Fluoride-free drinking water supply in North Gujarat - the rise of reverse osmosis plants as a cottage industry

This study by Carewater focuses on the large number of ‘cottage’ type  Reverse Osmosis (RO) plants that came to be marketed for supplying good and safe water to the consumers under ‘packed drinking water’ category, and a big market for which emerged in North Gujarat. For the purposes of this study, ‘fluoride-free water’ means treated water containing prescribed quantity of fluoride and not completely ‘fluoride-free’.  

The methodology used, comprised of detailed interview and administration of a structured questionnaire to a select list of fourteen RO plant owners, owning plants of different sizes and capacities, spread over eight towns in undivided Mehsana district to get a broad estimate of RO plants in this area. A consumer survey was also conducted among sixty consumers served by RO plants through a structured questionnaire for understanding the consumer scenario.

The study concludes that -

• There are persons who reported that they got relief from ailments like constipation and urinary tract infection after consuming RO treated water.   
• The market for the mineral/packed water produced by ‘cottage’ type industries has developed very rapidly in Gujarat between 1996 and 2000, especially in North Gujarat. The water packed pouches has more margins as compared to big-packs of 10 or 20 litres.
• The price of 10-litre packaged water for the year-round customers is Rs 1500 or Rs 4.11 per can. One pouch of 250ml has the ex-factory price of Rs 0.30 and MRP of Rs 1.00.
• Producing packed water in pouches requires only an additional investment in packaging machine, which the investors find affordable as it costs approximately Rs 1 lac.
• The packed drinking water in pouches has a large market catering to the people at large as it has an ‘any time, any place’ type of market spread. As long as the municipality’s supply of ground water in North Gujarat is high on TDS and has more than recommended amount of fluoride, packed drinking water has a good market.
• There is possibility of a very good growth of this ‘cottage’ RO industry as the market is very wide. Even if the ISI certification is made mandatory, there are a good number of investors who would not mind investing the extra amount required for the ISI certification, as they know about the quality consciousness of their clientele. In reality, there are two among the 14 plant owners have started doing the initial planning of their new plant as per ISI specifications. 

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