Right from year 1995 -1996, the bottled water industry has seen a healthy growth in terms of number of licensed units and market size. As we analyze the current market trend today, there are number of challenges being faced by existing likely to be faced by upcoming units.
• Recently, Bureau of Indian Standards made it compulsory to submit an NOC [No Objection Certificate] from CGWA [Central Ground Water Authority], while applying for license [Upcoming units] or renewal of license [existing units]. As such, additional statutory step adds up to elongated licensing procedure leading to enhanced overheads.
MYTH ONE – BOTTLEDWATER UNITS ARE MINTING MONEY
While going through various articles and news items in print / electronic media, a general impression has been created that bottling units are minting money as they do not pay for raw material [ bore well water ] and sell one litre water for Rs 15.
The fact is that bottled water market is completely retailer dominated commodity and having a lions’ share. Taking out a good margin for distributor too , manufacturer is left with a wafer thin margin for himself. The “FREE” water gathers considerable packaging cost till it reaches the dispatch stage.