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INDUSTRY
By
Anshul Ghiya
Vikas Jain
Shruti Khandelwal
Some Hard
facts:
• 1 in every 10 diseases and 6% of all deaths globally
are caused by lack of Sanitation
• In India – 1.03 crore people die annually
7.8 lakh (~7.5%) deaths are related to water,
sanitation and hygiene
3
What is a water purifier?
• A water Purifier is a device that removes contaminants
such as parasites, algae, viruses, bacteria, minerals,
fungi, toxic metals, and manmade chemical pollutants
from water. Water purifiers remove these contaminants
from raw water to make it pure and safe for human
consumption. They also improve water odour, taste,
and appearance.
• It is a large unit that usually stands beside the sink or
under the counter and that is attached to the top or the
side of the tap by a hose.
Features of a Good Water
Purifier:
• It should Retain natural quality of water.
• Absolutely safe for drinking purpose as per WHO standards.
• User friendly features.
• Long Life.
• In-built storage tank.
• Avoids all contamination with last point purification.
• Low Maintenance.
Types of water purifiers
• Reverse Osmosis
• Carbon Filters
• Ion Exchange based
• UV based
• Integrated
PORTER’S FIVE FORCE
MODEL FOR WATER
PURIFIER INDUSTRY
Threat of new Entrants- High
Market entry barrier is not High.
Brand Identity.
•
Pressure From Substitute
product - Medium
• Packaged drinking water.
• Boiled water.
• Tablet Purifier
Bargaining power of Suppliers –
--High
Industry
Competitiveness
Supplier’s Customers
/
Suppliers: Market Share Customers:
- Supplier's product is an important input to the -Customers are price sensitive
Rs. 1500 crores -Spreading towards rural areas with
buyer’s business
-Number of suppliers are also few. Increased awareness and health
-Supplier to buyer ratio. consciousness
-Buyer switching suppliers based on
Threat from Substitutes: prices and value added services
-Packaged drinking water
-Ground water / Municipal Technology
Supplies Technology:
-Chemical distributed by -Reverse Osmosis
government to clean water Substitutes -Ozone Treatment
-Boiled water -Resin based
-Tablet Purifier -UV based
INDUSTRY
ATTRACTIVENESS
Why is the Water Purifier Business
Attractive in the Current Market
Scenario?
• Water is a $400 billion global business.
15
GLOBAL WATER MARKET
• More than 97% of the
world’s water reserves are
salt water, contained in the
Earth’s oceans.
reserves is accessible.
16
Water Scarcity
• Among countries likely to run short of water in
the next 25 years are Ethiopia, India, Kenya,
Nigeria, and Peru. Parts of other large countries,
such as China, already face chronic water
problems.
17
Water Scarcity
18
Penetration of household
water purifiers in India
Source: R S Rajan, vice president, consumer marketing, Ion Exchange India Limited, Mumbai, personal
communications, February 20, 2008
Major players in INDIAN
MARKET
• Eureka Forbes
• Philips
• Kent
• Tata
• Jaipan
• Kenstar
• Whirlpool
• Others
Cost Wise Market
Segmentation
• Lower Segment
• Lower Middle Segment
• Upper Middle Segment
• Upper Segment
COST WISE DISTRIBUTION
Cost of Filter Houses (%)
<1,000 13
1,000 to 9
2,500
2,500 to 28
5,000
>5,000 50
ANY
QUERIES
??
Slide No. 24