VValue-added water products maker NourishCo, a 50:50 joint venture between Tata Global Beverages and PepsiCo, is planning to expand its footprint across the country after the market response to its 'Tata Water Plus', launched a year ago in Tamil Nadu, "exceeded the internal benchmarks".
In the next one year, the company plans to expand its product reach to the north and other parts of the country by initially roping in 60-70 third party manufacturing partners, and hopes to emerge as one of the country's top-three brands in three years.
NourishCo managing director and chief executive officer Pratik Pota said this was not an ambitious target, considering the brand image of Tatas and a robust distribution network of PepsiCo, in addition to the product differentiation.
The company formally launched its Tata Water Plus product in Andhra Pradesh today.
Pota has said this is an all-new segment in the bottled water market, where the water comes in its original taste but with added minerals of copper and zinc for positive health effects, and that, too, at a price equal to that of existing water brands.
In addition to the bottle format priced at Rs 20 per litre, which is being followed by all players in the organised sector, the company is also selling 200 ml pouches at Rs 2. It also considers entering the bulk water segment.
The purified water has a Rs 4,200-crore market in India and is growing at 20 per cent year on year. Though bottled water — the bulk and pouch formats — accounts for around the same volume in terms of sales, bottled water contributes Rs 2,300 crore to revenues with a 16 per cent growth.
The other two contribute Rs 700 crore and Rs 1,200 crore to revenues, respectively, but are growing at a much faster pace at 25 per cent, according to the company.
However, Pota refused to share any details of investment or the current sales volumes pertaining to NourishCo.