The Hindu Business Line : Natural mineral water vs packaged drinking water

Chennai, June 1 The Bureau of Indian Standards recognises two varieties of branded drinking water - natural mineral water and packaged drinking water.

Natural mineral water is water from underground source that is packaged close to the source and meets the quality standards without processing.

Packaged water

On the other hand, packaged drinking water is from any source and has to be treated and disinfected, a process that could involve filtration, UV or ozone treatment, reverse osmosis before it is fit for human consumption.

Ask any of the natural mineral water manufacturers, they say the number of processes needed to package water for drinking only shows the poor quality of the raw material.

But the natural mineral water, they say, it is fit for human consumption at source and is packed without any treatment.

Therein lay the premium - the exclusivity.

Licensees

Consider this: There are just 11 natural mineral water licence holders, while there are several hundred packaged drinking water licences approved by the Bureau of Indian Standards, which dictates the quality specifications.

Of the 11 licensed by the BIS, one is Evian, a French brand, and of the other Indian brands except for one, in the Aravallis, the rest are in the Himalayan ranges.

Cost

According to market sources, while a litre of packaged drinking water is Rs 10-12, natural mineral water starts at about Rs 20 a litre and can go up to Rs 125.

According to Mr Behram Mehta, of Sheelpe Enterprises, and licence holder of Aava brand of natural mineral water, a litre of Aava brand costs about Rs 20 in the market. Transportation costs are a key factor in deciding the viability of the brands. A litre of natural mineral water takes up anywhere up to Rs 6 towards transportation.

According to industry sources, the single factor deciding the viability of a brand in the market is the transportation cost - there is virtually no cost involved in the processing.

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