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Pepsi, Nestle take the plunge into bottled water -- Britannia waits in the wings

P.T. Jyothi Datta

NEW DELHI, June 20

THEY are all in it together. And no, it is not for the fun of it. The estimated Rs. 600-crore branded bottled-water segment is bubbling with activity more than ever before, what with corporate heavy-weights like Pepsi and Nestle also taking the plunge!

The organised sector already has 250 brands. Now, MNCs are teeming up to enter the branded water segment for the sheer opportunity in the business of quenching thirsts.

First it was Aquafina from Pepsi, that came with the tagline: `Water so pure, it shows'. Then came Nestle's Perrier. According to industry sources, branded water from Britannia is also believed to be waiting in the wings.

So what does Bisleri, almost a generic name with branded water, think of the new entrants in a segment, where it is a runaway market-leader?

Parle Bisleri Ltd's General Manager, Mr. Sanjay Karkare, told Business Line that the entry of more companies into the segment would expand the market. ``Our strengths are distribution and the fact that it fits into every economic level across the board - - from 200 ml to 20 litres,'' he said.

According to Mr. Karkare, the industry has been experiencing a ``phenomenal growth'' and Bisleri itself, with a 70 per cent market share, has been constantly expanding on its distribution network, besides coming out with new packages.

Besides the 500 ml bottle, the company has also brought into the market single cups of Bisleri.

On why Pepsi, too, has jumped onto the branded bottled water bandwagon, Mr. Deepak Jolly, Executive Vice-President, Corporate Communications, Pepsi Food Ltd, explained: ``Aquafina is present in the US market and its launch in the Indian market is in perf ect synergy. We are in the beverage business and anything to do with quenching thirst (in the non-alcoholic segment) is our business!''

The commercials promoting Aquafina are already being aired on television. Priced at Rs. 10 for 750 ml, the product is available in Mumbai, Bangalore, Chennai, Baroda, Pune and Ahmedabad. The product is expected to cover the country in 18 months. Pepsi ha s invested over Rs. 5 crores in the new Aquafina project in Roha.

And, in keeping with Pepsi's youth-oriented philosophy, its `water-body', too, targets the youth. Though shelf-space in shops is already cluttered with numerous products from both the organised and organised sector, Mr. Jolly feels the key differentiator between Aquafina and the rest would be the quality of the product.

And though Aquafina is as yet an unknown brand to consumers, it looks to leverage the Pepsi brand-equity through its tagline, that states as much.

According to Mr. Ashok Agarwal, Vice-President, Corporate Affairs and HR with D.S. Foods, ``About 95 per cent of the new entrants would be in the bottled water, and not the mineral water category.'' Even Bisleri now claims to be ``safe and pure'' water, as against mineral water, he points out. D. S. Foods promotes the mineral water brand, Catch-Spring Water.

Mr. Agarwal, however, feels the entry of the MNCs into the segment would expand the market, besides creating an awareness on quality. Naturally, all players would have to raise the quality of their products and the net-result is that the consumer would b e king.