Bisleri set to add flavours

Bisleri International, the market leader in packaged drinking water, plans to enter the flavoured water segment. The category is also being eyed by global and domestic giants like Coca-Cola, PepsiCo and Tata Tea.

Bisleri's entry into this segment will give it early advantage, considering Coca-Cola is also planning to launch its global flavoured water brand Bonaqua in India soon.

Bonaqua sells in the strawberry, litchi, apple, mint and lemon flavours. DS Foods rules the Indian flavoured water market with its Catch brand.

Ramesh Chauhan, chairman and managing director, Bisleri, said, "We want to innovate the Bisleri brand to keep it contemporary. We will be looking at new segments such as the flavoured water, keeping in mind its demand in the export market as well."

The company is also working on a plan to strengthen its natural mountain water brand to consolidate its position in the market.The new focus is expected to help the company to grow its turnover to Rs 1,000 crore by next year from Rs 600 crore.

Bisleri commands nearly half of the Rs 1,200-crore packaged water market which is growing at an annual rate of 40 per cent. Other established players include Coca-Cola (15 per cent) and PepsiCo (10 per cent).

Bisleri was first introduced in India in 1967 by an Italian firm. In 1969, Parle, headed by Chauhan, bought out Bisleri India.

The flavoured water segment in India is estimated to be around Rs 11 crore. The segment has the potential to expand fast and,therefore, could witness intense competition as was experienced in the overall packaged water industry.

However, the margins in the bottled water business range from 4 to 8 per cent for manufacturers and 20 to 40 per cent for retailers. Transportation, packaging and taxes contribute 90 per cent to the total costs, say experts.

The US market is expected to grow to $8.6 billion by 2010. The segment is also tipped to be one of the fastest growing beverage categories.

Coca-Cola is lining up products at several price points forseeing higher consumption in the overall packaged water market. Its current portfolio includes Kinley, targeted at the mid-priced segment, and Schweppes, which is targeted at the high-end hospitality industry.

PepsiCo has extended the offerings of its Aquafina brand to bigger capacity bottles to cater to bulk consumption. Tata Tea is also eyeing a broader range of water products, including a flavoured water brand.

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Bisleri commands nearly half of the Rs 1,200 crore water market which is growing at an annual rate of 40 per cent

Flavoured water segment in India is estimated to be around Rs 11 cr

DS Foods is now ruling the Indian flavoured water market with its Catch brand priced at Rs 30