Commodification of Packaged Water in India
Commodification of Packaged Water in India
D. Tamilarasu
Assistant Professor cum Assistant Director,
Center for Study of Social Exclusion and Inclusive
Policy,Manonmaniam Sundaranar University,
Tirunelveli ,Tamilnadu.
Abstract:-
'Providing safe drinking water to
all' is incorporated as one of the
millennium development goals adopted
by United Nations. After certain delay in
realizing the necessity of having national
policy on water, India framed its first
water policy in 1987, subsequently on
2002 and 2012. Discourses emerged out
of the policies, institutions or legislations
on water are; river water dispute, water
for agriculture and industrial purposes,
water pollution, water conservation,
water management etc has got its place
and priority. But, there is no matter of
differences in accepting these issues are of
national significance. Privatisation or
commodification of water is the
manifestation of Neo-liberal Policy.
However, such privatization process was
simultaneously or even before the
incorporation of its agenda is identified to
be started and grown in Indian Social
Scenario. The article attempts to identify
and describe one of the ignored Social
phenomena of Indian Social reality in the
case of commodification of drinking water D. Tamilarasu
i.e., consumption of packaged water. Assistant Professor cum Assistant Director,
Packaged water includes bottled water,
can water, water pockets, etc. Need not be
Center for Study of Social Exclusion and Inclusive
a Social Scientist, even lay man can Policy,Manonmaniam Sundaranar University,
perceive the experience of packaged Tirunelveli ,Tamilnadu.
water consumption. It may be outdated if
it is referred that the lay man only in
metro cities can have the experience. government's policy documents and news articles of
Article also tries to bring out rationale for newspaper, interpreting the related secondary data.
how these social phenomena is not
negligible to be ignored considering its
necessity, effects and future potentiality of Keywords:Packaged water consumption—bottled water--
its market in Society. The argument of Commodification of water-- ---ignored social
article is constructed by adopting the phenomenon—Government's discourse on water
method of content analysis of relevant
[Link]
AN IGNORED SOCIAL PHENOMENON'
INTRODUCTION :-
Packaged water industry is considered to be the next oil industry. Water is for this century
as oil is for the previous century. All these observations and predictions have something for us to
think and probe. Considering the necessity of existence of species in the earth, it is obvious that
drinking water is primary and inevitable of all water consumption. Water is available or made to
be available from different sources and in different forms of arrangement in consuming water in
our day today life. Tap water, Tube Wells, Well, Tanks, River, Ponds, canal are such sources and
forms of arrangement for the water consumption. Packaged water consumption i.e., subject of
discussion in the article is one of the forms of arrangement for drinking water.
Does it have any policy guidelines or any other attention in Governments' discourse of water?
Is it negligible to be ignored or significant to be attended?
This article is an attempt to address all such questions..
International scenario
United Nations' World Health Organization, UNICEF and other related institutions have
placed their dynamic mechanism in order to coordinate and direct the world in the efforts of
providing safe drinking water to all. Various levels of meetings of all countries and different
groups of countries can also be considered as an effort at international level. United Nations
incorporated and set the target of providing safe drinking water to all, in its Millennium
Development Goals. 'Providing safe drinking water to all' is referred as target no.7(C) as it is
under third target of 7th millennium development goal of ensuring environmental sustainability.
This is widely recognized to represent the international scenario. It set to reach the target of
providing safe drinking water to 88% of world population in 2015, up from 76% in the base year
of 1990. But, it was able to reach the said target in 2010 which is well earlier than the target year
of 2015. There are reasons to have satisfaction in reaching the target but several millions of people
still not able to access the natural resource for their existence cannot be easily excusable. Also,
water quality is not taken into account for measuring the said target. But, quality of water is
gradually is in deteriorating trend. So, it does not mean that the population estimate as given in
MDG report are said to have access to pure and safe drinking water.
Drinking water is water used for domestic purposes, drinking, cooking and personal hygiene;
Access to drinking water means that the source is less than 1 kilometer away from its place of use
and that it is possible to reliably obtain at least 20 litres per member of a household per day;
Safe drinking water is water with microbial, chemical and physical characteristics that meet
WHO guidelines or national standards on drinking water quality;
Access to safe drinking water is the proportion of people using improved drinking water sources:
household connection; public standpipe; borehole; protected dug well; protected spring;
rainwater.
There are also some of major directions need to be taken from the Joint monitoring
Programme report on MDGs. It classified the water supply sources into improved and
unimproved sources as given in the table (1) below.
Piped Water on premises Other improved drinking Unimproved drinking water Source
water source
Piped household connection • Public taps or standpipes Unprotected dug wells
located inside the user’s dwelling, • Boreholes or tube wells • Unprotected springs
plot or yard • Protected dug wells • Carts with small tank/drum
• Protected springs • Tanker truck
• Rainwater collection • Bottled water
• Surface water (river, dam, lake, pond, stream,
canal, irrigation channels
Access to safe drinking water is estimated by the percentage of the population using improved
drinking water sources. The improved definition suggested by WHO and UNICEF clarifies in its
methodology that access to water and sanitation does not imply that the level of service or quality
of water is “adequate” or “safe”. It is also to be noted that human rights principles (UN Human
Rights Council) define various characteristics against which the enjoyment of the right can be
assessed, namely: availability, safety (with reference to the WHO Drinking Water Quality
Guidelines), acceptability, accessibility, affordability, participation, non-discrimination and
accountability.
Table: 2 Proportion of the population by types of drinking water sources by urban or rural
areas, 1990 and 2010 (per cent). Source: Progress on Drinking Water and Sanitation: 2012
Update, WHO/UNICEF Joint Monitoring Programme for Water Supply and Sanitation
*Survey data show that most people who use bottled water as their main source of drinking water
also have piped water on premises as a secondary source. Bottled-water users are counted under
the category 'piped on premises' in table (2) as above.
From the above table, it is understood that providing drinking water through pipe on
premises is major source of drinking water throughout the world. Bottled water consumption has
meager percentage. But, there is raising trend of such consumption from 1990 to 2010. It is more
clearly visible in urban area. In terms of population, there are 228 millions are adapted to
packaged water consumption. (Source: Progress on Drinking Water and Sanitation: 2012 update).
Very important idea is to understand that it goes on rapid and upward trend.
Bottled water: It is to be noted here that bottled water which is referred as packaged water
in the paper, categorized as unimproved water. In contrary, packaged water is popularly perceived
with reasons as safest drinking water. The JMP in the past has classified the use of bottled water
as an “unimproved” drinking water source since bottled water alone does not provide a
convenient, affordable supply of water for all domestic needs. Bottled water is considered to be
improved only when the household uses drinking water from an improved source for cooking and
personal hygiene. This is because these households have the choice of using an improved
drinking water source but simply opt for bottled water, most probably because of better perceived
or known water quality. In some countries, increasingly people started to use bottled water as
their main source of drinking water. Beyond these minor observations, bottled water is not taken
up for other vital issues related to water.
Water as human rights: Being a necessity for the life existence, Universal declaration of
human Rights, United Nations Economic and Social Council, Committee on Economic, Social
and Cultural Rights, World Health Organisation, UN Human Rights Council affirmed that the
water is a right. Further, it also give guidelines how the rights to be realized i.e., 'the manner of the
realization of the right to drinking water must also be sustainable, ensuring that the right can be
realized for present and future generations' (United Nations, 2002). There are also many more
international agreements re-emphasized that water is inalienable and an integral part of human
rights. In the line of the arguments, it is also considered as common property, state property,
community resource etc.
Water as commodity: Economic liberalization agenda comprises of set of measures
favoring total reduction in subsidies, full cost recovery, privatization etc., has been promoted
around the world. This idea has extended to the water sector as well. The world has witnessed
increasing privatization of public sector water utilities in several countries. Dublin principles:
International Conference on Water and Environment, held in Dublin, Ireland in 1992, Following
the Dublin meeting, the United Nations Conference on Environment and Development (held in
Rio in 1992, World Bank, WTO are some of factors pushing up the agenda of commodification of
water.
Needless to explain, the idea of packaged water is in tune with the principle of water as
commodity. One of the primary reason for opposition of the packaged water lies on the principle
of water as human rights. Several other reasons are given in later part of the article.
In order to find out if there is any policy framework or any other guidelines or discussion
related to packaged water, India's Government discourse on water needs to be looked thoroughly.
Article considers water related government's policy documents, legislations, Institutions,
committees, Initiatives are the major source of discourses on water.
Water in Indian Constitution: Indian constitution distinguished functional and legislative
jurisdiction on water to Union, state and local governments. Under certain circumstances, it also
falls on the concurrent where both union and state government is entrusted with the responsibility.
Under the scheme of the Constitution, 'Water' is basically a State subject and the Union comes in
only in the case of inter- state river water dispute. Union government has limited capabilities in
resolving inter-state water disputes and so it is not even able to make implement Supreme Court
orders in such scenario. It established several institutions to tackle water disputes. Both Union
and state government also strive for devolution of power to local governments after the
amendment of constitution regarding panchayat and municipalities. Article 246, Article 262,
entry 56 of list of seventh schedule, entry 17 under list II of seventh schedule dealt with policy
base on water. It is relevant to mention here that since the constitution does not have an addition
relating to 'Environment', using the residual powers, the Union has enacted laws on environment
and control of pollution, which have effect on water use including ground water and its
exploitation. So, it can be derived implicitly that constitution entrust the government with the
authority of intervening in the case of packaged water or any other arrangement of providing
water if such arrangements exploits the precious natural resource.
Ministry of water resources is responsible for all policy directions and programmes
related to country's water resources. Many of the institutions related to water are created, guided
and monitored by the ministry. It is also responsible for developing policies on water resource. In
order to have complete understanding of the ministry discourses on water and also to find out
whether the issue of packaged water consumption gets attended, all institutions, policies and
initiatives under the ministry are perused extensively.
After certain delay in realizing the necessity of having national policy on water, India
framed its first water policy in 1987, subsequently on 2002 and 2012. Necessity of having such
policy also arises due to potentiality of science and technology in making use of the resources
never than ever before in the history. Population growth, urbanization, Industrialisation,
inevitability of water for health, sanitation and development, emergence of institutions and policy
in other countries and also at the international level related to water are the major factors created a
necessity to have national level water policy in India.
First national water policy 1987 touched upon the various issues like creating
information system on water resources, application of science and technology for the efficient use
of water resources, resource allocation etc. Major highlight and new addition in national water
policy of 2002 is Private sector participation. It declared that private sector participation should
be encouraged in planning, development and management of water resources projects for diverse
uses, wherever feasible. So, this is clear indication in deviation of water policy of India. National
water policy of 2012 further reinforces the necessity of water privatization by citing the reasons of
scarcity and inefficient use of the resources. It also recognizes the seriousness of ground water
exploitation. Policy statement under the topic 'use of water' which goes strongly as follows,
3.3 After meeting the minimum quantity of water required for survival of human beings and
ecosystem, water must be used as an economic good with higher priority towards basic livelihood
support to the poor and ensuring national food security.
As it was stiffly opposed, it is removed in revised version of national water policy of
2012. However, under the section of water pricing, it strongly emphasis the need of treating water
as economic good. But, it gives flexibility to retain the principle of differential pricing system for
the pre-emptive and high priority uses of water for sustaining life and ecosystem for ensuring food
security and supporting livelihood for the poor. Therefore, it no way hinders but encourages the
commodification of water.
Since discussion of theme here is confined to relevant policy notion for packaged water,
other vital issues of water are not taken into consideration.
National Water Board constituted by Government of India under Ministry of Water
Resources to review the progress achieved in implementation of the National Water Policy and to
report the progress to the National Water Resources Council from time to time. National Water
Resources Council is entrusted with the task of framing, implementing and monitoring the
National water policy. Central water commission as an organization entrusted with technical
function attached to Ministry of water resources. Central Groundwater Board is an authority to
control, regulate and manage the groundwater resources in India. It collects scientific data of
groundwater resources in India.
Five year plans are one of the policy guidance frameworks of India and some of the
highlight relevant to the theme of the paper as follows. In tune with structural adjustment policies
in India since 1991, the Eighth Plan (1992-97) made a significant departure from the past in
giving a thrust towards privatization of water sector. The main thrust and strategies were, among
others, to: manage water as a commodity in exactly the same way as any other resource;
encourage private sector for construction and maintenance of drinking water projects and
mobilize them to the maximum extent feasible; and ensure that, in urban areas, municipalities are
free to levy and raise appropriate user charges for drinking water and sanitation facilities in order
to strengthen their financial position. The Tenth Plan (2002-07) also further sides with
liberalisation in water sector. But, it also advocates special provisions to poor who have less
capacity to pay. Thus, from the Eighth Plan onwards, water has come to be treated as an economic
good like any other commodity in India's official Planning Commission documents.
An expert group on commercialization of infrastructure constituted by Ministry of
Finance, Government of India (1996), recommended several measures to operate infrastructure
projects on commercial lines either by private parties or through public-private partnership.
WHO guidelines for drinking water is also serve as baseline for developing standards and
regulations regarding drinking water standards in India. The quality criteria of drinking water
prescribed by different institutions like Bureau of Indian Standard Institute (IS: 10500), Indian
Council of Medical Research, the department of rural water supply, ministry of urban
development and central pollution control board. All have prepared norms and standards on their
own.
In India, Packaged water is categorized as food product and so the standard has to be
recognized by BIS. Packaged water is scientifically tested and certified by BIS with ISI mark. IS:
14543 is code of such certification for packaged water. Issues related to quality and safety of
packaged water is discussed in the later part of the paper. As a food product, packaged water falls
in the purview of Ministry of Health. As issues of quality and safety raised in many occasions,
ministry of health brought notification on the amendments to prevention of food adulteration
rules, 1955 and referred as prevention of food adulteration (4th amendment) rules, 2008. It also
defines that “packaged water” means water derived from surface water or underground water or
sea water which is subjected to herein under specified treatments, namely decantation, filtrations,
combination of filtration, aerations, filtration with membrane filter depth filter cartridge filter
activated carbon filtration, deminaralisation, remineralisation, reverse osmosis and packed after
disinfecting the water to a level that shall not lead to any harmful contamination in the drinking
water by means of chemical agents or physical methods to reduce the number of micro-organisms
to a level beyond scientifically accepted level for food safety or its suitability: provided that sea
water, before being subjected to the above treatments, shall be subjected to desalination and
related process'.
IS: 14543 - 1998 (Specification for Packaged Drinking Water) prescribes the hygienic practices
to be followed in respect of collecting water, its treatment, bottling, storage, packaging, transport,
distribution and sale for direct consumption, so as to guarantee a safe, hygienic and wholesome
product. Ministry of Health and Family Welfare has notified to carry declaration “Crush the bottle
after use” on the label of the disposable bottle of mineral water or packaged drinking Water.
But, the issues on quality and safety of packaged water not end up with these initiatives.
Urban water supply and sewage disposal is handled by the Ministry of Urban
Development whereas rural water supply by Department of Drinking Water under Ministry of
Rural Development. Ministry of Drinking Water and Sanitation through Rajiv Gandhi National
drinking water mission and other programmes concern with providing safe drinking water to
rural.
Ministry of urban development dealt with all the major issues like water supply,
infrastructure, urban poor, pollution, health, sanitation, waste management etc. In one of its
document, it is given that even when urban water supply is adequate, as no monitoring system in
place and no incentive to reduce inefficiencies, the urban water scenario in India is one of poor
service delivery, poor maintenance of physical systems, poor recovery of costs, and poor
generation of revenues. There is also scheme called accelerated urban water supply programme
by which vulnerable towns less than 20,000 populations (as per 1991 census) are selected for
providing safe drinking water.
Above table reveals that packaged water consumption is meager in comparison to all
other main sources of drinking water in India. As assumed, such source of water consumption is
more prevalent in urban than rural region.
Therefore, these exhaustive analyses of government's discourse on water lead to following
inferences.
Groundwater extraction and depletion, privatization, water pricing, water quality,
challenge of providing safe drinking water are some of the major issues that can be indirectly
connected with the idea of packaged water . There is also reference to the standards prescribed for
packaged water consumption in ministry of health and BIS. But, there is no exclusive and
significant reference and policy framework on the raising trend of packaged water consumption.
Packaged water
This is also popularly referred as bottled water. Since water is not only packed in bottle
but also in cans, sachets etc. it is apt to refer it as packaged water for the purpose of this thematic
analysis. Bottled water is drinking water packaged in plastic or glass containers. The dominant
form is water packaged in new Polyethylene terephthalate bottles and sold retail. Another method
of packaging is in larger high-density polyethylene plastic bottles, or polycarbonate plastic
bottles, often used with water coolers.
Bottled water is sold in a variety of packages: pouches and glasses, 330 ml bottles, 500 ml
bottles, one- litre bottles and even 20- to 50-litre bulk water packs. As per notification issued by
the ministry of consumer affairs on Feb 28, 2001, amending Standards of Weights and Measures
[Packaged Commodities] Rules 1977, it is mandatory now for bottled water to be sold only in
prescribed standard. These are 100 ml / 150 ml / 200 ml / 250 ml / 300 ml / 330ml (only in cans),
500ml / 750 ml / 1 litre / 1.5 litre / 2,3,4,5 liters and thereafter , in multiples of 5 liters.
Formal bottled water business in India can be divided broadly into three segments in
terms of cost: premium natural mineral water, natural mineral water and packaged drinking water.
90% water consumed is packaged water and rest 10% only for natural mineral water (IKON).
Premium natural mineral water includes brands such as Evian, San Pellegrino and
Perrier, which are imported and priced between Rs.80 and Rs.110 a litre. Natural mineral water,
with brands such as Himalayan and Catch, is priced around Rs.20 a litre. Packaged drinking
water, which is nothing but treated water, is the biggest segment and includes brands such as Parle
Bisleri, Coca-Cola's Kinley and PepsiCo's Aquafina. They are priced in the range of Rs.10-12 a
litre. Bottled water is available in differently−sized packaging, from 200 ml (popular on flights)
to 500 ml (a huge hit among the youth) to 1 litre and the large 2 litre bottles. Bulk water usually
comes in two sizes −− the 25 liter can and the 20 litre bubble top PET.
Packaged Drinking water as Social phenomenon: Water is not limited with the idea that it is
something essential for our existence but it is identified with various cultural traits. History shows
that not only life but also human civilization emerged on the banks of water bodies like rivers.
Rivers are celebrated and even worshipped with sacred belief. Several stories are there to have
idea of how God and Goddess are synonymous with water bodies like rivers.
Serving a stranger or guest, first with glass of water whoever comes to their home is
highly regarded culture of hospitality in Indian traditions. In Tamil tradition, if someone gets
anger as he feels that he was betrayed and not properly treated and respected, it is very common to
hear from them saying harshly and hatefully, 'I don't take even glass of water from him'. But,
introduction of bottled water or “packaged drinking water” has changed and challenged the
tradition of serving and consuming drinking water. Consciousness of hospitality to guest by
serving atleast water is gradually thrown off with bitter inconvenience. There is atleast partial
truth if I say that people in metros are comfortable in serving the guest with beverages like tea or
coffee than quenching thirst with water. It is no more common and easy for a stranger to get water
(notion of safe and pure is attached here) from somebody or some shop at free of cost.
It would be strange and shocking for atleast most of us in present day world, suppose if we
happen to know that we need to buy Pure Air to have better survival or to live in the earth. It is
same situation with the case of water when three decades back in developing countries like India.
Once it was not so normal to think of an idea of buying water as like any other goods. Experience
of brand named 'Bisleri' packaged drinking water reveals how idea of selling drinking water was
started in India. Following is an excerpt from the book 'Principles of Marketing: A South Asian
Perspective by Philip Kotler(2010).
Signor Felice Bisleri was the first one to introduce the idea of selling bottled water in
India. Parle bought over Bisleri (India) Ltd in 1969 and started bottling mineral water in glass
bottles by the brand name “Bisleri”. Bisleri is now a household name and has become
synonymous with bottled drinking water.
When we think brands like Bisleri, it is hard to imagine that 3 decades ago, there was no
market for bottled drinking water. Parle was wondering who their market was. They had no clear
idea of who to offer this colorless, odorless, tasteless product to, as it was very different from its
other brands-thumps up, Limca. Bisleri was originally launched as a soda with two variants-
carbonated and non-carbonated mineral water. This non carbonated mineral water, something
that an ordinary consumer on the road was not familiar with, was difficult to promote. Initial
brand building exercise concentrated on bisleri as healthy and pure water with adequate
minerals. Initially, however, only foreigners and nonresident Indians preferred Bisleri. Making
the brand attractive to the masses was real challenge faced by the company at that time.
Initially bottled water brands like the French manufactured Damone were promoted at
clubs, fitness centers, cinemas, department stores, malls, ice-cream parlors, cafes and retail sports
outlets, besides restaurants, hotels and supermarkets with a price tag of ` 70/- for 1 liter bottle.
Other brands later began pitching for the larger middle class and lower middle class markets.
(Source of information: 'Project profile of Packaged Drinking Water' by Micro Small and
Medium Enterprises-Development Institute, Government of India).Hence, it can be concluded
that packaged water used in places like luxury hotels, Airlines and so most of the consumer
belongs to Rich Class. It was not imaginable then, this would percolate to common people
irrespective of any class differences. Bottled water market is not only limited with big players like
Bisleri but it is flooded with many local firms. Following is the news report from Economic Times
which describes its' penetration,
Almost all the major international and national brands water bottles penetrated in the
Indian market and are available at right from the malls to railway stations to bus stations to
multiplexes to grocery stores and even at panwala's shop. It has penetrated so deeply in to market
and now it's become very common to consume bottled water whereas before few years it was
considered as the rich people's choice and fashion to consume bottle water. Thanks to low pricing
and aggressive marketing strategies adopted by the multinationals. Some surveys show that truck
drivers on highways form a major chunk of bottled water drinkers. Penetration in rural areas is
another significant factor that is likely to play a key role in the development of the bottled water
trade.
Consumers of packaged water is gradually accepted its inevitability in their day to day
life. It is hard to avoid consuming packaged drinking water especially in metro cities like
Chennai. This trend also pervades to other cities, towns and to little extend in rural areas.
It is common nowadays to observe the trend of consuming packaged water in
conferences whether it is of educational institutions, political parties etc, marriage or any other
celebrations and other situations where people joins together. It is difficult for us to have
conference without packaged drinking water even if we suppose have the title like 'ill effects of
packaged drinking water'.
We cannot avoid taking or buying packaged drinking water in our travels. Public places
like bus stands, railway junction, and airport stand as evidence for my observations. Packaged
drinking water is flooded in tourist location and became 'environmental nuisance' for such tourist
places. It becomes necessity and trendy to have packaged drinking water in entertainments spots
like movie halls, theme parks etc. Sometimes, people prefer soft drinks as it cost less than that of
bottled water.
My experience of stay in Chennai City as a bachelor and as the one who stayed along with
other bachelors (some are married and staying there singly for the purpose of employment and
education) in lodges, mansion, hostels, almost everyone consumes packed drinking water. There
is continuous bulk supply of packaged drinking water to such places. Heavy competition prevails
among them to woo consumers. This is common and visible phenomenon in metros like Chennai
city.
Having accompany with packaged drinking water in travel or any situation give sense of
safety, purity and prestige not only in minds of ours but also others. As like any other possession
of goods in materialist world, this also gradually becomes a symbol of 'Status' and further addition
to 'Social Stratification' in our Society. But, this cannot be equated with other goods in any
rationality. Individual who lacks or not capable of accessing the packaged drinking water strive
and aspire to adapt the packaged drinking water culture.
All these are more visible in our present society. So, there is a visible change in the pattern
of how we consume water, our consciousness on health, our cultural outlook and in definition of
poverty. It also further pressurized life of the poor. Interpretation of poverty cannot be confined to
food, clothing and shelter. Poor in the situation of not having food had possibility to manage with
water. But, this type of opportunity in crisis is shut down by commodifying the water. It even
questions his existence in earth. Therefore, because of these reasons and most importantly, rapid
growth of the practice of consumption of packaged drinking water as described above, these can
be referred as one of the Social Phenomenon of our period. Social scientist has an obligation to
identify and analyse such ongoing phenomenon of our Society. As looking into statistical
evidence of packaged water business further justifies our experience, it is given as follows,
Since information on packaged water business is not so prevalent with each and every
elementary detail in Government documents, other sources such as well known marketing
research firms, consultancies and news of standard newspaper are collected to present true picture
to maximum extend. Statistical evidences are cross checked with other reliable sources.
While global bottled water market increased by 40-45 per cent over the past five years
and is currently valued at $85-90 billion, India's bottled water market is around only two per cent
of global bottled water. Per capita consumption of bottled water in India was at 16.20 liters during
2010-11 and jumped by almost 21 percent to 19.60 liters in 2011-12, IKON said in its report 'The
Indian bottled water market, unveiling its thirst'."Globally, the western countries are having the
highest per capita consumption of bottled water with Mexico being on top followed by Italy,"
IKON's founder and principal consultant said in the report. "India is way behind, but gradually
unlocking it's potential," he said. (Report published in most of newspaper)
Indian Bottled water Market: The overall packaged bottled water in India is estimated to
touch Rs 10,000 crore mark in the 2012-13 fiscal, growing at a compound annual growth rate of
19%, says a new report by Ikon Marketing Consultants. Presently, this market is estimated at Rs
8,000 crore, and could touch Rs 15,000 crore by 2015. Economic times (ET Bureau Jun 23, 2012,
06.35PM IST). Of the 3300 registered plants manufacturing bottled water in India, around 48%
are located in the south, followed by 22% in the west. But, there is no significant difference in the
above trend of consumer market size. Western region is home ground for major national players.
The study estimates, there are more than 12000 unregistered plants in India.
Brands: Amongst the players, Bisleri continues to hold a leading position with a 36% market
share, with Kinley and Aquafina fast catching up. Kinley has 25% and Aquafina approximately
15% share in the market. Parle Agro's Bailley has a 6% share in the market among the national
players. The rest includes other organized brands such as Kingfisher, Oxyrich, Mcdowells no 1,
together with 18% share. Manikchand and Mount Everest also has noticeable presence. Majority
80% of this market is with organised players, the remaining 20% is operated by unorganised
brands (News report of major newspapers collected through Internet source)
According to Bureau of Indian Standards (BIS), there are 1200 bottling plants (out of
which 600 are in the state of Tamilnadu) and 200 brands of packed drinking water across the
country (nearly 80% of which are local) hitting over the markets which thoroughly signifies the
market is big, even by international standards. (Micro Small and Medium Enterprises-
Development Institute, Government of India). In fact, making bottled water is today a cottage
industry in the country. However though having the large number of small and local producers,
this industry is dominated by the big players. These players can be called as the trend setters in the
marketing of packaged drinking water.
Sales of bulk and small sachets: Presently, the small pack has maximum market share due
to easy affordability and availability. One-liter bottle holds significant market share. However, in
recent years the institutional supply is picking up with supply of bulk pack. These bulk packs
(with over 5 liter capacity) has over 40 % in current market.
Social phenomenon of packaged water consumption will be bigger and inevitable in Future:
It is well established with facts that packaged drinking water consumption is rapidly
growing phenomenon. Packaged water consumption will be bigger and inevitable in future due
to,
Notion of safety and purity attached with packaged drinking water: Packaged water sold
at higher cost than any other source of drinking water only by marketing the idea of safety and
purity with it. This notion of purity and safety ensures healthy being. People more likely opt for
such safe, pure water for their healthy life. During initial period, it attracts upper class section of
the Society. Other sections of the society started to aspire for the packaged drinking water as it is
vital component for human existence. But, these aspirations cannot be equated as like the case of
aspiring for car or any other comfort and luxury goods enjoyed by the privileged class of any
Society. Desire to buy car or travel in flight cannot be equated with desire to have healthy life.
Here basic right of a human being is camouflaged as desire and this is how such aspiration needs
to be interpreted.
Health issues and Rising health consciousness: Enhancement of Medical facilities, urbane way
of life, increase in number of educated etc give raise to awareness and consciousness on health.
Being a basic element of existence, people ready to buy safe and pure water for their health. They
don't mind in spending money for such vital components of our life. It is wiser to spend for health
rather than for medical treatment. They also aware that water as easy medium to spread illness,
they don't like to risk their health by avoiding packaged drinking water.
Pollution and unavailability of safe drinking water: This is one of the most pressing reasons
for the growth and prospects of packaged drinking water. Urbanisation and aggressive
industrialization leads to pollution of water bodies. Ground water is also polluted and depleted
due to over-exploitation. So, there is massive reduction in availability of safe drinking water. So,
packaged water with strong assurance of safety and purity relatively at higher cost than any other
source of water fills up the lacunae. This crisis situation necessitates the packaged water
consumption. Crisis situation is turned as an opportunity for packaged drinking water business.
Packaged water business is relatively cheaper and easier than any other business: This
particular industry in India has never looked back after economic liberalization process. Less
entry barriers in the business, less investment and almost negligible cost even in the case of
quitting the business, product of universal appeal, product devoid of an expiry date are favorable
factors for promotion of business. Extremely low cost of production though there is transport
cost. High profitability as it requires only the extraction of natural resources. There is no dearth of
demand as like that of other business. Water gives more profit in packaged drinking water
business than using it for agricultural purposes. So, farmers abandon agriculture and involve in
such business or leasing their water or land to the big and sometimes small players of the Industry
depends on the profit.
Marketing strategy: Marketing strategy of big players by realizing the water crisis as one of the
reason for growth of packaged water consumption. Already they are able to establish the safety
notion of packaged drinking water. However, above described factors is more effective reason
than marketing strategy of Companies in promotion of packaged water consumption.
Government promises bottled water: There are also cases that government promises bottled
water at the times of dry taps. Delhi is the case which is reported in newspaper. (Times of India,
July 21, 2002). ''Bottled water is an immediate measure to meet demand in water-deficient areas
in south Delhi. Our bigger projects will be in place by 2003-end,'' said then chief minister Sheila
Dikshit while unveiling the Delhi Jal Board plans to sell bottled water. She admitted that
government has failed to provide a basic amenity like water and therefore took the decision to sell
bottled water. Delhi Jal board had started production of 250ml packaged drinking water glasses
and same were available for sale since January 2007(Delhi Jal board). Government selling
packaged water at cheaper cost is also found in state of Kerala. From 2013, Tamilnadu also joins
the list through selling packaged water in the name of 'Amma' Drinking water.
Vast section of people has aspiration to have packaged drinking water: All these reasons
clearly reveal to non-consumers that packaged drinking water is something they have to aspire
for. Vast sections of people are eager to enter the category of consumers of packaged drinking
water. Some improvement in life status is enough for them to access what they believe with reason
as pure and safe drinking water. It is not that they are interested to pay for water but compelling
reasons (as given above) necessitate them to opt for packaged drinking water culture.
Therefore, it is not at all exaggeration to say that water is next oil industry. One day it will
become inevitable for all as it is for few today.
Quality, Safety and Regulation: Quality, Safety and regulation is most often discussed issue in
packaged drinking water consumption. It is said to be that Indian bottled water Industry is far
behind western market in terms of quality, safety, infrastructure, professionalism and standards.
In comparison to global standards, India's bottled water segment is largely unregulated. Belief of
safety and purity of bottled water is also disproved several times. There is an incident to be citied
here that once Delhi based Center for Science and Environment through its test identified most of
the packaged drinking water brands contained pesticide residues that are harmful to health. It
includes five top brands of big companies. ISI certification of Bureau of Indian Standards is not
able to curtail all such irregularities. There are many local unorganised brands without ISI
certification. Bottled water may be no more pure than tap water in India. This is because there are
simply no government standards that require bottled water be any better and many times all these
standards are easily violated.
Exclusion of poor: Poor are in greater strain when it comes to the price of water. They are even
struggling to get other basic needs of the life. Paying for water puts extra burden on them. They are
in precarious situation of spending money for the water on par with middle class. Conflict arises
as right to have healthy life is camouflaged as desire to be healthy due to commodification of
water.
Depletion of Water Resources and Environmental Impact: Ground water is main source of
water for this industry. There are also cases of river water leased for the bottling plants of top
brands. Examples of such rivers are Sheonath in Chattisgarh, Bhavani in Tamil Nadu and water
from Upper Ganga canal in Uttar Pradesh. As these are also sources of water for communities, it
leads to conflict and tension between the bottling plants and the local communities. Most of these
plants are located in semi and peri-urban areas. Since there is no restriction in extracting the
ground water, exploitation of the resources leads to ground water depletion in the area of location.
Thus, inhabitants of the area not only lost the major source for livelihood opportunities but also
gradually running out of drinking water. Thus, water commodification excludes indigenous
people who are supposed to be owner of the resources. For instance, Mathur, a village in Chennai
is over-exploited by bottling plants and leads to conflict. Community opposed and made to shut
down the operation of Coca-Cola Company's bottling plants at Plachimadaeu in Kerala as it leads
to water contamination and Soil degradation is another notable instance. On a petition by the local
village panchayat, the High Court ordered that the company has no right to extract that higher
quantity of natural wealth (The Hindu, 17 December 2003,).It was held that the groundwater
belongs to the people and the government has no right to allow a private party to extract such a
huge quantity. This case has several implications in water sector.
Furthermore, disposing non-degradable plastic bottles is another very big issue of
packaged water consumption. Plastic bottles continue to pile up in landfills and oceans. These
waste become burden and nuisance to the environment.
Misappropriation of water resources: Privileged few is able to appropriate resources and gets
maximum out of it. By applying the principle of business in water resource, resources common to
all turned into profit for few. Packaged drinking water entirely goes against the idea of equity and
justice.
Questions of sustainability: All these issues question the sustainability of such practice of
consumption. Practice of sustainability is absent from manufacturing to consumption of
packaged water. Idea of packaged water consumption itself goes against the spirit of concept of
sustainable development.
CONCLUSION
Article is able to bring justification for the two major themes which have taken up for the
analysis. One is how packaged water consumption is significant to be referred as Social
phenomenon of present Society and next how such significant issue is ignored or not has the
deserving attention in Government's discourse on water. Therefore, the article emphasis the
necessity on probing further and showing attention on emerging Social phenomenon of packaged
water consumption.
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