OBJECTIVES

1) To know the present, past and future of mineral water industry.

2) To know the opportunities in this sector.
3) To know how demand for mineral water bottles went up.
4) To know the future growth in this sector.
5) To know the obstacles in the success of this sector.
6) To know how the person can survive in this sector as a top leader.
7) To know how actually it works.
8) To know the advantages and disadvantages of this sector.
9) To know the top leaders of this sector.
10) To see the SWOT.

1
 INTRODUCTION

India is the tenth largest bottled water consumer in the world. In 2002, the industry had an
estimated turnover of Rs.10 billion (Rs.1,000 crores). Today it is one of India's fastest
growing industrial sectors. Between 1999 and 2004, the Indian bottled water market grew at a
compound annual growth rate (CAGR) of 25 per cent - the highest in the world.

With over a thousand bottled water producers, the Indian bottled water industry is big by
even international standards. There are more than 200 brands, nearly 80 per cent of which are
local. Most of the small-scale producers sell non-branded products and serve small markets.

In fact, 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 some prosperous rural areas there are bottled water
manufacturers.

Despite the large number of small producers, this industry is dominated by the following
players:

Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, Mohan Meakins, SKN Breweries and so on.
Parle was the first major Indian company to enter the bottled water market in the country.

The total annual bottled water consumption in India had tripled to 5 billion liters in 2004
from 1.5 billion litres in 1999. Global consumption of bottled water was nearing 200 billion
liters in 2006.

AUGMENTING DEMAND
2
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.

The shortage of water in various areas resulted in more demand for packaged water which
shows the success and opportunities in this sector.

OBSTACLES OF BOTTLE INDUSTRY

3
 1) Duplicate brands: - There are various small scale units who deal with illegal and
unregistered packaged industries and supply unpurified water to the public which is
unhealthy/unsafe.

2) Government policies: - There are lengthy processes of the government for the
registration of any firm. This results in illegal business.

3) Only source ground water: - The major source available in India for water is non
other than ground water. This is one of the major obstacles for the bottle industry.

4) Shortage of water: - As there are only few sources of water so this becomes major
obstacle for the bottle industries to arrange water or either they have to purchase.

5) Conflicts with community: - The bottle industrialist take the major under ground
water for business purpose which results in shortage of water and that creates a
conflicts with community.

6) Problems of finance: - The investment required for a registered business is high as it

requires finance for machineries, land and for many more. This is one of the major
problems for bottle industry.

Equipments for water processing

➢ Sand Filters & Carbon Filters

4
The carbon filters and sand filters we
manufacture are widely used to
remove suspended particles, turbidity,
odor, color and iron present in the
raw water. These filters provide fresh
water and are easy to operate. These
filters are available in three series,
FR, SS and MS activated carbon filter
is widely used in various industries.
The entire gamut is appreciated for its
durability, simple installation and
reliable performance. The FR series
of activated carbon filters comes with
fiber glass reinforced plastic (FGRP)
composite vessels that are 1/3rd of the weight of carbon steel. These filters are well
recognized and are certified by NSF & PED. Our range of activated carbon filter are as strong
as steel and are reckoned for their excellent appearance. The filters are appreciated for the
following features:
• High performance Composite material
• Thermoplastic liner of polyester
• Wall thickness 3.8 mm to 7.6 mm as per vessel diameter
• 100 % corrosion resistant
• Excellent bonding between inlet & PE liner
• Better curing at high temperature 200 mm to 1,000 mm diameter
• All are top opening & dia 450 mm onwards top & bottom opening 450 mm onward
flange fitting
• Operating Pressure: - 10.5 kgf/cm2
• Operating temperature: - 490 C

5
 ➢ UV Sterilization System

Our Standard features of UV sterilization system includes individual lamp indicator, ballast,
drain, test port etc. while Optional features include wiper system either manual or
programmable automatic, UV monitoring, intensity meter. Our modular design allows for a
wide range of flow rate ranging from 200 LPH to 50000 LPH and larger flows can be
handled by manifolding units together. UV Sterilization system are also available with Pre
Micron Filtration units to avail the best results by avoiding shadow effect. All of our systems
are designed using the state-of-the-art Quartz Technology which gives the best penetration of
UV rays through Silica Quartz Jacket and the lamp used is also of hard glass for obtaining
more UV output of > 50000 micro watts sec/cm2.

6
➢ Jar And Bottle Filling Machines

Our compact design automatic and bottle filling machines are capable to fill 60/120
machines per minutes. The pump speed of these
machines is 60/120 strokes/min while filling
speed depends upon filled volume/bulk density
of material.

➢ Bottle Filling Machines

We are a prominent
manufacturer of water
treatment machines and
respective spare parts. In our assortment, we provide semi automatic bottle filling
machines that are available with different capacities. These bottle filling machines are
mainly used in drinking water industries for packaging of bottles. Our machine is
highly durable and gives longer serviceability.

7
 ➢ Packaged Drinking Water Storage Tank

Packaged drinking water storage tank are used to supply liquefied oxygen,
nitrogen, argon and other liquefied gases. The tanks have the advantage of low area
requirement, safety, simple operating convenience and are widely used in the field of gas ,
chemical , machinery medical treatment, electronic, mining and metallurgy. The tanks can
supply cryogenic liquid from the bottom by connecting it to an outer vaporizer and cryogenic
pump. We can supply the whole system along with the valve system and piping based on the
customer requirement. The drawing should be on the right side of the picture. We can use the
photo on the top or the one at the bottom. * Simple tube structure. * No need to replace the
insulation material regularly. * Excellent insulation and low static evaporation. * Tank inter
layer passes strict leakage test by helium gas spectrometer with a leak rate of less than 1 x
10 ?¹º pa-l/s. * Convenient system operation and small area requirement.

➢ Micron Filters

8
 Micron Filters Housing are available in different modes of constructions, viz.,
Poly Propylene, HDPE, SS 304 and SS 316. PP housings are available in ½“ to 1½“ BSP
Female Threading sizes. Mounting brackets in SS 304 and fittings specially made for easy
maintenance and handling. SS 304 / 316 Filter Housings are available with Threading or
Dairy End Fittings or TC Fittings. These Housings are available with Leg Supports. Filters
are either used alone or installed in series to obtain better results and optimum life. We also
provide SS housing for some special applications like Pharmaceutical and Food & Beverage
use (Code & Cartridge and Housings).

➢ Filter Membran

Applied membranes is a major supplier of

membranes which are sold under the AMI brand,
and private label. These elements are sold in 1.8"
to 4" diameters and in many configurations. All

9
sizes and private labels are available. For the past 20 years Applied Membranes has
manufactured hundred of thousands of elements under the Applied Membranes label and
private label. These elements have earned the reputation of consistent quality, reliability and
performance

➢ Pressure Pumps

We provide a gamut of pressure pumps which is procured from most trustable

vendor. Made from premium quality raw
material, our precise range is catered to
various clients based in different parts of
the country. Following are the unique
attributes of High Pressure Pump:

• Low power consumption

• Easy to installs
• Corrosion resistance
• Trouble free performance
• Durable

➢ Ozonators

10
 Likewise membranes, we also manufacture and supply our special range of
ozonators. These are used for water treatment applications in various industries. It is
considered as a disinfectant system that used ozone gas as the prominent component. Ozone
is a powerful oxidant and a good disinfectant. It reacts more than 3200 times of any known
oxidation system or disinfection system.

ESTIMATED COSTING

Cap cost Rs.0.25

Bottle cost Rs.1.50-2.50

Treatment cost Rs.0.10-0.25

Label cost Rs 0.15-0.25

Cartoon cost Rs.0.50

Transportation cost Rs.0.10 -0.75

11
Others Rs.0.25

Total cost Rs.2.85 -4.85

(excluding labour, marketing & tax)

Selling cost Rs.12.0 -15.0

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.

PACKAGING OF MINERAL WATER

It is well known that drinking water should be packed in clean, colourless, odourless,

Clear, tamperproof containers, which are hygienically safe. Much of the water is packaged

in similar bottles as carbonated soft drinks, and would, therefore, carry many of the same

Requirements.

Strength

Unlike carbonated drinks, the bottles filled with still water need only enough strength to hold

Water and to survive impact.

REQUIREMENTS FOR PACKAGING

➢ Colour and Clarity :-

12
Clarity is one of the most important requirements and is the main reason why clear bottles of
plastics are used. A resin with higher levels of co-polymer adds to the clarity. As regards the
light blue colour in the bottles, this is permissible for one time use bottles. However in India,
the BIS (Bureau of India Standards) have prescribed colourless bottles for multi trip/reusable
containers.

Since currently almost all the bottlers use blue coloured containers, studies have commenced
at IIP to establish whether blue colour helps to reduce the UV effect and the percentage of
blue colour that could be considered to be added without affecting the clarity of the bottle.

➢ Purity:-

Because water is a flavourless product, using a plastic that remains tasteless and odourless is
Imperati.

➢ Mandatory Certification:-

To prevent adulteration, the quality of the bottle and its sealing drew great attention and
concern. The standardisation of the quality of the water and the bottles was not thought of
earlier. There was a concern whether mushrooming brands in packaged drinking water would
really ensure quality and safety. The provisions of mandatory BIS certification and that of
Prevention of Food Adulteration Act (PFA) have brought in assurance to the consumers that
packaged drinking water is trustworthy.

The Indian Standard IS: 14543 – 1998 prescribes the quality and safety requirements of
packaged drinking water.

13
 PLASTIC PACKAGE TYPES

As the market has evolved, so too has its packaging mix .Bottles may be the favourite
container for packaging water , but glass rarely features as the first choice today. Glass
together with cans and cartons have a diminished share .Glass retains a high profile in outlets
where the water is for consumption on the premises (hotels ,restaurants, cafes)remaining
particularly strong in Central and South America and Europe ,especially Germany. Plastics
are versatile materials and are in many cases capable of matching or surpassing the
characteristics of other types of packages. They do not corrode, are hygienic, lightweight and
often provide opportunities for reducing the weight of the packages used.

A variety of polymers are available which can be used for packaging of drinking water.

➢ Polyethylene :-
Low-density polyethylene film is the most important group of plastics used in packaging
drinking water. Polyolefins also have the highest calorific value of all constituents in
the packaging waste stream and are, therefore, prime candidates for disposal through
incineration with energy recovery.

14
 ➢ Polyethylene Terephthalate (PET)
PET is the most extensively recycled plastic of the present time. It is easier to collect than
other plastics. It has a high intrinsic value, is economic to recycle even with existing
collection systems and there are well-developed markets for its recycling, such as carpet
fibres and fibre film. The important feature of used PET is its ability to be converted
chemically to the monomer from which it was produced using hydrolysis or methonolysis.
The US Food &Drug Administration for food-packaging applications have approved PET
produced by chemical recovery of this sort. For packaged drinking water PET bottles are
used in 50ml
to 20 litres capacity. Perrier has developed a new container that incorporates a layer of nylon
sandwiched between layers of PET to comply with the requirement for a standard 12 months
shelf-life mineral water.

➢ Polypropylene (PP)
Polypropylene (random clarified co-polymer)is widely used for food contact applications
throughout the world and enjoys favourable status with food and regulatory agencies
PP containers/cups with peelable lids are used for packaging of drinking water
100,200ml.capacities with suitable lids for closures. 20-litre Polycarbonate containers.

➢ Poly Vinyl Chloride (PVC)

Earlier, the most commonly used package for mineral water was stretch blow moulded
bottle of PVC, as PVC is rigid, clear and has adequate impact strength. Compared to other
polymers,PVC requires lower amount of energy to produce. If collected separately, it can
be readily recycled. The recycled PVC is sandwiched between inner &outer layers of
virgin polymer in co-extruded PVC pipes. The major concern for safe use of PVC for
non-toxic and food contact applications is the residual monomer level in the resin. The
FDA in USA and regulatory agencies have specified the monomer levels at 5ppm in PVC
resin. PVC containers in capacities of 100,200,250 and 1000ml are used for packaged
drinking water.

➢ Polycarbonate (PC)

15
 Polycarbonate can be processed into useful end products by any of the usual processing
Techniques like extrusion, blow moulding, injection moulding etc. Polycarbonate containers
are popularly used for muti-trip application for mineral water containers of 15-20 litres.

➢ Polyethylene Naphlthate (PEN)

This is a high performance resin and the containers made out of this resin are used for
Refillable, returnable mineral water.

➢ High Impact Polystyrene (HIPS)

HIPS (High Impact Polystyrene) containers cater to the 200ml mineral water market.
These Containers are provided with heat sealable peelable lids. 20-litre Polycarbonate
Container

ADVANTAGES FOR BOTTLE INDUSTRY PLANTS

IN INDIA

Based on our above detailed discussion of several key themes, India has developed in
the following factors which are a major advantages for any of the sectors.

India worked on following strategies to accelerate its growth trend.

1. Develop Human Capital

2. Augment Savings Rate Through Fiscal Reforms

3. Increase in Capital Accumulation (Through FDI and Privatization)

4. Kick-start Investments in Infrastructure

5. Reform Tax Structure

6. Improve Labour Flexibility

7. Decentralize

1. Develop Human Capital:-

16
While India has been successful in creating an educated work force for the tertiary sector,
primary level education still needs to be improved. The government has already taken a
number of measures in this area recently. While enrolment for primary education has
improved significantly, there is still a high incidence of dropouts. In 2000-01 about 53% of
primary school students dropped out of school. Apart from increasing the focus on primary
education, we think the government needs to complement this with programs that help train
the work force.

2. Augment Savings Rate Through:-

Fiscal Reforms India’s savings rate was lower than for most other Asian economies. One of
the key reasons for the high growth in Asia (excl. Japan and India) has been the average
savings rate of around 35% of GDP in the 1990s. In India, the savings rate has averaged at
24% of GDP for the past 10 years, restricting total capital formation. Even if India’s average
incremental capital output ratio (ICOR) improves to about 4% from 4.4currently, it is
difficult to see sustained GDP growth of above 6.5% unless the savings rate increases. But
slowly and gradually India achieved the target.

3. Increase in Capital Accumulation:-

Through FDI and Privatization As efforts to improve the domestic savings rate are critical,
attracting foreign direct investment and privatization by way of selling stakes in SOEs to
foreign investors can also augment fixed investment. Total FDI as a proportion of GDP was
significantly lower in India than in China, averaging less than 1% of GDP over the past three
years compared with 3.9% in China. India’s average share of global FDI inflows over the
past three years was mere 0.9%, compared with 10.2% for China. Although the government
has opened many sectors to FDI, we were supposed to improve the overall business
environment. Then India adopted new policies and now is also one of the major exporters.

4. Kick-start Investments in Infrastructure:-

Since the liberalization effort was started in 1991, the government has pulled back from
investing in infrastructure, assuming that the private sector will participate. However, it is
unlikely to happen in the medium term. In addition, rebuilding infrastructure on a nationwide
basis may take longer. Therefore, in the near term, the government could partially address
this issue by developing special economic zones at strategic locations with world-class

17
infrastructure. Investment in infrastructure sectors needs to be increased to at least 9% of
GDP (about US$65 billion) from about 6% currently to sustain GDP growth of 7%.

5. Reform Tax Structure:-

Indian tax rates were the highest in those economies. In today’s fast-globalizing world, where
all countries were having reduced import tariff barriers, India still was having inter-state trade
taxes. At that time India moved to a consolidated value-added tax, instead of multiple point
and multiple rate production and sales taxes. Moreover, indirect taxes were inherently
regressive and affecting productivity adversely. Hence, there was a need to improve the
compliance of direct taxes to reduce the pressure on collecting higher indirect taxes through
high rates. Regarding VAT already the steps are taken.

6. Improve Labour Flexibility:-

India’s labour laws were restrictive. These laws were effectively working only for the
protection of the labour employed in the organized sector, which accounts for only 10% of
the total work force. In fact, to avoid these restrictive laws, a large majority of factories use
‘casual’ labour. Factories prefer to employ people on contract instead of taking them directly
onto their payroll. There was an urgent need to relax labour laws to enable flexibility of
labour. As India is now one of the flexible country in terms of labour.

7. Decentralize:-

China may have traditionally been a centralized economy; it is currently operating in a

completely decentralized structure. State governments actively compete with each other in
wooing foreign direct and domestic private investment, ensuring a progressive business
environment. In India decentralization of authority and responsibility was very crucial to
encourage reform. We had enjoyed global leadership in the past. We led the world in thought,
word and deed. We had the world’s first university at Takshashila in 700 BC. We had a
global university in Nalanda in the 4th century. We were far ahead of other civilizations in
medicine and surgery 2,500 years ago. We led the world in astronomy and mathematics. We
showed the world how to navigate. We created footprints across the world through

18
merchandise and trade. Our textile industry was a world leader in the 17th and 18th centuries.
Above all, we were a global economic power at the turn of the eighteenth century,
contributing to a quarter of the global output. We must seek inspiration from our past, stride
opportunities of the present and secure a glorious future-as a superpower in the global
economic order. Twenty years from now we will be more disappointed by the things that we
did not do than that ones we did do. Let us forge a partnership of men and women who
govern, who think, who produce wealth and those who labour. Such a creative partnership
will unleash the vast latent energies of our 1 billion people. It will enable them scale the
highest peak to make India an economic superpower. We were sure we will succeed and will
do India proud and results are out after a period of time.

DISADVANTAGES

There are certain disadvantages which still exists in our country due to which many obstacles
come in the success of the country .following are the few disadvantages

1. Unfavourable Tax Structure:-

No, doubt the tax rates are being improved but still there are still many things which
need to be improved. The government should always see the tax structure of other
developed countries so that the tax rate should be made in much more batter way.

2. Poor Infrastructure:-
Indian tax rates are currently among the highest in emerging economies. In
today’s fast-globalizing world, where all countries reduce import tariff Barriers, India
still has inter-state trade taxes. This is high time India needs to move to a consolidated
value-added tax, instead of multiple points and multiple rate production and sales
taxes. Moreover, indirect taxes are inherently regressive and affect productivity

19
 adversely. Hence, there is a need to improve the compliance of direct taxes to reduce
the pressure on collecting higher indirect taxes through high rates. Regarding VAT
already the steps are taken.

3. Interfering Administrative Environment:-

Still there is a lot of interferences of government which results in illegal business and
many other illegal practices. so, the government should take the favourable steps to
reduce all this illegal practices.

4. Unfavourable laws:-
Still there are many laws which create many problems for the country which are
unfavourable for the growth of different sectors. The government should look after
these issues so that there should no obstacles in the way of success.

5. Poor Demand Due To lower Employment Growth:-

As there are poor labours flexibility still there are many more remote areas where
today also parents do not permit their children’s to go for studies which result in
low employment growth and if there will low employment there will be no more
demand or poor demand.

TOP PLAYERS

20
 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 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 and Aquafina approximately 10 per cent. The rest, including the smaller players, have
20-25 per cent of the market 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. This is a major
problem because southern India, especially Tamil Nadu, is water starved.

21
22
23