Home Water Purifier Industry ValueNotes India … Water Purifier Industry ValueNotes India Market Intelligence Dashboard Market share of top 5 firms = 65% Output in organized sector

t Home Water Purifier Industry ValueNotes India Market Intelligence Dashboard

Market share of top 5 firms = 65% Output in organized sector = 75%

Organized Sector Concentration

Macro Data: Market size, growth, market shares of key players, customer segments, key industry metrics

Micro Data: Segmental market size & growth, financials of key players

Completeness: All data points is available Quality: Accuracy of data

Recency: Latest period data is available

Source of Data

Data Availability

In

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Stru

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Central Water Board

Company websites, news articles, WHO, World Bank

N/A

Copyright © 2014 ValueNotes Database Pvt Ltd. All rights reserved. www.valuenotes .biz 2014

Completeness

Quality

Recency

Macro Data

Micro Data

Government Bodies

Trade interviews , etc

Market Size and Growth

Industry Segmentation

The home water purifier industry in India is valued at INR 34bn (~USD 567m) in FY 2014 and has been growing at CAGR 20% for the last three years

The industry is expected to grow at CAGR of 22% up to FY 2019

ValueNotes estimates that the home water purifier industry will be worth approximately INR 91.9bn (~USD 1.53bn) by FY 2019

The RO segment water purifier has the highest contribution i.e. 39% share by value in home purifiers market, as they are expensive compared to the offline and UV purifiers

The offline water purifiers units are sold more in volume since they are the most economical units available in the market. This segment is also growing at a fast pace i.e. more than 25% per year, being the most cost effective way to safe drinking water and better health

Key Players

More than 75% of the industry is currently organized with Eureka Forbes, Kent RO, HUL, Tata Chemicals and Ion Exchange being the market leaders. The market share of organized players is expected to grow in the next five years as water purifiers is a research oriented industry with high capital costs

9 Copyright @ 2014 ValueNotes Database Pvt Ltd. All rights reserved

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The home water purifier industry in India has been given an Industry Attractiveness Rating of 7.5 as per the ‘ValueNotes Industry Attractiveness Rating Evaluation System’.

Drivers and Challenges

Drivers:

Scarcity of clean drinking water, low penetration of water purifiers, and increasing health consciousness of consumers have led to growth in the industry

Challenges:

The industry lacks government standards for purifiers, and the awareness about the products is low

TOC Market

Overview Annexure &

Appendix Industry Analysis

Profiles of key players

Industry Structure

Executive Summary

Drivers & Inhibitors

Industry Trends

Competitive Environment

Industry Structure

Picture Courtesy: www.info.wowlogistics.com

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Home appliance industry in India

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Home appliances

Shiny Goods (Consumer electronics)

Brown Goods (Small appliances)

White Goods (Major appliances)

Large household appliances like refrigerators, washing machines, etc.; formerly finished with white enamel, but now often colored

These are electronic equipments for everyday use. This segment includes devices like phones, computers, cameras ,etc.

Microwave/ Ovens

Televisions

Water Purifiers

Others Heaters, dryers, mixers etc)

Relatively light electronic consumer durables such as TVs, radios and ovens, which are distinct from heavy consumer durables such as air conditioners and refrigerators

TOC Market

Overview Annexure &



Industry Structure

Executive Summary


Industry Trends


Copyright @ 2014 ValueNotes Database Pvt Ltd. All rights reserved 12

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The home water purifier Industry has under gone a shift in technologies

Late 1990s

Techniques like sand water

filters, Electric UV water

purifiers were used to purify

water

As municipal water treatment

facilities sought to increase the

quality and purity of public

water supplies, more and more

cities began to implement

chlorine into their water

treatment process

2000 – 2010

It was discovered that even

after water was purified at a

municipal water treatment

plant, it often picked up lead

and other chemicals when

traveling through a home’s

plumbing system

This led to increased usage of

Bottled water and RO purifiers

In the mid '00s, a range of

offline water purifiers were

introduced

Current situation (2011 onwards)

Based on consumers expectation

and needs, companies are

innovating, and products like

mobile water purifiers, ‘RO + UV’

purifiers have been recently

launched in the market

Companies are shifting from the

current direct supply chain and

are experimenting with different

channels such as retail

Entry of new MNC players in the

market is being witnessed

Earlier

The earliest recorded attempts

to generate pure water date

back to 2000 BC. Sanskrit

writings have also outlined

water purification methods like

boiling or placing hot metal

instruments in water before

drinking it

Centuries later Hippocrates,

designed water filter known as

'Hippocratic sleeve' - which is a

cloth bag through which water

can be poured after boiling

TOC Market

Overview Annexure &



Industry Structure

Executive Summary


Industry Trends


Copyright @ 2014 ValueNotes Database Pvt Ltd. All rights reserved 13

This report covers:

• The current scenario for the domestic water purifier Industry in

India including RO, UV and offline purifiers

• This report does not cover:

• Commercial / Industrial water purifiers

• Water treatment plants and equipments

• Water coolers

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Def

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The water purifiers are machines which aid in the process of eliminating undesirable chemicals, contaminations and sediments from water. The

objective is to produce water fit for a specific purpose.

Definition of home water purifiers

Offline / Gravity Reverse Osmosis (RO) Ultra Violet (UV)

•RO is a method of producing pure water by forcing saline or impure water through a semi-permeable membrane across which salts or impurities cannot pass. Reverse Osmosis is used for water filtration, desalination of sea water and in kidney dialysis machines. •The pressure of water is used to push across the membrane and the impurities and dissolved solids are left behind in the membrane.

•UV water purifiers use ultra violet rays. Ultraviolet systems use special lamps or bulbs that emit UV light of a particular wavelength. •Now companies add UV based purification stage after the initial RO filtration to the water purifiers. The RO purifiers are good at removing impurities in water but it may not be capable of removing micro organisms.

•The storage water filters are the most economical way of purifying water and getting safe water to drink. The only drawback is that they are slow in purifying water. They use chlorine and carbon based techniques to purify water. Chlorine kills pathogens like bacteria and viruses by breaking the chemical bond of the molecules.

Home water purifiers

TOC Market

Overview Annexure &



Industry Structure

Executive Summary


Industry Trends



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Direct sales plays an important role in educating the consumers in the Industry

Exports

Intermediaries

Manufacturers

Sales channels Suppliers

Importers

Distributors

Traditional Retail outlets

Organized retail outlets

End Consumers

Consumption Zone

Sales person (~30% sales is

through direct selling)

Eureka Forbes is regarded as the pioneer in the direct marketing when it comes to water purifiers in India. Direct marketing has helped the

company gain market leadership position in the water purifiers industry. Later they shifted to retail marketing to increase product visibility and

drive sales

Some companies sell certain products through retail stores, while others that require education or demonstration are sold through direct

marketing

TOC Market

Overview Annexure &



Industry Structure

Executive Summary


Industry Trends


Market Overview

Usage of “Three point analysis” to arrive at growth figures: - xxxxxxxxxxxxxxxxxxxxx - Xxxxxxxxxxxxxxxxxxxxx - xxxxxxxxxxxxxxxxxxxxx


Chart 2: Home water purifier market size & growth (INR billion)

The estimated growth of ‘the home water purifier industry’ is based on various factors* including:

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Source: Trade interviews, ValueNotes Analysis

Current market

Estimated growth

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Size

& G

row

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Industry Attractiveness

Home water purifier industry is expected to grow at ~22% CAGR in the next 5 years

CAGR xx%

CAGR xx%

Chart 1: Share of home water purifiers in small appliances

xx xx

xx xx

xx

xx

xx

xx

xx

xx

xx xx

xx

xx

xx

xx

xx

xx

xx

xx

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

CAGR x%

CAGR x%

Others includes heaters, dryers, coffee makers, etc.

Optimistic Most Likely Pessimistic

TOC Market

Overview Annexure &



Industry Structure

Executive Summary


Industry Trends


Mixer and grinders

x%

Water purifiers

x%

Microwaves x%

Others x%


Source: Trade interviews, ValueNotes Research

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Chart 3: Water purifier market in India for FY 2014 segmented by product type

Though the contribution of RO segment is higher, the offline segment is growing fast RO Filters

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UV Filters

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Offline Filters

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RO, xx%

UV, xx%

Offline, xx%

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- Trade interview

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- Trade interview

TOC Market

Overview Annexure &



Industry Structure

Executive Summary


Industry Trends


Home Water Purifier Industry ValueNotes India … Water Purifier Industry ValueNotes India Market Intelligence Dashboard Market share of top 5 firms = 65% Output in organized sector

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