The Hindu Business Line : Mount Spring Beverages plans flavoured sodas foray

New Delhi, Jan. 16 Mount Spring Beverages Pvt Ltd (MSBL), which acquired Leh Berry’s mineral water brand, Mountain Springs, in October 2007, is all set to re-launch the brand in the country. It has also acquired land to set up two new units for a planned foray into soda mineral water and flavoured soda mineral water this year.

Mount Spring Beverages Ltd was formed in October last year after the acquisition of the brand from Seabuckthorn Indage Ltd, the company which owned the Leh Berry mineral water division, which in turn owned the Mountain Spring brand of mineral water.

Mr Jagdeep Suri, Director, MSBL, said: “We took over in October 2007 and plan to re-launch the Mountain Spring brand in India in a phased manner. We have already started with Delhi and the NCR region, and will follow with Punjab, Uttarakhand, Uttar Pradesh, and will be available within the next four weeks in Goa, Mumbai, Pune and Bangalore.” The total packaged water domestic industry is about Rs 1,500 crore to Rs 1,600 crore, 10 per cent of which is captured by mineral water.

Having acquired the brand, the company now also has control over the Himachal Pradesh-based 1.5 acre 75,000- litres per day unit for mineral water. “Only 30 per cent of the total capacity is being used currently for mineral water at the plant. We have also acquired four acres right next to our existing plant in Himachal to foray into soda mineral water and flavoured soda mineral water,” said Mr Suri. He said that the company has already initiated a test project for soda water from the old plant, and will launch 25,000-30,000 bottles in the market in the next two months.

Mr Suri said: “In the newly acquired land we plan to build two new plants. One will be used for the soda and flavoured soda waters, and the other for an increased production of mineral water.” The company plans to make both the new plants operational by 2009. “For mineral water, we will use the old plant to manufacture only 200 ml and 500 ml bottles, whereas the one litre and 750 ml bottles will be produced at the new upcoming unit,” added Mr Suri. The company is at an advanced level of discussion with hotels, institutions and airlines for supplying its 200 ml bottles.

In terms of positioning of the three products in the portfolio, Mr Suri said that all three — mineral water, soda water and flavoured soda water — will have a premium positioning. “Currently, we will mainly use the print media for advertising and later graduate to television campaigns,” said Mr Suri. The company, which is investing Rs 10 crore to set up the two new plants, will spend 15 per cent of its revenues on advertising and promotional campaigns.