Water purifier market may grow 229% by 2017

Water purifier market may grow 229% by 2017

BHUBANESWAR: The water purifier market in India is expected to grow 229 per cent, up from Rs.18.64 billion in 2012 to Rs 61 billion in 2017, market research firm Market Pulse said on Thursday.

The firm carried out an extensive survey among 10,000 households in 62 towns to glean consumer behaviour over the last few years to arrive at its conclusion.

“Nearly 67 per cent of the Indian households do not treat drinking water and those who treat were found to be relying largely on age-old boiling method. This situation has given rise to the water purifier market,” Market Pulse chief executive officer Ejaz Hoda said.

The industry offers three types of water purification technology – reverse osmosis (RO), ultraviolet (UV) and offline or storage water purifiers.

The RO purifier market is likely to grow to more than three million units valued at almost Rs 41 billion in 2017 from the existing 786,000 units valued at almost Rs 10 billion, he said.

In the category of RO water purifiers, Kent and Eureka Forbes are the largest players; they have a combined market share of more than 70 per cent.

Pureit water purifiers from Hindustan Unilever and TATA Chemicals’ Swach are the main players in the offline category.

Aquasure and AquaGuard from Eureka Forbes continue to dominate the ultraviolet water purifier category.

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Competition hots up in water purifier business

Competition hots up in water purifier business

NEW DELHI: Buoyed by a growing demand on the back of increased awareness, competition in the water purifier space in the country is getting intense with companies vying to guzzle maximum share of the Rs 1600 crore industry. Besides domestic players, the industry is fast becoming a hotspot for international companies such as Amway and Panasonic, which are now eyeing an entry into the segment in India.

Direct selling company Amway, which is present in personal care, beauty and nutrition segments, is working on three-year strategy for India and plans to launch water purifiers from its global portfolio in 2015. While the plan is still on the drawing board, Amway said it plans to focus on the premium range for the product. Japanese durables firm Panasonic too is planning to venture into this category in September this year.

Local players at their end are betting on a wider consumer base through products across diverse price points to handle competition. Market watchers say the strategy is justified by the fact that demand is growing faster in smaller towns and cities as compared to the metros. FMCG major Hindustan Unilever ( HUL) recently entered into the premium segment with the launch of Pureit Marvella RO. The company has products from Rs 900 to over Rs 13,000. Tata’s Swach sells product priced as low as Rs 499. Despite more than 85% of sales coming from the premium segment, Kent RO Systems has a “growing percentage” of its demand coming from tier II and tier III towns.

“There is a lot of demand coming from smaller towns as the problem of getting pure water is more severe there. Although our maximum sales happen in the Rs 13,000 to Rs 17,000 range, we have launched low priced products too,” said Mahesh Gupta, chairman, Kent RO.

For most of these companies, demand for premium products too is growing at a 3-4% faster rate in smaller towns as compared to bigger cities. “With public awareness growing, demand in this market will only increase as consumers are now willing to pay. Companies need to focus on the after sales service to ensure growth,” said Arvind Singhal, CEO, Technopak, a consulting agency.

Despite smaller players joining the fray, experts say it would not be easy to take on market leaders like Eureka Forbes, who are increasingly banking on innovation as a key differentiator. Eureka Forbes has a turnover of Rs 750 crore in the water purifier segment. It recently partnered with Water Security Corporation, an American start-up to launch a low-cost purifier and is scouting for firms to partner with to enhance technical innovations. “We are constantly working on technology for new product offerings. Challenge, however, is the after sales service,” said Marzin Shroff, CEO, direct sales, and senior V-P, marketing, Eureka Forbes. The company employs 5,000 people to provide services.

Despite a growing demand, experts say the industry is still under penetrated due to inability of companies to work out a balanced price-value equation.

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Municipal corporation meet promises solution to woes

Municipal corporation meet promises solution to woes

LUDHIANA: Poor road infrastructure, installation of water purifier and maintenance of parks were among the issues taken up at the MC meeting, which was otherwise political in nature. There was considerable uproar over the advertising policy of the state government. In the course of the meeting, councillors pointed out the hassle women had to face to avail the stipulated relief in property tax for widows. They said women were often entangled in lengthy paperwork to avail relief of up to Rs 5,000. Mayor Harcharan Singh Gohalwaria assured that the matter would be looked into and women would be spared the trouble.

Covering ganda nullah: Several councillors pointed out the health risk posed to residents living along the nullah. BJP councillor Gurdeep Singh Neetu said Rs 5 crore would be released soon to cover the nullah. Neetu said the project had been passed by the state government but had not been implemented so far. The mayor assured Rs 5 crore would be released for the project.

Installation of water purifier: MC also approved of the installation of water purifiers in 28 wards. The move aims at providing safe potable water to residents and check the spread of water borne diseases. The project will be completed in one year and funds have been allotted to councillors of different wards.

Maintenance of parks: Councillors said they do not have adequate funds to beautify parks for recreational purposes. They also said a large number of wards were in a dilapidated condition and needed to be upgraded. The mayor said it would be done soon.

Allotment of funds to outer ward: Councillors alleged discrimination against the outer wards. They said despite the mayor promising Rs 1 crore for the outer wards, funds released were actually less in comparison.


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