As the penetration level of purifiers is minuscule, there is space for new players to enter
Looking for water purifiers? Forget the ones who come knocking on door persuading you to buy one explaining how important water purifiers are for one’s own safety.
Just click on Yellow Pages directory and you will come across hundreds of names providing the same in different Indian cities. Add to this the big names like Eureka Forbes, Kent, Phillips, Ion Exchange, the new entrant Whirlpool and you will find the list quite exhaustive. The underlying message is clear – business of water purification machines is lucrative, growing and is here to stay. The exact size of the market is difficult to estimate with any accuracy, considering different claims made by different players. What emerges as consensus is that the market is definitely worth over Rs 1,000 crore. While Whirlpool estimates it to be Rs 1,400 crore (in April 2008 when it entered water purification market) industry, Eureka Forbes put figures at Rs 1,000 crore, Mumbai-based Ion Exchange at Rs 800 crore, and consultancy firm Frost and Sullivan describes it as Rs 1,400 crore business.
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Types and uses
There are several kinds of purifiers in the market. Most popular types are RO (reverse osmosis), and UV (ultraviolet) based. Besides these, there are simple candle filter purifiers, softener plants, and distill water plants (used for commercial purposes alone).
UV based water purifier systems used to be sold more than RO purifier systems till recently, but things have begun to change. According to Frost and Sullivan, roughly 41 percent of all purifiers sold in India are now RO based. This is quite high considering the world average of only 11 percent.
Not all purifiers should be sold everywhere, but the bias towards RO purifiers seem so imminent. RO purifiers should be used at only those places where total dissolved solid (TSD) count in water is more than 100 ppm (parts per million). Below this, UV purifiers are recommended, but RO purifiers seem to be a clear favorite among people.
“I have not sold any UV (Ultra Violet) based purifier in the last 3-4 months. I would say the sale of late has been almost 50-50 between UV and RO purifiers,” says Amit Thakur, MD, Swastik Enterprises, a Delhi-based company selling its own brand of water purifiers.
RO purifiers are preferable for ground water usage, or where water is hard or salty.
Amit says, “In water supplied by Delhi Jal Board, TDS count is between 90-150 ppm. RO is still advised in Delhi because corporation water often contains excess fluoride, calcium, magnesium, and even nitrate, ammonia and pesticides.”
RO leaves only 10 percent ppm of TDS after purification. However, TDS count below 50 ppm is good for human health. RO may, therefore, actually deprive water of beneficial minerals also. Perhaps this explains why Kent has come up with a new solution. It has attached a TDS mixture with membrane, a vital component in purification of water in RO purifiers. TDS mixture allows some water to go straight to storage tank and mix with the purified water. This helps in maintaining the optimum TDS count, saving water from being deprived of necessary minerals.
| Major players |
| 1. Eureka Forbes |
| 2. Kent |
| 3. Ion Exchange |
| 4. Usha Breta |
| 5. Phillips |
| 6. Luminous |
| 7. Whirlpool |
| 8. Hindustan Lever |
Driving force
Disagreements may exist as far as estimates of the real size of the market is concerned, but there is no denial that the market is growing, and that too at impressive rate. There is no unanimity even in assessing the growth rate though. Claims range from 12 to 20 percent.
“Everyone gets business – branded companies, companies in the unorganized sector, and even those going door to door independently,”says Amit.
So, what drives the market for water purifiers? Is it the fear of getting infected by water borne diseases, or is it the low penetration level of the purifiers at the moment which is driving the sector at a phenomenal rate? It seems to be a bit of both. Origin of around 25 percent of all diseases in India is attributed to water. Awareness to protect against water borne diseases has increased, and along with it has increased the income of Indians. People have now more income to dispense with than ever before. Penetration level of purifiers is still abysmally low in the country, with the highest penetration level recorded in Delhi, where the figures stand at 25 percent. Contrast this to the figure of 0.42 percent in Bihar, and less than 5 percent for Gujarat, Tamil Nadu, Punjab and Karnataka, and one can find the logic behind the fast paced growth seen in the purifying business.
Market and major players
There are players in both organized and unorganized sectors, with the contribution of the unorganized sector in overall business being 45 percent, says Frost and Sullivan in its report. Eureka Forbes, Kent, Usha Breta, and Ion exchange are the major organized players. Whirlpool has started in April this year (2008). Besides these, there are the cheaper Chinese products as well.
Amit says, “Sale of Chinese products is minuscule. I do not know about market statistics, but my experience says organized and unorganized players sell almost the same number
(of purifiers).”
Eureka Forbes is the leader, followed by Kent and Ion Exchange, says Amit, who is in the process of establishing a name for his own company’s branded products. Whirlpool officials do authenticate what Amit says. According to one of his officials, penetration level of purifiers in India as a whole still stands at less than 1 percent, with penetration in Tier I city being close to 35 percent, and in Tier II cities at only 11 percent.
He says, “There is huge scope right now at different price points.”
No wonder Whirlpool products are priced between Rs 14,450 and Rs 22,950, a bit higher than even the products of other established players. Organized players usually sell their branded UV purifiers between Rs 7,500 and Rs 10,000, while unorganized players sell the same for anything between Rs 5,000 and Rs 7,500, and the Chinese UV purifiers are priced between Rs 3,500 and Rs 4,500. As far as RO purifiers are concerned, the Chinese ones are at the lowest rung again, selling at anything between Rs 5,500 and Rs 7,500. Unbranded good quality RO products are sold between Rs 9,000 and Rs 12,000, while branded RO purifiers range between Rs 12,000 and Rs 18,000.
Candle purifiers, which are in demand only at those places where there is no electricity and water supply, sell between Rs 3,000 and Rs 4,500.
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written by Amlesh, April 19, 2011
I want to start water purifire systm plz tell me how can i start ? plz reply me as soon as possnible.
thank you...
written by lakhwinder kumar, August 17, 2010
written by Naresh Khubani, August 14, 2010
written by murleee, August 10, 2010
I am Interested to start the RO Water Purification business in small scale, targeting houses and small enterprises. Can you please sugest me is there is any permission required from the authority to start this business? Please suggest venkat.ka@gmail.com
Thanks & Regards,
Venkat
Bangalore
written by kent water purifier models, June 21, 2010
written by shibu, March 07, 2010
great article....i am planning to start to water packet business could you please guide me hw to go about it...coz i find you as the right person to consult...i want to explore the water business so plese help...my mail id shibutewar@gmail.com
written by GK, January 29, 2010
written by asher jai, January 25, 2010
this i would call a perfect business opportunity
can u help me know how to get started, the techniques and methods involved in its production and other things
george_asher this is my email id plz communicate on this
written by Kuldip kapoor, January 18, 2010
Agree with you. Water purifires is a big business and lot of potential in coming years. I shall be interested in the project in big way. can you pls contact me at 91 9212632802.
written by riddhi, January 17, 2010
If you can help me to get the project report and supplier details to kick start as fast as possible.
written by Sreenivas Reddy, November 04, 2009
Am very much interested to start this business,can u provide me details, how to making or start this business. hope you will help me.
Thanking you
Sreenivas Reddy
written by Vishal, October 27, 2009
I am interested in knowing more about the project that you are doing in the water purifier business. Would it be possible to get in touch with me at vishal_mehta@hotmail.com
written by Navida, August 23, 2009
written by Navida, August 23, 2009
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wt should b my target audience.
nybdy to join send ur drsume to shubham989996@gmail.com