Professional Documents
Culture Documents
Introduction
All living things need water. The Earth is full of water. Water is the most essential
element, next to air, to our survival. Water makes up more than two thirds of the weight
of the human body, and without it, we would die in a few days. Water is important to
complete daily life and to maintain our body health. Thirty years ago packaged drinking
water barely existed. Nowadays the product forms an essential business by its stable and
still growing market locally and globally. Packaged drinking water can be described as
any product, including natural spring or well water, taken from municipal or private
utility systems or other water, distilled water or any of the foregoing to which chemicals
may be added and which are put into sealed bottles, packages or other containers, to be
sold for domestic consumption or culinary use. In 2013 the global packaged drinking
water market is forecast to have a value of $94.2 billion, an increase of 41% since 2007.
This increasing trend reveals that the product meets the demand of countless consumers.1
Water is our lifeline that cleans and feeds us. In ancient cultures, water
represented the very essence of life. The Romans were the first to pipe water into their
growing cities, especially with their aqueducts. They also realized that sewage water
could cause damage to people and needed to be removed from the living environment.
Water has played a role not only in the history of countries, but also in religion,
mythology, and art. Water in many religions is symbolised as a soul cleanser and known as
holy water. For example, water at St.Lourdes, France is thought by many religions to be
sacred with healing powers. It brought life to their people, but in drought, produced chaos.
Water has always been perceived as a gift from the gods, as it rained from the heavens.
1
Department of Health, New York State 2006, February, Bottled water frequently-asked questions.
Retrieved from http://www.health.state.ny.us/. Last accessed on January 28, 2010
66
Water is not only important to human beings, but also for every living thing needs
it to live. It has helped form the Earth as we know it, and it covers over 70 per cent of the
Earth. Even where there is land, much of it is covered by ice, which is obviously just
solid water.
The earliest bottled water company was founded in the United States in the
middle of the 19th century. In 1845, the Ricker family of Maine bottled and sold water
from a so far unidentified source. Their small operation quickly grew; capitalizing on the
springs supposed medicinal properties, eventually became the Poland Springs water
company. Mirroring the Ricker success, in 1905, the Ozarka Spring Water Company was
founded in Eureka Springs, Arkansas. Since then, bottled water landscape has expanded
tremendously. This expansion has come mostly recently, and it seems to be the
acceleration of a slowly expanding industry. Between the early part of the 20th century
and its end, there was little activity in the bottled water industry.
Bottling companies eventually formed their own lobbing group in 1950 in order to
promote their product, and have only been recently successful. Now, there are hundreds
67
It was in the early 19th century, when the market showed a noticeable change in
Europe and captured a great part of the beverage market share. The real boost of bottled
water commenced in 1968 when the French company Vittel revolutionarily launched
the first plastic bottled water- aimed for general public consumption. With France and
Germany on top with their highest sales in volume, Europe became an established and
leading market.3
People want drinking water that is free of bacteria, sparkling and without an
objectionable take or odour. Water in its natural state seldom has these qualities. So, after
water is drawn from source, it is piped into a treatment plant. The plant put the water
through one or several process, depending on the quality of the untreated water, and the
citys standards. Many cities use three levels of processing which are:
ii. Filtrations
iii. Disinfection
Variety of Packages
2
Mark Miller, Bottled water: why is it so big? Causes for the rapid growth of bottled water industries,
Honors thesis, Presented to the Honors Committee of Texas state university, San Marcos, May 2006
3
Finlayson, D. (2005). Market development of bottled waters. In D. Senior and N. Dege (2nd ed.),
Technology of bottled water (p.6). UK: Blackwell Publishing
68
i. Artesian well water: Water from a well that taps an aquifer--layers of porous
rock, sand and earth that contain water which is under pressure from surrounding
upper layers of rock or clay.
ii. Mineral water: Water from an underground source that contains at least 250 parts
per million total dissolved solids. Minerals and trace elements must come from
the source of the underground water. They cannot be added later.
iii. Spring water: Derived from an underground formation from which water flows
naturally to the earth's surface. Spring water must be collected only at the spring or
through a borehole tapping the underground formation feeding the spring. If some
external force is used to collect the water through a borehole, the water must have the
same composition and quality as the water that naturally flows to the surface.
iv. Well water: Water from a hole, bored or drilled into the ground, which taps into
an aquifer.
v. Tap Water: Some bottled water also comes from municipal source in other
words the tap. Municipal water is usually treated before it is bottled.
69
Physical Contamination: Caused due to contaminants like mud, sand, odour, colour,
algae, fungus herminths etc.
Bottled water represents a key segment of the global beverage market. Market
stimulants for bottled water include rising population, consumer spending patterns,
lifestyle trends, and growing levels of health consciousness, among others. Bottled water
is also gaining prominence due to growing consumer concerns about fitness, water
quality and health. The major challenge for most companies is product innovation and
differentiation of water.
Bottled water is mostly sold in plastic containers ranging from small eight ounce
or half litre containers to multi-gallon bottles. Globally, bottled water industry is
estimated to use about 2.7 million tons of plastics each year, for the vast majority of
water bottles in the shape of polyethylene terephthalate (PET)
Table -3.1
GLOBAL BOTTLED WATER MARKET
Share of Consumption by Region 2005-2010 (in %)
Region 2005 2006 2007 2008 2009 2010
North America 30.2 30.7 31.2 30.8 30.3 29.8
Asia 22.9 23.6 24.9 26.3 27.1 28.5
Europe 34.3 33.5 31.3 30.1 28.9 28.1
South America 9.1 8.8 9.2 9.4 10.2 10.1
Africa/Mideast/Oceania 3.5 3.4 3.4 3.5 3.5 3.5
Total 100 100 100 100 100 100
Source: Global bottled water market www.ausfoodnews.com.au/
70
Figure -3.1
Source: Palmer (2010) Bottled water industry gets boost from developing industry,
www.ausfoodnews.com.au/
It is evident from figure-3.1 that North America is leading at 30 per cent volume
of region-wise consumption of bottled water. Europe, Asia at 28 per cent and the
remaining 14 per cent by all other regions.
71
Figure 3.2 shows that there is a continuous and sustainable increase in the
consumption of bottled water in the global consumption from year 2000-2010.
Market Growth
After several leading years, the European and North American market
deteriorated to some extent over the last years. The report of Asia boosts global bottled
water market that these markets showed a decrease in growth in 2008 and 2009 because
of two main reasons. Firstly because of the global recession (consumers are switching to
less expensive options such as tap water), and secondly because of concerns about the
impact of bottled water on the environment. It can be concluded that bottled water is an
extra commodity for many consumers in these countries since financial concerns play a
crucial role. China has boosted the regional and indeed the global market. The rapidly
growing economy of China can be seen as the main driver of this growth. The global
market increased by approximately two per cent in 2009. This is a slowdown in
comparison to previous years, but it also expresses that the bottled water category can
maintain growth in even the most challenging times of trading environments.
72
The value of the global bottled water market increased obviously parallel to the
consumption. In 2012 the global bottled water market is forecast to have a value of $94.2
billion, an increase of 41 per cent since 2007. Despite the decline in growth last year,
consultants expect every region of the market to post growth in 20124
Figure -3.3
Worldwide there are thousands of companies bottling water for profit. Many of
these corporations have grown exponentially. Almost all of these corporations make
phenomenal amounts of money on a resource. They pay very little for the industry
leaders such as Thames Water, Perrier, Vivendi, Suez, Pepsi and Coca-Cola to see how
their profit margins have been on a steady increase over the last decade, in their bottled
water divisions. Bottled water companies fight not only concerned citizens within local
areas, but also fights each other in hopes of being the first to establish their own bottling plants.
Currently, German energy conglomerate RWE and French transnational Vivendi are the two
largest water corporations globally. These giants control almost 40 per cent of the existing
water market shares as they are ranked 51st and 53rd among Fortune's Global 500 List.
4
Drake, I. (2010, January). Asia boosts global bottled water market. Retrieved from
http://www.ausfoodnews.com.au/
5
Datamonitor (2009). Bottled Water: Global Industry Guide. Retrieved from
http://www.researchandmarkets.com/
73
Global bottled water companies have been criticized for their methods. For
example, in Massachusetts and New Hampshire, after the American Water Works had
been sold to German based RWE, the managers of Nashua's water company Pennichuck
decided to post the local company for sale. Then in April 2004, Pennichuck announced
that it had received a $106 million purchase offer from Philadelphia Suburban.
This company is the second largest investor-owned water utility in the United States.
Vivendi owned 17 per cent of Philadelphia Suburban.
Carbonated soft drinks remained, by far, the largest liquid refreshment beverage
category, but they continued to lose both volume and market share. Volume slipped 0.8%
from 13.9 billion gallons in 2009 to 13.8 billion gallons in 2010, which resulted in their
market share moving down from 48 per cent to 47 per cent. Nonetheless, certain soda
trademarks, such as Dr Pepper, Mountain Dew and Sprite, did achieve growth. Moreover,
carbonated soft drinks accounted for five of the 11 biggest beverage trademarks during
2010, with Coca-Cola and Pepsi-Cola retaining their perennial first and second positions.
Bottled water had four entries among the leading trademarks for the first time in
2010 (with two brands essentially tied for the tenth place). Bottled water declined in 2008
and 2009 but recovered in 2010, when volume grew by 3.5 per cent. Four companies
accounted for all of the leading refreshment beverage trademarks. Pepsi-Cola had five
brands, including the sole fruit beverage brand to make the list, Tropicana. Coca-Cola
had three, while Nestl Waters North America (NWNA) and Dr Pepper Snapple Group
(DPSG) had two and one, respectively.6
Various reasons have been reported for the higher trend of bottled water use in
many countries. Some reasons include:
6
Beverage Marketing Corporation Reports
74
There are many possible reasons why bottled water has become such a large
industry and some of those reasons are because of its advantages with regard to ordinary tap
water, according to the large number of advertisements that showcase bottled waters
qualities. Two other important reasons, are its relative convenience, and its safety and purity.
75
Due to the fact that water is usually bottled at its source, it can avoid the possible
contamination that could result in city treatment processes. These processes include
wastewater treatment, river and rainwater collection, contaminated plumbing, and
excessive fluoridation or chlorination. Damaged, broken, or rusting pipes are a health
concern, and are the responsibility of the municipality. Since such entities are typically
76
a. Mineral water is perceived as good for health and the mineral conent gives it a
taste along with therapeutic value.
b. Minerals in the bottled water is easily absorbed by the body compared to minerals
in the food.
c. Mineral water benefits the body by helping it to fight against fungus and bacteria
along with de-oxidizing the body.
d. Regular water purifiers remove all kinds of mineral content from the water;
mineral revitalization water purification systems artificially add minerals back
into the water.
e. These systems give the water the same kinds of minerals that have been removed
during the filtration process.7
Filtered tap water is nothing new, either. Many brands, particularly the largest
brands are simply filtered tap water, and have been sold that way for some time now.
To do this, the bottlers simply hook into the municipal water supply and sell the water.
7
R.Anitha, A study on customer preference toward packaged water in Karur city, Self Journal of Social
Science, ISSN: 0975-9999,Vol.II ; issue:5, pp-11
77
There are real environmental impacts of extracting large volumes of water from
local aquifers and of producing and disposing of plastic containers. It is estimated that
$100 billion are conservatively annually spent to purchase packaged drinking water
worldwide. It is the failure to meet basic human needs for water should not open the door to
replacing a public good with a private commodity, but rather should motivate to spend the
same resources to produce a more widely available, and far less costly, public product.
The majority of the bottling plants are dependent on groundwater. They create
huge water stress in the areas where they operate because groundwater is also the main
source in most places the only source of drinking water in India. This has created huge
conflict between the community and the bottling plants. Private companies in India can
siphon out, exhaust and export groundwater free because the groundwater law in the
country is archaic and not in tune with the realities of modern capitalist societies.
The existing law says that "the person who owns the land owns the groundwater
beneath". This means that, theoretically, a person can buy one square metre of land and
take all the groundwater of the surrounding areas and the law of land cannot object to it.
This law is the core of the conflict between the community and the companies and the
major reason for making the business of bottled water in the country highly lucrative.
India's Ministry of Water Resources has ranked 80 per cent of ground water
resources in Rajasthan as "over- exploited" and nearly 34 per cent resources as "dark/
critical", the gravest ranking across the country.
8
Ibid
78
Water shortage and health awareness driving bottled water consumption in India.
The Indian market is estimated at about Rs 1,000 crores and is growing at a whopping
rate of 40 per cent. By 2010, it will reach Rs 4,000 -5,000 crores with 33 per cent market
for natural mineral water. According to a national-level study, there are more than
200 bottled water brands in India and among them nearly 80 per cent are local brands.
In fact, making bottled water is today a cottage industry in the country. Leave alone the
metros, where a bottled-water manufacturer can be found even in a one-room shop, in
every medium and small city and even in some prosperous rural areas there are bottled
water manufacturers. India ranks in the top 10 largest bottled water consumers in the
world. There is a huge market being exploited by the packaged water industry and several
MNCs are waiting in the wings to expand into the country.
Table- 3.2
Indian Bottled Water Industry is Growing Exponentially
1990-91 2.2
1991-92 2.6
1992-93 3.5
1993-94 4.7
1994-95 6.5
1995-96 8.5
1996-97 11.5
1997-98 15.5
1998-99 20
1999-2000 26
2000-01 33
2001-02 44.5
79
2002-03 55.6
2003-04 68.15
2004-05 82
2005-06 97
2006-07 112.85
2007-08 129.85
2009-10 146.8
2009-10 164.45
2014-15 264*
Estimated (Prediction)
Source: infochangeinidia.org.indiastat.com
Bottled water is still not perceived as a product for masses, though the scene is
changing slowly, thanks to low pricing and aggressive marketing strategies adopted by
new entrants. Penetration in rural areas is another significant factor that is likely to play a
key role in the development of the bottled water trade. The level of prosperity in the
different regions plays a key role in the consumption of bottled water in India.
The western region accounts for 40 per cent of the market and the eastern region just
10 per cent. However, the bottling plants are concentrated in the southern region of the
approximately 1,200 bottling water plants in India, 600 are in Tamil Nadu.
With over a thousand bottled water producers, the Indian bottled water industry is
one of the biggest in the world. There are more than 200 brands, nearly 80 per cent of
which are local/small-scale. Most of the small-scale producers sell non-branded products
and serve small markets (waterstocks.com). Despite the large number of small producers,
this industry is dominated by the big players - Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro,
and SKN Breweries. Bottled water business in India can be divided broadly into three segments
80
While the single largest share in the mineral water market might still belong to an
Indian brand Parles $52 million Bisleri brand has a 40 per cent share -- multi-national
corporations are not far behind. Nestle and Danone are vying to purchase Bisleri, and
Pepsi's Aquafina and Coke's Kinley brands have been extremely successful in edging out
many of the small and medium players due to buy-outs and exclusive licensing deals.
Kinley and Aquafina are fast catching up, with Kinley holding 20-25 per cent of the
market and Aquafina approximately 11 per cent. The rest, including the smaller players,
have 20-25 per cent of the market share. The Indian bottled water market, which has
more than 250 brands, is expected to undergo a major consolidation phase.
Mineral bottled water in India under the name 'Bisleri' was first introduced in
Mumbai by Bisleri Ltd., a company of Italian origin in 1965. Mineral bottled waters were
in glass bottles in two varieties - bubbly and still in 1965. This company was started by
Signor Felice who first brought the idea of selling bottled water in India.
Parle bought over Bisleri (India) Ltd. In 1969 they started bottling mineral water in
glass bottles under the brand name 'Bisleri'. Later Parle switched over to PVC non- returnable
bottles and finally advanced to PET containers. Since 1995 Mr.Ramesh J. Chauhan has started
expanding Bisleri operations substantially and the turnover has multiplied more than 20 times
over a period of 10 years and the average growth rate has been around 40% over this period.
Presently, it has 8 plants and 11 franchisees all over India. Bisleri commands a 60% market
share of the organized market. Currently, Bailley has a national presence in 5 lakh retail outlets
across the country. We plan to increase manufacturing plants for Bailley from 29 to 60,
presently 40 plants are operational and few more will be ready for operations over the next few
months, informed Nadia Chauhan, joint managing director of Parle Agro.9
9
http://www.gits4u.com/water/water16.htm
81
Bottled water industry in India has been growing steadily and is dominated by
certain brands in the market. The packaged water segment is extremely competitive with
players ramping up their packaging styles to attract a large base of consumers in order to
account for a larger share in the market. With rising consumer concerns over health and
increasing shelf spaces in the institutional channels, the market is set to boom and exhibit
huge potential for players to increase their sales. The report begins with the market
overview section which provides a detailed description of the current and forecasted
off-trade/retail sales. The difference between packaged and mineral water as well as
different forms of distribution is also covered in this section. The section also highlights
the regional consumption of bottled water in terms of the bulk water consumption and
also the off-trade sales in various regions of India. It also includes the import and export
structure of bottled water and the brands that are traded.
The market leader is Bisleri International, which boasts a 40 per cent share. It is
followed by Coca- Colas Kinley (around 25%) and PepsiCos Aquafina (around 10 %).
The top players in bottled water industry in India are the major international giants like
Coca cola, Pepsi, Nestle and noticeable presence of national players like Mount Everest,
Manikchand, Kingfisher, Mohan Meakins, SKN Breweries, Indian Railways and so on.
With increasing competition, this sector will register a robust growth in 2010, predict
industry analysts. To take on rivals in this sector, PepsiCo India is drawing up a fresh
game plan which includes investment in capacity enhancement, packaging initiatives and
below-the-line activities to pump up volumes in the over-crowded category. Meanwhile,
swadeshi major Parle Agro is extending the manufacturing facility for Bailley from 29 to
60 plants this year. While swadeshi major Bisleri International is beefing up its
distribution, manufacturing and marketing operations. Coca-Cola India is sharpening its
focus on packaging initiatives of Kinley to woo new consumers. In essence, the packaged
water industry in India will soon witness a major tussle between swadeshi and videshi
players to gain market and mind share.
82
Top multinational players such as Coca-Cola and PepsiCo have been trying for
the past decade to capture the Indian bottled water market. Today they have captured a
significant portion of it. However, Parle Bisleri continues to hold 40 per cent of the
market share. Kinley and Aquafina are fast catching up, with Kinley holding 20-25 per cent
of the market and Aquafina approximately 10 per cent. The rest, including the smaller
players, have 20-25 per cent of the market share.10
Properly stored bottled water has indefinite shelf life. However, long-term storage
of bottled water may result in aesthetic defects, such as off-odour and taste. The IBWA
advises consumers to store bottled water in an unopened container at room temperature
(or cooler), out of direct sunlight and away from solvents and chemicals such as gasoline,
paint thinners and dry cleaning chemicals. Bottled water is an excellent choice for emergency
water storage. The FDA good manufacturing practices mandate that bottled water be
produced in a sanitary environment and bottled in sanitary, safety-sealed containers.
The laws on municipal drinking water safety have been heavily enforced.
In contrast, the laws on bottled water labelling have barely been enforced. One solution
would be to adopt international standards on bottled water. One of the purposes of the
international Codex Alimentarius was to develop food standards that protect consumer health.
10
www.market research.com
83
Bottled Water Association has a model Code, April 2009 that it asks its members
to follow. The Code states that natural water, i.e., that obtained from an underground or
approved natural source, must comply with maximum allowable concentrations of
parameters defined in the CDWQ Guidelines. The Code also sets out rules for product
quality as well as good manufacturing practices, storage, handling and testing, as well as
operational requirements that include bottlers submitting a hydrogeology report that
shows the integrity of the source water supply. It includes monitoring source water and
the final product for contamination. Unfortunately, no one enforces this Code.11
The term "mineral water" is misleading because Indian laws do not stipulate the
minimum mineral content level required for water to be labelled as such. Ahmedabad-based
Consumer Education and Research Society (CERS), an independent non-profit institution
with a sophisticated product-testing laboratory, recently carried out a detailed study on
13 major brands of bottled water available in the country. The CERS study indicates that
there is an urgent need to revise standards for bottled water.
Water is an elixir of life. In India the following agencies are directly or indirectly
connected with regulating, monitoring and laying down standards of water
2. Bureau of Indian standards under the ministry of food and consumer affairs.
84
7. Local bodies.
The developing world is marked with challenges of coping with failing infrastructures,
inadequate finance, poor legislation, lack of appropriate institutional capacity for
regulation and control and often the political will to enforce control measures.
The position is complicated by the fact that many of these developing nations are at a loss
on how to set standards. Consequently, they resort to dependence on adopted standards,
policies and guidelines as presented by international organizations based on scenarios and
context in the developed world. Case studies are presented shortly of some on-going
success stories in the packaged water industry. In the cited locations, various levels of
85
In terms of manufacturing costs, the Earth Policy Institute estimates that around
1.5 million tons of plastic are used globally each year in water bottles, or about enough to
fuel 100,000 cars. The Berkeley Ecology Centre found that manufacturing PET generates
12
Jensen P.K, Jayasinghe G, van der Hoek W, Caincross S, Dalsgard A: Is there an association between
bacteriological drinking water quality and childhood diarrhoea in developing countries? Tropical
Medicine and International Health 2004, 9(11):1210-1215
13
The Times of India: Pesticide content in packaged water to be quantified 2003, Available at
http://articles.timesofindia.indiatimes.com/2003-02-11/india/ 27261339_1_pesticide-content-pesticide-
limits-detectable-levels , Accessed 28th July, 2007
86
The industry is highly fragmented and unorganized in nature. While there are
some large players like Degremont, Ion Exchange, Thermax, and Larsen & Toubro, there
are over 500 small players in the field. The water treatment industry is largely
concentrated in certain geographical pockets like Mumbai, Pune, Chennai, Hyderabad,
New Delhi, Kolkata and Ahmedabad. Some plant manufacturers are present in other
areas, but this number is limited. The water treatment equipment industry in India is very
cost competitive (30% cheaper) and well established. The water treatment market is
moving away from chemical treatment and demineralization (DM) plants to membrane
technology. However, several large user segments such as refineries and power plants
continue to use DM technology. Zero discharge systems and wastewater recycling are
becoming increasingly popular in India.
87
During pre-liberalization era, the concept of packaged drinking water was told as
it was a luxury available in five star hotels meant for the consumption of foreigners and
elite Indians. It was only after the liberalization of the Industrial sector by the cost of
India, many from outside India are interested in starting new industries in India.
Accordingly many packaged drinking water industries were started consequently, the
concept itself has started gaining currency among the masses of India so much, so that the
market of packaged drinking water in India is an exorbitant 1000 crores and it is rapidly
growing at 40-50 per cent annually. There are a few large packaged drinking water
companies functioning namely, Pepsi, Coca-cola and Bisleri, with the last being the
pioneer in this field. Apart from these, certain improvised local brands are also available
in the market, namely Aqua-blue, Sabol and the like.14
Though the liberalization policy of India has indeed brought a revolution in the
manufacture and introduction of packaged drinking water it is still not perceived as a
product for masses. Now, the scene is changing due to low pricing and aggressive
marketing strategies adopted by new entrants. Surveys show that truck drivers on
highways form a major chunk of bottled water drinkers. Penetration in rural area is
another significant factor that is likely to play a key role in the development of the bottled
water trade.15
Market reports predict that over the next four years sales of bottled water will
grow most quickly in Asia, Latin America and Africa. Recent industry analysis shows
that countries in the Global South have the best potential for future growth in bottled
water sales. Market reports predict that over the next four years sales of bottled water will
grow most quickly in Asia and Latin America due to 'the poor quality of potable water.
Africa is also highlighted as having strong potential for bottled water sales due to unsafe
drinking water. In addition to limited access to clean tap water, reports mention the rising
number of people with disposable incomes as a driver for growth in the industry.
14
www.water.org
15
www.bis.org
88
This opportunity for the bottled water industry is leading to widespread privatization
of drinking water delivery in countries where access to clean tap water is limited. Bottled
water sold for huge profits may bring water to people who need it, but the side effect is
the commodification of this basic human right. When populations find that the only way
to access drinking water is to buy it in a packaged form, people will come to accept that
water, whether from a tap or from a bottle, is something that can be bought and sold on
the open market. A system is emerging where only those who can afford it will have
access to water. The privatization of drinking water is already well under way in many
urban centres in the Global South. In areas where clean tap water is either not available or
not safe (or perceived to be not safe) people are already consuming packaged water
supplied by for profit producers at an alarming rate. The three global bottled water giants,
Groupe Danone, Nestl and PepsiCo also have the capital and existing global
infrastructure to exploit the bottled water boom in the Global South. India, Vietnam,
Nigeria and Mxico, demonstrate how the rapid growth of bottled water sales is already
forging the path towards privatization and is creating risks to health and livelihood along
the way. The severe impact the bottled water industry has on the environment in the
Global South caused by water takings and the disposal of plastic bottles.
89
Before filling, freshly manufactured plastic bottles are rinsed and inverted from
where they go for filling on rotary bottle filler. Water flows from the filler bowl into the
bottles via ventra flow valves. These valves use an airlock method for accurate filling.
The variation is no more than 5mm. When liquid reaches the end of the valve sleeve, air
cannot escape. Pressure is created at the top of the bottle, and no more liquid can enter.
The airlock method provides consistent, repetitive filling and reduced product loss.
The fillers are available in a wide range of configurations and are adaptable to a variety
of capping systems. IS : 14543 - 1998 (Specification for Packaged Drinking Water)
prescribes the hygienic practices to be followed in respect of collecting water, its
treatment, bottling, storage, packaging, transport, distribution and sale for direct
consumption , so as to guarantee a safe, hygienic and wholesome product. The bottles are
generally capped using roll-on type plastic caps, with pilfer proof rings.
Bottle Labelling
The last step is the labelling of bottles. In the earlier days, gummed paper labels
were used which satisfied only the legal requirements of declaration. When these labels
came in contact with moist surface, they lost their identity. Later shrink film plastic labels
came into use for this application. Auto-sleeve system for labelling then became a
commercial success. Auto-sleeve labels are used both for one way and refillable-multi-
trip plastic bottles. It is a stretchable label made of low density polyethylene of special
grade. The Department of Health, Ministry of Health and Family Welfare has notified to
carry the following declaration on the label of the disposable bottle of mineral water or
packaged drinking water.
["Crush the bottle after use] The notification was published in the Gazette of
India and the rule came into force from 01/04/2004. Other labelling requirements should
be as per PFA Rules and Packaged Commodities Rules as prescribed in IS: 14543 1998
(Specification for Packaged Drinking Water).
90
It is well known fact that drinking water should be packed in clean, colourless,
odourless, clear, tamperproof containers, which are hygienically safe. Much of the water
is packaged in similar bottles as carbonated soft drinks, and would, therefore, carry many
of the same requirements.
Strength
Unlike carbonated drinks, the bottles filled with still water need only enough
strength to hold water and to survive impact.
Clarity is one of the most important requirements and is the main reason why
clear bottles of plastics are used. A resin with higher levels of co-polymer adds to the
clarity. As regards the light blue colour in the bottles, this is permissible for one time use
bottles. However in India, the BIS (Bureau of India Standards) has prescribed colourless
bottles for multi trip/reusable containers. Since currently almost all the bottlers use blue
coloured containers, studies have commenced at IIP to establish whether blue colour
helps to reduce the UV effect and the percentage of blue colour that could be considered
to be added without affecting the clarity of the bottle.
Purity
Because water is a flavourless product, using a plastic that remains tasteless and
odourless is imperative.
Mandatory certification
To prevent adulteration, the quality of the bottle and its sealing drew great attention and
concern. The standardisation of the quality of the water and the bottles was not thought of
earlier. There was a concern whether mushrooming brands in packaged drinking water would
really ensure quality and safety. The provisions of mandatory BIS certification and that of
Prevention of Food Adulteration Act (PFA) have brought in assurance to the consumers that
packaged drinking water is trustworthy. The Indian Standard IS: 14543 1998 prescribes the
quality and safety requirements of packaged drinking water.
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As the market has evolved, so too has its packaging mix. Bottles may be the favourite
container for packaging water, but glass rarely features as the first choice today. Glass
together with cans and cartons have a diminished share. Glass retains a high profile in outlets
where the water is for consumption on the premises (hotels, restaurants, cafes) remaining
particularly strong in Central and South America and Europe, especially Germany. Plastics
are versatile materials and are in many cases capable of matching or surpassing the
characteristics of other types of packages. They do not corrode, are hygienic, lightweight and
often provide opportunities for reducing the weight of the packages used. A variety of
polymers are available which can be used for packaging of drinking water.
Polyethylene
PET is the most extensively recycled plastic of the present time. It is easier to
collect than other plastics. It has a high intrinsic value, is economic to recycle even with
existing collection systems and there are well-developed markets for its recycling, such
as carpet fibres and fibre film. The important feature of used PET is its ability to be
converted chemically to the monomer from which it was produced using hydrolysis or
methonolysis. The US Food & Drug Administration for food-packaging applications has
approved PET produced by chemical recovery of this sort. For packaged drinking water
PET bottles are used in 50ml to 20 litres capacity. Perrier has developed a new container
that incorporates a layer of nylon sandwiched between layers of PET to comply with the
requirement for a standard 12 months shelf-life mineral water.
Polypropylene (PP)
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Earlier, the most commonly used package for mineral water was stretch blow
moulded bottle of PVC, as PVC is rigid, clear and has adequate impact strength. Compared
to other polymers, PVC requires lower amount of energy to produce. If collected separately,
it can be readily recycled. The recycled PVC is sandwiched between inner and outer
layers of virgin polymer in co-extruded PVC pipes. The major concern for safe use of
PVC for non-toxic and food contact applications is the residual monomer level in the
resin. The FDA in USA and regulatory agencies has specified the monomer levels at
5ppm in PVC resin. PVC containers in capacities of 100, 200, 250 and 1000ml are used
for packaged drinking water.
Polycarbonate (PC)
Polycarbonate can be processed into useful end products by any of the usual
processing techniques like extrusion, blow moulding, injection moulding etc. Polycarbonate
containers are popularly used for multi-trip application for mineral water containers
of 15-20 litres.
This is a high performance resin and the containers made out of this resin are used
for refillable, returnable mineral water.
Containers cater to the 200ml mineral water market. These containers are
provided with heat sealable peel able lids. 16
16
PET Planet Insider, Vol. 4, No. 2, 03, Water Drives Global by Canadean, U.K,
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S. No Characteristics Requirement
2. Odour Agreeable
3. Taste Agreeable
6. pH 6.5 8.5
11. Phenolic compounds (as C6H5OH) Not more than 0.001 mg/litre
20. Anionic surface active agent Not more than 0.2 mg/litre
(as MBAS)
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51. Aerobic Microbial count The total viable colony count shall not
exceed 100 per ml at 20`c t0 22`c in
72h on agar-agar or on agar-gelatin
mixture, and 20 per ml at 37`c in 24 h
on agar-agar.
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The PET waste is recycled into fibres. This is an effort to pre-empt a market
situation that may arise a few years hence. Unfortunately sufficient safe potable water is
not available everywhere in the country, either harmful chemical substances are found in
the layers of earth which enter into water or it may be contaminated due to pathogenic
micro-organisms. If such water is consumed, the body suffers from waterborne diseases.
Due to this, it has become imperative to process and bottle safe potable water for the
mankind in prevailing conditions.
The demand for purified water becomes more during summer season. Although a
few companies have already entered in the bottling of safe potable water and mineralized
water, but still a huge gap is there in between demand and supply at all metropolitan-
cities and towns. The product is widely accepted in offices, restaurants, railway stations,
airport, bus stands, and hospitals and to some extent even in rich households. So there is
good scope for establishing the units for processing and bottling plain and mineralized
drinking water in different parts of the country.
The trend indicates that lightweight, resilient and affordable PET container is
increasingly the packaging medium of choice. Almost seven out of every 10 litres of
water now appear in PET - a significant increase from 6 litres as of 1998, and it still
continues to grow. The packaged water market is essentially a one-way street.
Non-refillables account for four out of every five litres. Consequently non-refillable PET
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The demand for purified water becomes more during summer season. Although a
few companies have already entered in the bottling of safe potable water and mineralized
water, still a huge gap is there between demand and supply at all metropolitan cities and
towns. The product is widely accepted in offices, restaurants, railway stations, airports,
bus stands, and hospitals and to some extent even in rich households. So there is good
scope for establishing the units for processing and bottling plain and mineralized drinking
water in different parts of the country.
2. Packaged drinking water: Water from any source is treated for consumption.
a. Packaged water shows greater penetration with greater sale values and market
for natural mineral water still nascent.
c. Pouches have a greater share in the market in terms of packs sold in different
parts of India.
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Consumer concerns over rising obesity levels combined with an increase in public
knowledge of health issues had a positive effect on the bottled water market. Consumers
have been switching from sugary carbonated drinks to healthier alternatives. In addition,
manufacturers are creating new premium and super-premium brands to satisfy demand at
the high end of the market. These trends, combined with convenience and ethical issues,
mean there is currently a significant amount of innovation in the bottled water market.
City water systems must issue right to know reports about whats in the water.
Bottlers successfully killed this requirement for bottled water. Up to 70 per cent of
bottled water is unregulated by the Food & Drug Administration. Acceptance of the
supposed purity of bottled water is being undermined in India by the government Health
Department's warning of pesticides and contaminating organisms being present in some
bottled products.
Global Systems, based in San Antonio, Texas, has announced plans to export
12 billion gallons of water per year from the Blue Lake Reservoir in Sitka, Alaska, to a
new, yet to be built water hub on the west coast of India.
The first shipment to the new hub in India whose location remains undisclosed for
security reasons is at least 18 months away; the water hub will be built in the next six
months, while custom-built water-transport tankers, costing about $75 million, will be built
over the next 18 months. Existing oil tankers cannot be used because of potential
contamination from leftover oil residues, he explained. The water will be packaged at the
hub, and then distributed in India as well as several GCC Gulf Cooperation Council
countries, including Saudi Arabia, Iraq and the United Arab Emirates.
The government of India issued the following news release through the Ministry
of Consumer Affairs, Food & Public Distribution: No person is authorized to
manufacture, sell or exhibit for sale, packaged drinking water and packaged mineral
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The growing use of packaged bottled water for cooking and washing is set to
boost sales in the branded water segment in summer. Bisleri, Tata's Himalayan, Pepsi's
Aquafina and UB Group's Kingfisher are some of the brands vying for the top slot in the
packaged drinking water space, where prices range from Rs 20 to Rs 120 for a 20-litre can.
Tamil Nadu Government Urged to Take Over the Sale of Bottled Water
The Tamil Nadu Water Supply and Drainage Board (TWAD) Workers Federation on
May 15, 2010 suggested the State government take over the sale of bottled drinking water and
make it available at Rs. 2 a litre. The State government which is generating a huge income from
sale of Indian made Foreign liquor (IMFL) through TASMAC outlets should think of making
available good drinking water to people. People Federation General Secretary P.H.C.M.Gandhi
said that the government could earn revenue of Rs 5,000 crores even if it sold water at Rs. 2 a
litre. He said, adding that multi-national and private companies selling packaged drinking water
were earning crores of rupees as profit whereas actual cost of purifying water was less than five
paise per litre. TWAD should be fully in charge of surveying, designing, execution and
maintenance of all water and drainage schemes and empowered to collect water and drainage
tax also, he said, Organizers of Go Green in December 2010 at the Copenhagen Climate talks
wanted to go as green as possible and so they did not provide delegates bottled water and
instead offered Copenhagen tap water in corn Starch cups.
To prevent the spread of waterborne diseases in summer, the Delhi high court has
directed the government to tighten the noose around illegal units manufacturing and selling
bottled drinking water on May 31, 2010. Justice S. Muralidhar directed government agencies
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A number of factors are fuelling the growth in the market. Rapidly rising population
has led to increased requirements for drinking water and sewage treatment. While this is largely
in the urban areas at the moment, this could shift to smaller towns and villages in times to
come. The Government has also got into the action by imposing stringent legislations regarding
wastewater treatment. There is also a compulsory requirement of Environment Clearances from
Pollution Control Boards at the Centre and the states. The recent Supreme Court directive to
move polluting units out of Delhi is also likely to act as an impetus to future sales of water
treatment equipment. Also at the same time, many existing treatment plants would need to be
replaced or upgraded to meet with more stringent standards.
Drinking water problems in India are quite different from those in developed
countries. The main concern is with disinfecting the potable water at the point of use.
Traditionally, the point of use market has been dominated by ultraviolet purifiers and filters.
Industrial majors like Ion Exchange and Thermax have tried entering this market, but with
limited success. In the last year, domestic reverse osmosis purifiers have struck the market
and have been hugely successful. Recent advancements in nano filtration and ultra filtration
are now entering this area and offer future opportunities. One big area of growth has been the
increase in bottled water plants in India. With liberalization and increased awareness of water
quality, hundreds of bottled water brands have entered the market. The USD 250 million
bottled water market is growing at the rate of 75-80 per cent and a large number of reverse
osmosis plants have come up in the last two years. With multinationals like PepsiCo and
Coke getting established in the market, the quality and technology in their plants has
improved.
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