![]() Financial Daily from THE HINDU group of publications Tuesday, Dec 30, 2003 |
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Marketing
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Insight Industry & Economy - Water Ripples in packaged water biz too Ratna Bhushan
New Delhi , Dec. 29 EARLIER in the year, in February to be precise, CSE had opened a can of worms, this time involving the Rs 1,200-crore packaged water industry. For packaged water too, the allegation was pesticide residues. The CSE study had analysed 17 brands of packaged drinking water in Delhi and 13 brands from Mumbai, and found that most of the samples contained five different pesticide residues in levels far exceeding the standards specified as safe. These included Bisleri and Bailley (from the Parle stable), Nestle's Pure Life, PepsiCo's Aquafina and Kinley from Coca-Cola. Amid vehement denials by these companies, the controversy flip-flopped from the Consumer Affairs, Health and Food Processing Ministries, and the Bureau of Indian Standards (BIS), and the Health Ministry. The controversy finally ended with the Union Health Ministry announcing fresh norms for pesticides in packaged drinking water. Other significant developments of the year included Nestle India deciding to exit from the domestic bottled water business, on account of distribution problems. The company stated that `pursuant to the review of the water business being conducted since last year, the company has assessed that the financial returns even in the longer term are unsatisfactory.' While Nestle's packaged water brand, Pure Life, disappeared from the market, Mr Ramesh Chauhan tied up with French company, Aurele, to begin selling his Bisleri brand in Europe. The brand is being marketed by Parle Bisleri group company, Maaza Beverages, through distributors across Europe.
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