Bisleri banking on fizzy fruit drinks, mineral water to double revenue
Bisleri is looking to double its revenue from the current Rs1,500 crore (as of March 2017) to Rs3,000 crore by FY2020, says marketing director Anjana Ghosh
Mumbai: Bisleri International Pvt. Ltd, which sells Bisleri packaged drinking water, is banking on a revamped portfolio of fizzy fruit drinks and its premium mineral water brand Vedica for growth in the next 2-3 years, a top company executive said.
Bisleri is looking to double its revenue from the current Rs1,500 crore (as of March 2017) to Rs3,000 crore by FY2020, Anjana Ghosh, director, marketing, said in an interview.
Bisleri will finalize products for Bisleri Pop—its portfolio of carbonated drinks—by January 2018 which will help drive the company’s growth, Ghosh said. “We are still brainstorming ideas and we will have a clear strategy by sometime in January. The fizzy fruit drinks market is still relatively small, but there is no one in the market with a fizzy drink with real fruit,” she said, adding that a lot more work needed to be done on the portfolio.
Currently, Bisleri Pop is sold in 4 flavours—a black cola called Spyci, lemon cola Limonata, orange cola Fonzo, and a Pina Colada.
Rival Parle Agro, promoted by a branch of Bisleri promoter Ramesh Chauhan’s family, already has a major presence in this market with Appy Fizz and Frooti Fizz. Parle Agro is also banking on growth in this business for its revenue to rise, Mint reported on 31 August.
Besides this, Bisleri is banking on growth in its natural mineral water brand Vedica for growth in the topline. Currently, 10-15% of the company’s Rs1,500 crore revenue comes from the brand and this is set to grow to over 20% in the next 2-3 years, Ghosh said.
The company will set up 2-3 more plants for Vedica in the coming fiscal year, adding to the existing plant in Rudrapur, Uttarakhand. All plants for the brand need to be near natural springs and the company is evaluating sites, Ghosh said.
This comes at a time when more companies are making a beeline for India’s packaged drinking water market, valued at Rs12,000 crore when including local players, as per Ghosh.
Carbonated drinks majors PepsiCo and Coca Cola are introducing new premium variants in the market—while PepsiCo launched fruit flavours of Aquafina water, Coca Cola has launched its premium brand Smartwater in India this December.
Meanwhile, Baba Ramdev-led Patanjali has announced it will launch packaged water brand Divya Jal.
The government-owned IRCTC’s Rail Neer dominates the railway station network—one of the largest distribution networks for bottled water.
These dynamics could upset Bisleri’s dominance of the packaged water market; the company has nearly 24% value share of it as per market research firm Euromonitor.