A big change is being seen in India's water purifier industry. Now companies are earning not only from selling new machines but also from the services related to them. Filter replacement, Annual Maintenance Contract (AMC), repairing and technician service have become an important part of this business. According to the ET report, Eureka Forbes, maker of Aquaguard, believes that the service business will become a major pillar of the company's growth in the coming years. The company estimates that by financial year 2030 the water purifier service market will be worth more than Rs 9,000 crore.
Anurag Kumar, Chief Growth Officer, Eureka Forbes, told ET that currently the market for the water purifier product category is around Rs 3,800 crore. The service related business is worth around Rs 3,500 crore. Anurag Kumar said that the market for the product category of water purifier today is around Rs 3,800 crore. I think about Rs 3,500 crore more will have to be added to this in the service category. According to the company, by 2030 the product market could be worth more than Rs 10,000 crore, while the service and aftermarket ecosystem could cross the level of Rs 9,000 crore. The combined annual growth rate (CAGR) of both the sectors is estimated to be 11-12 percent.
Experts believe that water purifiers are different from normal consumer products like TV or refrigerator. They require regular care, filter replacement and servicing. Water quality varies by region, so customers require ongoing technical support. This is why after-sales service has become a major measure of the success of any brand. Anurag Kumar said that after-sales service can make or break a brand. The trust that Aquaguard has today is largely due to our service quality.
To strengthen the service business, Eureka Forbes has created a huge network across the country. The company has more than 8,000 technicians, who are providing services in 19,500 pin codes. The company believes that once the purifier is installed in the customer's home, there is regular income for a long time through filter replacement, AMC and other services. This model is now attracting more companies.
For a long time, customers have been complaining that the maintenance of water purifiers costs a lot. The cost of filter replacement and servicing has been preventing many families from purchasing purifiers. To address this challenge, Eureka Forbes has launched “long-life” filters that last for two years. Where earlier the filter usually had to be changed every 12 months, now it can be used for two years. According to Anurag Kumar, we came to know from customers that high maintenance cost is a major hindrance in this category. With filters that last for two years, customers' expenses are reduced as there is no need to change filters every year.
Eureka Forbes is now combining its traditional door-to-door model with a digital platform. The company is emphasizing on online service booking and technology based service management. Talking about geographical expansion, the company's focus is currently on Tier-2 and Tier-3 cities. The company believes that amidst the rapidly increasing urbanization in these cities, there is a huge opportunity for both demand and service of water purifiers.
According to market experts, in the coming years, the competition in the water purifier industry will not only be about selling machines with new technology, but will also be about providing better and faster service. This is why companies are now trying to establish themselves not just as product manufacturers but as service-based consumer brands.
