Packaged drinking water to cost more

Simran Arora
Posted: Saturday, Oct 11, 2008 at 0258 hrs IST
Updated: Saturday, Oct 11, 2008 at 0258 hrs IST

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New Delhi, Oct 10: Reeling under the high input costs, the Rs 1,500-crore packaged water segment is all set to uniformly hike its prices by the year-end. Bisleri is the next player to hike prices a year after the Cola major, Coca-Cola increased the price of its packaged water Kinley.

The packaged water segment, which is pegged to touch Rs 1,900-crore by the year 2010, has been experiencing pressure on its margins for sometime now, “Raw material price is going up. Over the last few months the packaging cost has gone up by almost 20% as a result we are going for a price hike of Re 1 to Rs 2 over the next one to two months,’’ Bisleri International chairman Ramesh Chauhan said. His company is going for a flat price hike of 20% across all categories.

There is a strong expectation that other players such as Pepsi’s Aquafina and even Kinley would go for a further price hike.

The Rs 1,500-crore packaged water market growing at a compounded annual growth rate of 10% comprises of three major players - Bisleri, Aquafina and Kinley-- in addition to a slew of smaller, regional strongholds. Of this Rs 1,500-crore market, natural mineral water market is just Rs 100 crore.

In the retail segment, Coca-Cola’s Kinley and PepsiCo’s Aquafina together dominate about a quarter of the mass bottled water market. Bisleri accounts for 16% of the total sales. More than 50% of the packaged drinking water market is dominated by 200 odd water brands that sell in regional pockets.

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