The Indian bottled water industry is experiencing rapid growth due to increasing demand driven by water scarcity and rising consumption rates, despite facing challenges like poor infrastructure and regulatory issues. Major players like Bisleri, Coca-Cola, and Pepsi dominate the market, which has expanded significantly, with sales rising from $189 million in 2003 to $599 million in 2008. The industry is projected to grow further, but without improved water management practices, India may face a severe water crisis in the coming decades.

1. Bottled water:
We are blessed with adequate natural resources of water but increasing population, alarming rate of
global warming and rapid industrialization and lack of adequate and improved management of the water
supply systems resulted in the increased rate of water consumption, wastage of water and deteriorating
condition of the water supply networks and the result is, scarcity of water. The Water shortage around the
world and particularly in the developing countries has opened new doors for bottled water Industry. The
Indian water industry is flourishing exponentially and new players emerge continually to serve this sector.
Being a niche market, the number of companies involved in this industry also faces stiff competition,
leading to an aggressive demand for the best and most cost-effective products and services.
Bottled water is sold in a variety of packages right from 200 ml pouches and glasses, to 330 ml bottles,
500 ml bottles, to one-liter bottles and even 20- to 50-litre bulk water packs. In terms of cost the bottled
water business in India can be divided broadly into three segments, premium natural mineral water,
natural mineral water and packaged drinking water.
Parle was the first major Indian company to enter the bottled water market in the country when it
introduced Bisleri in India 25 years ago and created Bisleri as the synonym of mineral water but now that
image is getting deteriorated with the entry of major international giants like Coca cola, Pepsi, Nestle and
noticeable presence of national players like Mount Everest, Manikchand, Kingfisher.
Their distribution network with professional marketing approach has resulted to capture the major chunk
of the bottled water market though they are receiving good fight from the local players as well. One thing
have to be noted in this business is that the required infrastructure and the distribution network
requirements are same for major players and small or local players but in as per my belief where they can
make difference is the only marketing and branding part.
Almost all the major international and national brands water bottles penetrated in the Indian market and
are available at right from the malls to railway stations to bus stations to multiplexes to grocery stores and
even at panwala's shop. It has penetrated so deeply in to market and now it’s become very common to
consume bottled water whereas before few years it was considered as the rich people's choice and
fashion to consume bottle water.
Thanks to low pricing and aggressive marketing strategies adopted by the multinationals. 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.
If we compare the growth and status of Indian Bottled Industry with that of Western or Asian market, we
are far behind in terms of quantum, infrastructure, professionalism & 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 122 countries, in connection with water quality,
India’s number was dismal 120. In comparison to global standards India's bottled water segment is largely
unregulated. Safe water is rated with a different yardstick in different countries. In India, the aspect has
been overlooked since long. Indian consumers tend to believe that any bottled water is safe water while
this may not be true.
In fact, making bottled water is today a cottage industry in the country. However though having the large
number of small and local producers, this industry is dominated by the big players like - Parle Bisleri,
Coca-Cola, PepsiCo, Parle Agro, Nestle, Mount Everest, Kingfisher and Manikchand and so on. These
players can be called as the trend setters in the marketing of packaged drinking water. The recent
industry figures indicates that the sales of bottled water grew from $189 million (USD) in 2003 to $599
million in 2008 -- a growth rate of 216 percent and it is expected that this figures will be doubled in the
next five years.

2. However like each industry is facing the challenges the Indian bottled water industry is also having
bottlenecks like poor transportation infrastructure, low entry barriers, difficulties in brand recognition and
sometimes threats from the environment protectors and social activist against the use of bottled water.
Though ignoring all these hurdles and only looking at the above mentioned growth rate figure many
bottled water companies think about their future business plans.The company's Indian beverage
investments will be now total $220 million.
If we look at the future of water in India, is very gloomy unless the water management practices are
changed and if not taken any drastic steps towards this direction then we will face sever water crisis
within next two decades and by that time will not left with enough money supply to build new infrastructure
and also will not be able to satisfy increasing demand of water due to the population explosion in India.
Also World Bank draft report, `India's Water Economy: Bracing for a Turbulent Future,' says by 2020,
India's demand for water will exceed all sources of supply unless the country's management practices are
changed, and soon. India can still store only relatively small quantities of its fickle rainfall. Whereas arid
rich countries (such as USA & AU) have built over 5,000 cubic meters of water storage per capita, and
China can store about 1,000 cubic meters per capita, India's dams can store only 200 cubic meters per
person. Moreover, India can store only about 30 days of rainfall, compared to 900 days in major river
basins in arid areas of developed countries.
Do not be surprised if today’s bottles water industry becomes next Oil industry by 2025. The present
Indian entrepreneurs and those who are planning to take the plunge in the bottled water business are
thinking that the industry has reached to its peak point, and having stiff competition, need to change their
perception because with the ever increasing demand of water the elephant is already grown and looking
at the future of water in India, is continuously growing and one day it will turn into mammoth.
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 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, tourist’s spots, and role of tourism corp. etc. has also added to the growth.
Private beverage and water companies have been granted by the government with permits to practically
control and operate our natural springs and water sources in natural parks and protected areas for water
production and processing plants.
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, which has annual sales of at
least $2.6bn. Almost all the major international and national brands water bottles are available 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 122 countries, in connection with water quality,
India's number was dismal 120. In comparison to global standards India's bottled water segment is largely
unregulated.
The bottled water category is growing at a rapid pace. The branded `market is 40 % 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.