Date:04/02/2006 URL: http://www.thehindubusinessline.com/2006/02/04/stories/2006020402630800.htm

Back Usha Brita to take `watermall' to other cities

Deepak Goel

New Delhi , Feb. 3

IN an effort to consolidate its presence in the water purifier market, Usha Shriram Brita plans to expand its `watermall' chain by adding 12 more shops in as many cities including Kanpur, Chandigarh, Ludhiana and Hyderabad in the next one year.

The company currently has three shops in the Capital. "The company would maintain a 50:50 ratio between company-owned and franchisee shops for expansion," says Mr Anupam Bharat, Managing Director, Usha Shriram Brita.

These shops offer solutions not only for drinking water but also for soft water for washing and bathing.

Speaking about the advantage customers derive from the shops, Mr Bharat says, "One can walk into the shop with a sample of water from one's locality and get it tested. Based on the results, a water purification system would be advised to the customer."

Although the company also has direct selling teams, the new format would phase out the existing format in three to five years.

"As entry rules in housing societies become more stringent and with increased awareness, they would start shopping for clean water solutions," Mr Bhat says.

The first three watermalls, set up in the middle of last year, are sized 200 sq. ft. each and offer all the 15 water purifiers that the company sells. The purifiers are priced between Rs 3,500 and Rs 50,000. The company has been selling around 200 units a month through each outlet.

The water purifier market is estimated at around Rs 1,000 crore and is growing at 22-25 per cent per annum with about 65 per cent in the organised sector.

Usha Brita is a 50:50 joint venture between Usha Shriram and Brita Gmbh of Germany. The company accounts for 11-12 per cent of the market share.