OREANDA-NEWS. Tata Global Beverages Ltd (TGBL) is investing heavily in new-age drinks such as functional and flavoured water. Functional water contains additives that provide extra nutritional value. These are expected to become alternatives for carbonated drinks in the future.

The company, which entered the Indian bottled market in 2007 with the Himalayan brand, currently earns about 5 per cent of its total sales from the water business. This is expected to go up to 15 per cent in another 3-4 years, said its Managing Director Harish Bhat.

The growth, Bhat added, is coming as carbonated or soda-based drinks are losing their charm to fruit/vegetable juice and bottled water that contains flavours such as green apple, cranberry, citrus and watermelon, among others.

The company has recently launched ‘water plus’, a nutrient water and ‘gluco plus’ glucose-based flavoured drink in Tamil Nadu and parts of Andhra Pradesh. It will cover the entire Indian market in another 3-4 years.

According to a report by market research firm Euromonitor International, carbonated drinks are losing the appeal to functional drinks, which are seen as healthier alternatives. Even soft drink giants Coca-Cola and PepsiCo have recognised this trend and are strengthening their product offers in fruit/vegetable juice.

Meanwhile, such drinks are gaining popularity in urban areas, where consumers, mainly young working professionals, are becoming increasingly health conscious. Besides, modern retail is also driving the growth as manufacturers showcase their products to capture new consumers and make them aware of various options.

Leveraging the growing health trend, companies such as Parle Bisleri, DS Group (makers of Catch brand), Nestle, Danone, Snapple and Beltek Canadian have entered the flavoured water market.

“Given the option, consumers are willing to try the functional beverage, which besides giving hydration has positive effect on quality of life,” said Mohit Verma, Director, Beltek Canadian Water Ltd. The company has recently launched ‘wild water’, which is a vitamin-rich water.

The overall packaged bottled water market in India is estimated to touch Rs 10,000 crore this fiscal, and is said to be growing at 19 per cent annually.