The Indian bottled water market is projected to grow by 7.46% between 2024 to 2028 to reach to a market volume of US$8.4 billion in 2028. Despite several corporations such as Bisleri, Coca-Cola, PepsiCo, Nestle, Parle Agro, Mount Everest, Kingfisher and Manikchand controlling the market to an extent, the presence of a huge number of small and local manufacturers is growing significantly.
In this league is Clear Premium Water, that is making its products widely available by partnering with retailers, offering competitive rates.
From the network of 100,000 retail outlets at present, it aims to take it to 175,000 retail outlets by March 2025. Also, it is plans to double the revenue growth this year, shares Nayan Shah, Founder and CEO of Clear Premium Water.
According to reports, the company recorded around Rs 250 crore in revenue in FY23.
To meet this growth target, the water brand is prioritising infrastructure, intensifying retail footprint, and diversifying its product and service portfolio. Following the footsteps of Bisleri, Aquafina and Bailley, who have also adopted the direct-to-consumer model, Clear Premium Water is also expanding its presence in the D2C space and has introduced family packs, such as a 6-liter (5+1 at the rate of 5Ltr) to offer practical and economical choices for larger households.
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How is the premium bottled water market growing in India?
In the wake of the COVID-19 pandemic, there’s been a significant shift towards prioritising health and wellness. This newfound consciousness has led many individuals to seek out healthier beverage options, with natural mineral water emerging as a preferred choice. With its purity and mineral-rich composition, natural mineral water is perceived as a healthier alternative to other packaged beverages. Consequently, the demand for natural mineral water has surged, indicating a promising growth trajectory for the industry. This trend mirrors the rapid expansion seen in the packaged bottled water sector, highlighting the potential for substantial growth and market expansion within the natural mineral water industry.
In tandem with the growing demand, what’s your long-term goal for Clear?
To double the revenue growth this year, we are adopting a multifaceted approach. Firstly, we are prioritising infrastructure development to ensure our operations are streamlined and scalable, laying a solid foundation for future expansion. Concurrently, we’re intensifying our retail footprint, reaching new markets and customers to bolster our market share.
Additionally, we’re strategically diversifying and enriching our product and service portfolio, ensuring that we meet the evolving needs of our clientele while also penetrating new segments of the market. In addition to the existing portfolio, which includes premium natural mineral water and volcanic water, Clear has also forayed into soda this month.
What remains your growth and distribution strategy?
In the ongoing fiscal year, we’ve strategically increased our capital investments to fortify the distribution capabilities, emphasising the expansion of the advertising initiatives. By doing so, we aim to not only attract new distributors but also to diversify and extend the market presence.
Our network spans 100,000 retail outlets, and aim to take it to 175,000 retail outlets by March 2025.
Our revenue model is structured such that 50% of our total revenue is derived from top metropolitan areas, while the remaining 50% emanates from non-metropolitan cities.
Online sales account for about 15% of the total revenue, while the remaining 85% is generated through traditional offline channels. This indicates a substantial reliance on offline sales methods, reflecting the early stages of digital adoption within the industry.
How is your D2C presence growing?
We are actively expanding our presence in the direct-to-consumer (D2C) market and have ambitious plans to invest more resources into this area throughout the year. One key strategy involves launching new product offerings tailored to meet the needs of families. For instance, we are introducing convenient family packs, such as a 6-liter (5+1 at the rate of 5Ltr). This approach not only provides added value to customers but also enhances the appeal of products in the D2C space by offering practical and economical choices for larger households.
How has Clear increased its marketing spends this fiscal?
Our marketing strategy for this year is centred on a strategic allocation of budget, with 20% dedicated to Above-the-Line (ATL) activities and 80% to Below-the-Line (BTL) initiatives. We will focus on enhancing the brand visibility through online platforms and will deploy aggressive on-ground efforts leveraging point-of-sale materials, promotional schemes, and various other tactical initiatives. This dual approach aims to drive both broad awareness and targeted customer interactions.
Shed some light on your manufacturing capabilities.
Currently, we operate 40 manufacturing units and to enhance the market presence, we’re planning to expand to 55 units by March 2025, increasing daily production from 5 to 7.5 million bottles.