Even as the fight in the mass water purifier segment gets intense, several international players are waiting to grab a larger share of the pie in the premium market. Eureka Forbes has inked an equal joint venture partnership with UK-based Waterlogic to develop water-purifiers, targeting high-end consumers.
The joint venture company, Aquaignis Private, will invest $10 million (Rs 50 crore) over the next few years in setting up a manufacturing unit and developing new models. This marks the entry of Waterlogic, a London listed firm, into the Rs 3,000-crore Indian market, that is flooded with players such as Tata, Hindustan Unilever, Kent, Philips, Godrej and Bajaj.
“We have set up a manufacturing unit in Dehradun which will be operational by mid next year. This is our second unit globally after China and we are looking to export to countries in South East Asia and West Asia from the Indian unit,” said Jeremy Ben David, Group CEO, Waterlogic.
The plant will initially produce three million units of Aquaguard World Series annually. Currently, the product is being test marketed in Mumbai, Bangalore and Lucknow.
The premium models will be sold in the country through Eureka Forbes’ strong direct marketing channel as well as the retail distribution network.
“The Indian premium market for such products is around Rs 350 crore and is growing at a fast pace as people are getting more conscious about safe drinking water,” David said, without mentioning the price of the products.
The joint venture is expecting revenues of $30 million over the next five years, he added.
Meanwhile, Eureka Forbes is also widening its product portfolio. The company has entered the fire extinguisher segment under the brand name Fireguard. The product comes with a 21-year warranty and one-year cover of fire insurance. The product, targeted at both institutional and domestic usage is priced at Rs 4,990 and Rs 2,790, respectively, CEO Marzin Shroff said. The company expects to sell over 1 lakh units in the first year of launch.
According to the National Crime Records Bureau, fire accounted for 24,414 deaths and 60 per cent loss of property in 2011.