Himalayan trek

A year ago, Tata Tea got into an agreement to buy into Mount Everest Mineral Water (MEMW), and eventually gain management control. That duly happened over the next few months, during which the tea and coffee major set up a task force to manage the bottled water business. The taskforce was headed by Pradeep Poddar, a former Managing Director of Heinz India, who has also assumed charge as CEO of MEMW.

A year down the line, with the Tatas at the helm, MEMW has relaunched its flagship brand Himalayan, with a facelift and a new tag line—natural mineral water. So, what else changes? Poddar says the objective is to create a dominant position for water in many value-added forms. “Globally, the bottled water market is worth $5 billion (Rs 20,000 crore) and is growing in double digits,” he points out. Back home, the market is estimated to be as large as Rs 1,500 crore, and growing at approximately 25 per cent year on year.

“We have got onto the platform of wellness and want to be a natural mineral water,” adds Poddar. The market for mineral water—as opposed to bottled water—is merely Rs 100 crore, with players like Evian and Bisleri Mountain, apart from Himalayan, in the fray. MEMW is looking to strengthen Himalayan’s position in the retail segment. The brand is currently available in about 1,500 outlets and in select restaurants. Percy Siganporia, Managing Director, Tata Tea, and Chairman, MEMW, says the intention is to take the Himalayan brand to the markets where Tata Tea is present. Tata Tea already has a global play with the acquisition of brands such as Tetley in the UK and the US-based Eight O’Clock Coffee. Domestically too, there are plans to piggyback on Tata Tea’s retail strength. “We will also have access to Tata Tea’s 10 lakh outlets at the retail level,” adds Poddar. The next step for MEMW will be to look at the enhanced water segment.

MEMW, which was promoted by entrepreneur Dadi Balsara in 1995, has a plant in Himachal Pradesh’s Sirmour District. It sources its natural mineral water from an aquifer that has a recharge capacity of 1 billion litres per annum. “Our wellness platform is a big-ticket proposition,” says Poddar.

Himalayan will be available in three sizes—200 ml, 500 ml and 1 litre.

—Krishna Gopalan