Ayzill, a brand that offers packaged drinking water, has recently announced its strategic plan to raise capital by diluting a 10% stake. The primary objective behind this move is to secure funds to support the company’s ambitious expansion plans, with a particular focus on reaching smaller towns across the nation. Additionally, Ayzill aims to strengthen its manufacturing capabilities as part of this strategic endeavor.
The company, catering to both retail customers and institutions like offices, has recently inaugurated its fourth production sourcing facility. This facility boasts an impressive daily throughput, capable of producing 2000 packs of packaged drinking water, along with a monthly production capacity of 7000 units of 20-liter jars.
“The additional funds so raised will help us in meeting our growth trajectory to roll-out pan-India supply chain network, manufacturing at multiple locations under contract manufacturing alliances with BIS approved plants, add warehouse space at or near our key customers, adding muscle to our marketing, supply chain and e-commerce platform,” said Rajesh Sonpal, Managing Director at Ranco Energy that owns Ayzill.
The annual consumption of packaged drinking water is approximately 35 billion liters, equivalent to around 8 million packs per day. In terms of volume, the MMR (Mumbai Metropolitan Region) and NCR (National Capital Region) together contribute around 0.5 million packs per day each. Despite Bisleri’s dominant position as the market leader, there exist more than 1800 regional and local producers, collectively holding a market share of about 46%. It is anticipated that their market share will increase to around 52% in the next seven years.
“This market has low-entry barriers and the USP of success is to keep on continuously adding resources to the supply chain infrastructure and to keep on penetrating the market deeper. The back-end digital infrastructure will prove to be the competitive edge,” said Sonpal, adding that it expects Ayzill to clock sales of around 50,000 packs per day by 2030. “Our target is to have a market share of around 2% overall in the next eight years.”
Since its commencement of commercial sales, the company has experienced a substantial month-on-month (m-o-m) sales growth of approximately 35% over the past 10 months. Currently, the company’s packaged drinking water production facilities are located in Mangaon, Malad, Bhiwandi, and Taloja, all situated within the Mumbai Metropolitan Region (MMR).
In the coming months, the company plans to enhance its production sourcing capabilities and establish approximately 4-5 additional locations across the Mumbai Metropolitan Region (MMR) and Pune in Maharashtra. Furthermore, they intend to establish production facilities in Bengaluru, the National Capital Region (NCR), Hyderabad, and the Surat Metropolitan areas, with at least one location in each of these regions. Moreover, the company has set its sights on setting up production sourcing facilities in multiple states including Himachal Pradesh, Jharkhand, West Bengal, and Madhya Pradesh by the year 2025.
In addition, the company has obtained a license to produce fresh, natural spring water in Chamba, Himachal Pradesh. In the upcoming financial year, they will be initiating the bidding process for the procurement of a spring water filtration plant and the necessary equipment for purification, filtration, and packaging machinery for this new venture.
