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COMPANY PROFILE

1.1 Background

Ion Exchange (India) Ltd. is an established leader in Asia, offering total water management

solutions to industries, homes and communities. It enjoys an excellent market reputation

with a well documented history of success in water projects, spanning over four decades of

operation. The company has executed over 40,000 installations across the globe including

over 400 major installations for the Power, Petrochemicals, Fertilizers and other core

industries.

Ion Exchange (India) Limited provides water and waste water treatment services in India and

internationally. The company operates through three segments: Industrial, Homes, and

Communities. The Industrial segment provides water management services, including pre

treatment, processing of water/liquid, waste water treatment, water recycle services, and

recovery of valuable by products for reuse in process. The Homes segment offers a ZERO B

range of drinking water purifiers and water conditioners for various applications, such as

drinking, cooking, bathing, laundry, and swimming pools, as well as sewagtreatment/recycle system. The Communities segment provides products and treatment

processes for communities, which include chemical dosing systems, polyelectrolyte,

flocculation, and sedimentation; clarification and filtration; decarburization; softening;

disinfection; brackish water treatment and desalination of sea water; iron/fluoride/nitrate and

arsenic removal; waste water/sullage/sewage treatment and recycle; and disaster management

for drinking water. The company also exports equipment, resins, membranes, and water

treatment chemicals to Japan, southeast Asia, the United States, Europe, Africa, Egypt, the

Middle East, the Russian Federation, Bangladesh, Nepal, Mauritius, and Sri Lanka. It serves

various markets comprising household, institutional, commercial, industrial and public water

supplies, and urban and rural markets. The company was founded in 1964 and is based in

Mumbai, India.

Ion Exchange India pioneered water treatment in India and is today the country's premier

company in water and environment management, with a strong international presence.

Formed in 1964, as a subsidiary of the Permutit Company of UK, we became a wholly Indian

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company in 1985 when Permutit divested their holding. Currently it employ 1,000 people -

multi-disciplinary teams of highly experienced professional managers technologists and

scientists, supported by a widespread infrastructure in India and abroad.

Company focused on the:

• Technological advancement through R&D.

• Affiliations with the best specialist water treatment companies internationally.

• Human resource development - melding technology with people trained to manage it

responsibly.

• Above all, commitment to customer care, that goes far beyond the sale. Technical

service support is a key component of our solutions bouquet and our service network is the largest in the Indian water treatment industry.

1.2 History

1964 - The Company was incorporated on 6th March, at Calcutta. The company manufacture

ion exchange resins and water treatment plants. 10,000 Shares allotted without payment in

cash to the Permutit Co. Ltd., U.K.

1971 - 50,000 bonus shares issued in proportion of 1:5.

1974 - 1,00,000 bonus shares issued in proposition of 1:3.

1977 - Issued 2,00,600 shares at a premium of Rs 8 per share; 6,000 shares to the resident

employees and directors and 1,94,600 shares to the public during February 1977.

1976 - The Company obtained a licence from the National Research & Development

Corporation (NRDC) to exploit the patent held by them for the manufacture of Reverse

Osmosis Plants.1979 - 3,60,360 bonus shares issued in proposition of 3:5.

1980 - Government approval was received for the following agreements:

(i) With Chemed Corporation, U.S.A. (a subsidiary of W.R. Grace Co. USA) to

manufacture Dearborn Chemicals for boiler and cooling water treatment.

(ii) With Norit NV of Holland for technical back-up in the design and manufacture of

Solvent recovery system.

(ii) With Portacel Ltd., U.K. (a subsidiary of Portals Water Treatment, Ltd.) for

Clorocel electrolytic chlorinators in India.

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1981 - The Company signed an agreement with Elf Aquitaine, oil company in the French

public sector, for licence to use their process of coalescing and removing oil from water by

action exchange specially developed by them.

Ankleshwar Ion Exchangers & Chemicals, Ltd. is a wholly owned subsidiary was merged

with the Company with effect from 1st January. Hydranautics Membranes India Ltd. and

Polyelectrolyte India Ltd. are subsidiaries of the Company.

1982 - Test kits useful to conduct on-the-spot tests for effective plant control were developed

for sterilizing potable water.

1983 - On 25th February, manufacture of water treatment chemicals was started at

Patancheru near Hyderabad in Andhra Pradesh. A new company namely, Hydraulics

Membranes India, Ltd. Was formed to undertake the manufacture of reverse osmosis

membrane modules and systems in collaboration with Hydranautics Water Systems (HWS)

of USA.

The Permutit Co., Ltd., U.K., proposed a scheme of disinvestment of 1,94,688 No. of equity

shares of Rs 10 each. These shares were offered at a premium of Rs 20 per share in the

proportion of 1:3 to the Indian equity shareholders.

1987 - 9,82,570 shares issued in conversion of debentures in Nov. 1987.

1988 - 15,54,824 bonus shares issued in Proportion of 4:5 in May 1988.

1989 - The Company in collaboration with SNF-Floerger of France set up a joint venture for

manufacture of polyelectrolytes. Subject to necessary approvals being obtained, the

Company proposed to invest in a new company, to be incorporated in the USA, up to 50% of

the Rupee equivalent to US $ 5,00,000. The balance up to US $ 5,00,000 was to be

subscribed by Permeation Technologies Inc. California, set up by Ashwin Desai & his

associates. The new Company was to promote the Company's products, manufacture

packaged and custom built water treatment unit and to act as consultants in total water

management operations, maintenance, erection of water treatment plants etc.

1992 - The Company issued 8,39,604 partly convertible debentures of Rs 180 each. Till date

8,38,755 debenture were allowed. Part A of 80 of the face value of each debenture was to be

converted into 2 equity shares of Rs 10 each for cash at a premium of Rs 30 per share on 1st

April, 1993. Accordingly 16,77,510 No. of equity shares were allotted.

Balance part `B' of Rs 100 of the face value of each debenture was to be redeemed at the end

of 7th, 8th & 9th year from the date of allotment of debenture i.e. 31.7.1992.

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3,84,000 No. of equity shares of the Company were held by the Permutit Co., Ltd., U.K. The

Permutit Co. Ltd. U.K. is wholly owned subsidiary of Portals Holding, Ltd., U.K. The

Permutit Co. Ltd. U.K., were the Company's technical collaborators until May 1971.

1993 - The Company entered into a joint venture with Grace Dearborn Inc., USA, a leading

company in the water treatment chemical field.

1994 - A joint venture company viz. Dearborn IEI India Pvt. Ltd. was formed with Grace

Dearborn Inc. USA a leading company in the water treatment chemicals field. The Company

also entered into collaboration agreements with Elga Ltd. UK and US Filter/Permutit Inc.

USA in the field of water treatment.

During Oct./Nov. the Company offered 14,61,466 zero percent secured fully convertible

debentures of Rs 140 each on right basis to the existing shareholders in the ratio of one

debenture for every four equity shares held. All were taken up. 146146 debentures were

issued to the employees. Part `A' of Rs 50 of the debenture was converted into one equity

share at a premium of Rs 40 per share on allotment. Part `B' of Rs 90 was to be converted

into one equity shares at a premium of Rs 80 per share on or before 15th June 1996.

6,70,000 shares allotted to the promoters on preferential basis at price of Rs 181.75 per share.

10,00,000 shares issued to FIs.16,07,612 shares allotted on conversion of zero percent fully

convertible debentures. 1,576 shares issued.

1995 - 1,12,200 shares issued on conversion of part A of zero percent fully convertible

debentures. 4,48,800 shares issued to warrant holders at Rs 200 per share. 122 shares issued.

1996 - 16,07,612 No. of Equity shares allotted on conversion of zero percent FCDs (Part B).

1997 - 112,200 No. of Equity shares have been issued on conversion of part of zero percent

FCDs.

2000 - The Company has undertaken restructuring of its business. The water solutions

company has closed down four out of its 12 units over the last one year as part of the

restructuring.

2003 - Members approved to delist shares from Delhi Stock Exchange.

2005 - Ion Exchange enters into JV with Belgium Company Fifth Element NV

2009 - Ion Exchange India Ltd has informed BSE that the Board of Directors of the company

at its meeting held on March 25, 2009, inter alia, approved the appointment of Mr. Dinesh

Sharma and Mr. Aankur Patni, Directors of the Company as Executive Directors with effect

from April 01, 2009.

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Joint Venture

Ion Exchange Waterleau Ltd., a joint venture of Ion Exchange (India) Ltd. and the Waterleau

Group, Belgium offers a complete portfolio of advanced environmental solutions and

services for industrial, infrastructure and municipal applications. Technology solutions

encompass water, liquid & gaseous effluents, solid waste & bio-solids and renewable energy,

while services include consultancy, turnkey contracting, O&M and BOOT projects.

1.5 Competitors

There are mainly three major competitors of high purity water purification system for

laboratories. These are Millipore, Siemens and ELGA which acquire larger market.

Millipore India

In the early 1950s Lovell Corporation won a contract from the U.S. Army Chemical

Engineers to develop and manufacture membrane filtering devices and systems used to

separate the molecular components of fluid samples. When the membranes were declassified

in 1953 and offered for commercial use, Jack Bush, a Lovell employee, bought the

company’s right to the technology for $200,000 and established the Millipore Filter

Company which later changed its name to Millipore Corporation to reflect its growing range

of products.

Global growth

Millipore aggressively pursued new markets around the world, as the demand for separations

technologies grew among researchers, medical schools and hospitals, as well as in the

pharmaceutical, chemical, plastics, food-and-beverage, and microelectronics industries.

By 1970, Millipore had established subsidiaries in seven countries. To meet growing

worldwide demand for its products, the company also opened manufacturing plants in

Jaffrey, New Hampshire; Molsheim, France; Cork, Ireland; and several other locations. With

approximately 67% of our business outside the United States, Millipore is a multi-national

company with global operations.

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Product portfolio

Millipore is a trusted partner to scientists and engineers pioneering new cures to mankind's

most challenging health issues. For more than 50 years, we have supplied a continuum of

cutting edge tools, technologies and application solutions. More than 90% of the company’s

product portfolio is comprised of consumable products. In the laboratory research market,

our solutions include Lab water, Drug Discovery and Development, and Life Science. In

biopharmaceutical manufacturing markets, we sell Upstream, Downstream and Process

Monitoring products and services.

Financial Analysis

Grow revenue 5 percent to $1.6 billion. Excluding a 4% benefit from changes in foreigncurrency, revenues grew 1%. Non-GAAP earnings per share growth was 7% over 2008.

Since 2005, Millipore has grown its non-GAAP earnings per share at a 15% compounded

growth rate.

Generated organic revenue growth of 6 percent through the bioscience division. The

division’s growth rate was lowered by 1 percent due to the elimination of a small product

line. The results in 2008 were driven by strong performance from the Laboratory Water

Business Unit, successful new product launches, and solid performance in Europe and Asia.

Over the past four years, the Bioscience Division has averaged approximately 8 percent

organic revenue growth.

Generated strong growth through Bioprocess Division in the Process Monitoring Tools

Business Unit, particularly for its Nova Septum product line, a sterile sampling system used

in biopharmaceutical manufacturing processes. The division also significantly expanded its

presence in the disposable manufacturing market.

Accelerated product innovation with the successful launch of several key products including

Snap i.d. for protein detection, Milli-Q Integral for laboratory water purificatio

MILLIPLEX MAP for multiplex immunoassays, Guava Flow Cytometry System for cell

analysis, and Viresolve Pro for virus clearance.

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Siemens

SG, a Siemens company, specializes in water treatment solutions for laboratories and

industrial organizations. SG’s electro-deionization systems and reverse osmosis technology

for laboratory and industrial applications have further strengthened the portfolio of Siemens

Water Technologies.

SG has more than 30 years of experience in developing, producing and selling high-purity

water products and systems for laboratories and industry around the world.

Siemens announced the acquisition of the German company SG Wasseraufbereitung und

Regenerierstation GmbH (SG Water). The Hamburg-based supplier specializes in water

treatment solutions for laboratories and industrial organizations. SG Water’s electro-

deionization systems and reverse osmosis technology for laboratory and industrial

applications will further strengthen the portfolio of Siemens Water Technologies, a Business

Unit of Siemens’ Industry Solutions Division. SG Water employees roughly 60 staff

members at two locations in Barsbuttel near Hamburg and Haimhausen near Munich.

Across the world, Siemens has been working closely with governments, business institutions

and local communities to offer high-tech water treatment systems for agricultural andindustrial applications and drinking water. Siemens Water Technologies (SWT) specializes

in providing world leading products, system and services in this sector. From drinking water,

industrial water, waste water and water transport, to water treatment, plant automation,

electrical systems, to building technology and requisite services (including financing, design

and planning, commissioning, maintenance and emergency support), to modernization. SWT

pioneers and implements solutions across the entire life cycle, offering critical benefits

such as:

• Less water consumption

• Lower construction cost

• Space optimization

• Lower project life cycle cost & time

Through high-purity water technology for Pharmaceutical and Solar Cells / Thin Films

manufacturing and related services, Siemens helps industrial and laboratory customers meetspecific water quality requirements to ensure consistent processes and production. Innovative

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control technologies, chemical feed systems and other products, specifically developed for

aquatics and leisure customers, help maintain optimum water chemistry in pools, spas and

aquariums.

The Siemens Group in India has emerged as a leading inventor, innovator and implementer

of leading-edge technology enabled solutions operating in the core business segments of

Industry, Energy and Healthcare. The Group’s business is represented by various companies

that span across these various segments.

Siemens brings to India state-of-the-art technology that adds value to customers through a

combination of multiple high-end technologies for complete solutions. The Group has the

competence and capability to integrate all products, systems and services. It caters toIndustry needs across market segments by undertaking complete projects such as Hospitals,

Airports and Industrial units.

The Siemens Group in India comprises of 22 companies, providing direct employment to

over 17,000 persons. Currently, the group has 18 manufacturing plants, a wide network up of

Sales and Service offices across the country as well as over 500 channel partners.

Today, Siemens, with its world-class solutions plays a key role in India’s quest for

developing modern infrastructure.

The Siemens Group in India has emerged as a leading inventor, innovator and implementer

of leading-edge technology enabled solutions operating in the core business segments of

Industry, Energy and Healthcare. The Group’s business is represented by various companies

that span across these various segments.

Siemens brings to India state-of-the-art technology that adds value to customers through a

combination of multiple high-end technologies for complete solutions. The Group has the

competence and capability to integrate all products, systems and services. It caters to

Industry needs across market segments by undertaking complete projects such as Hospitals,

Airports and Industrial units.

The Siemens Group in India comprises of 22 companies, providing direct employment to

over 17,000 persons. Currently, the group has 18 manufacturing plants, a wide network up of Sales and Service offices across the country as well as over 500 channel partners.

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Today, Siemens, with its world-class solutions plays a key role in India’s quest for

developing modern infrastructure.

Siemens was founded in Berlin by Werner von Siemens in 1847. As an extraordinary

inventor, engineer and entrepreneur, Werner von Siemens made the world's first pointer

telegraph and electric dynamo, inventions that helped put the spin in the industrial revolution.

He was the man behind one of the most fascinating success stories of all time - by turning a

humble little workshop into one of the world's largest enterprises.

As Werner had envisioned, the company he started grew from strength to strength in every

field of electrical engineering. From constructing the world's first electric railway to laying

the first telegraph line linking Britain and India, Siemens was responsible for building muchof the modern world's infrastructure.

Siemens is today a technology giant in more than 190 countries, employing some 440,000

people worldwide. Our work in the fields of energy, industry, communications, information,

transportation, healthcare, components and lighting have become essential parts of everyday

life.

While Werner was a tireless inventor during his days, Siemens today remains a relentless

innovator. With innovations averaging 18 a day, it seems like the revolution Werner started is

still going strong.

Elga

Elga Lab Water specializes in delivering water purification systems for research, science,

clinical and healthcare environments. Our pure and ultra pure water purification systems

provide a few liters to several thousands of liters of water per day reliably and consistently so

you can focus on your research.

Ultra pure water is vital to hundreds of different applications performed every day around the

world. For clinical diagnostics, in research and science laboratories and healthcare our

experts understand the need for a consistent and reliable supply of pure water.

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From simple routine washing and rinsing, through to ultra pure for the most critical

applications such as ICPMS and ultra trace analysis the PURELAB range is designed to

offer water purity to match your specific laboratory application.

The PURELAB range offers:

• Type I, Type II, Type III water quality

• From 1 liter up to 1,000 liters per day

• Full validation support

• Low running costs

The selection of the right pure water system for your laboratory will depend on varying

factors such as the quality of water required, the volume of water, the level of certification

required and several other parameters.

If you need to supply individual laboratories, a suite of laboratories or all of your laboratories

and associated facilities i.e. washing rooms in a building, the CENTRA range delivers the

flexibility, reliability and economy you need.

Our CENTRA products are single compact units which purify, store and distribute water

from a single central unit.

The CENTRA range can:

• Deliver water from 10 liters up to 38 liters per minute

• Meet usage requirements of up to 6000 (1231 US Gallons) a day

• Provide type I, II and III water quality to meet your application needs

Our ELGA team works together with architects, consultants, facilities managers, suppliers,

and scientists to provide help and expertise at all stages from concept and design through to

the build and installation.

We have provided centralized solutions that have met all specified lab water requirements,

economically and on budget across a broad range of organizations. We have installed

CENTRA water purification systems in academic research laboratories in universities and

institutes, clinical laboratories in hospitals, R&D laboratories in small biotech companies and

laboratories in major pharmaceutical and biopharmaceutical corporations.

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Clinical analyzers need to receive a constant and reliable supply of compliant water to

produce and reproduce diagnostic tests accurately. Water quality below accepted standards

affects result accuracy and significantly impacts running costs.

Our MEDICA range delivers consistent water quality and can feed a single clinical

analyzer, large automated analyzers and multiple analyzers on a distribution loop.

The MEDICA water purification systems all feature:

• Flow rates from 7 liters up to 200 liters an hour

• Meets Clinical Laboratory Reagent Water (CLRW), (formally CLSI Type I) standard

• Bypass loop for continual supply of compliant water in emergency situations to the

analyzer

• Service support for maximum operational time

• Low consumable and running costs

Our ELGA team can work together with project managers, installation engineers, facilities

managers and clinical scientists to provide help and expertise at all stages from concept and

design through to the build and installation.

Voltas

Voltas is one of the world's premier engineering solutions providers and project specialists.

Founded in India in 1954, Voltas Limited offers engineering solutions for a wide spectrum of

industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-

mechanical projects, textile machinery, mining and construction equipment, materials

handling equipment, water management & treatment, cold chain solutions, building

management systems, and indoor air quality.

Voltas is among India's leading air-conditioning, refrigeration and engineering services

companies. Set up in 1954, its core competencies lie in air conditioning and cooling

appliances and services. Voltas is India's largest supplier of engineering products and

services for the textile machinery sector and is a major manufacturer of forklift trucks. It

provides solutions in turnkey pumping projects for water, effluent and sewage treatment, and

water pollution control. The company has ISO 9001-2000 certification and has executed

projects in the Middle East, Southeast Asia

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Manufacturing

With manufacturing units at Thane, Dadra and Pantnagar, Voltas possesses total capability inthe manufacture of room/split air conditioners, industrial air conditioning and refrigeration

equipment, water coolers, commercial refrigerators, visicoolers and freezers, as well as fork-

lift trucks, cranes, warehousing and construction equipment. All these products bear the

stamp of state-of-the-art plant, machinery and processes, resulting in consistently high

quality and reduced costs.

Eureka Forbes

It dates back to 1982, when health ambassadors from Eureka Forbes, with a new concept of

living in a clean environment and drinking water in its purest form knocked on your door!

They called themselves friends for life and they proved that they indeed w

Eureka Forbes is a part of the Shapoorji Pallonji Group and today it is a 12 billion INR, multi

product and multi channel corporation. Incepted in 1982, we have put 28 years of

consolidated efforts to become the undisputed leaders in domestic and industrial Water

Purification Systems, Vacuum Cleaners, Air Purifiers & Security Solutions. Being Asia’s

largest direct sales organization, our force of 7000 direct personnel touches 1.5 million

homes. We have one of the largest networks catering to more than 131 cities and 398 towns

across the country! We also have a 10,000 strong dealer sales network and over 58

distributors. Dedicated to the cause of providing healthier living, today, we have successfully

established ourselves as a business super-brand and our dedicated team works around the

clock to make your lives healthier and more secure! We strive to provide the best after sales

service and to achieve the same we have over 1500 service centers and as many as 4500company trained technicians who visit over 20,000 Indian kitchens daily.

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Sr.No. Company ProductCapacity

in Lit/hrPrice (Rs)

1 Millipore Milli Q integral 10 300000-400000Q-POD 6 300000-350000

Super Q 500 600000-700000

Simplicity 5 350000

Elix (Type III) 6 400000-500000

Direct Q (Type I & III) 8 400000

2 Elga PURELAB PRIMA 7 7 100000-150000

PURELAB PRIMA 15 15 130000-200000

PURELAB ULTRA

SCIENTIFIC15 250000-300000

PURELAB FLEX 1 5 250000-350000

PURELAB CLASSIC (Type III) 3 200000-300000

3 Siemens CENTRA 200 500000-550000

Protegra CS (Type III) 7 300000-400000

MEDICA 7 350000-450000

4 Sartorius arium Pro 7 300000arium EDI 15 450000

arium water tower 4 350000

arium 613L (Type III) 4 250000

5 Labconco Water Pro PS 120 400000-540000

1.6 Achievements

The Ion Exchange contribution to the water industry was once again recognized with the

prestigious 2009-10 Water Awards for the fourth consecutive year awarded by Water Digest

in association with UNESCO & PHD Chambers.

• Best Water Company

• Best Desalination Plant of the Year

• Distinguished Water Purifier – RO [Zero B]

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These Water Digest Water Awards were set up in 2006 in association with UNESCO to

honour distinguished work and achievements of business, organizations and individuals in

contributing to water conservation and sustainability and to highlight those who have worked

within communities to ensure the message of water use efficiency is primary in the minds of

people. Awards were presented in different categories to corporates, NGOs and NGOs to

recognize their excellent performance in specific areas. The awards also help in stimulating

public awareness and attention on critical water issues.

Wins Best Company of the Year in Water & Waste Water Treatment Segment

Ion Exchange emerged as winner of the Frost & Sullivan 2009 Environmental Excellence

Awards for the Best Company of the Year in the Indian Water & Waste Water Treatment

segment. The awards in the various categories were presented at their 1st An

Environment Industry Awards Night, on Tuesday, 15th December 2009 at Hot

Intercontinental – The Lalit, Mumbai, which brought together a galaxy of eminent industry

experts and leaders across market segments.

Receiving the award, Mr. Rajesh Sharma, Vice Chairman & Managing Director, said” It is

our company’s continuous endeavor to use technology innovatively to offer solutions to

improve the quality of life and protect our earth’s most vital resources for a sustainable

future. This has led us to develop products and technologies to create a capability to provide

integrated, cost-effective solutions for all sectors - industrial, institutional, municipal, homes

and communities. It has led us to extend our capabilities to encompass water, air, waste and

renewable energy. We have pioneered solutions for recycle of industrial effluent and

domestic sewage, to conserve water and natural resources. Our Zero B purifiers provide safe

drinking water to all consumer segments at every price point and include innovative solutions

to treat water contaminated with fluoride, iron, arsenic and nitrates. We are grateful to our

customers, stakeholders and vendors for their continued support and to our employees for

their valuable contribution.”

The Frost & Sullivan Environment Excellence Awards recognise the exemplary

achievements, business winning strategies and innovative best practices of companies

operating in the highly dynamic and competitive environment industry. These recognitions

culminate in Frost & Sullivan Awards and are regarded as benchmarks for excellence in the

given industry segment.

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This award to Ion Exchange follows several other prestigious Water Awards by Water Digest

in association with UNESCO such as for Best Water Company, Best Domestic RO Purifier,

Best Water Treatment Chemicals and Best Water Conserver.

A Hat-Trick Thrice Over

The Ion Exchange contribution to the water industry was once again recognized with four

prestigious 2008-09 Water Awards for the third consecutive year.

• Best Water Company

• Best Water Conserver (Waste Water Management)

• Best Water Treatment (Water Treatment Chemicals)

• Lifetime Achievement Award

1.7 Address

Corporate Office

Ion House, Plot No.2, Sector 18 Vashi, Navi Mumbai 400 705, IndiaPhone: +91-22-3989 0909

Fax:+91-22-2788 8156/2788 9839

E-mail: [email protected]

Registered Office

Ion House, Dr. E. Moses Road Mumbai 400 011, India

Phone: +91-22-3989 0909

Fax:+91-22-2493 8737

E-mail: [email protected]

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OBJECTIVES OF STUDY FOR HIGH PURITY WATER

PURIFICATION SYSTEM

• To defined the target segment

• To study the potential analysis of current market

• To study the competitor mapping- product, pricing & distribution network

• To study the consumer need analysis

• To give recommendation for product launch

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SCOPE AND RATIONALE OF THE STUDY

Contains an executive summary and data on value, volume and/or segmentation.

Provides textual analysis of the industry’s recent position and future prospects.

The leading companies are profiled with supporting key financial metrics.

Supported by the key macroeconomic and demographic data affecting the market.

Detailed information is included on market size, measured by volume.

Data on competition provide an accessible yet in depth view of the market’s

competitive.

Market share is calculated as per brands.

Also features market breakdown by distribution channel.

Spot future trends and developments.

Save time carrying out entry-level research.

.

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INTRODUCTION OF THE TOPIC

The topic concerned about “Market study & estimation for high purity water purification

system for laboratories”.

4.1 Market Study:

Market studies are done on ideas, campaigns, products, processes, and entire businesses.

Market studies assess something and consider both pros and cons.

Market study includes:

Description of the Industry

Current Market Analysis

Competition

Anticipated Future Market Potential

Potential Buyers and Sources of Revenues

Sales Projection

Analysis of current market:

This section of a market study describes the current market for your product or service. If

you are offering something so unique that there are few market statistics, you can either use

related industry information, or even conduct your own independent study.

Several ways to conduct your own research for new ideas include: polling Internet forums,

questionnaires addressed to targeted consumer groups or the general population, or even

customer surveys.

Any "proof" you have that there is a demand (or market) for your product or services will

help you sell your idea. This is particularly important if you are marketing something unique

or within a very small, specialized market. You need to show that your ideas are novel

because you have found a niche and not because there is no existing market for the idea.

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Anticipated future market:

This section should include a narrative description, as well as attached spreadsheets, graphs,

or tables to showing trends, statistics, or projections.

There are no sure-fire ways to tell if an industry will have measurable growth in the future,

but you can make logical and reasonable predictions based on trends, past growth, and

current markets.

Visit competitor’s website:

You can obtain a lot of information just from visiting company websites and looking over

product lines. Look for discontinued products or services and high-priced items. Somewhere

in between these two things are probably the most stable long-term items. Discontinued

means consumers are no longer demanding the product, while high-priced items may indicate

a fad.

Look at big companies strategy:

Since big companies spend big bucks on market research, take advantage of their money

spent and public information.

4.2 Market Estimation:

Estimating the market or market potential for a new product is critical in determining the

economic feasibility of a venture. Estimating the market potential will determine if the

market is large enough to support your businesses. This check-list will address a number of

questions that need to be answered before an estimate can be calculated.

What type of customer will buy the product or service?

Where are these customers located?

How many potential customers (N) are there?

How often do they consume or use it?

What is the Competition?

What are people paying?

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What is the Potential for the Market to Develop?

What is my share of the Market?

Estimating the market potential:

Estimating the market potential for a product is critical in evaluating its viability and

provides

an estimate of the maximum total sales potential for a given market. Once the estimated

market potential has been calculated, it is possible to determine if the market is large enough

to sustain your new product or sustain an addition competitor in the marketplace. It is

important to remember that the estimated market potential sets an upper boundary on the

market size and can be expressed in either units and/or sales. Unless there are no direct or

indirect competitors, a business will capture a share of the total estimated market potential

not all of it.

Key Steps in Estimating Market Potential:

1. Define your target market and market segments.

2. Define the geographic boundaries of your market.

3. Derive an average selling price.

4. Determine the average annual consumption.

Estimating Market Potential:

Where,

MP = market potential

N = number of possible buyers

P = average selling price

Q = average annual consumption

Target Market:

One of the most important components of estimating the market potential for a new product

is to determine its target market. A target market can be thought of as the customers who are

most likely to buy from you and generally are described using demographic variables

(gender, age, education) as well as psychographic variables (lifestyle and belief system

variables). In many cases, a product may have more than one target market. It is important to

create a profile of your target market describing them with demographic variables. Once you

21



have created your demographic profile, you can determine how many people fit your profile

using various demographic data sources. It is important to note that creating a demographic

profile does may not provide specific enough information to accurately determine your

market potential as it may be too general.

Market Area:

The market area can be thought of as the geographic area where the business intends to

operate. Defining the market area is important because it defines the geographic area where

potential consumers live and/or work. However, not everyone in the defined market area will

be a customer. As a result, it is important to compare your target market profile, generally

described using demographics, to the population in the market area. There are a number of

ways to define a market area, some are easy and others are more difficult and require the

services of a marketing professional.

Market Size:

Once the market area and target market has been defined, it is possible to determine the

number of potential customers for your product. This will allow you to estimate the N

(number of potential customers) in the market potential equation. This total market potential

will typically have to be adjusted downward to account for non-users.

Consumption or Usage:

You need to determine how often your target market segment uses your product or service.

This figure will have a significant impact on the estimated market potential. For instance, is

the product purchased frequently, occasionally, or infrequently? Obviously the more

frequently the product is purchased, the larger the market potential. Durable goods, products

that can be used over a long period of time, are purchased less frequently than perishable

items. As a result, the annual consumption of apples is greater than the annual consumption

of television sets. There is an abundance of consumption information from the government as

well as industry trade associations.

Pricing:

A product’s pricing has a direct impact on the bottom line of your business and its success.

You do not want to price yourself out of the market but you do not want to leave money on

the table. However, it is important that you account for all of your costs associated with

providing your product to the consumers and set your price high enough to cover this price

22



and make a profit. Your product’s price must also be in line with competing products relative

to its value. Value is a ratio of a customers expected level of quality and the price they pay

for the product. If quality is low and price is high, it is a low value product. Therefore,

investigate what others are charging and what the customer gets at that price when setting

your price.

4.3 Calculating Price:

Cost-plus pricing: Used mainly by manufacturers, assures that all costs (fixed and

variable) are covered and includes a desired level of profit.

Demand pricing: Used by companies that sell their product through a variety of

sources at differing prices based on demand. Competitive pricing: Price according to your competitors. Used in competitive

markets with little product differentiation.

Mark-up pricing: Adds a level of profit to the cost of the product being retailed. Also

good for products that are co-packed.

23



INTRODUCTION TO THE PROJECT

The project, Market Study & Estimation for High Purity Water Purification System for

Laboratories” selected by researcher for the purpose of summer internship in Ion Exchange

(India) Ltd. Because of the fact that concern is a water treatment and solution company and

going to launch “Indion LAB Q” product for laboratories.

Water is perhaps the most utilized reagent in a laboratory and is often critical for an

experiment. As instruments have become more sensitive and applications increasingly

complex, the demand for high-purity water has also increased. A few years ago, parts per

million (ppm) was a very small level of contamination, but now people are looking for parts-

per-billion (ppb) or parts-per-trillion (ppt) levels of contamination for laboratory use.

There are several types of contaminants in water, such as particulates, organics, inorganics,

microorganisms and pyrogens. In the past, people were mainly concerned with ionic

contaminants and measured ionic conductivity or resistivity as a way to determine water

purity. Today people are more concerned with organic contaminants, particulates and

microorganisms, such as bacteria and gases that are dissolved in water.

There are eight commonly used methods to purify water: distillation, deionization, reverse

osmosis, activated carbon filtration, microporous filtration, ultrafiltration, ultraviolet

oxidation and electrodialysis. The American Society For Testing and Materials (ASTM) has

specified three types of water: I, II and III, as well as special-purpose water, depending on

their use. While Type I refers to water with minimal interference and maximum precision to

be used for most analytical applications, type III water refers to that used for general

washing. The special-purpose water refers to water that has been treated to remove specific

contaminants.

When selecting the right system for purifying laboratory water, several factors need to be

considered.The most important one is to fit the product to the application. You have to

differentiate between the need for pure and ultrapure water. In most cases, the pure water

24



ideal environment for the growth of bacteria and other microorganisms if the necessary

nutrients and conditions for growth exist. Depending on the type and concentration of

contaminants, most natural waters are not suitable for potable use much less for most

research and industrial applications. Most all municipalities and other purveyors of potable

water provide some level of water treatment to make the water suitable for consumption.

Most high-purity water systems use potable water as a feed water source and provide

additional treatment to remove residual contaminants to meet the water quality specifications

for the given application. Reagent grade water specifications have been established by such

organizations as the College of American Pathologists (CAP), National Committee for

Clinical Laboratory Standards (NCCLS), and the American Society for Testing and Materials

(ASTM).

The American Society for Testing and Materials (ASTM)

The ASTM establishes specifications for Types I, II, III, and IV reagent grade water. In

addition, the water quality is further classified as Type A, Type B, or Type C depending on

the applicable bacteriological and endotoxin quality. Type I water is the highest quality and

is generally used for the most critical applications – trace element analysis, HPLC, reagent

preparation, etc. The ASTM further specifies that Type I water is produced by mixed-bed

deionization with suitable pre treatment (distillation or other equal process that can producewater with a maximum conductivity of 20 uS/cm) and post filtration with 0.2 micron

membrane filters. Type I water quality cannot be maintained in storage and must be produced

on demand at the point of- use. Resistivity can only be measured using inline resistivity

monitoring equipment. Type II reagent grade water is produced by distillation with suitable

pre treatment (reverse osmosis or deionization) and, depending on the design of the storage

tank, is generally sterile and endotoxin-free. This grade of water is suitable for preparing

culture media, microbiology, bacteriology, etc. Care must be taken in the design of the

storage tank and the distribution system to prevent bacterial contamination. Type III reagent

grade water is produced by distillation, deionization, reverse osmosis, electrodeionization, or

a combination of these technologies, followed by post-filtration with a 0.45 micron

membrane filter. This grade of water is generally suitable for preparing various reagents,

qualitative analysis, etc. Design of storage tanks and distribution systems is critical to prevent

contamination. Type IV reagent grade water is produced by any of the primary treatment

methods (distillation, deionization, electrodialysis, or reverse osmosis) or a combination of

26



these methods. This water quality is generally used for glassware washing, cooling

applications, etc.

AMERICAN SOCEITY FOR TESTING & MATERIALS (ASTM)

Reagent Grade Water Specifications

Parameter Type I Type II Type III

Resistivity, min.

(megohm)

18.0 1.0 4.0

pH, units (25oC) NA NA NATOC, max.

(ug/l)

50 50 200

Sodium, max.

(ug/l)

1 5 10

Chloride, max.

(ug/l)

1 5 10

Total Silica,

max. (ug/l)

3 3 500

It is important to establish the appropriate water quality specifications for the given

application. If specific regulatory or industry standards do not exist, the user is responsible

for establishing the applicable water quality specifications. It is generally impractical to

design individual water systems to provide specific water quality for each application in a

large facility. If the most critical application requires the bulk of the water usage, it is

common to design a system to meet the requirements of the most critical application and

supply this quality of water to all applications. However, if the critical application requires

minimal water usage in comparison to other less critical applications, providing point-of-use

polishing systems to meet the needs of the most critical applications may be the most

practical option. Economic considerations generally dictate the design of the water system.

The design of the water system may be influenced by the applicable water quality

specifications. For example, ASTM and USP specify the method of production for the

various types of water quality. ASTM, Type I reagent grade water must be produced by

distillation or an equivalent process (RO or deionization) which can produce water with a

27



maximum conductivity of 20 uS/cm (minimum of 50,000 ohm-cm resistivity). This must be

followed by a mixed-bed deionization system capable of providing water with 0.055 uS/cm

conductivity (18 megohm-cm resistivity). Further, the deionized water must be post-filtered

with a 0.2 micron membrane filter. A sterile 0.2 micron, absolute rated membrane filter

cartridge can produce bacteria-free water. A water system designed to provide ASTM, Type I

reagent grade water for a small laboratory consists of a number of integrated components. A

pre-filter cartridge (0.2 to 0.5 micron pore size rating) provides for removal of particulate

matter. A granular activated carbon filter removes chlorine and organics. A primary mixed

bed deionizer provides TDS removal to a maximum of 20 uS/cm conductivity, and a

polishing mixed-bed deionizer provides 0.055 uS/cm conductivity final water quality. In

addition, the system may include an in-line conductivity sensor and monitor, water

dispensing faucet with a 0.2 micron postfilter capsule, and a recirculation pump. Optional

components could include a 185 nm ultraviolet system installed before the polishing

deionizer to provide for trace organics removal (TOC less than 10 PPB), an ultrafilter

membrane for endotoxin removal, and a 254 nm ultraviolet unit for bacteria control. For

greatly improved water quality and economy of operation (especially for higher capacity

systems), a reverse osmosis system and a water storage tank with a booster pump station can

be used in lieu of the primary deionizer unit. Reverse osmosis is a membrane separation

process that filters the water through a membrane with pore sizes less than 0.001 micron and

can provide greater than 98 percent rejection of TDS. The throughput of polishing mixed-bed

deionizers can be increased by as much as 6 to 8 times by using reverse osmosis for primary

water treatment. For many small laboratory systems the capital cost payback can be as short

as a few months. Large central systems designed to provide ASTM, Type I reagent grade

water generally include a reverse osmosis system for primary treatment, storage tank with

water distribution pump station, polishing mixed-bed deionization, 0.2 micron post-filter, and

a recirculated piping system. An optional 254 nm ultraviolet system may be installed after

the post-filter for control of bacteriological quality. Applicable pretreatment for reverse

osmosis systems depends on the feed water quality and may include a turbidity filter, carbon

filter for chlorine removal, softening system for hardness removal, and a 5 micron disposable

cartridge prefilter. Pretreatment is critical to optimize the performance and the life of the

reverse osmosis membranes. One of the most difficult problems in the design of large central

water systems providing ASTM, Type I water quality is maintaining Type I water quality at

every point-of-use location in a complex water distribution system. The design of the water

28



RESEARCH METHODOLOGY

6.1 Research Design

Exploratory Research

Exploratory research deals with search for the secondary data or survey of

expert or consultant or experience survey Idea is to clarify concepts and subsequently make

more extensive research on them to find out the new business opportunities.

Descriptive Research

In a descriptive research the focus is on the study of consumer behavior while

purchasing a “High purity water purification system” majority of product preferences

by consumers, the preferable size, purifying capacity by consumers, to find out

demand of high purity water purification system in market, highest selling brand in

market, expectation of the consumer.

6.2 Methodology of data collection

In order to achieve the objectives of the project, following method of data collection has been

adopted.

The required data for the study is collected through the following sources.

1. Primary data.

2. Secondary data.

1. Primary Data:

Primary data is collected through Questionnaires:

Questionnaires for laboratories

Questionnaires for Corporates, Educational Institutes & Hospitals for water

dispenser.

30



2. Secondary Data:

The secondary data is collected through the internet websites like www.labwater.com,

www.siemenswater.com, www.justdial.com.

6.3 Sample Design

Population

The population for the study is all types of laboratories that use type III water. Population

size is 90 laboratories and for water dispenser, 80 for corporate, 30 for educational institutes

& 35 for hospitals.

Sample size

For the above study samples of respondents were selected by using simple random sampling

technique of sampling after finalizing the sample size the structured questionnaire was

prepared & the required data were collected from the respondents.

Sample size is the 24 laboratories.

Sampling method

For collecting the information related to high purity water purification system and water

dispenser from laboratories, corporate, educational institutes and hospitals. Samples are

selected by the area sampling method. The samples are selected from the various areas of the

cities.

Method of data collection

The data collection method was primary only and the area was the Mumbai city.

Testing of questionnaire or pilot survey

The questionnaires are prepared for the research and tested by the Project guide.

Field work

31



The survey was conducted in the Mumbai region. For collecting the primary data, visited the

various laboratories, corporate, educational institutes & hospitals in the Mumbai region.

For market study & estimation for high purity water purification system, the information is

collected about type of water required by various laboratories, currently which system they

use, what is the price and purifying capacity of it and information about the potential

customer who will buy the system in future etc. & analysis about the current situation in the

market.

6.4 Data analysis techniques

The term analysis refers to the computation of certain measures along with searching from

patterns of relationship that exit among the different groups. The data after collection has to

be processed and analyzed in accordance with the guideline laid down for the purpose at the

time of developing research plan.

The techniques that were used for analysis of data were as per as follows

1) Tabulation of data

2) Pie charts

32



DATA ANALYSIS & INTERPRETATIONS

Analysis made for the type of water required

Type of waterNo. of

RespondentsPercentage

Distill Water 66 73.33%

Type 3 19 21.11%

Type 1 5 5.55%

Total 90 100%

Interpretation:

Above chart shows that out of 90 respondents 73% uses distill water, 21% use Type III water

and only 6% use Type I water.

33



Analysis made for ASTM type of water required

ASTM Type No. Of Respondents PercentageType 1 5 20.83%

Type 3 19 79.16%

Total 24 100%

The above chart shows that 79% of laboratory uses ASTM Type 3 water and 21% of

laboratory uses Type 1 water.

Interpretation:

The majority of laboratories use Type 3 water. It may because most of the laboratories are

pathological and biotechnological so they required Type 3 water for the purpose of rinsing

the glassware and other media culture.

34



Analysis made for water required per day

Water Required

( Lit/day)

No. Of

Respondent

s

Percentage

5-10 litres 43 47.77%

10-15 litres 19 21.11%

15-20 litres 14 15.55%

20-25 litres 3 3.33%

25 litres & above 11 12.22%

Total 90 100

The above chart shows that 48% of laboratories required 5-10 litres of water per day. And

21% of laboratories required 10-15 litres per day. 12% of laboratories required 25 litres &

above 25 litres of water. And only 3% of laboratories required 20-25 litres of water per day.

Interpretation:

Most of the laboratories required 5-10 litres of water per day. Because the water mainly used

for rinsing and washing purpose so the quantity is small.

35



Analysis made for number of units of high purity water purification system

No. of units of

system

No. of

respondents

Percentage

Less than 2 23 95.83%

2 to 5 1 4.16%

More than 5 0 0%

Total 24 100%

Above graph shows that 96% of laboratories have only one high purity water purification

system. And only 4% of laboratories have 2 systems.

Interpretation:

Due to limited use of Type 3 water in most of the laboratories, there are only one system is

installed. Only 4% of laboratories have 2 units of system. And nowhere there were more than

5 units.

37



Analysis made for Customer awareness about other systems

Awareness about the

products

No. Of

Respondents

Percentage

Millipore 33 36.66%Elga 21 23.33%

Siemens 13 14.44%

Aries 14 15.55%

Sartorius 1 1.11%

Unaware 33 36.66%

Total 90 100%

Above graph shows that 29% respondents are aware about Millipore system and 29% of

respondents are unaware about any systems. 18% of respondents are aware about Elgasystem. Aries & Siemens have 12% & 11%. Only 1% of respondents aware about Sartorius

system.

Interpretation:

Millipore is the market leader, so most of the respondents aware about Millipore and others

i.e.29% are unaware about any system. And others are aware about elga and Siemens system.

38



Analysis made for the price of the existing products

Price Range No. Of

Respondents

Percentage

Less than 2

lacks

1 4.16%

2-3 lacks 13 54.16%

3-4 lacks 9 37.50%

More than 4

lacks

1 4.16%

Total 24 100

Above chart shows that 54% of the” high purity water purification system” have price rangebetween 2-3 lacks. And 38% of systems have price range in between 3-4 lacks. Only 4% of

products have the price more than 4 lacks and less than 2 lacks.

Interpretation:

More than 50% of high purity water purification system price between 2-3 lacks and some of

them between 3-4 lacks and very few have price of less than 2 lacks and more than 4 lacks.

39



Analysis made for the customer satisfaction with current system

Customer

satisfaction

No. of

Respondents

Percentage

Yes 21 87.50%

No 3 12.50%

Total 24 100%

Above chart shows that 87% of customers are satisfied with their current high purity water

purification system. And 13% of customers are unsatisfied with their current product.

Interpretation:

Most of the customers are satisfied with their current high purity water purification system.And only few are unsatisfied with after sale service and product quality.

40



Analysis made for the purpose of use of high purity water purification

system

Purpose of use No. Of

Respondents

Percentage

Different Pathological

tests

37 41.11

Rinsing the glassware 39 43.33

Cell culture 3 3.33

Biochemistry &

immunology

2 2.22

Analytical test 4 4.44

Titration 4 4.44

Total 90 100

41



Above chart shows that 62% of customers buy their high purity water purification system

through dealer and 38% of customer buy it direct from company.

Interpretation:

Majority of customers buy the system through specific dealers because it is convenient them

as they are nearby them and delivery and installation is quick. Others buy it directly from

company due to the decision of their board.

RESULTS & FINDINGS

During study data obtained was that out of 90 respondents about 21% of laboratoriesrequired ASTM type III water for their use and 79% of the laboratories use distilled

water instead of type III water.

About 48% of laboratories required 5-10 litres of water per day because they require

it only for rinsing the glassware and tests.

According to the number of customer for high purity water purification system,

Millipore has highest market share i.e.50%.

According to survey 96% laboratories have only one unit of high purity water purification system.

29% respondents are aware about Millipore, 18% about Elga, 12% about Aries, 11%

about Siemens and 29% are not aware about any system.

The price of most of the systems respondent have has ranges from 2-3 lacs.

According to survey 87% respondents are satisfied with existing products about

quality, after sales service etc.

43% respondents look for quality while purchasing the high purity water purification

system.

45



INTRODUCTION OF THE TOPIC

50



INTRODUCTION TO THE PROJECT

Water dispensers are now commonplace in many commercial and institutional buildings.

Office kitchens commonly have a dispenser of boiling water for tea and coffee making, and

may also have a dispenser or ‘bubbler’ to provide chilled drinking water. Water dispensers

may draw on the mains water supply or use bottled water. Newer models are tending to

combine supply of both boiling and chilled water, often located discretely under kitchen

benches feeding dedicated taps by the sink. These types of water dispensers are also being

sold for use in households. By this time, the contribution of combined boiling and chilled

water dispensers will have risen substantially in proportional terms. Most water dispensers

spend considerable time in maintenance mode, keeping the water at the desired temperature.

Many units do not automatically switching off overnight nor provide a hard switch for user

intervention. The use of better insulation levels, and time clocks or similar automated

controls, can reduce the energy consumed by 15 – 25% economically. However, there is no

apparent trend toward such technology or seemingly little market interest in or knowledge of

these potential technical improvements. Both chilled and hot water dispensers are used in

commercial and domestic applications. Offices, hospitals, schools and other institutionalbuildings often provide chilled water for staff and visiting members of the public, and many

staff kitchens now have boiling water units. Under-bench dispensers are becoming more

popular in domestic kitchens, although they are still not common. There are three types of

water dispensers:

1. Bottled water dispenser

2. Point Of Use dispenser (POU)

3. Pressurized water dispenser

Both bottled water and point-of-use dispensers are freestanding appliances that dispense cold

and sometimes hot water. The key distinction between “bottled” and POU relates to how

water is provided to the dispensers. The bottled water dispenser requires manual replacement

of water containers as the water source, while the POU device uses line pressure activated by

a float valve to maintain water level. The latest modification is the addition of a small

refrigerator compartment in the base of the dispenser. The water dispenser market has been

undergoing a modest change, with manufacturers concentrating on reduced first-cost by

using more plastic components and moving manufacturing to other countries. This low first-

53



Type of

outlet

No. of

Respondents

Percentages

Both 71 88.75

Only cold 9 11.25%

Total 80 100%

Above chart shows that 89% of customer having the dispenser of both cold and normal outlet

and only 11% respondents have only cold outlet to their dispenser.

Interpretation:

The majority of the customers have both cold and normal type of outlet for their water

dispenser.

Analysis made on the basis of market share of dispenser with respect to

number of existing users

56



Brand name No. Of

respondents

Percentages

Voltas 16 20%

Eureka

Forbes

15 18.75

Totaline

(Carrier)

9 11.25%

Aqua D 7 8.75%

Blue star 7 8.75%

Aquafina 5 6.25%

Bisleri 3 3.75%

Philips 3 3.75%

Others 15 18.75%

Total 80 100%

Above chart shows that 20% of respondent use Voltas dispenser and 18% use Eureka Forbes

water dispenser for their offices. 11% respondents use “Totaline” which is carrier product ,

4% respondent use Philips & Bisleri water dispenser. And 9% use Blue star & Aqua D

dispenser. And 19% use other local water dispenser.

Analysis made for potential analysis of market

57



Feedback No. Of

respondents

Percentages

Yes 4 5.00%

No 76 95.00%

Total 80 100%

Above chart shows that there are only 5% of customers who are looking for installation of

digitalised & self sanitized water dispenser for their offices.

Interpretation:

There are only 5% of potential customers for digitalised and self sanitized water dispenser.

Analysis made for customer buying behaviour on the basis of purchasing

mode

58



Type of

dispenser

No. of

Respondents

Percentages

Only

dispenser

78 97.50%

Inbuilt

purifier

2 2.50%

Total 80 100%

Above chart shows that 97% of respondents have only the normal water dispenser & only 3%

have the dispenser with inbuilt purifier.

Interpretation:

Most of the offices i.e.97% use only normal dispenser and only 2% have the dispenser with

inbuilt purifier.

60



B) Analysis for Educational Institutes

Analysis made on the basis of water required per day for drinking

Water required/day

in litres

No. of

Respondents

Percentage

1000-5000 13 16.25%

5000-10000 10 12.50%

10000-15000 6 7.50%Total 80 100%

Above chart shows that 45% educational institute required 1000-5000 litres of drinking water

per day.34% institute required 5000-10000 litres of water for drinking. And 21% required

10000-15000 litres of water.

Interpretation:

Most of the educational institutes i.e.45% required 1000-5000 litres of drinking water per

day. 34% required 5000-10000 litres of drinking water. And only 21% required 10000-15000

litres of drinking water per day.

62



Analysis made on the basis of number of water dispenser institutes have

Number of water

dispenser

No. of

Respondents

Percentages

Less than 5 8 26.66%

5-10 17 56.66%

More than 10 5 16.66%

Total 30 100%

Above chart shows that 56% of respondents have 5-10 numbers of water dispenser. 27%

institutes have less than 5 numbers of water dispenser and only 17% have more than 10 water

dispenser.

Interpretation:

56% of institutes have 5-10 numbers of water dispensers. 27% have less than 5 number of

water dispensers and only 17% have more than 10 water dispensers.

63



Mode of

purchase

No. of

respondents

Percentages

Through dealer 25 83.33%

Company 5 16.66%

Total 30 100%

Above chart shows that most of the respondents buy the water dispenser through dealer and

few from company.

Interpretations:

83% of respondents buy the water dispenser through dealer and only 17% respondents buy it

directly from company.

Analysis made on the basis of type of dispenser

67



Type of

outlet

No. of

respondents

Percentages

Both 27 77.14%

Only cold 8 22.85%

Total 35 100%

Interpretation:

77% of respondents have water dispenser with both cold & normal outlet and 23% have only

cold outlet.

Analysis made on the basis of market share of dispenser with respect to

number of existing users

72



Brand name No. of

Respondents

Percentages

Voltas 5 14.28%

Eureka

Forbes

9 25.71%

Blue Star 9 25.71%

Philips 4 11.42%

Aqua D 7 20.00%

Totaline(carrier)

1 2.85%

Total 35 100%

Interpretation:

26% of hospitals use blue star & Eureka Forbes water dispenser and 20% use Aqua D , 14%

use Voltas and only 3% hospital use Totaline water dispenser.

Analysis made for potential analysis of market

73



Feedback No. of

respondents

Percentages

Yes 3 5.71%

No 32 91.42%

Total 35 100%

Interpretation:

There are very few i.e. only 9% of potential customers for water dispenser.

Analysis made for customer buying behaviour on the basis of purchasing

mode

74



Mode of

purchase

No. of

respondents

Percentages

Through

dealer

29 82.85%

Company 6 17.14%

Total 35 100%

Interpretation:

Majority of the respondent’s i.e.83% buy the dispenser through dealer and 17% buy directly

from the company.

Analysis made on the basis of type of dispenser

75



Type of

dispenser

No. of

respondents

Percentages

Only

dispenser

30 85.71%

Inbuilt

purifier

5 14.28%

Total 35 100%

Interpretation:

86% of respondents have only normal water dispenser and 14% have water dispenser with

inbuilt purifier.

Analysis made on the basis of indicative price from the respondents

76



Price range (in Rs.) No. of

respondents

Percentages

15000-20000 11 31.42%

20000-25000 13 37.14%

25000-30000 11 31.42%

Total 35 100%

Interpretation:

From the 37% of respondents the indicative price for the digitalised & self sanitized water

dispenser is Rs.20000-25000 and from 32% of respondents it is Rs.15000-20000 and from

31% it Rs. 25000-30000.

RESULTS & FINDINGS

Corporate

About 80% of the corporate offices use Bubble-Tub water dispenser.

77



Indicative price from majority of customers i.e. 40% is within the range of Rs.20000-

25000.

Hospital

60% of the hospitals required about 100-500 litres of drinking water per day.

Very few i.e. only 14% hospitals have the dispenser with inbuilt purifier.

About 77% of respondents have the dispenser with both cold & normal outlet, others

have only cold outlet.

Eureka Forbes & Blue star are the market leader of water dispenser for hospitals.

There are only 9% of potential customers for digitalised & self sanitized water

dispenser.

83% respondents ordered water dispenser through dealer and other directly from

company due to the committee decisions.

According to survey 86% respondents use only bubble tap water dispenser and very

few use dispenser with inbuilt purifier, which are mostly of Eureka Forbes.

Indicative price from majority of customers i.e. 37% is within the range of Rs.20000-

25000

79



CONCLUSION

It is observed that there are mostly the bubble-tub water dispenser users at the corporate.

For each office there required average 50-100 litres of water per day. The dispensers used

are only the normal water dispenser and the separate Ro or purifier installed for

purification of water. Most of the corporate users ordered the mineral water bottle for

dispenser and very few have on line water.

For educational institutes the average requirement of water per day for drinking is 2500

litres so they required more numbers of water dispensers. Only 10% of the educational

institutes have the inbuilt purifier in their dispenser and that dispenser mostly of EurekaForbes.

For most of the hospital there required 200-500 litres of water for drinking and it may

vary according to number patient and their relatives visit daily. Most of the hospital uses

Blue Star & Eureka Forbes dispenser. Very few have inbuilt purifier in their dispensers.

So it is concluded that there is need to target the potential customer who are willing to

buy the self sanitized and digitalised water dispenser.

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LIMITATIONS OF THE STUDY

1) Time Factor:

The span for data collection is limited therefore it is very difficult to collect

complete information and study market.

2) Security in business:

The laboratory person does not provide information sometime due to the

security of business.

3) Non cooperativeness by respondents:

Some respondents were less cooperative during the study.

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SUGGESTIONS & RECOMMENDATIONS

Corporate

Provide the product at the corporate offices for trial basis, so they can taste the quality

of the product.

Promotional activities can be performed at the corporate seminars, exhibitions and

summits.

Direct approach to target customer by giving presentation about how the product is

distinct than others.

Educational institutes

Performed the awareness camps at the campus area of colleges.

Direct approach to Registrar or Director of institutes for briefing about the product.

Product could be launch by participating or keeping the product at various exhibition

& seminars organized for educational institutes.

Hospital

Social marketing will be the key factor, like put on the hoardings about social

awareness about virus & bacterial infection.

Approach the doctors to recommend our product, it will add advantage

on the target groups mind.

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Showcase the product at various medical camps, medical association programmes and

exhibition.

BIBLIOGRAPHY

BOOKS

1. Kotler,” Marketing Management”,Ed.12th

2. G.C.Beri, “Marketing Research”

3. C.Bhattacherjee, “Service Marketing”

4. Walker Mullins, “Marketing Strategy”

5. P.Subba Rao, “Business Policy & Strategic Management”

Webliography

www.ionindia.com

www.labwater.com

www.siemenswater.com

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APPENDIX

ANNEXURE

Questionnaire for Labs

Name of the lab:-_______________________________________________________

Type of lab:-___________________________________________________________

Address:-______________________________________________________________

1. What type of water you required?

Ans: a) Type 1 b) Type 3

2. How many litres of water required per day for your uses?

Ans: ________________________________________________________________

3. What is the purifying capacity of your existing product?

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Ans: _________________________________________________________________

4. Currently which company’s product you are using? How many units you have?

Ans: __________________________________________________________________

a)Less than 2 b) 2-5 c) more than 5

5. Which are the other company which provides “high purity water purification system”

you are aware of?

Ans: ___________________________________________________________________

6. What is the price of your existing product?

Ans: a) 2-3 lacks b) 3-4 lacks c) more than 4 lacks

7. Are you satisfied with current product’s with after sales service, maintenance & product

quality?

Ans: ___________________________________________________________________

8. For which purpose you require high purity water?

Ans: ___________________________________________________________________

9. If you are going to use type 3 water what major things you consider before buying “high

purity water purification system”?

Ans: ___________________________________________________________________

10. Are you looking for any new high purity water purification system which fulfils your

requirements?

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Questionnaire for water dispenser

Name of the organization:____________________________________________________

Address:__________________________________________________________________

1. How many employees in your organization?

Ans: _____________________________________

2. How many water dispensers you have in your organization?

Ans: _____________________________________

3. Do you have cold and normal outlet in it?

Ans: _____________________________________

4. Which brands water dispenser you are currently using?

Ans: ____________________________________

5. Do you have any plan for installation of digitalised & self sanitized water dispenser in

your organization?

Ans: a) Yes b) No

If yes, then which company’s & when?

Please mentioned______________________________________

6. From where do you buy equipments for your company?

Ans: a) direct from company b) through dealer

If dealer please mentioned

Name of contact person:-_____________________________________

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Designation :-________________________________

Phone No. :-_____________________________

7. Indicative Price:__________________________________________________

Name of contact person:-

Designation:-

Phone No:-

Remarks:-

cllege project sip

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