Is Electrically Operated Vehicles the future transport system ?

Future Transport Kicks Off !
Future Transport System

It all started with a customer’s requirement first

One of our customers from Africa first posted this need of using (probably) a Battery operated vehicle for transportation of his Packaged drinking Water or Bottled Water. The main reasons why he was opting for this were :-

  1. The Fuel costs in his country were very high
  2. Electric operated vehicles will pollute the least , so he could grab some subsidy or taxation kind of benefits from his government.

We started digging deep here in India and found out from portals like the India Mart that , there were some players here . If you want to know a little more ,please refer to this article from wikipedia ,

But surely , it’s going to be a major step forward if you implement this for your Packaged Drinking Water Plant. As we know very well, that this industry is very cost sensitive , there are only two ways you can beat others :-

  1. Reducing Costs
  2. Increasing sales

Using Electric Vehicles will be surely a major cost cutting norm. The companies have already started branding campaigns for this. Look at this news :-

==> http://epaperbeta.timesofindia.com/Article.aspx?eid=31814&articlexml=Electric-vehicles-rally-for-eco-mobility-07012017009030

 

5 Ways you can adapt the de-monitization into a packaged drinking water business

Are you suffering due to demonitisation ?

As the rest of the industry , Packaged drinking water is no different. It is also suffering very badly.(we too suffered somewhat, frankly !) Recently , we paid a visit to some nearby Packaged Drinking Water Plants, many of them were running very much under capacity and some of them were literally closed operations. Reasons ?

Winter , December , a temporary setback. Let’s assume that these plants are closed due to the seasonal behavior of the business. But do people stop drinking pure water ? No. Then probably you need to rectify your marketing mix. You might be only focusing on  the “take away” market. But there are many other ways. Want to learn these quick ? Recently we conducted an Onlie Marketing Session for Offline businessmen & mentors for an agency which helps entrepreneurs to get Loans & mentor support at Pune. Just download a Free Training on how you can find out your exact niche & start selling online

Demonitization , is the second reason. Packaged Drinking Water or Mineral Water is sold majority in Cash.It is also consumed in cash by the User. There is a heavy drop due to unavailability of Cash in the market. Have people become frugal ? yes, temporarily. But they have not become No-Health-Conscious at all. What to do in such a case ?

Here are 5 Ways you can conquer this situation

Accept the Change, believe in change !

Nothing remains the same, so here is a change. And believe in that. With every new change, the old demolishes , but offers tremendous new set of opportunities. Believe in this , take it positively !Make Changes in your Offerings. Start accepting digital payments, paying digitally. Use Paytm or anything else. It’s very very easy. You will need to adapt yourself to the situation & also educate your team mates , customers , distributors , the delivery boys , the loaders , drivers etc. to go more & more Online. Activate your Debit cards , Internet Banking. Start giving-accepting cheque payments wherever possible; internet banking , wherever possible.

You can outsmart the old players very fast 

There may be established players in the market where you are selling. And traditionally , it is always difficult to beat them with the old , so called “proven” ways. But now, this can be your opportunity. Act above them, score over them, learn quickOnline Techniques to outsmart them. Who knows; you can be another Uber Story of Packaged Drinking Water ?

Being “White” is feeling more proud , right ?

As you know, the national anthem is going to be played in every cinema theatre now. There is a lot of gossip over this, but the intention of the govt. is very right behind that :- National pride to feel to be an Indian. Same feeling you will express when you change from the “Black” business into a “White” one. Every time. Now start accepting Digital Payments & feel proud.

Create an energetic atmosphere all round your organization !

The POS alias Point of Sale is the first point where you either escalate your business or drop down. The POS is usually a Grocery Shop , or a Railway Station Booth or it can be a Hospital. You will need to create an atmosphere here , to encourage these people to accept Payments through PaytM or any mobile wallet of their choice. There are many ways , but the willingness to do it is the most important thing. Spot the “Right” guys n gals in your company (who are optimistic, assertive, positive), hand pick them & inspire them further to inspire others. These are influencers. Let them spread all positive news around in your organization. Subscribe to a service called “Better India“. They also have whatsapp channel. Subscribe to that & encourage others too.

Run POS Campaigns 

You can create small teams with your Influencer who will educate your distributors , Shops , Point of Sale (POS) stations. Let them go creative in every way. Simple visits to shops , creative Road Shows , Competitions amongst them, almost every possible way will help them go digital.

Finally , accepting Digital is not just for a “Compulsion” ; but it is for YOU , for ME , fo ALL. Else, what’s nation ? It’s You + Me+ All ….right ?

What are Illegal Water Sources for a Packaged Drinking Water Plant ?

Sources of Water for a Packaged Drinking Water Plant

An ISI License holding Packaged Drinking Water Plant , can draw water from Borewell , can have Municipal water as well. River Water with a Direct Pipe-In is not allowed. Same case with Well water as there is a chance of contamination. If you have seen such a case, it would have been allowed just by exception or might be illegal. Sooner or later this can be either challenged or sued.

Sting Operations Team in Bellary , Karnatak.

Bellary is a North Karnatak state, known for its rich, affluent houses of the Minerals Business Tycoons. But such is not the case for Mineral Water ; alias, the Packaged Drinking water , what the BIS calls it. As it is , the area is very hot & drought prone. Moreover, the heat starts increasing as Summer approaches. You start to listen all water related theft stories. In a sting operation, the Bellary City Corporation found out some 142 illegal Tap Connections in the city.

Worries for illegal Packaged Drinking Water Plants

In reports ,Mr. Lad, K.C. Kondaiah, MLC it said that ..

“bulk of the water being supplied was being illegally drawn by packaged drinking water units and underlined to initiate drastic action against the guilty.”

Read Original News in The Hindu

If it’s a fact , it attracts two issues :-

  • How much is the water extraction limit at Bellary. Visit cgwb site
  • The illegal means , which they have said is done by an existing ISI licensed Packaged Drinking Plant or they mean the Cold Jar Plant ?

Cold Jars or Chilled Jar or Camper Unit is not legal

You might have got some kind of Water Supply License or might be “smartly” managing the authorities or nobody might have noticed you till date; but now it can become a serious issue. Your Water Sources may be as per the cgwb guidelines , but you may not be having a valid ISI License issued by the BIS. Visit this page for getting clear about the ISI.

Conversion of the existing Non-ISI Unit

Is it possible to convert an existing non-isi unit into an ISI unit ? Technically , yes; but it largely depends upon the type of unit you have. Before taking any step further , we suggest you to have a look at this special page written. Then please take advantage of our Plant Service Visit to get suggestions. But an action is important as a stitch in time, saves nine. Otherwise you can be in trouble.

Is Packaged Drinking Water Business suffering due to Demonitisation ?

An effect

As an effect , we have been listening to remarks from People .

“Yes. There’s a heavy impact”

“Slowly the market will stabilize”

“First month , it was horrible , but now recovering”

“We are very badly hit. Need to do something different”

But it came to our own realisation, that it has impacted a bit as we too received lesser participation for the Info Session we conduct for Mineral Water Plant Starters. Comparitively , there was a lesser crowd this time. Second difference which we noticed was that there were dominantly all the people who are from the “Working” category. That is .. they are currently in job somewhere and wish to start some new venture. We do get these entrepreneurs usually, but dominantly we receive crowd from established first business. This crowd was hardly any this time.

The result

But there is always a silver lining to every obstacle. We learned few things like how can we become more supportive and closer to the attendees, lesser crowd doesn’t mean lesser in degree, rather the interaction was more this time. And ultimately we ended up with great friends entrepreneurs to learn from.

We also did good follow ups with all those who showed up great interest in us. Almost all of them , if not this time, have agreed to come for the next Session again in Pune on the January 28 th 2017, the new year or the next ones . Check the Events page for details.

 

Can UBER teach you something for your Mineral Water Plant ?

Are you starting a Mineral Water Plant in  near future ?

You might have just started to look for information pertaining to your dream “Water Plant” or might be still analyzing whether to go for a plant. Anyways, it’s fine. You can always look out for information on this site itself. But there is a single key to be successful in this line. That is …

Scoring an edge over your competition !

Well, how do you do that ?

There can be only one thing by which you score over them : an Idea. Yes, an Idea Sirjee ! Recently the UBER supremo is already in India & exchanging his views. What he did ? an Idea. But the result is phenomenal. His company , which launched in 2009 , not even a decade old, is valuing much more than decades old huge companies like General Motors , Honda etc.

What separates him from the rest ? An Idea, and implementation. That’s what you probably require for the Water Business ! Interested to read the UBER story in details ? Please visit this page :-

==> http://phirasta.com/new-phrase-to-uber/

Enjoy !

 

“Registered Bottled Water Plants” means what ?

It’s always in the news …

If you read news about Bottled Water , they sometimes say “Mineral Water”. This can be understood as it is not expected that every time public will speak technical language. As we know, it’s Packaged Drinking Water in India , and the issuing authority is the B.I.S. that is Bureau of Indian Standards , under which many critical products are under strict observation and control. This further means , that without a valid ISI license , one can’t produce Packaged Drinking Water. The standard for Packaged Drinking Water is IS-14543. You can read this page for more details about ISI. To clarify the point , we should say “Packaged Drinking Water” plant and not a “Mineral Water Plant”. Yes , there are Mineral Water Plants too , but a very few.

Then what is a Mineral Water Plant ?

For a very very general understanding , Packaged Drinking Water Plant uses the Groundwater through Borewell & purifies it with further technology to produce Bottled Water; whereas Mineral Water Plant uses the mountain spring water (mostly) to produce Bottled Water.

But this is not the point

This is ok, so far it goes out with people. But when Newspapers publish news like “Department of Food Safety to crack down on water bottling plants that lack proper licences” , which Licenses they mean ? Now just have a look at this recent news :-

Deputy Commissioner D. Randeep, after a meeting with officials here on Monday, gave his nod for sealing plants that are operating without licences and accreditation.

This is a very recent news from the Hindu (Link Here). The action is a welcome, no doubts; but they say that some 13 out of 20 registered “Plants” are operating without valid licenses. A further light needs to be provided on which are the licenses like. Because, without an ISI , a Packaged Drinking Water Plant may not exist only. If at all, if they mean the “Insulated Jar Unit” like the Cold Jars Plant , it is not legal and not allowed under the BIS. Sooner or later they will be brought under scrutiny. If you own a plant like this ,or know someone owning such a plant, it’s time for him to get converted into an ISI approved plant immediately !

Comments , opinions , remarks are welcome.

 

 

 

 

Does groundwater pollution and a Blast relate with each other ?

Recent Blast claimed at least 15 lives in Tamilnadu

Vetrivel Explosives Private Limited , a factory in T Murungapatti, near Thuraiyur, 84 km from Tiruchy, Tamilnadu where , the incidence took place was said to be discharging Polluted Water in the surrounding areas. The company is operational from last 15 years, but from last 5 years local activists were demanding closure of the unit.

Read for more details

Poor safety measures at the factory

There are complaints that not enough care is taken towards the workmen & surrounding area health & safety. Groundwater is extracted in this area as it is the only source. But it was contaminated due to untreated water being taken out of the factory. It contains heavy nitrate , this may be the major groundwater contaminant.

Lessons for setting up a Packaged Drinking Water Plant

Already the Pollution Control Boards have strict rules in place while setting up plants, but this should be more closely addresses , because if your water , the groundwater , which is the major source , gets poor quality water like this, you can hardly survive in business.

 

Will this news Reduce your Packaged Drinking Water Business ?

Kolkata Corporation Water is better than Packaged Drinking Water

There was a news in Hindustan Times that Kolkata Municipal Water is better than Packaged Drinking Water Companies. Is this threat to the Packaged Drinking Industry ? No way. Because it is not mainly in the houses , where Packaged Drinking Water is consumed. In houses , people either use direct tap water or if health conscious , will install a Domestic RO system. We have observed that they do not really know what they buy, but buy blindly feeling that they have invested in health. The major purchase happens inspired by their “Fear”. Anyway, that’s not our subject of discussion.

Packaged Drinkin Water Sales ..where exactly ?

Offices : where they buy “health” for employees , in fact many places , it is more convenience than anything else. Every 2 days or 3 days , the Water Fellow comes and replaces jars.

Marriages/Functions : Contractor/ Caterer Handles this task & again offers comfort to the organizers by offering them a feeling that they bought “Health“.

Travel : Travel is the biggest consumer of Bottled Water , where again a traveller buys “Health

Do you really think , this news threatens the Packaged Drinking Water Industry anyways ?

 

Is Aquafina Franchise Business that bad ?

Aquafina is a Pepsico Brand

I’m sure , you know Aquafina. It’s a Packaged Drinking Water Brand owned by Pepsico , U.S. As Pepsico has many franchise arrangements; Varun Beverages owns that in India and has been running that for years now. The Brand Owners like Pepsico are very stringent about the manufacturing setup, the procedures to follow, the guidelines etc. In other words , like all the Brand Owners , Pepsico too is very cautious about their brand.

Is it not profitable to run a Pepsico Franchise ?

We never really dipped  into verifying it. But as a Business’s true picture reflects in its financials, it looks like that about Varun Beverages. We are not Financial Statement Analysts , but it was acclaimed by a Firm called Hem Securities, which advises “Not to buy” the Varun Beverages IPO.You can read the detailed post here. They say it’s priced too high and reasons out three things mainly :-

  1. Unstable Performance : In 2013, 2014 company posted losses.Then 2015, it’s showed profits. Though it shows profit during the first half of the current year , the second half is not expected to perform better (trends)
  2. Seasonal Nature of the Business : The Cold Drinks & Packaged Drinking Water Business is seasonal, hence it is never consistent and later half will be always weak.
  3. Danger of Contract Termination : Due to poor performance or other monitors , Pepsico may terminate the agreement with Varun. This is the Threat Hem has expressed.

Our comments :-

We really can’t say whether to “Buy” or not ; at what exact price and whether it is overpriced etc. But can certainly comment on certain issues like :-

Seasonal Nature of Business :

The Business is Seasonal. Why just Varun Beverages , even Pepsico knows it, and whole business strategies are lined up accordingly. As we keep on telling our participants during our training , Packaged Drinking Water is a 100 Days Business, it’s seasonal, but these seasons are fixed. So you may call this business as Cyclical. It’s a Feature , not a Weakness. How Varun Beverages handles this , is the thing we don’t know.

Danger of Contract Termination :

It will be with any company in fact , if they don’t deliver their performances well. Applicable not just to Beverages segment, but any firm, company which runs on the Franchise Model. Other option is to run your own Plant Own Brand Model. This is also shared in our Live Trainings.

Conclusion

Is the Franchise Business better that the Own Plant Own Brand Model ? Or the other way round ? We are looking out for opinions from experts for an answer to this question. If you are one of them, please come forward.

 

 

 

Rail Neer meets just 25 % Demand

Rail Neer 

Rail Neer is a brand by Indian railways, run under it’s other group venture called IRCTC. For the first time, it was very easy and assuring for the citizens to book their tickets from their computers. This is what we know about IRCTC. Second division, is catering, where it serves food to the passengers. Under this also comes the need to supply packaged drinking water to these passengers. So it started 4 bottling plants at different locations. One of them has recently started its operations at Ambernath, Dist Thane, near Mumbai, in the Central Railway Route. The other three plants are already in operation at Delhi,  Danapur Bihar and one at plaur, TN.

It still lacks supply by 25 %

Still, the demand supply gap is almost 3/4 th. Meaning, Railway is supplying just 25 % of its need. And it doesn’t cope up the national demand at all. Bisleri, the leader rules this by contributing 60 % market share.

To meet the demand of water, Railway has also decided to install vending machines at various stations, and for bottled water, it decided to go with 6 additional packaged drinking water plants at the following locations

  • Ahmedabad (West Zone)
  • Nasik (West zone)
  • Thiruvanantapuram (south)
  • Vijaywada (south east)
  • Nagpur (central zone)
  • Farakka (East)

The Model

These plants will be built on the PPP model. IRCTC will provide land and will lift the production at a discounted price. The entrepreneur will invest in the plant, the expected investment is expected to be Rs 8 to 10 Cr. Refer to this article for details. 

So, what is in it for you?

As an entrepreneur, this is a never before opportunity. Why am I saying so?

First…. recently, there was probe where two senior officials are under serious inquiry by the CBI .The charge on them was making hindrances in the way of IRCTC to sell by offering special treatment to private sellers. So, be assured that you will observe a transparent market when you deal with government as well. Read details over here…

Second…. IRCTC will also provide similar opportunities for setting up water vending machines too! Ideal will be setting up a packaged drinking water plant and also run a few water vending machines like water ATM. This will enhance your brand like anything.Besides the IRCTC also you can profit from the PPP Model.If you are a social entrepreneur,  Read this article how a small village solves its pure water issues @ just 50 paise a litre !

Who knows, you’ll become a second Bisleri.. ?