Forbes and company holds 100% stake in eureka forbes.It is surprising that electrolux valuations have risen by 3.5 billion rs after its entry in water purifiers while we get 100% of eureka forbes + its cfs division + 16 cares in perrungadi chennai + real estate in chandivali and thane for 650 crs .
eureka forbes sales in FY08 will be above 1050 crs vs 730 crs
Water purifier turns money-spinner
SIMI KAMBOJ
Mumbai, May 19: The next world war — if there ever is one — will not
be over territory (land), but water.
The apocalyptic prophecy may never come true, but corporate skirmishes
have already begun over a scarce commodity: clean drinking water.
Sparkling pure water has never looked so alluring before.
The water purification business has emerged as the next money spinner
for consumer goods manufacturers, with more and more players entering
the fray, including Hindustan Unilever.
Sharda Prasad of Philips Consumer Lifestyle says the vulnerability of
the water distribution system to contamination and the onset of
water-borne diseases, especially during monsoon, have made the Indian
consumer anxious, even paranoid, about ensuring clean and potable
water for the family.
"This changing attitude of consumers indicates huge potential for
growth in this segment. With almost 94 per cent of the market
untapped, it's a good time for companies to be in this space," adds
Prasad.
The Indian water purification market stands at Rs 800 crore and is
growing at 15 to 20 per cent annually, market watchers say.
The market penetration is low at barely 6 per cent; the field is
dominated by Eureka Forbes, which controls 70 per cent of the market,
followed by Kent, a reverse osmosis player, and Ion Exchange's Zero B.
But now the new entrants have started to shake up the market.
Philips, which launched four models of the Philips Intelligent Water
Purifier last year, says it is "delighted" with the response.
Philips products are priced Rs 6,995 onwards and go up to Rs 10,495
for the fully loaded autonomous models with battery back-up.
Hindustan Unilever has stormed the water purification space with its
resin technology based Pureit, arguably the cheapest offering among
the new entrants.
Running on a "germkill" battery kit, Pureit costs Rs 1,800. The
battery kit priced at Rs 300 lasts for about 1,500 litres, offering
water at 20 paise per litre.
The company plans to sell 1.5 million purifiers and seven million
batteries by 2010.
"HUL has a unique distribution network in terms of how it acquires and
services the customer. Customers interested in Pureit will have to
call a helpline asking for a free home demonstration," said a company
official.
Whirlpool India is also rolling out a "direct flow reverse osmosis
water purifier" across the metros, mini metros and key cities.
The three models in the Purafresh range priced between Rs 12,500 and
Rs 22,000, are certified by the Water Quality Association, USA.
"We have entered this category as we see long-term benefits," said
Shantanu Das Gupta, vice-president of Whirlpool India Ltd.
But is the market big enough to accommodate all the players?
"There is enough space in the market since only 6 per cent households
currently use purifiers. HUL and others have finally identified the
opportunity which we saw 25 years ago. However, only the businesses
that deliver quality after-sales service will be the ones which will
survive and be successful," said S.K. Palekar of Eureka Forbes.
--
eureka forbes sales in FY08 will be above 1050 crs vs 730 crs
Water purifier turns money-spinner
SIMI KAMBOJ
Mumbai, May 19: The next world war — if there ever is one — will not
be over territory (land), but water.
The apocalyptic prophecy may never come true, but corporate skirmishes
have already begun over a scarce commodity: clean drinking water.
Sparkling pure water has never looked so alluring before.
The water purification business has emerged as the next money spinner
for consumer goods manufacturers, with more and more players entering
the fray, including Hindustan Unilever.
Sharda Prasad of Philips Consumer Lifestyle says the vulnerability of
the water distribution system to contamination and the onset of
water-borne diseases, especially during monsoon, have made the Indian
consumer anxious, even paranoid, about ensuring clean and potable
water for the family.
"This changing attitude of consumers indicates huge potential for
growth in this segment. With almost 94 per cent of the market
untapped, it's a good time for companies to be in this space," adds
Prasad.
The Indian water purification market stands at Rs 800 crore and is
growing at 15 to 20 per cent annually, market watchers say.
The market penetration is low at barely 6 per cent; the field is
dominated by Eureka Forbes, which controls 70 per cent of the market,
followed by Kent, a reverse osmosis player, and Ion Exchange's Zero B.
But now the new entrants have started to shake up the market.
Philips, which launched four models of the Philips Intelligent Water
Purifier last year, says it is "delighted" with the response.
Philips products are priced Rs 6,995 onwards and go up to Rs 10,495
for the fully loaded autonomous models with battery back-up.
Hindustan Unilever has stormed the water purification space with its
resin technology based Pureit, arguably the cheapest offering among
the new entrants.
Running on a "germkill" battery kit, Pureit costs Rs 1,800. The
battery kit priced at Rs 300 lasts for about 1,500 litres, offering
water at 20 paise per litre.
The company plans to sell 1.5 million purifiers and seven million
batteries by 2010.
"HUL has a unique distribution network in terms of how it acquires and
services the customer. Customers interested in Pureit will have to
call a helpline asking for a free home demonstration," said a company
official.
Whirlpool India is also rolling out a "direct flow reverse osmosis
water purifier" across the metros, mini metros and key cities.
The three models in the Purafresh range priced between Rs 12,500 and
Rs 22,000, are certified by the Water Quality Association, USA.
"We have entered this category as we see long-term benefits," said
Shantanu Das Gupta, vice-president of Whirlpool India Ltd.
But is the market big enough to accommodate all the players?
"There is enough space in the market since only 6 per cent households
currently use purifiers. HUL and others have finally identified the
opportunity which we saw 25 years ago. However, only the businesses
that deliver quality after-sales service will be the ones which will
survive and be successful," said S.K. Palekar of Eureka Forbes.
--
courtesy: Aditya
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