778-Som-Lalit Institute Of Business Management - Gujarat ...

2) Packaged drinking water industry
The global drinking water sales have exaggerated dramatically over the past many
decades, reaching a valuation of around $60 billion and a volume of over a hundred
and fifteen,000,000 cubical metres (3.0×1010 United States of America gal) in 2006
U.S. sales reached around thirty billion bottles of water in 2008, a small drop from
2007 levels
The GCC countries are set in very arid zones. The region is usually a desert with the
exception of slim coastal areas and mountain ranges. the typical annual precipitation
ranges from seventy to one hundred thirty millimeter except within the coastal zone
on the Red Sea in south-western Saudi Arabia and on the Gulf of Muscat and Oman
on the jap shore, wherever orographic precipitation reaches over five hundred
millimeter. the overall annual evaporation rate ranges from two,500 millimeter within
the coastal areas to over four,500 millimeter midland. the number of renewable
geological formation volume is terribly restricted and shallow sediment aquifers
offer some renewable groundwater solely in those restricted coastal strips
Gujarat has seen many ups and down in packaged drinking water industry.
Drinking water could be a ‗delicate‘ issue and therefore the want for the ‗purity‘ of
water is acknowledged. what's not therefore acknowledge is that the degree of
purity, that it should have for human consumption, and even it's identified, not
several users the planet over area unit conscious of it. Awareness of this all the
same, it's become troublesome to continue orthodox to the wants.
Drinking water comes chiefly from the rivers or from the existent groundwater.
Excessive withdrawal of groundwater for domestic and agriculture functions has
caused the water level to travel down, creating the water briny thanks to salinity
ingress.
Excessive extraction of groundwater led to groundwater depletion caused
brackishness due to salinity ingress. Hundreds of large plants in Gujarat, which
were set up for supplying good and safe water to the public, have been closed
down in their wake. A large number of ‗cottage‘ type Reverse Osmosis (RO) plants
came to be marketed for supplying good and safe water to the consumers under
‗packed drinking water‘ category, and a big market emerged.
The market for the mineral/packed water produced by ‗cottage‘ type industries has
developed very rapidly in Gujarat between 1996 and 2000, especially in North
Gujarat. The water packed pouches has more margins as compared to big-packs of
10 or 20 litres. The price of 10-litre packaged water for the year-round customers
is Rs 1500, or Rs 4.11 per can. One pouch of 250ml has the ex-factory price of
Rs 0.30 and MRP is Rs 1.00. Producing packed water in pouches requires only
an additional investment in packaging machine, which the investors find affordable
as it costs approximately Rs 1 lac. The packed drinking water in pouches has a
large market catering to the people at large as it has ‗any time, any place‘ type.
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