Kerala eyes mineral water biz

Kerala’s Left Democratic Front government has plans to take on the cola giants on another turf—bottled mineral water—and is sure that it can give Pepsi and Coke stiff competition in this business. Coke owns the Kinley mineral water brand, and Pepsi Aquafina.

The LDF government is eyeing the lush river-springs in hilly districts for setting up the mineral water plants for Kerala Water Authority (KWA). “We can give private mineral water brands a run for their money,” says Kerala Water Resources Minister NK Premachandran.

“KWA will be able to produce and sell mineral water at highly competitive prices,” he said. Kerala’s per capita rainfall at 300 mm is among the highest in the country, but 85% of the water is lost in six months through poor management.

The state government is still awaiting a detailed project report. But that has not deterred MLAs from vying with one another to convince Premachandran that their constituencies are the right pick for the proposed water plants.

For KWA, reeling under Rs 1160 crore of accumulated losses, this proposal is seen as a desperate move. For every kilo-litre produced at a cost of Rs 8, it can sell water at only Rs 3.