s the private sector swamps the market with water purification units to cover all the segments of the

population, the average Indian has awoken to the increasingly urgent need for purified and potable drinking water. Companies have taken the might of extensive advertising and education of the masses to instill the idea of paying for clean water in the Indian peoples minds, which for generations had been free of charge.

Water Purifiers
years, there has been a shift in the outlook and amount of knowledge possessed by consumers concerning water safety. Increased awareness heavily prompted by media coverage, has resulted in a population which no longer exhibits a casual attitude toward water borne infections and diseases. Manufacturing water purifiers catering to all levels of income has also enabled an expansion in market size. The organized `1,500 crore water purifier industry may be divided into three basic segments according to the various purification technologies utilized within each category, reverse osmosis, ultra violet, and offline. In 2009-10, the RO-based purifiers were considered to be the premium products with sales of 500,000 units, valued at `650 crore. The UV based purifier market saw sales of `580 crore, and 830,000 units. However, the offline water purifiers, which have been very much in the news lately, had sales of 1.8 million units in 200910, valued at `270 crore. The reverse osmosis technology products cater to the top-tier customers, offering purifiers available in the price range of `9,000`25,000. It is the most effective in-home water treatment technology available, and comprehensively removes a wide range of impurities and chemicals, making water completely safe for drinking. Kent and Aquaguard are the dominant brands in this particular market. Other brands, such as Whirlpool, Zero B, and Usha Brita are in the vicinity of sales at around 25,000 units each. The unorganized sector continues to have a market share in this segment at 30 percent at 150,000 units. In total, the RO based segment in 2009 was estimated to be at 500,000 units. The ultraviolet technology purifiers are appearing to be steadily losing ground to their counterparts. In 2009 this segment was estimated at 830,000 units. Aquaguard commands the largest market share in this segment, at 70 percent. Other brands active in this category include Philips, Kent, Usha Brita, and Alfaa. The products are retailed in the unit price range of `4,000`9,000. While many companies are present in the offline purifier segment market, Hindustan Unilever dominates it with a 70 percent market share. Kent and Aquaguard are also brands which

Market dynamics
The Indian market is upbeat on water purifiers. Currently, there are 5-6 million homes owning water purifiers out of a total of 220 million households nationwide, which amounts to an industry, for the organized segment name-brands, of `1,500 crore per annum. However, this does not include the `900 crore produced within the unorganized segment of small and local manufacturers. In terms of a consolidated level, this amounts to a 6 percent level of penetration. Undoubtedly, the potential is enormous, and is predicted to be well on its way to an annual growth path of 20 percent for the next couple of years. During the course of the last few

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are aggressive in the offline purifier segment. In addition, some presence is found from Zero B and Usha Brita, among other major players. Tata Chemicals has recently entered this market in December of 2009. Catering to the masses, in 2009-10 this market has been estimated at 1.8 million units. Companies pride themselves on being able to offer products providing safe water at only `0.10 `0.20 cost-per-liter. The products are retailed in the lowest price range of `500`3,200. Talking business logic, the first answer starts by viewing water purifiers as a commodity, an economic good that must be well-developed and efficiently managed to result in high quality of service for consumers. The second one sees clean water as a fundamental necessity and right for every human being. Arguably, the public deserves both high quality with efficient service delivery and basic needs ensured for all. Both perspectives seem to be within the strategies plans for major manufacturers, with extensive ranges available and a wide spectrum of prices making this amenity fit any budget and available to all. There is clearly a huge amount of opportunity to be had in the water purification market. With penetration of water purifiers at 6 percent in urban India and 1 percent in rural India, this market is poised to grow at a CAGR of 24 percent between 2010 and 2013. The drivers of growth of the water purification market include scarcity of clean drinking water, the untapped market, increasing urbanization, and the spate of water borne diseases. Challenges can be summed up by the lack of standards for the purification industry and the low levels of awareness compared with the total population of the nation. With the increase of low cost purifiers entering the market, there is a growing popularity of these products. Since a large portion of the Indian population has very low levels of disposable income, these low-cost purifiers are also expanding the size of the water purifier market.

their appliance distribution network. Later entrants, such as Whirlpool, launched their products with demos through the extensive network of trade partners, and product features being communicated thoroughly for interested consumers. The extension to small appliance outlets has been through distributors specialized in this channel. Also, different players are moving on to tactical measures in order to differentiate themselves from the competition. To strengthen its share in the water purifier market, Kent RO Systems Ltd. has entered retail marketing directly, through exclusive stores called Kent Shoppes.

Major players
Water purifiers started at the top of the pyramid, but with a large number of models in the higher end of the market, the companies have moved to the middle and lower ends of the pyramid too. The market is poised to witness fierce competition as a result of this shift. The dominant players in the market are Hindustan Unilever Limited, Eureka Forbes, and Kent. The other aggressive players are Ion Exchange, Usha Brita, Whirlpool, Philips, and the recent entrant, Tata Chemicals. Hindustan Unilever is popular model Pureit does not need running water or electricity to purify water. It is available in three variants depending on the level of capacity. The lowest-priced version retails at `1,000 while the most expensive version is `3,200. Pureit uses a three-step filtration process and claims that the water that comes out at the end of it meets American standards for killing bacteria, viruses, and parasites. Eureka Forbes has a large product range which includes Aquaguard, Aquaguard RO, Aquaguard Storage, and Heavy Metal Remover; with various models in each segment. Eureka Forbes has recently launched AquaSure, powered with SureKit Shield. It offers units that utilize conventional filtering techniques along with those using reverse osmosis and ultraviolet light. Forbes has also been awarded a gold seal from the Water Quality Association in the US, testifying to the purification capabilities of their products. Kent RO Systems has a wide range of mid-end to high-end purifiers. The company has six models, Grand, Pearl, Excell, Supreme, Pride,
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Distribution trends
The early distribution trend propagated by Eureka Forbes that became prevalent among the players was door-to-door sales activity. However, as multinationals entered this business, the companies chose to leverage

and Elite in the RO category; five models, Gold Plus, Gold, Gold Optima, Gold Cool, and Crystal in the UF Gravity category; and Kent Ultra in the UV category, as well as a Kent UF Tap water purifier. Amongst the newest additions, is the companys entry level purifier, Kent Gold Optima, which is retailed at `1,250. Tata Chemicals offers two variants of its extremely price-competitive water purifier, Swach aimed at providing safe drinking water to every Indian household. Swach Smart and Swach Smart Magic are priced at `749 and `499, respectively.

developing-world partners like direct-sales giant Eureka Forbes in India, WAL in South America and the Middle East, Chanitex in China and Everest in Brazil.

Global standards
The Water Quality Associations Gold Seal Certification Program is dedicated to providing public health and safety services throughout the USA and globally, while maintaining expert service, a superior reputation, and fair pricing. The Gold Seal Program offers certification of all products and chemicals that contact drinking water. WQA (Water Quality Association, USA) awards the Gold Seal to those systems, components or additives that have met or exceeded industry standards for contaminant reduction, structural integrity, and material safety. The Gold Seal represents the oldest independent third-party testing and certification program in the water quality improvement industry.

Globally, the market for water purification home products, providing cheap, yet powerful purifying technology to run filters or dispensers is estimated at `76,800 crore (USD 16 billion) in 2010.

Usha Brita has a range comprising of Waterguard Aviva, Waterguard Splash, and Waterguard Crystal. The Waterguard Crystal offers auto spill-proof purification with a 3 stage purification process, whereas Waterguard Aviva and RO Splash are six stage wall mounted and counter-top water purifiers with a combination of RO+UF+UV+TDS controllers. The company has launched Spring Water Guard, a new variant in the offline category; it offers a taste enhancer feature and G-boiling technology. Auto spillproof purification with a 3 stage purification process, achieves chemical-free and bacteriafree water, at a very minimal cost. Whirlpool currently offers innovative products with reverse osmosis technology and sells through the trade channel. The RO range is marketed as Whirlpools Purafresh. It has a silver impregnated cartridge in its storage tank, ensuring that the processed water remains completely pure, even while in storage. The Purafresh range also has Direct Flow RO, which dispenses water at the touch of a button, with a sensor that signals when a filter needs to be changed. The product is endorsed by the Water Quality Association of the USA.

New developments
Scientists in South Africa have come up with a novel way of purifying water on a small scale using a sachet resembling a tea bag, but instead of imparting flavor to the water, the bag absorbs toxins, filters out and kills bacteria, and cleans the water. The bag was developed by scientists at Stellenbosch University in South Africa to help communities with no water purification facilities to clean their water. The bags are made of inexpensive tea bag material and contain nano-scale antimicrobial fibers that filter out contaminants and microbes, and granules of activated carbon that kill the bacteria. The filter presents a decentralized, point-of-use technology. As such, it could find acceptance in the places where it is needed and where there is insufficient infrastructure for piped water. In the Indian market, the excitement is being focused on which brand will reign supreme and become a lasting household name associated with water purification. The potential lies in not just the top or bottom, but all parts of the pyramid. Each brand is identifying its niche, taking this business very seriously and looking at increasing their respective shares in the market. Research conducted in September 2010

Global scenario
One billion people currently do not have regular access to clean drinking water, according to the World Health Organization. In countries such as China, the market for purifying water at home is growing by more than 30 percent per year. Globally, the market for water purification home products, providing cheap, yet powerful purifying technology to run filters or dispensers is estimated at `76,800 crore (US$ 16 billion) in 2010. This includes familiar western brands such as Brita and Pr, as well as

80 | TV VEOPAR JOURNAL | APRIL 11 | adi-media.com | An ADI Media Publication