Ports lead Manikchand to A'bad

Dhariwal Industries setting up Oxyrich mineral water plant in city.

Hoping to cash in on the port's proximity, Pune-based Dhariwal Industries is setting up its Manikchand Oxyrich mineral water plant in Ahmedabad.

The company also plans to strengthen its presence in the Western region by capturing a nine per cent market share through the new plant.

Balajith Shetty, national project head, Manikchand Oxyrich, said, "Setting up a plant in Gujarat was always on the company's radar given its port strength. Ahmedabad will provide us both domestic and export gateways, especially covering the entire Western region. Moreover, it will help us compete with local brands as well."

Through its brands Oxyrich, which carries a USP of being a 300-per cent oxygenated mineral water, and regular packaged drinking water brand Taral, the company is looking forward to grab a higher market share from national as well as local players in Gujarat like Bisleri, Aqua Fina, Kinley, Yes and Aawa.

While Oxyrich commands a premium pricing of Rs 15 for a litre, Taral is priced at Rs 12 a litre.

To be set up at a cost of Rs 5 crore through the franchisee model, the plant will manufacture around one lakh bottles per day. Shetty hopes that the plant will contribute around 10-12 per cent to the total capacity of 8 lakh bottles per day, amounting to a turnover of Rs 150-200 crore.

"Our focus from the plant would be on Oxyrich, while Taral will form 10 per cent of the total production," he said.

With some exports plans in the offing, the company will be setting up joint ventures or franchisee operations in South Africa and West Asia, with plans of setting up manufacturing facilities at a later stage.

Part of the food and beverage division of Dhariwal Industries, Manikchand Oxyrich, is also planning to enter the natural fruit juices for which the company is developing some product prototypes.

According to Shetty, the total size of packaged bottle drinking water business is estimated at Rs 1,800 crore and is poised to grow to Rs 2,200 crore by 2010 at a rate of 40 per cent every year. By 2009, the company is hoping for a 15 per cent market share in the packaged bottle drinking water business, he added.