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Thursday, June 10, 1999

Thermax Culligan takes on in-transit consumption 

Chandan Dubey  
Mumbai, June 9: Thermax Culligan Water Technologies Limited has recently launched water vending machines in the Indian market. Branded the `Good Water Shops', eight of these vending machines have been set up at major transit locations like railway stations and hospitals in Mumbai, Delhi, Pune and Ahemdabad so far. The Good Water Shops dispense purified water in glasses--and are competitively priced at Rs 6 for one litreof water.

``The idea is to tap the latent need for safe drinking water for the consumer in transit,''says R A Venkitachalam, chief executive officer, Thermax Culligan Water Technologies Limited (TCWTL). The company already offers a range of water purification products besides ready-to-consume purified water for the household and industrial segments of the Indian market.

This is the first time that TCWTL has addressed the transit segment market. The market opportunity is estimated to be in the region of Rs 80 crore per annum.

According to research carried out by the company the optionsavailable to consumers in-transit currently include aerated drinks, beverages, mineral water, carry water, among others.

By pricing one liter of water at Rs 6, TCWTL hopes to score over mineral water and aerated drinks which currently hold 29 per cent and 38 per cent respectively of the in-transit consumption pie. What makes Good Water a better buy for the consumer is the fact that margins per liter of water have been kept as low as 25 per cent, claims the company--against the current 40 per cent charged by mineral water companies. Moreover, according to TCWTL, there is an additional 80 per cent escalation in the price of mineral water on account of costs like packaging, transport, excise and sales tax. The Good Water Shops dispense purified water in glasses, and multiple-liter packs allowing for a greater degree of flexibility in the product offering. ``Since water is purified on the spot there is increased consumer confidence in the product,'' says Tarun Mathur, divisional manager household andcommercial TCWTL.

The concept is expected to find applications in a gamut of locations like railway platforms, airports, entertainment parks, NGO's, marriage halls, temples, hospitals, big manufacturing plants and factories.

To start with, the company has rolled out vending machines eight feet by 5.5 feet in dimension with a capacity of dispensing 300 liters of purified water every hour. ``We are working with three other prototypes which should be out in the market in the next two or three months,'' says Mathur. These include a scaled-down model of the existing machine, mobile vending machines and smaller retail models suited to crowded super markets and stores.

The company is also experimenting with different distribution formats for the product. ``Since the product has a service element to it and has to be manned constantly, distribution is based on the location and usage of the machine,'' informs Venkitachalam. The Good Water Shops are being established and managed directly by the company or throughfranchise arrangements. The machine can also be brought from the company dealers at a price of Rs 6.5 lakh.

``The size and display of the vending machine will help in creating demand pull for the product,'' says Venkitachalam. For the rest, the company has already begun a direct mail campaign targetting potential buyers like government institutions, railways, public transport bodies, hospitals, and amusement parks.

The company is also making presentations to select corporates detailing the purificataion process and other product benefits.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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