The Hindu Business Line : Manikchand’s Oxyrich mineral water to enter S. Africa, W. Asia

Mumbai, Nov. 27 The Pune-based Dhariwal Industries is taking its Manikchand Oxyrich mineral water to South Africa and West Asia. The Rs 800-crore diversified company primarily known for its ghutkas is planning to set up joint ventures or franchisee operations in these countries with plans of setting up manufacturing facilities at a later stage.

“We would be taking Manikchand’s Oxyrich brand to countries in South Africa and West Asia. Initially, we would supply our brand to the trade and later start manufacturing it in these countries. Currently, we are looking at forging joint ventures or becoming pure franchisees and are ready to take our premium mineral water brand overseas,” states Dr Balajith Shetty, National Project Head, Manikchand Oxyrich.

Launched in 2003, Manikchand’s Oxyrich brand has created its USP as a 300 per cent oxygenated mineral water and commands a premium pricing (Rs 15 for 1 litre) in the market. The company has applied for patents in almost 20 countries and is now waiting to take its brand to other countries beginning with West Asia. “We already have a packaging unit in Dubai and in future we may also start manufacturing the mineral water from these facilities,” claims Dr Shetty.

Part of the food and beverage division of Dhariwal Industries, Manikchand’s Oxyrich is now poised for brand extensions into new areas such as natural fruit juices. At the same time, its mineral water brand could also get stretched into flavoured and sparkling water. Besides, new brands in the area of health foods is also being contemplated.

Franchisee model

Marking an investment between Rs 12 crore and Rs 15 crore, the company has adopted a franchisee model for its water business as it expands its operations into new territories such as Lucknow, Gujarat and Jaipur in the near future. ``We are distributing and marketing the brand and have a franchisee model,” says Dr. Shetty.

With a 9 per cent volume share for its Oxyrich rich brand, the company is hoping to take it to 15 per cent share in the next two years. According to the company, the total size of packaged bottle drinking water business is estimated at Rs 1,800 crore and is poised to grow to Rs 2,200 crore by 2010 at a rate of 40 per cent every year.

Last year, it also introduced a second brand – Taral, to compete with the regular packaged water brands. Currently, water contributes a turnover of Rs 150 crore to the business.

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