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Delhi-based Vishal Retail Ltd, owner of
the value, hypermarket, retail chain Vishal Mega Mart
is looking at halving the price of packaged water to
Rs. 6 a bottle. Vishal proposes to sell the product
at its 51 hypermarket stores spread across 39 cities.
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Vishal's move could force other bottled water producers
like Bisleri Aquafina, Kinley and Kingfisher to re-plan
their pricing strategy. Currently, there is hardly any
price competition between major brands.
Mineral Water, which comes from natural source is different
than bottled or packaged water.
In this business, although the cost of production of
bottled water, which involves Reverse Osmosis process,
is low, packaging and transportation, due to volume
and distance, account for major cost components.
Packaged water, on health concerns, particularly relating
to water borne diseases, has emerged as one of the fastest
growing sectors in the country. India, with annual turnover
of Rs. 800 crore, is the tenth largest bottled water
consumer in the world. Bottled water market is growing
at a compound annual growth rate of over 25%. Per capita
consumption of bottled water had trebled in five years
between 1999 ( 1.5 billion litres) and 2004 (5 billion
litres).
Source: http://www.indiaretailbiz.com
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