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Business as usual for bottled water firms

August 07, 2003 07:56 IST
By BS Corporate Bureau in New Delhi

Six months after the Centre for Science and Environment came out with a report on pesticides in packaged drinking water, the industry has not felt the need to invest in upgraded processes.

Contesting the CSE findings, packaged water producers like Bisleri, Coca-Cola and Pepsi said their facilities met World Health Organisation as well as Codex norms and there was no need to upgrade.

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The Bureau of Indian Standards has in the interim surveyed water manufacturing facilities across the country. It took action against 30 water bottling units, including those of Pepsi and Bisleri. It also issued a warning to a Coca-Cola water bottling plant.

Yet the packaged water market has grown 20 per cent since the CSE's February report, though sales dropped 15-20 per cent immediately after it was made public.

Bisleri claims a 50 per cent growth in sales. Pepsi has grown its market share by 75 per cent and Coca-Cola notched a 25-30 per cent growth despite a 20 per cent rise in prices.

The market shares of these companies also climbed, suggesting the sales of the smaller water brands dropped substantially after the study. The smaller companies have shifted their distribution to smaller towns, where awareness of standards is low.

Water facts

BS Corporate Bureau in New Delhi

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