Parle Agro sees money in packaged water segment | business | Hindustan Times
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Parle Agro sees money in packaged water segment

business Updated: May 19, 2010 20:54 IST
Vivek Sinha
Vivek Sinha
Hindustan Times
Parle Agro

Parle Agro, better known for its mango drink Frooti, is now betting big on its packaged water, Bailley and lemon drink, LMN, as high revenue grossers in the future. The company has chalked out strategies to ramp up production facilities, strengthen distribution network and alter pack sizes to tap a larger pie of the market in these two categories.

At present, the company has 40 water packaging factories of Bailley across the country and it plans to add 15 more by December.

“Our plan is to have more number of water packaging factories that may be lower in capacity but nearer to the retail outlets,” said Nadia Chauhan, joint managing director and chief marketing officer, Parle Agro. “A Bailley water plant nearer to the destination will mean that our response time for stock refurbishment is faster than others.”

It is difficult for any retail outlet to stock a large quantum of water bottles, she said.

In fact, the strategy seems to be paying off as company’s water business is growing at an annual rate of around 130 per cent. Industry players estimate the domestic bottled water market in India at around Rs 2,000 crore that is growing at an annual rate of 40 per cent.

On lemon drink LMN, Nadia said, “We have introduced LMN in pack sizes ranging from 100 ml that caters to individual consumption and 1 litre for bulk consumption at home.”

The total market size in the lemon drinks category is about Rs 100 crore that is growing annually at around 35 per cent.