Drinking Water Assignment

Analysis of Distribution of Households on source of Drinking water Out of the total water available in the world – 92% is Salt water, 3% is Icebergs, 5% is drinkable water (Source: Water war)

Different sources of drinking water for house holds: • •

Natural water – underground source Packaged Drinking water – disinfected water treated with Filtration, UV or Ozone treatment, Reverse Osmosis

The amount of natural water available for drinking purposes is limited. So the Increasing population and consumption demands are depleting the water table under ground. So there was a shift of population towards the packaged drinking water. From the graphs below, we can observe that the source of drinking water for households from Tube / Bore in rural areas account for 53.2% of the total distribution of water from rural improved source. This is due to India being agricultural driven country uses bore wells in rural areas. Bottled water Rainwater Protected spring Rural

Protected well

Urban

Tube / bore Public tap Piped water 0

20

40

60

Distribution of water in households from improved water sources

Bottled water Surface water Urban

Tanker

Rural Unprotected spring Unprotected well 0

5

10

15

20

Distribution of water in households from non improved water source Rural places uses bore wells primarily for irrigation and drinking purposes. So, there is a need for increasing the public awareness about the harmful effects of drinking unprocessed water. Fluorine content in this water drawn from bore wells will affect the health of the people drinking it. This awareness will create an increase in demand of water purifiers and packaged drinking water. ETOP Analysis of

Packaged Drinking Water Industry

Market size Market share

: around Rs.1500 crores : Bisleri – 9.4%; Kinley – 9.1%; Aquafina – 8.6% (Source: Economic Times) Customer : Mostly Urban areas, rural areas – limited users Competition : Too many local suppliers Technology : Reverse Osmosis, Ozone Treatment Vendor Problems : Transportation costs are the key. Out of Rs. 10-12 per bottle, around 5-6 rupees will be towards transportation (Source: Business line) Economy : Increasing Demands; Low profit margins Regulation : Open market Political : Even government has come up with projects like purification of rivers such as Ganga, Yamuna etc. Setting up water treatment plants for purification of river water and rain water harvesting in rural areas. Socio-cultural : Public needs to be aware of the harmful effects of drinking unprocessed water Global : WHO / UN programs for creating awareness of safe drinking water to people Summary Increasing demands, open market policies, Low capital costs, health awareness programs organised by government policies will create immense growth potential of this packaged drinking water industry.