Reliance Consumer Products is entering the ₹30,000 crore packaged water market with its Campa Sure brand. Starting with bottles priced at ₹5 and water packs ranging from ₹15-₹25, it will challenge leading brands like Bisleri, Kinley, and Aquafina. A partnership model with local companies will be adopted.
Campa Sure Water: Mukesh Ambani's Reliance Consumer Products is launching the Campa Sure brand in the packaged water market. A 250 ml bottle will be available for just ₹5, while a 1-liter bottle will sell for ₹15, and a 2-liter bottle for ₹25. The company will partner with local and regional water companies to boost bottling, technology, and branding. This move could provide b competition to established brands such as Bisleri, Kinley, and Aquafina.
Reliance's New Move in the Packaged Water Market
The packaged water market in the country is estimated to be around ₹30,000 crore. This sector already has major brands like Bisleri, Kinley, and Aquafina. Reliance's new brand, Campa Sure, could disrupt this market through competitive pricing and a large distribution network.
According to an ET report, the company stated that this brand will be available in sizes ranging from a small 250 ml bottle to a large 2-liter bottle. The most notable aspect is that the smallest 250 ml bottle will be available for just ₹5. Meanwhile, a 1-liter bottle will sell for ₹15, and a 2-liter bottle for ₹25. These prices are 20-30% lower than current market rates.
Partnerships with Local Brands
Reliance plans to implement this project on a large scale, but instead of acquiring companies, it will partner with local and regional water companies. According to an ET report, Reliance is in talks with nearly two dozen companies in North India. This partnership will foster collaboration in bottling, technology, and branding.
This model will offer two benefits. Firstly, it will promote local businesses. Secondly, it will curb brands selling counterfeit and substandard water. Furthermore, Reliance will be able to maintain consistent quality and pricing for its brand across the country.
Pressure on Leading Brands
Reliance's entry is likely to pose b competition to companies like Bisleri, Kinley, and Aquafina. Campa Sure's pricing and distribution strategy could present a significant challenge to these brands. Currently, the government has reduced GST on packaged water from 18% to 5%. Reliance has leveraged this benefit to lower the price of its new brand.
Campa Sure's Marketing Strategy
Reliance already sells water under the "Independence" brand, which is priced slightly higher than Campa Sure. The company believes that each sales platform should have a distinct brand. This strategy aims to cater to the varied needs of stores, malls, and rural areas.
The Campa Sure brand will reach a large number of customers with its low price and reliable quality. Reliance believes that this brand will increase access to water, particularly enabling people in smaller towns and rural areas to easily access safe and affordable packaged water.
Potential Changes in the Packaged Water Market
Experts believe that Campa Sure's entry will increase price pressure in the market. Major brands may be compelled to lower their prices. Additionally, Reliance's extensive distribution network and marketing capabilities could rapidly popularize the new brand.
According to market analysts, this move by Reliance could create an impact similar to its earlier Campa Cola strategy. When Reliance entered the soft drinks market, major companies like Pepsi-Cola were forced to reduce prices. The same strategy is now set to be applied in the bottled water business.
