 5 0 3 59

Above 50,000 8 15 14 5 0 1 43

5 1 1 0 0 0 0 2

Total 49 69 77 29 8 18 250

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 29.300a 20 .082

Likelihood Ratio 34.878 20 .021

Linear-by-Linear Association6.700 1 .010

N of Valid Cases 250

a. 14 cells (46.7%) have expected count less than 5. The minimum expected count is .06.


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Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 48.915a 12 .000

Likelihood Ratio 45.879 12 .000

Linear-by-Linear Association18.412 1 .000

N of Valid Cases 350

a. 9 cells (45.0%) have expected count less than 5. The minimum expected count is .03.

I prefer specified brand of water * I am satisfied with the mineral water products that I usually buy Cross tabulation

Count

I am satisfied with the mineral water products that I usually buy Total

Strongly Agree Agree Neutral Disagree

I prefer specified brand of

water

Strongly Agree 44 43 10 1 98

Agree 27 119 19 1 166

Neutral 5 43 10 2 60

Disagree 4 12 7 0 23

Strongly Disagree 1 2 0 0 3

Total 81 219 46 4 350

rm mineral water report

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