CHAPTER 1 OVERVIEW OF THE INDUSTRY OVERVIEW OF THE INDUSTRY

Now around 100 companies sell an estimated 424 million liters of bottled water valued at around Rs. 200 crore in the country annually. The tradition of bottled water and mineral water is not very old. Even in western countries the practice of bottled drinking water started in 1950s. The trend of having mineral water gained grounds in the market. Since ancient time people have used water from mineral springs, especially hot springs, for bathing due to its supposed therapeutic value for rheumatism, arthritis, skin diseases, and various other ailments. Depending on the temperature of the water, the location, the altitude, and the climate at the spring, it can be used to cure different ailments. This started the trend of using mineral water for drinking purpose to exploit the therapeutic value of the water. This trend started gaining momentum in mid 1970s and since then large quantities of bottled water from mineral springs in France and other European The concept of bottled has been quite prevalent in western countries due to greater health consciousness and higher awareness about health and hygiene countries are exported every year. In India, with exposure of media and exposure to international life styles, deteriorating levels of potable water, increase in a number of water borne cases, increase in awareness about health and hygiene and other related factors led to acceptability of concept of mineral water. The market has not looked back ever since then and has grown leaps and bounds to such an extent that a number of genuine as well as fly-by -night operators have entered it to milk it. In 1967 Bisleri set up a bottling plant for manufacturing and marketing its mineral water but failed. The brand was later sold off to Parle in 1968-69. Mineral water market had its seeding as early as 1968-69 when Parle Group acquired the Bisleri brand from Bisleri of Italy for launching Soda water but later launched bottled water also. The launch at that time was a big flop as concept of buying water that too in bottled form was not accepted by the Indian public. The market remained dormant for quite long (for a period of 20 years or so). The market throughout this period was formed only by the premium products that too available through 5-star hotels. In early 1990s with onset of liberalization policy by the

Indian government, coming in of cola majors, sell off of local soft drink brands of Campa, Thumps up, Gold Spot etc by Parle to Coke and other factors led Bisleri to test waters again. Bisleri re-launched its bottled water in 1994. By this time with exposure of media and exposure to international life styles, deteriorating levels of potable water, increase in a number7 of water borne cases, increase in awareness about health and hygiene and other related factors led to acceptability of concept of mineral water. The market has not looked back ever since then and has grown leaps and bounds to such an extent that a number of genuine as well as fly-by -night operators have entered it to milk it. Bottled water of India Genie is out of the bottle. Indeed, the bottled water industry is one of the most thriving sectors in India. The market is growing at a whopping rate of about 55 per cent annually and is expected to cross Rs. 1000-crore mark within the next couple of years. Almost all major national and international brands have taken a plunge. Parle's Bisleri that virtually monopolised the bottled water market is now vying with Nestle, Coca Cola, PepsiCo, Manikchand, UB and Britannia. According to a national-level study, there are close to 200 bottled water brands in India. Nearly 80 per cent of these are local brands. There are arounf 150 domestic Indian Bottled Water Brands: Name Mulshi Springs Alfa Blue Atlas Premium Bailley Bisleri Cool Valley Dew Drops Dislaren Golden Eagle Golden Valley Still Still Still Not Rated Still Still Still Still Still Balance Minerality Low Orientation Hint of Sweet C A A A A A A A A A A Virginality Vintage

Hello Himalayan Just Born Spring Drops Kenbar Maqua 2000 Nakshatra Nestl Pure Life Pristine Pure Lifekare Raindrops Silver Springs Aqua Spaa Aqua Sprint Up

Still Still Still Still Still Still Still Still Still Still Still Still Still

A A A A A A A A A A A A A

Indian Water Industry - Creating A Better Environment India faces a desperate situation of water shortage. Its fragile and finite water resources are depleting while the demands for water from various sectors of the economy are rapidly rising. In recent years, the industrial and domestic sectors have realized this disparity in the supply and demand. With the New Economic Policy launched in 1991, the government tried to lead to market-based approaches and privatization of urban water. The National Water Policy drafted last year looks at water as an economic good and looks at numerous macro and micro initiatives in this regard. If you are in the Indian water industry, you are in the right place at the right time.India has devoted substantial resources to the water supply and sanitation sector, significantly increasing its commitment since 1980 with the launch of the International Drinking Water Supply and Sanitation Decade. Today, drinking water investments constitute about 3% of the national budget. Due to these steps, today 85% of the urban and 75% of the rural population has access to public water supplies. 48% of the urban population and 36% of the rural population has access to sanitation services. But clearly, there is a lot of scope and

opportunity to do more.

On the Crossroads The Indian Water Industry is on the crossroads today. In a developing country with huge requirements for water recycling and purification of drinking water, there is a huge scope for growth. The total Indian water market is estimated to be about USD 15 billion. While the government sector contributes about 50% of this, the private industrial sector provides the remaining business. The overall market is growing at 18% every year.In 2003, the Indian Government announced the mother of all projects - interlinking of major river networks all over the country, thereby connecting the water-deficit and the water-abundant areas. The project valued at over USD 100 billion is one of the largest in the world. It would kick start the economy and bring a huge set of requirements for equipments and construction.

Market For Water Treatment In India The water treatment market in India is seeing immense expansion. While no reliable published figures are available, EverythingAboutWater estimates the total water and wastewater treatment market size to be about USD 420 million. It is growing at about 18% annually with certain segments like the industrial and drinking water segments seeing even higher growths.

The Key Drivers for Industry Growth

Increased awareness about drinking water quality and health Decreasing water quality and users having to go for ground water Environmental pressures on wastewater discharge from govt. pollution control boards Reducing availability of water forcing users to go for reuse & recycling of water General Industrial and Economic Growth particularly in chemical, pharmaceutical, power plants, food and textile industry

Industry Nature The industry is currently highly fragmented and unorganized in nature. It can be split into

three categories:

Large Players like VA Tech Wabag, Degremont, Hindustan Dorr-Oliver, Paramount, Ion Exchange, Thermax etc

Medium Sized Players like Doshion, Aquatech, Fontus Water, Driplex, TEAM, Ions Hydro

Small Players over 500 in number

The water treatment industry is largely concentrated in certain geographical pockets like Mumbai, Pune, Chennai, Hyderabad, New Delhi, Kolkata and Ahmedabad. Some plant manufacturers are present in other areas, but this number is limited.

Level of Technology The market knowledge and skill has been increasing in recent times. Most foreign manufacturers and products are commonly available in India now. The market is gradually shifting from chemical treatment and DM plants to membrane technology. Still, there are many huge segments like power plants and refineries that continue to use DM technology. The concept of wastewater recycling and zero discharge systems is growing in a big way in recent times.The government sector is primarily involved in the raw water treatment and the sewage treatment operations. On the other hand, the private industrial sector includes equipments for clarification, sludge treatment, aeration, disinfection and filtration. Conventionally, the market has used demineralisers for treatment. However, over the last few years, Reverse Osmosis technology has grown in the market and gradually replaced DM. Newer technologies like Ultrafiltration and Electrodialysis are also entering the market now.

A Whole Different Market The market has undergone a tremendous change in the last few years. Today, there are a dozen medium-sized companies who have rapidly increased their operations and won a number of projects. Also hundreds of small system-integrators have come up all over the country, addressing local requirements.There has also been a geographical decentralisation that has taken place. Earlier the water treatment industry was largely concentrated in

Maharashtra. Over the last ten years, pockets of concentration have started all over the country in Delhi, Chennai, Calcutta, Ahmedabad and Hyderabad. This has had a positive and negative impact. While the market has grown and costs come down, at the same time, the quality and reliability of many of these suppliers has been suspect.In the last few years, many international majors have also entered the market. While huge players like Veolia Water, Suez de Lyonnaise (Degremont) and VA TECH Wabag are present in the market, chemical majors like Nalco and GE Betz-Dearborn also have operations. Indigenous development of various treatment vessels like resins, RO membranes and vessels have reduced costs and made various technologies easily available on a mass-scale. The other interesting trend in the market has been the move towards standardization of treatment systems as standard DM and RO plants have become more common over the last two years. International Companies with a significant presence in India

Veolia Water, France Degremont, France VA Tech Wabag, Austria Thames Water, United Kingdom GE Water, United States Dow Chemicals, United States of America

Endress + Hauser, Germany Emerson (Fisher Rosemount), United States of America

Koch Group, United States of America Hydranautics, United States of America Pentair Group, United States of America Schlumberger / Actaris, France Amiantit, Saudi Arabia Netzsch, Germany George Fischer Aplaco, Saudi Arabia Metrohm, Switzerland And many more...

Dupont, United States of America Grundfos Pumps, Denmark KSB Pumps, Germany Nalco Chemicals, United States of America

Drewtreat Chemicals, United States of America

Krohne Marshall, Germany

Future Growth Opportunities A number of factors are fuelling growth in the market. Rapidly rising population has led to

increased requirements for drinking water and sewage treatment. While this is largely in the urban areas at the moment, this could shift to smaller towns and villages in times to come. At the same time, water scarcity has led to many industries going in for water recycling systems to meet their requirements. At the same time, there is a growing awareness of environmental issues among industry as well as the public. Widespread coverage of environment issues by the media and NGOs has forced industries to install water treatment equipment to prevent social and legal action against them.

The government has also got into the action by imposing stringent legislations regarding wastewater treatment. There is also a compulsory requirement of Environment Clearances from Pollution Control Boards at the Centre and the states. The recent Supreme Court directive to move polluting units out of Delhi is also likely to act as an impetus to future sales of water treatment equipment. Also at the same time, many existing treatment plants would need to be replaced or upgraded to meet with more stringent standards.

Drinking water problems in India are quite different from those in developed countries. The main concern is with disinfecting the potable water at the point of use. Traditionally, the point of use market has been dominated by ultraviolet purifiers and filters. One company Eureka Forbes holds over 50% of the total purifier market with their UV purifiers, based on their excellent direct-marketing and service network. Industrial majors like Ion Exchange and Thermax have tried entering this market, but with limited success. In the last year, domestic reverse osmosis purifiers have struck the market and have been hugely successful. Recent advancements in nanofiltration and ultrafiltration are now entering this area and offer future opportunities.

One big area of growth has been the increase in bottled water plants in India. With liberalization and increased awareness of water quality, hundreds of bottled water brands have entered the market. The USD 250 million bottled water market is growing at the rate of 7580% and a large number of reverse osmosis plants have come up in the last two years. With multinationals like Pepsico and Coke getting established in the market, the quality and technology in their plants has improved.

Indian manufacturers have also tried to export and build their presence in overseas markets. Treatment plants have been exported to the Middle-East and South-East Asia.

Big Projects The contribution of membrane desalination plants is progressively increasing. A number of reverse osmosis desalination plants are being installed by industries to meet their increasing water needs. In 1999, a 4500m3/day capacity RO plant has been commissioned at Sikka for Gujarat Electricity Board by Ion Exchange. A 10,000m3/day seawater RO plant has been commissioned by Thermax for NIRMA at Bhavnagar using Hydranautics membrane. RO has also been employed by many industries for waste water recycling. A 12000m3/day waste water RO plant has been recently commissioned by Aquatech(Asia) in Rashtriya Chemical Factory, Mumbai. Ion Exchange has commissioned another 3000 m3/day waste water RO plant at IFFCO, Phulpur. Since early nineties, hundreds of membrane based brackish water desalination plants of capacities of 10 to 100 cubic meters per day were set up for providing safe drinking water to selected problem villages in the states of Gujarat, Rajasthan, Tamil Nadu and Andhra Pradesh. On the other hand, several thermal desalination plants have also been operating in the coastal areas of the country for inhouse use by the industries. A 48000 cubic meters per day Multi-effect Desalination plant has been commissioned in 1999 at Reliance Petrochemicals Complex in the western coast of the country at Jamnagar. The industrial giant Larsen & Toubro (L&T) has also commissioned a thermal desalination plant for their cement industry.

Challenges on the Road Ahead The industry still faces constraints moving ahead. The regulatory bodies lack the teeth to enforce many of the guidelines and the mandatory requirement of a functional treatment plant gets bypassed sometimes. Polluting industries have adopted an uncaring attitude and it has required active support of many NGOs to get them to act. There is still a large capital investment required for many treatment plants and most industries try to avoid it or go for a short-cut solution. Awareness and recognition of newer technologies has been slow in coming.In recent times, the technical expertise and know how of the top water treatment

manufacturers is pretty standard. Therefore, their success in getting big project orders has been dependent on their pricing, project execution skill and process engineering ability. This trend is likely to increase in the coming years.

Chapter 2 Company profile BISLERI - Parle Bisleri Pvt. Ltd.

MISSION STATEMENT To provide the highest quality product, keeping in mind all aspect including freshness purity and safety and making it easy available to the consumer at very affordable price.

COMPANY BACKGROUND Parle Bisleri Ltd is the biggest domestic player in soft drinks in India. It is a private company owned by Ramesh Chauhan. The company sold off the Thumps Up and Gold Spot brands to Coca-Cola India in the early 1990s. Since then, the company has focused solely on bottled water in India. Due to the vast number of players present in bottled water in India, Parle Bisleri has tried to differentiate its brands from the competition. The company shifted its slogan from "Pure and Safe" to "Play Safe", following the attempt of many regional players to emulate the look of the companys brands. Parle Bisleri is credited with revolutionizing bulk bottled water in India through the introduction of innovative 20-litre jar packaging. The company developed consumer-friendly packaging for its 20-litre jars by adding threaded fittings and valve caps, as opposed to other brands that feature snap-on fittings. These innovations facilitated easier draining of water from the jar.

HISTORY The origin of BISLERI lies in Italy and the brand owes its name to its founder MR.FELICE BISLERI, an Italian entrepreneur. In 1967, BISLERI set up a plant in Bombay for bottling and marketing actual mineral water, which did not quite work. By 1969, BISLERI wanted to exit the business and to help him out the Chauhans bought the brand, intending to turn it into a soda brand.Since then it has come a long way. Now, it owns a large percentage of shares in the Indian market and also it has its presence in International Water Market.

10.4 JOURNEY OF BISLERI 1969: Buys BISLERI bottled water from an Italian company, Felice Bisleri. It was bottled in glass bottles then. Early-1980s: Shifts to PVC (Poly Vinyl Chloride) bottles. Sales surge Mid-1980s: Switches to PET bottles, which meant more transparency and life for water. 1993: Sells carbonated drink brands like Thumps Up, Gold Spot and Limca to Coca-Cola for Rs. 400 crore. 1995: BISLERI launches a 500 ml bottle and sales shoot up by 400 per cent. 2000: Introduces the 20-litre container to bring prices down from Rs. 10 a litre to Rs. 2 a litre. 1998: Introduces a tamper-proof and tamper-evident seal. 2000: BIS cancels BISLERI'S license of water bottling in Delhi since some of the bottles did not carry ISI label;the license is restored one-and-a-half months later. 2001 KINLEY overtakes BISLERI. The national retail stores audit by ORG-MARG show Kinsleys market share at 35.1 per cent compared to BISLERIS 34.4 per cent. 2003: BISLERI says it plans to venture out into Europe and America to sell bottled water. 2006: the Bisleri brand was extended to mineral water with Bisleri Mountain Water.

10.5 PRODUCTS

Production Parle Bisleri Ltd operates a network of 55 plants spread across the country. This ensures an extensive reach for the companys products. The company reportedly has plans to increase production capacity further in 2008. Parle Bisleris latest product, Bisleri Mountain Water, is bottled in two plants in Uttarakhand (formerlyUttaranchal) and Himachal Pradesh. The company plans to invest Rs100 million to increase the newbrands manufacturing and distribution capacity.

Bisleri with added Minerals: Bisleri Mineral Water contains minerals such as magnesium sulphate and potassium bicarbonate which are essential minerals for healthy living. They not only maintain the pH balance of the body but also help in keeping you fit and energetic at all times.

Bisleri Mountain Water: Bisleri Natural Mountain emanates from a natural spring, located in Uttaranchal and Himachal nestled in the vast Shivalik Mountain ranges. Lauded as today's 'fountain of youth', Bisleri Natural Mountain Water resonates with the energy and vibrancy capable of taking you back to nature. Bisleri Natural Water is bottled in its two plants in Uttaranchal and Himachal Pradesh and is available in six different pack sizes of 250ml, 500ml, 1 litre,1.5 litre, 2 litre and 5 litres.

The advantages of Bottled Water include: An emergency source of water in the event your primary water source fails or becomes contaminated. A convenient source of usually safe water for drinking outside of the home. Bottled water, since it does not contain chlorine, and may contain a mix of minerals to enhance flavor, may taste better than untreated tap water. Most bottled water will contain fewer contaminants than untreated tap water.

Major Techniques used in package drinking water Ultra Violet Light:

Water passes through a clear chamber where it is exposed to Ultra Violet (UV) Light. UV light effectively destroys bacteria and viruses. However, how well the UV system works depends on the energy dose that the organism absorbs. If the energy dose is not high enough, the organisms genetic material may only be damaged rather than disrupted. The advantages of using UV include: No known toxic or significant nontoxic byproducts introduced Removes some organic contaminants Leaves no smell or taste in the treated water Requires very little contact time (seconds versus minutes for chemical disinfection) Improves the taste of water because some organic contaminants and nuisance microorganisms are destroyed. Many pathogenic microorganisms are killed or rendered inactive.Does not affect minerals in water

Water Softeners and deionizers: Water softeners operate on the ion exchange process (specifically a cation exchange process where + ions are exchanged). In this process, water passes through a media bed, usually sulfonated polystyrene beads. The beads are supersaturated with sodium (a positive ion). The ion exchange process takes place as hard water passes through the softening material. The hardness minerals (positively charged Calcium and Magnesium ions) attach themselves to the resin beads while sodium on the resin beads is released simultaneously into the water. When the resin becomes saturated with calcium and magnesium, it must be recharged. The recharging is done by passing a concentrated salt (brine) solution through the resin. The concentrated sodium replaces the trapped calcium and magnesium ions which are discharged in the waste water. Softened water is not recommended for watering plants, lawns, and gardens due to its elevated sodium content. The advantages of water softeners include: The nuisance factor of hard water is reduced.some other other cations like barium, radium and iron may be reduced depending on the manufacturer's specifications Water Deionizers use both Cation and Anion Exchange to exchange both positive and negative ions with H+ or OH- ions respectively, leading to completely demineralized water. Deionizers do not remove uncharged compounds from water, and are often used in the final purification stages of producing completely pure water for medical, research, and industrial needs.

Filtration system filters employ a matrix (generally small granules) of a zinc/copper alloy, which allegedly eliminates contaminants from water by utilizing electrochemical oxidation reduction.

Chemical properties of KDF include its alleged ability to: Remove chlorine (actually changes free chlorine to a less active form) Kill algae and fungiControl bacterial growth in the filter Remove hydrogen sulfide, iron, lead, cadmium, aluminum, mercury, arsenic and other inorganic compounds Partially reduce hardness

Ozonation: The formation of oxygen into ozone occurs with the use of energy. This process is carried out by an electric discharge field as in the CD-type ozone generators (corona discharge simulation of the lightning), or by ultraviolet radiation as in UV-type ozone generators (simulation of the ultra-violet rays from the sun). In addition to these commercial methods, ozone may also be made through electrolytic and chemical reactions. Ozone is a naturally occurring component of fresh air. It can be produced by the ultraviolet rays of the sun reacting with the Earth's upper atmosphere (which creates a protective ozone layer), by lightning, or it can be created artificially with an ozone generator. The ozone molecule contains three oxygen atoms whereas the normal oxygen molecule contains only two. Ozone is a very reactive and unstable gas with a short half-life before it reverts back to oxygen. Ozone is the most powerful and rapid acting oxidizer man can produce, and will oxidize all bacteria, mold and yeast spores, organic material and viruses given sufficient exposure. The advantages of using Ozone include: Ozone is primarily a disinfectant that effectively kills biological contaminants. Ozone also oxidizes and precipitates iron, sulfur, and manganese so they can be filtered out of solution. Ozone will oxidize and break down many organic chemicals including many that cause odor and taste problems.Since ozone is made of oxygen and reverts to pure oxygen, it vanishes without trace once it has been used. In the home, this does not matter much, but when water companies use ozone to disinfect the water there is no residual disinfectant, so chlorine or another disinfectant must

be added to minimize microbial growth during storage and distribution Reverse Osmosis (RO): Water pressure is used to force water molecules through a membrane that has extremely tiny pores, leaving the larger contaminants behind. Purified water is collected from the "clean" side of the membrane, and water containing the concentrated contaminants is flushed down the drain from the "contaminated" side. The average RO system is a unit consisting of a sediment/chlorine pre filter, the reverse-osmosis membrane, a water storage tank, and an activated-carbon post filter. The advantages of Reverse Osmosis include: Reverse osmosis significantly reduces salt, most other inorganic material present in the water, and some organic compounds. With a quality carbon filter to remove any organic materials that get through the filter, the purity of the treated water approaches that produced by distillation. Microscopic parasites (including viruses) are usually removed by properly functioning RO units, but any defect in the membrane would allow these organisms to flow undetected into the "filtered" water - they are not recommended for use on biologically unsafe water. Though slower than a carbon or sediment water filter, RO systems can typically purify more water per day than distillers and are less expensive to operate and maintain.Reverse Osmosis systems also do not use electricity, although because they require relatively high water pressure to operate, they may not work well in some emergency situations

CHAPTER 3 Departments in Parle Bisleri Pvt Ltd1.

1.Filler Department: this is the plant I which the bottles are filled and packed under strict levels of hygiene and safety as per the EU norms.

2.Plastics Department: Caps section Performs Section

This is the Department where pet material is processed to make the performs using injection moulding machine of 180 and 330 tones as per the requirements of the perform.

Performs are available in various sizes according to the size of bottle. Bottle sizes 1 ltr 500 ml 250 ml 1.5 ltr 2ltr 5 ltr 20 ltr Perform Sizes (gms) 21 17 15 32 34 75 710

Caps are made from a mixture of HDPE LLDPE using injection moulding machine.

3. Water Department: Over here the raw water from the bore wells is treated in several stages before it is filled thus making it very pure for human use.

4. Blowing department: Here the performs are blown into bottles. This department has various manual and fully automatic stretch blow moulding machines.

5. Water testing laboratory: The water-testing lab ensures that the water standards are maintained as per the BIS and EU norms.

6. Recycling department: All rejected bottles, caps, jars and lump of plastic materials are sent over here for grinding in order to re-use it. Before it can be grinded it is very carefully segregated in different groups. It is a fully automated machine.

7. Storage department: All the stock of finished, semi-finished goods are stored over here and are dispatched as per the order. Up to 50 tons of stocks are dispatched in a day.

Primary sources 1.Material: The raw water is obtained from bore wells. The bottles are made from polymers such as HDPE, LLDPE and PET. 2.Personnel:Bisleri requires mostly skilled and semi skilled labourers include production and plasticengineers. 3.Capital assets 4.Bisleri has got 14 injection moulding machines, 2 automatic blow moulding machines and 4semi automatic blow moulding machines. It has also got 2 plants located side by side forproduction purposes. Conversion of subsystem ie Inputs into finished goods Bisleri is considered to be a manufacturing unit as it manufactures the semi finishedproducts.i.e. bottles and caps and also produces the finished products. The distributionnetwork of bisleri is maintained by its distributors and wholesalers. To supply the bigcorp[orates they have there own network. The final output of whole manufacturing processis we get clean pure drinking water bottles of different sizes according to the needs. Production process

The raw material that is stored is in the warehouse is transported to the processing plant nearby. In the cap department where caps are produced. HDPE and LLDPE which are are inthe form of granules are emptied into the hopper of the injection moulding machineand the caps are produced of the characteristics green colour of Bisleri. The capsthat are produced are automatically packed into cartons. This semi finished productis transported, after quality testing has been done, to what is called the fillingdepartment. In the caps department there are 7 injection moulding machines. In the performs department which is located in next to the cap department it islocated in the same plant. In the perform department PET material is used tomanufacture performs which are semi finished bottles. They are produced by usingthe injection moulding machine. After the performs

are tested by the qualityassurance department, they are packed in cartons and transported to the filling department. There are 7 injection moulding machine. In the blowing department the performs which are obtained are blown to form bottles. Ther are a total of 2 fully automatic blowing machine which are directly connected to the filler. There are about 5 more semi automated and blowing machine which are producing bottles every day. The filler department is situated in a closed and a controlled environment to maintain hygiene. The bottles are transported through a conveyor belt. First the bottles pass through the UV light to kill the bacteria then the bottles are cleaned by pure water, then the bottles are filled to the desired quantity and then they are automatically capped, then the sticker is put on the bottles and the price, manufacturingdate, batch number are printed by a sparying machine, then the bottles are manuallychecked foor any defects, lastly they are packed in cartons and stored in the warehouseready for transportation to its destination. In the water treatment plant the water from the bore wells are stored in the ChlorinatedRaw Water Tank, the chlorine in this tank is used to kill the germs, after that the water goesthrough the sand filter to remove the foul odour, then the water passes through the UVLight chamber where the water passes through it to cure the bacteria and viruses, then thewater passes through a reverse osmosis process to remove the dead membrane of bacteriaand viruses, then the water passes through the silverisation to give the sparkle to the water,then the water passes through the ozonisation process to remove the chlorine and toremove the stale odour.

CHAPTER 4 SWOT ANALYSIS OF BISLERI

STRENGTH 1. Quality standard: Every bottle of BISLERI is put through a rigorous Multi stage purification processes which includes micron filtration and ozonisation. It acquires 6 stages of purification processes which ensure quality water which is pure and safe for drinking purpose. Good manufacturing are the strength all the time processing in religiously monitored at every stage.

2. Trust for Brand:

More than 50 lakhs people trust the BISLERI. They buy only BISLERI water because it has became generic name for mineral water. For example: - When people go to buy the mineral water many of them ask for BISLERI, even though they get other brand.

3. Large Range of Products: BISLERI offers a large range of products which attracts consumer of all categories. For example:- 1 litre or 500 ml pack is useful for individual buyers, 12 litres or 20 litres is useful for organization. Therefore it attracts large number of customer.

4. Marketing: BISLERI is promoted by an aggressive print & TV. TV is backed by a Hoarding & point of sale material. Every interface with customer is used as an opportunity to reinforce. For example: - All vehicles used for supply have been painted in light green, bears the BISLERI logo & sport catchy baseline likes drink and drive.

5. Distribution System: With little belief in the distributor system, the company leverage its large fleet of truck to supply bottled water directly to retailers through a system called Route Selling where the driver of truck is trained to be a service person. This ensures that water supplied is fresh and bottles are in good shape. BISLERI has more than 80,000 outlets in the country.

6. Experience of Mr.Chauhan (M.D of Bisleri) From the vast experience of marketing Gold Spot and Thumps Up, Mr. Chauhan knows that distribution plays a crucial role in the successful marketing of bottled drinks. He knows that making fresh water available within a particular period of time is crucial for its success. He is pursuing a multi- pack and multi- price strategy. 7. Bulk Segment Is Useful For Households Also: Households in certain parts of the country spend a huge amount of money on fuel in order to purify the water.They are supposed to buy the impure water and then they have to spend money to purify it.

For instance the water scarce south people spend large some of money to buy water and still more to purify it. The 12 litre product is hit in various cities of south.

8. Growing Popularity: The popularity of BISLERI is increasing rapidly day by day. People in the market when it comes to mineral water a person goes to any shop and asks for BISLERI as his/her first preference. BISLERI is seeing a growth of almost 50% per year. With the small pack being popular among individuals user its bulk pack is also generating the huge demand which is capturing the market for BISLERI. Today 60-70 % of total income of BISLERI comes from its bulk segment and the company is planning to increase it up to 80%.

WEEKNESS 1. Method Adopted For Distribution: THE ROUTESELLING policy adopted by BISLERI for distribution is more expensive than more commonly followed method of appointing distributors in different towns. This reduces the profit of company. The dealer margin is reduced due to this .therefore not many dealer keeps BISLERI in many areas. Indirectly this is reducing the coverage of BISLERI.

2. Reuse Of Bottle By Local Sellers And Illegal Manufacturers: Market research conducted by BISLERI revealed that the other overriding concern for this set of buyers is the tampering of seal and the reuse of bottles. Many have witnessed used bottles being refilled at railway stations. This deteriorates the brand image of BISLERI. For example: - local sellers fill the bottle of BISLERI with impure water and the bottles are purchased by illiterate

customers as BISLERI water but they buy water of low quality. In this way brand of BISLERI gets affected.

3. Faults in Production: Tests conducted by various authorities shows that it contains pesticides. In 2002 the 2cm long insect was found in the bottle of BISLERI. This has affected its sales and reputation. The license of its two factories one at Noida and other at Bangalore has been cancelled because of fault in production.

4. Pressure by Government Authority:After insect was found in the bottles, FDA (Food & Drug Adulteration) has cancelled the production of BISLERI.Afterwards it was allowed to resume it but in this period its customer were moved towards other products. It is constantly under check by various authorities.

5. Not Meeting the Demand of the Customer: In certain parts of south in our country big bottles of BISLERI are in huge demand but the company is unable to meet the demand of the consumers. This is affecting the demand for the product. So People are forced to use other brands of mineral water.

OPPORTUNITY 1. Fast Growing Field: The best beverage for India in the new millennium seems to be water. In recent years, the bottled drinking water market has been witnessing high decibel level of activity, with a host of new entrants. The bottled water market which worth Rs. 1000 crore is expected to be Rs. 5000 crore by 2010. This will increase a lot of scope for bottled water market.

2. Bisleri Can Utilize Its Distribution Chain: With BISLERI becoming a generic name for bottled drinking water. If company can manage the distribution chain of the product to make it available where the consumer needs it the most, the company may well succeed in his gamble with water. For this the company can connect it with dealers and other distributors who will market the products for them all around the world.

3. Expansion in Europe: The launch of BISLERI in the European market on 4th September, 2003 has created a lot of scope for BISLERI in the field. This will also compensate the deterioration of image; BISLERI has suffered after insect was found in the bottle. It will silence the critics and it will also increase the faith of the customer for the brand. It will createan international brand image and the quality will increase.

4. Launch Of Premium Pack: The company also has its premium product range. This is prepared keeping 5-star hotels and other premium customer. This pack will be sold at Rs. 20 per litre. This will give a tough competition to the EVIAN, the biggest player in the premium water range which sells its 1 litre water at a hefty of Rs.85 per litre.

5. Change of Image: The company has changed the color of the product. It has changed from blue to green. By changing the color, the company has provided a new product to the consumers; they will be getting a new and a refreshing product.

6. Increase in Production: BISLERI is eyeing the Market and is in the process of increasing the production by setting 4 new plants adding to its 23plants. This will increase the production capacity of the company.

THREAT 1. Market Is Eyed By The Big Players: The growth of the market indicates the need for the mineral water. Due to this the heavy weights are eyeing the market. Coke, Pepsi, Britannia, Nestle is keen on raising their stakes in this market. With the cut throat competition between Coke and Pepsi, BISLERI is not safe. 2. Entering Of New Players:

To get some share in the market many new players are entering in the market. Among them major names areGodrej, which is launching its product AQUA-PURE and Tata-Tea is looking forward to but Himalayan, this will increase the competition. Also Britannia which is distributing EVIAN is planning to launch its own brand. There are also new entrants ATCO with BRILLIANT water, DS FOODS with CATCH are also coming. Even Hindustan lever is planning to enter into the market. This is giving a tough competition to the current water brands including BISLERI.

3. Water Filter Manufacturers: BISLERI is not only getting competition from mineral water maker but is also facing a tough competition from various water filter manufacturers such as Eureka Forbes (Aqua guard). They have been marketing there purifiers in the market which has decreased the sales of bottled water supply to homely customers.

4. Illegal Manufacturers: Company is facing a tough competition from illegal manufacturers in the rural areas. The illegal manufacturers provide water at a very cheaper rate then the branded manufacturers. There are 1000s of illegal manufacturers which are providing the water at a very cheaper rate. This is a serious problem for branded manufacturers. This companies also use the fake name of branded bottled water i.e. BISLERI and supply their products in the market

5. Strong Distribution Channel of the Other Manufacturers: Analysts feel that BISLERIS break away seal will not at all be effective the company having strong distribution channel will only survive. This rings the warning bell for BISLERI because among other players Kinley and Aquafina are having a strong distribution network of Coke and Pepsi. Nestle will be banking on its chocolate distribution network. Even though the BISLERI has a strong networks but its concentration on bulk segment can lead to improper network. For example: - A chemist who is selling the 1 litre pack may not sell the 20 litre pack. This could disturb the network.

6. New Government Policy: For preparing 1 litre of mineral water 3 litre of ground water is required. Government was not charging tax on the extraction of the ground water. Now by introducing the new policy government is going to impose tax on the extraction of the ground water, this will increase the production cost because of which the companies will be forced to increase the price which all consumers of all categories can not afford. The companies can compensate the high production cost by reducing their marketing expenses but this will keep the consumer unaware about the product. This is also effect the quality of the bottled water.

Conclusion

The Indian water industry is today on the crossroads. In a developing country with core requirements, a need to play socially responsible and proactive role is essential. With proper direction from the government and appropriate steps from the industry leaders, it is poised to take off in the future.