Starting from June ’24, reusable insulated water bottles, flasks, and containers crafted from copper, stainless steel, and aluminum may no longer be available on both retail shelves and online platforms. This change is expected because the Ministry of Commerce and Industry is set to enforce a mandate requiring these products to obtain certification from the Bureau of Indian Standards (BIS) in order to be sold.
According to a report by ICICI Securities, currently, the majority of major players, including the listed Cello, import these water bottles since there are hardly any manufacturing facilities for them in India. The report suggests that companies might face additional duties if they continue importing or decide to establish manufacturing units in India to source locally, which could have a near-term impact on existing players.
Cello, Milton, and Prestige are prominent players in the production of these items.
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Given that most players presently import copper, stainless steel, and aluminum water bottles, setting up manufacturing units in India may become necessary for them.
“The BIS directive mandating the use of standard marks could expedite sector formalization and provide competitive advantages for larger, compliant players,” stated the ICICI report.
Should the center not grant any further extensions to comply with the deadline and if additional customs duties are imposed, companies might be required to either pay extra duty for imports or establish manufacturing units in India to procure locally.
For the three months that ended on December 31, 2023, Cello World recorded a revenue from operations of INR 527.1 crore and a net profit of INR 84.9 crore. A request for comments from the company via email was not answered.
Efforts to reach Hamilton Housewares, the manufacturer of Milton bottles and Treo cookware, for comment were unsuccessful.
“The impact will be far higher for smaller & unorganised businesses, who make up over 30% of the market. An official from a mid-sized manufacturer of insulated flasks & bottles stated, “We are hoping for an extension, but that seems unlikely now.”
In July last year, the Ministry of Commerce and Industry issued an order mandating the inclusion of a standard mark, obtained through a license from BIS, on all insulated flasks, bottles, and containers intended for domestic use. Initially projected for implementation within six months, the order is now anticipated to take effect by June of the current year.
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