Water wars

Mohini Bhatnagar
29 January 2003

Mumbai: With the entry of beverages multinational PepsiCo into the bulk water market it looks as if the water market is likely to witness some action soon.

The bulk water market includes the home and office delivery of water, dispensed from coolers, as well as the gallon or large-sized bottled water sold from retail stores, while the beverages water market consists of the single-serve pack. Personal beverage products range in size from 500 ml through 2 litres.

The bulk water business accounts for over 40 per cent of the Rs 1,000 crore water market.

PepsiCo chairman Rajeev Bakshi says the bulk water business is a low-volume, but a high-value, category and is now growing faster than the retail segment, attracting a number of major players.

PepsiCo India launched the packaged water bottle brand Aquafina about two-and-a-half years ago, in a 750-ml pack. The brand now retails in conventional retail pack sizes of 500-ml and 1-litre bottles.

Sources say PepsiCo India has been investing in additional capacity at its plants in Bangalore and Chennai for the bulk water foray and, though details of the venture have not been finalised, the soft drinks major is expected to introduce the product under the Aquafina brand.