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4. Market Analysis and Marketing Strategy

Safe drinking water comprises of Rs.600 crore domestic water purification industries and the packaged water business worth is Rs. 1,200 crore. In year 2003, total Indian drinking water market is estimated to be $ 2000 million. At present, rural drinking water sector is a new area for making investments but case studies of different models working in this sector shows lack of demand in rural areas.

Establishing technology based desalination plants requires high cost of capital which affects the financial health of the business to a greater extent.

4.1 Drinking Water Market Prospects

The growth trend is seen in overall India, drinking water market (DWM) creates promises for alternative means of providing safe drinking water to the community and specifically for rural community as a stimulus for rural community development. Significant potential exists to create a market of safe drinking water for rural India. Over seventy percent of India's population resides in rural areas comprised of over six lakhs villages. These villages represent a tremendous diversity of quantity and quality of water resources. Not all villages, however, are affected to water problems, but most of them have austerity of either quantity or quality of water or both. Targeted villages for Community Safe Drinking Water Project (CSDWP) are only those where water is available but it is not potable. Investments are required to identify and stimulate CSDWP where it is most likely to bring economic and social returns to the local area as well as required financial returns to the investor.

Safe drinking water becomes a priority and this is a signal for rupees six hundred crores domestic water purification industry for setting up its operations. Corporate control over water and water distribution in India has been growing rapidly: the packaged water business is worth rupees one thousand two hundred crores and it is growing at a huge forty to fifty percent annually.

4.2 Opportunities

It is difficult to estimate the proportion of population that has access to clean drinking water. At the time of the First Five Year Plan (FYP), six percent of the rural population and some forty eight percent of the urban population had access to safe drinking water. There has been a dramatic increase in coverage, and by 1994-95, as much as eighty two percent of the rural population was covered. According to the Centre for Science and Environment, about eighty one percent of the country's total population has access to safe water.

4.3 Market Players

Market players can be divided into five different groups. They can be:

1. Technology developers
2. Manufacturers / Assemblers
3. Government bodies
4. Private bodies (Non-profit and for-profit organizations)
5. Funding Agencies

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* Contributed by: -
Amit Goel has done B. Tech. in Computer Science Engineering from Technological Institute of Textile & Sciences (TIT&S) Haryana. Worked as Software Engineer – Technology at HCL Technologies Ltd, New Delhi. Presently he is doing Post Graduate Diploma in Rural Management from the Institute of Rural Management Anand (IRMA), Gujarat.
Mohit Goel has completed his Bachelor of Engineering (Computer Science) from Netaji Subhas Institute of Technology, Delhi University & is currently working as QA Lead at Mtree Software Limited.