The Okaya Power group, which has various business interests including industrial batteries, metal processing and software, is entering the water purifier segment. Its range of products is branded Nasaka, and the company has appointed actor and politician Ms Shabana Azmi to be its brand ambassador. The TV campaign will go on air next month.

Speaking to Business Line, Mr Rajesh Gupta, CEO, Okaya Power Group, said there was good scope for businesses providing affordable water purifying systems. The market size & potential of water industry in India is very evident by the fact that among the population of over 135 crore, less than 2 per cent Indians purify water before drinking. The market, estimated at Rs 1,500-2,000 crore, grew at 24 per cent last year after growing at 15-20 per cent the previous years, he said. The Rs 600-crore Okaya Power group’s turnover is estimated to cross Rs 2,000 crore in 2011-12.

The company has launched three RO (reverse osmosis) models priced between Rs 10,000 and Rs 17,000. It plans to launch cheaper models, one even at Rs 1,000, in the next few months. These would include ‘offline’ models (where electricity isn’t required and there is no connection to the water line).

Okaya is investing Rs 234 crore in this venture, having spent Rs 104 crore on plant and machinery in Himachal Pradesh. Rs 15-18 crore will be spent on marketing, which includes mass media as well as direct marketing. In the first phase, the top 300 cities will be covered – the products will sell in stores that sell consumer durables, electrical and electronic appliances, and utensils.

Mr Gupta says in about five years, he sees the water purifier business contributing Rs 500 crore to a projected group turnover of Rs 5,000 crore.

Mr Marzin R Shroff, CEO (Direct Sales) and Senior Vice-President (Marketing), Eureka Forbes, says that the Water Purification market is growing rapidly. Several new players are entering the water purifier business. But for any new player to enter this market, it is important for them to invest in advising customers about the right solution for their particular situation. There is “no one plug and play solution” as water quality and contaminants vary vastly depending on the source, the region and many other factors. Eureka Forbes, for instance, has invested considerably in this industry by setting up a National Service Infrastructure, as well as 16 water laboratories across the country.

“There is a lot of misleading marketing and advertising about RO systems being the latest, but that’s not true. RO systems waste water when used in areas where they needn’t be used, and remove essential nutrients,” he says. Eureka Forbes’ market share is over 75 per cent in the Rs 450-crore UV segment and 55 per cent in the RO segment, and 20 per cent in a Rs 450-crore non-electrical systems market.

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