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
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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
11 Copyright @ 2014 ValueNotes Database Pvt Ltd. All rights reserved
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 &
Appendix Industry Analysis
Profiles of key players
Industry Structure
Executive Summary
Drivers & Inhibitors
Industry Trends
Competitive Environment
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 &
Appendix Industry Analysis
Profiles of key players
Industry Structure
Executive Summary
Drivers & Inhibitors
Industry Trends
Competitive Environment
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 &
Appendix Industry Analysis
Profiles of key players
Industry Structure
Executive Summary
Drivers & Inhibitors
Industry Trends
Competitive Environment
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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 &
Appendix Industry Analysis
Profiles of key players
Industry Structure
Executive Summary
Drivers & Inhibitors
Industry Trends
Competitive Environment
Usage of “Three point analysis” to arrive at growth figures: - xxxxxxxxxxxxxxxxxxxxx - Xxxxxxxxxxxxxxxxxxxxx - xxxxxxxxxxxxxxxxxxxxx
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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
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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
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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 &
Appendix Industry Analysis
Profiles of key players
Industry Structure
Executive Summary
Drivers & Inhibitors
Industry Trends
Competitive Environment
Mixer and grinders
x%
Water purifiers
x%
Microwaves x%
Others x%
17 Copyright @ 2014 ValueNotes Database Pvt Ltd. All rights reserved
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 &
Appendix Industry Analysis
Profiles of key players
Industry Structure
Executive Summary
Drivers & Inhibitors
Industry Trends
Competitive Environment