Tata Global eyes bigger packaged water play

Besides merger of Mount Everest Mineral Water Ltd, TGB, through its JV with PepsiCo, will rollout Tata Water Plus and Tata Gluco Plus across the country in the next one year

Tata Global Beverages, the Tata Group’s beverages arm, plans to scale up its presence in the packaged water segment, both at the upper and lower ends of the market.

In five years, the company aimed to increase the contribution of the water vertical from the current five per cent to 10 per cent of the total turnover, managing Director Harish Bhat told Business Standard.

The ball was set rolling on Tuesday, with the board of directors of the Rs 7,270-crore company approving the merger of Mount Everest Mineral Water, owner of the Himalayan packaged water trademark, with it.

Next, Tata Global Beverages, through its joint venture with PepsiCo, would take products such as fortified packaged water Tata Water Plus and glucose drink Tata Gluco Plus to markets across India. Currently, NourishCo, as the Tata-PepsiCo venture is called, is present only in Andhra Pradesh and Tamil Nadu.

“I can confirm Tata Water Plus and Tata Gluco Plus will be rolled out nationally in the next one year,” Bhat said. “The response to these products in Tamil Nadu and Andhra Pradesh has been good. Both brands have grown in double digits, giving us the confidence to take these to markets beyond the two southern states.”

Plans were also afoot to take NourishCo products to markets such as Africa, Bhat said.

Himalayan packaged water, meanwhile, will be rolled out in Southeast Asia, as the company eyes a global footprint for its water vertical.  “We will look at all possible avenues to increase our presence in the water segment. This will mean tapping our existing distribution system in India and across the world so that it can carry our water-based products into new markets. We will also continue to focus on product innovation, since that will help us differentiate ourselves in what is largely a commodity business. We will also devote our attention to brand-building and marketing,” Bhat said.

Recently, the company launched a new advertising campaign for Tata Water Plus in Tamil Nadu and Andhra Pradesh. It also introduced a new 500 ml pack of Tata Water Plus at Rs 10 (the existing one-litre pack is available at Rs 20). Tata Gluco Plus is available at Rs 8 for a 200-ml pack. Recently, NourishCo strengthened the Tata Gluco Plus portfolio, with the introduction of a new grape flavour. Earlier, it was available in lemon, orange and mango flavours.

Bhat said in the coming months, the company will add more variants of the two brands and introduce new products.

“Both of us are committed to the joint venture and more products will be introduced by the two of us as we move forward,” he said. So far, both partners have developed a product each — while Tata Global Beverages produced Tata Water Plus, PepsiCo developed Tata Gluco Plus. For Himalayan, NourishCo has the distribution, sales and marketing rights.