Penetration levels of water purifiers
All India 1.85%
Delhi 24.59%
Mumbai 14.93%
Tamil Nadu 2.46%
Haryana 2.16%
West Bengal 2.07%
Punjab 1.91%
Karnataka 1.65%
Kerala 1.43%
Rest of Maharashtra 1.27%
Uttar Pradesh 0.83%
Assam 0.80%
Rajasthan 0.73%
Orissa 0.61%
Madhya Pradesh 0.60%
Andhra Pradesh 0.56%
Bihar 0.42%

(As per the numbers shared by Ion Exchange. Source: Francis Kanoi Marketing Research)
Water purifier segment gets bubbly for consumer firms
With 1.85% penetration across the country, it's a huge opportunity; deciding on right purifier and strong regulations for industry are issues
Shailaja Sharma
Mumbai.

Water purifiers are emerging as an exciting segment for consumer good companies in the country, as consumers get more health conscious and low penetration levels provide a huge opportunity to grow.
Of the total market, about 40% is unorganised, while players such as Eureka Forbes, Ion Exchange and Kent RO dominate the organised segment.
Newer players which have hopped on to the bandwagon in the past two years are durables makers -- Philips, Whirlpool -- and FMCG major Hindustan Unilever. While Philips and Whirlpool are eyeing the high-end segment, Unilever has innovated a mass-end product called PureIt that does not need running water or electricity.
According to a study by global consulting company Frost & Sullivan this year, about 52 lakh out of 20 crore homes in India use water purifiers. The market was estimated to be Rs 1,650 crore in 2008 and is expected grow at 25% CAGR and touch Rs 5,100 crore by 2013.
In the 80s, Ion Exchange launched Zero B Suraksha -- a product that worked without electricity to derive clean tap water, addressing a large population.
The game-changer, however, was Eureka Forbes' UV (ultra-violet technology) based purifier. Eureka Forbes also introduced the RO-based purifiers (reverse osmosis technology) that gained acceptance in the market. Till mid-90s, Eureka Forbes and Ion Exchange were the only players in the organised market, to be followed by Kent RO Systems. This was also the time when candle filters were extensively used across house-holds.
"The market for a long time was dominated by UV. Then the shift began in newer technologies that are more comprehensive such as RO," Shantanu Dasgupta, vice-president, Whirlpool of India Ltd, said.
"Market is growing both at extreme top end and there is boom at the lower-end due to Unilever's innovation. There is a lot of excitement in the water purifier business with a number of international players entering," he said.
Although consumers in the top cities are moving beyond boiling water or using candle filters, and adopting sophisticated purifiers that work on electricity, awareness about water purifiers in tier-2 locations and particularly in rural areas is very low.
Consumers are increasingly becoming health conscious and are wary of being affected by water-borne diseases, leading to rise in demand for water purifiers.
The only hitch -- they are little aware about which product or technology suits their homes the best.
Though the most advertised by marketers is perceived as the best, the truth is there is no standard product amongst all the technologies that will work across the homes in the country, as water quality differs even within a city.
Most players are vouching for RO based products which are capable of removing dissolved salts and chemicals. But all homes do not need an RO-based product.
"There is no universal product that can or will work on every type of water. Everybody thinks water purifier means RO. In a market like Shimla, where the water has no salts and requires only disinfectant, we are not able to sell UV, because they insist on RO. When you sell the wrong product service issue becomes a major problem," said Rajesh Sharma, managing director, Ion Exchange.
UV technology products range between Rs 7,000- 8,000 while RO starts only at Rs 10,000 plus. Despite this, RO has taken over UV.
With all the players put together, the penetration of water purifiers is very low. As per last year's industry estimates, all over India penetration is as low as 1.85%. While Delhi has the highest penetration of 24.59%, for Bihar it is 0.42%.
Also, there is a lack of standards for players existing in the water purifier business. Many purifiers are being imported from countries such as China and sold by local players. Ion Exchange's Sharma who also heads a division within Confederation of Indian Industry, said, "There are currently only two standards for UV purifiers. With help of Bureau of Indian Standard, we are trying to develop standards which should be compulsory or applicable for all water purifiers used for drinking--be it RO, softener or UV."



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