Buoyed by receiving the first-ever process patent for Oxyrich, the only oxygenated bottled drinking water in the country, Manikchand Group on Thursday announced its plans to invest about Rs 500 crore for both organic and inorganic expansion in the next few years. The company also announced its franchisee for Gujarat and plans for Jaipur in Rajasthan.
"As we look to strengthen our presence in the bottled water business we are weighing options of growing our business through natural expansion and also by acquisitions, for which we could invest up to Rs 400-500 crore," Manikchand Group CEO Ajit Jain said here.
Jain said the company has given franchisee license for Gujarat to Krishna Foods and Beverages Ltd in Ahmedabad. Krishna Foods has already started setting up the plant at Piplaj near Ahmedabad. This plant will commence commercial production in August this year. This will have a production capacity of 25 million litres a year.
"The staff of Bureau of Indian Standard receive training at company's lab to test quality of bottled waters. This speaks about the standard of our testing lab," Jain added.
When asked about the market size of bottled water, Jain said: "The total market size of bottled water is about Rs 1,800 crore per annum in the country. The overall growth rate is 35 per cent and that of Manikchand is 70 per cent. With the commencement of Ahmedabad plant the company hopes to capture 30 per cent market share in Gujarat."
To make rural forays, the company is negotiating with Godhrej Aadhar, an established retail network for farmers in Gujarat and other parts of the country, Jain said.
He said the company was more keen on acquisitions to give the scale of operations faster and have identified two big national brands for possible acquisitions. He, however, did not name the potential targets.