Water Purifiers - India

January 2010

Executive Summary
Water Purifier market is valued at INR U bn in 20- -; expected to reach INR Y bn in 20- The market is dominated by the organised sector Water purifiers generally use chemical purification, ultraviolet treatment and filtration, or reverse osmosis techniques The market has tremendous growth potential as only b% of urban Indians use non manual purifiers

Market

Drivers:

Drivers & Challenges

Scarcity of clean drinking water Low penetration of water purifiers Increasing urbanization Water borne diseases

LE P M A S

Challenges:
Lack of standards Low awareness levels

Trends

Tie-ups for enhancing distribution Increasing product portfolio Rural expansion Company 1 is the dominant player in the market In the low end segment Company 2s ABC leads on account of first mover advantage Pricing is critical for success of a water purifier in the Indian market Water purifier companies have also been focusing on advertising and after sales service as a part of their marketing strategies
2

Competition

WATER PURIFIER MARKET IN INDIA 2010.PPT

Market Overview Drivers & Challenges Trends Competition Key Developments Appendix

WATER PURIFIER MARKET IN INDIA 2010.PPT

Market is dominated by the organized sector and is expected to grow dynamically

Market Overview
The market is dominated by the organised sector The market has tremendous growth potential Water purifiers usually use chemical purification, ultraviolet treatment and filtration, or reverse osmosis techniques

Market Size and Growth

INR bn
40 30 20 10 0

Only b% of urban Indians use non manual purifiers

Revenue split: Organized Vs Unorganized

LE P M A S
U

Y a% X W V

2009

2010e

2011e

2012e

2013e

Segment Split
p3 Segment 1 Segment 2 Segment 3

C1

d1 d2 p2 C2 p1

Source: WATER PURIFIER MARKET IN INDIA 2010.PPT

Drivers & Challenges - Summary

Drivers
Scarcity of clean drinking water Untapped market Increasing urbanization Water borne diseases

Challenges
Lack of standards Low awareness levels

WATER PURIFIER MARKET IN INDIA 2010.PPT

Trends - Summary

Tie-ups for enhancing distribution

Key Trends

Rural Expansion

Increasing product portfolio

WATER PURIFIER MARKET IN INDIA 2010.PPT

Company 1 is the dominant player in the market accounting for a substantial share
Competition Overview
Pricing is critical for success of a water purifier in the Indian market
Apart from pricing, advertising and after sales service are key factors for success of a water purifier in India

Price Points (INR) Branded Purifiers

RO Purifiers p q

Companies like like Company 1, company 2 and Company 3 have huge budgets for advertisements Unbranded products lack advertising capability, however they compete with big players due to strong after sales service

Company 1 leads the overall market with ab % share

In Reverse Osmosis segment Company 2 has w% share In Ultra Violet purifier segment Company 1s product leads with approximately xx% market share In the low end segment Company 3s product leads on account of first mover advantage

LE P M A S

UV purifiers

y Maximum Minimum

Storage v w

Price Points (INR) Unbranded Purifiers

RO Purifiers a b

Apart from channel sales water purifier companies also resort to direct selling
Company 1 has ABC sales personnel for selling its water purifiers

UV purifiers

Water purifier companies also face competition from cheaper Chinese products
Storage e f

Maximum Minimum

Source: WATER PURIFIER MARKET IN INDIA 2010.PPT

Major Players (1/6)

Company Name Company 1 RO UV Storage Business Description It is based in Location 1 It specializes in design, manufacture and sale of a complete range of UV purification systems, for drinking, process and waste water applications It also manufactures RO purifiers Its prominent brands in water purifiers include Brand A, Brand B and Brand C

Company 2

Company 3

LE P M A S

It is based in Location 2 It is currently working on sea water desalination plant to be setup in Kokan for community in Maharashtra It specializes in manufacturing U. V. Purification Systems It is based in Location 3 It manufactures water purifier for both residential and commercial segments Its brands in water purifiers include Brand X, Brand Y and Brand Z

Source:; WATER PURIFIER MARKET IN INDIA 2010.PPT