The study by Carewater INREM Foundation explores the rise of Reverse Osmosis (RO) plants since 1970s as a cottage industry for providing fluoride free water supply in North Gujarat. The emergence of markets for Reverse Osmosis (RO) plants can be attributed to the Government’s failure in supplying large-scale safe water to the public through its large RO and de-fluoridation plants.
A detailed study was undertaken of 8-10 plants in 4-5 towns in Mehsana district so as to understand the economics, volumes of business, prices, modes of business and the nature & economic profile of the clientele. The future prospect of the industry is assessed, especially focusing on growth rates through discussions with plant owners, customers and municipal leaders.
The study concludes the following -
- The market for the mineral/packed water produced by cottage industries has developed very rapidly in North Gujarat between 1996 and 2000.
- The small pouches bring more margins as compared to big-packs of 10 or 20 litres. Producing packed water in pouches requires an additional investment of rupees one lakh in a packaging machine, which the investors find affordable. The packed drinking water in pouches has a large market catering to the people at large.
- As long as the municipality’s supply of groundwater in North Gujarat is high on TDS and has more than recommended amount of fluoride, packaged drinking water has a good market.
- There is 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 keen on investing in it.
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