MUMBAI, India, July 21 -- Growth in purchase power, non-availability of clean
potable water, and the introduction of innovative, affordable
chemical/resin-based products have given the Indian point-of-use (POU) water
treatment systems market a significant boost. The residential water treatment
systems market is in the growth stage in India as urban lifestyles evolve in
tandem with increasing globalization and the rapid pace of development of the
IT/ITES industry. Extensive marketing efforts by product suppliers have helped
expedite awareness on the detrimental effects of water contamination.

New analysis from Frost Sullivan (http://www.environmental.frost.com),
Strategic Analysis of the Point-of-Use (POU) Water Treatment Systems Market in
India, finds that market earned revenues of over INR 16,500 million in 2008 and
estimates this to reach INR 50,758 million in 2013.

If you are interested in a virtual brochure, which provides a brief synopsis of
the research and a table of contents, then send an e-mail to Ravinder Kaur/
Amrita Nandi, Corporate Communications, at ravinder.kaur@frost.com/
amritan@frost.com with your full name, company name, title, telephone number,
company e-mail address, company website, city, state and country. Upon receipt
of the above information, a brochure will be sent to you by e-mail.

The agricultural and industrial sectors utilize most of the water resources in
India, leaving a meager portion for drinking purposes. Indiscriminate discharge
of industrial and agricultural effluents into the rivers and lakes has
contaminated the water resources, heightening the need for water purification
processes. By 2015, the discretionary spending in Indian households would
multiply manifold with the increase in growth of disposable incomes thereby
increasing the purchasing power. These factors would trigger growth for the POU
systems.

Increasing focus on health among the urban population and non-effectiveness of
conventional water treatment methods such as boiling of water has increased the
usage of POU systems in Indian kitchens, says Frost Sullivan Research Analyst
Nideshna Naidu. Ultraviolet (UV) systems dominate the market currently, while
chemical or resin-based systems are growing substantially at double-digit rates.

The Indian POU water treatment systems market is highly fragmented with over
150 national, regional, and local participants in the fray. The buoyant sectors
experience the entry of increasingly more participants each year and domestic
demand is mostly met by indigenous manufacturing. Numerous small participants
fight for their share of the pie at the bottom of the pyramid. Six major
participants hold sway over the top tier, while a reasonable number compete for
space in the middle tier.

Despite the immense opportunities, the market is fraught with challenges. Over
the years, advertisement and brand awareness have become prominent competitive
factors. The most crucial aspect is the funding necessary for the promotion of
POU systems. Brand promotion plays a vital role in this market as it boosts
product visibility.

Suppliers must ensure that products offered are of superior quality. Prompt
after-sales service is another important criterion. Low cash flows prevent
participants in the unorganized sector from building a good after-sales network.

The lack of after-sales support and the supply of inferior products will result
in the erosion of customer confidence, says Naidu. Thus, companies must ramp up
efforts and develop a strong, technically sound after-sales support team to
emerge as successful participants in this competitive space.

The high cost of UV and RO systems have resulted in low acceptance levels among
the middle and lower class sections; consequently, market penetration of these
products has been curtailed. In such a scenario, the choice of distribution
channel is critical for the enhancement of business prospects. Direct selling
remains the best option for water treatment products in India. Retail selling is
picking up momentum in India because of the slow but steady acceptance of water
treatment products as consumer products.

Strategic Analysis of the Point-of-Use (POU) Water Treatment Systems Market in
India is part of the Environmental Growth Partnership Service program, which
also includes research in the following markets: Indian Waste Management
Services market, and Indian Air Pollution Control Equipments Market. All
research services included in subscriptions provide detailed market
opportunities and industry trends that have been evaluated following extensive
interviews with market participants.

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Strategic Analysis of the Point-of-Use (POU) Water Treatment Systems Market in
India P2BC

Contact: Ravinder Kaur Corporate Communications - South Asia P: +91-44-42044760
F: +91-44-24314264 E: ravinder.kaur@frost.com Amrita Nandi Corporate
Communications - South Asia P: +91-22-4001-3424 F: +91-22-2832-4713 E:
amritan@frost.com Tanu Chopra Corporate Communications - Middle East P:
+91-22-4001-3437 F: +91-22-2832-4713 E: tanuc@frost.com http://www.frost.com

SOURCE: Frost SOURCE: Sullivan (India) Pvt. Ltd.

Contact: Ravinder Kaur, Corporate Communications - South Asia, P:
+91-44-42044760, F: +91-44-24314264, E: ravinder.kaur@frost.com; Amrita Nandi,
Corporate Communications - South Asia, P: +91-22-4001-3424, F: +91-22-2832-4713,
E: amritan@frost.com; Tanu Chopra, Corporate Communications - Middle East, P:
+91-22-4001-3437, F: +91-22-2832-4713, E: tanuc@frost.com