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MNCs gain ground in branded water

Reeba Zachariah

The Rs 10-billion branded packaged water market, which was once synonymous with the desi Bisleri, is now witnessing intense competition with multinationals entering the fray, according to a survey by ORG-MARG.

The survey says that there has been an erosion in the retail market share of Bisleri, the brand launched by the Ramesh Chauhan-promoted Parle Bisleri, thanks to aggressive marketing by multinationals.

ORG-MARG has estimated the market share of Bisleri at 37.6 per cent in February 2002, drastically down from the 59.9 per cent share it enjoyed in July, 2000, in the mid-pack segment (500-2000 ml).

Coca-Cola's Kinley enjoys a market share of 28.2 per cent, Pepsi's Aquafina has 11.1 per cent and the Prakash Chauhan-promoted Parle Agro's Bailley has 5.7 per cent for February 2002, ORG-Marg says.

In July 2000, Aquafina had only 3.6 per cent, while Bailley's share was 5.3 per cent.

Launched in August 2000, Kinley within 18 months controls a market share of close to 30 per cent. "It is only a matter of time, before Kinley pips Bisleri and moves to the numero uno position," senior Coca Cola officials said.

The above figures indicates a healthy growth signals for multinationals. One section of analysts says that these brands have grown at the expense of Bisleri, virtually a generic name for packaged-water, while others point out that the market has expanded as consumers have become aware of the benefits of clean drinking water.

Sanjay Karkare, director, Parle Bisleri, said, "As per our internal study, there has been no erosion in our market share."

Also, the advent of small bottles has increased consumption. Buying water near the bus stop or at the railway station has become a routine.

The advantage it has is unlike colas and other drinks dispensed from vending machines, a bottle fits into a handbag and can be carried conveniently.

At the retail segment, bottled water is available in quantities of 330 ml, 500 ml, 1 litre, 1.5 liters and 2 liters. The various available sizes of bottles make it more convenient this summer.

According to Karkare, 'The largest selling pack is the 500 ml and 1 litre bottles in the category. These packs contribute around 50 per cent to the turnover of Parle Bisleri.

One of the reasons for cola majors doing well in the water segment is that they are able to leverage their already extensive distribution network, a Coca-Cola official said.

While other MNC water brands battle it out to be the king, one brand conspicuous by its absence in the slugfest is Nestle's Purelife.

Another MNC Hindustan Lever will shortly launch its brand in the market. Other regional players in the market are Yes of Kotharis, Ganga of T-Series and Himalayan among others.

Sources at Parle Agro said, "Bailley has slipped in market share as the company was focusing on Frooti and N-Joi brands. We are now revamping and relaunching Bailley in the market shortly."

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