Parle Bisleri, the market leader in the domestic packaged water industry, has firmed up its plan to set up a greenfield project in West Bengal to cater to the eastern market.
"We have decided to set up a plant near Kolkata to cater to the eastern market. This would call for an investment of around Rs 20 crore. The plant will be commissioned by 2002," Ramesh Chauhan, chairman, Parle Bisleri, said.
The plant, to be built on a five-acre land, would have a capacity to produce packaged water worth Rs 50 crore annually, he said.
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"East is a relatively weak pocket for us. This plant would help reinforce our position here. Thus, proximity to Kolkata is very important," Chauhan said.
Bisleri, which has over 60 per cent share in the Rs 400 crore domestic packaged water market, had 16 plants across the country besides tie-ups with 20 contract packers. The market is growing at 40-50 per cent per annum.
The proposed plant would have entire gamut of packaged water manufacturing under one roof, ranging from the bottle making facility to building plastic molds, from cap making to bottling.
Chauhan said Bisleri would try to focus more into home segment. "Packaged water is no longer a niche product. This has become a necessity for use at home. Bisleri would like to do more business there because the volume would be stable and not seasonal," he said.
When asked how has the entry of Pepsi and Coca Cola with respective brands of Aquafina and Kinley in the business changed the market dynamics, Chauhan said Bisleri could stave off any threat to its leadership with stronger brandname. The multinationals have a huge thrust in marketing and promotional activities.
"These multinationals have fantastic brand name in cola. However, we are confident that we can face their competition in the mineral water sector," he said.
However, Chauhan admitted the entry of MNCs had taken away some regional players from the market.