New Delhi:Tata Global Beverages (TGBL) is planning to strengthen its packaged drinking water portfolio, and expand overseas to position its water brand Himalayan as a global label.
The company has plans to expand its Himalayan Natural Mineral Water to other geographies beyond the US and Singapore, where it is available now, said (TGBL) in its latest annual report.
Although, “water is currently a small part of our beverage portfolio but is a key strategic business which we believe is well poised to contribute significantly to our growth in future years.
“Along with the domestic market, we are also closely looking at international markets for growth as we believe our premium source water brand Himalayan has the potential to be a global brand," the Tata Group firm said.
In the water segment, TGBL has three brands—Himalayan, Tata Water Plus and Tata Gluco Plus. It has a a joint venture with PepsiCo, NourishCo Beverages for marketing and distribution of these products within India.
“We have high ambitions for Himalayan and plan to expand its presence in a phased manner beyond USA and Singapore," said TGBL.
In mature markets, premium natural mineral waters and functional beverages are leading category, the company said.
While in India, there is a growing trend towards functional beverages with fortification through vitamins and minerals.
“India’s value added water segment will continue to enjoy good growth with increase in distribution and penetration for the next few years," the company said in its report for FY18.
According to TGBL, the Indian packaged drinking water category growth is led by “increasing disposable incomes and changing lifestyles, with consumers looking at convenient and hygienic options for hydration".
The Indian liquid refreshment beverage (LRB) market, which includes dairy, juices, carbonated soft drinks and bulk water, is estimated to be around Rs18,000 crore market and is having a year-on-year growth of 6%.
“Packaged Water constitutes approximately 18% of LRB (by value) and is growing at 1.5x the category," said TGBL.
Himalayan, is sourced from stream aquifer located at foothills of the Shivalik range in the Himalayas. It has started a phased entry into the US market through a distribution agreement with Talking Rain.
“Himalayan’s foray into the US market makes it one of the first premium Indian FMCG brands to target the broader American audience. The premium end of the water market in the country is growing rapidly and Himalayan is well positioned to leverage the growth in this segment," said TGBL.
Himalayan is currently available in Chicago city and through Amazon online, it added.
“We plan to enter more cities in a phased manner," it said. While Tata Water Plus fortified with nutrients and had registered good growth in the PET bottle format in 2017. Tata Gluco Plus is glucose based energy drink.