Tata Tea, which owns a 31.73 per cent stake in Mount Everest, has launched a premium water brand Himalayan in the country which commands about half of the natural mineral water segment. Now, the company seeks to expand its portfolio by introducing new brands in the Rs 1,500 crore (Rs 15 billion) packaged drinking water market through its unit, Mount Everest Mineral Water. Pradeep Poddar, managing director and CEO, Mount Everest, spoke to Suvi Dogra about the opportunities in the domestic market. Edited excerpts:
You are in the process of rolling out Himalayan across the country. Are you looking at expanding your brand portfolio?
Our vision is to create next generation beverages with water placed on the wellness platform. The Himalayan brand is our first step in this direction and will be available across the country in the next 6-9 months. We can now explore and create new categories according to the different hydration needs of the consumers. There is great potential in this business and we wish to provide water as an esoteric experience. So there could be brand extensions or new brands that provide a holistic, value-added experience by way of fortification and enhancement.
Apart from institutional and retail channels, are you looking at other ways for enhancing the Himalayan brand equity?
We have strategic tie-ups with movie multiplexes such as PVR and INOX, hotel chains such as the Taj and Oberoi, airlines such as Jet Airways. We are open to joint branding of our product with players in the airlines and hotel sectors .We are also looking at hospitals where the sentiment of water and wellness can be promoted. Schools can also provide similar opportunities.
Himalayan caters to the premium end of the market but regular packaged water still accounts for the larger part of the market. Do you plan to enter the segment?
Natural mineral water as a category is worth around Rs 100 crore (Rs 1 billion). We want to cater to people across all social strata. We wish to make safe drinking water affordable and will introduce low-priced bottled water. Still water as a category is very challenging.
Are you looking at acquisitions as a way to expand your brand portfolio?
Yes, we are looking at potential opportunities always evaluating the market. We consistently assess different geographies and their markets. If there is an attractive enough proposition, we are open to it. While we do think that mineral water aquifers are hard to find, we may find some options for other segments.
What about exporting the brand?
We do wish to sell the brand in strategic markets. To begin with, we need to build the brand in India. The Tata group is already marketing beverages such as tea and coffee worldwide and we are in the process of identifying the markets for Himalayan. But it is still early days.
Mount Everest has been in a tussle with Bisleri over the use of the brand name Himalayan for a while. What is the situation now?
The matter is sub-judice and I would not like to comment. All I can say is that we're clear about our brand and what it stands for.