Bisleri all set for spring water foray

Bisleri, the first to introduce bottled water in the country, is on an expansion mode. The company announced its foray into spring water today. This is likely to be followed by an entry into the packaged ice segment and an entry into flavoured, vitamin and sparkling variants in the water category. The company is also undergoing a makeover in its corporate colours.

The company plans to initially invest Rs 100 crore in the spring water venture. This will be funded through internal accruals. The new product will be called Bisleri Natural Mountain Water and will be available in six sizes. Next on its radar is packaged ice cubes, likely to be called Bisleri Ice. While the company is presently focusing on its new bottled spring water, a source close the company said Bisleri is setting up R&D facilities for ice and studying various packaging options.

Bisleri is considering a foray into vitamin water, sparkling water and flavoured water, though not in the immediate future. Bisleri has also decided substitute its corporate blue colour with aqua green "�blue is a popular colour among bottled water companies, the logic behind Bisleri's move is to stand apart from others.

For expanding into spring water, the company is investing Rs 15-20 crore per plant in Himachal Pradesh and Uttaranchal and an additional Rs 60-70 crore in infrastructure. Bisleri is scouting for the right location for another four plants in south and west India. These plants will come up by next year.

The company is also planning an aggressive marketing and advertising campaign with a two year budget of Rs 60 crore.

Ramesh Chauhan, chairman, Bisleri International expects to sell 10 million cases of Bisleri Mountain Water over the next two years"� a turnover of Rs 200 crore. The bottled water industry is worth Rs 1,000 crore in India and is growing at 40 per cent per annum. It is projected to reach Rs 5,000 crore by 2010.

Bisleri claims to have a 40 per cent market share in organised trade. Natural spring water accounts for 5 per cent of the entire segment. Bisleri is projecting a turnover of Rs 300 crore this financial year, as against Rs 220 crore last year.