Pouring trouble: Assam’s bottled water startups struggle amid pricing power of big brands

The second phase of Assam’s flagship self-employment scheme - the Chief Minister’s Atmanirbhar Asom Abhiyan (CMAAA) - has witnessed an overwhelming response with over 1 lakh applications flooding in.

But behind this wave of entrepreneurial enthusiasm lies a quieter struggle — one that's playing out shelf by shelf, bottle by bottle.

Among the many ventures that are popping up in the state are small-scale bottled water units, set up by aspiring local youth determined to tackle unemployment and tap into a basic, universal need — clean drinking water.

The idea, on paper, is solid - a low-barrier industry with steady demand and public support. In practice, however, these local brands are barely staying afloat.

The challenge? Big national players are drowning out local competition with strategic pricing and packaging.

While many local producers bottle their water in 500 ml packs priced at Rs 10, national brands have outmanoeuvred them by introducing 750 ml bottles for the same price, offering consumers more volume for their money — a mere 250 ml difference that’s proving decisive at kirana stores and vending stalls.

Pricing of bigger brands is eroding the visibility and shelf presence of local entrepreneurs (Representational Image)

“Earlier, we’d buy a 1litre water bottle for Rs. 20. Now a 750ml bottle for Rs. 10 is value for money,” said Utpal Barman, a Guwahati resident.

The aggressive pricing by bigger brands is not just shrinking margins for local entrepreneurs — it’s eroding their visibility and shelf presence, as retailers opt for fast-moving national names.

“In the summer heat, a 500 ml bottle just isn’t enough for customers. They'd end up buying four to five bottles daily, spending at least Rs 50. Now that 750 ml bottles are available at the same price, they quench our thirst without burning a hole in our pockets,” said Rajesh, a street vendor.

Many young business owners rue the lack of deep pockets for marketing, promotional tie-ups, or packaging innovations that make national brands instantly recognisable.

Sanjay Agarwal, manufacturer of the Oxyrich bottled water brand, said local players are already struggling under pressure from retailers who make up to 100% profit margins.

"Amid this, large national brands enter and further disrupt the market for local entrepreneurs. The government should consider introducing a policy similar to Minimum Support Price (MSP), establishing a benchmark for both local and national brands so that we are not crushed,” he said.

Echoing similar concerns, Santanu, who runs the Neor bottled water brand, said their business has taken a severe hit.

“Our sales have dropped by more than 50%. We increased the quantity to 750 ml for ₹10, but unfair trade practices by national brands have affected our distribution and raised production costs. We are now planning to approach the government, as our market has been severely disrupted by their entry,” he added.

Meanwhile, distributors have pointed on the other issues including labour charge, transportation cost, etc. faced by the entrepreneurs.

“It’s impossible to sustain. Labour costs have surged from Rs 4,000 to Rs 10,000, and electricity and transport expenses keep climbing. But bottle prices remain stagnant — we’re already operating at a loss,” said Pranab Talukdar, a local distributor of Siang Drops in Sorbhog.

On whether local brands could counter the larger bottle sizes of national players, Talukdar admitted, “Technically, we can match that volume with minor tweaks to machinery. But that alone won’t fix the problem.”

For distributors like Anil Chandra Nath from Nagaon, the shift in the market is increasingly visible.

“Bisleri and Bailey still dominate the premium segment. But it’s Reliance’s Independence brand that has become the real threat to local players — they’re competing directly on price and size. We distribute Atlanta and Aqua, and ever since Independence launched, even these brands have started rolling out 750 ml bottles. There haven’t been outright losses yet, but our profit margins have certainly shrunk.”

Without coordinated policy interventions or strategic support to level the playing field, many of these promising ventures risk drying up before they can scale (Representational Image)

The bottled water sector clearly shows how big brands use smart sizing and aggressive pricing to dominate, leaving smaller local producers struggling with higher costs and an uneven playing field.

Even if local manufacturers possess the technical ability to match the volume, their cost structure — from raw materials to distribution — is very high.

Without coordinated policies or strategic support to level the playing field, many of these promising ventures risk drying up before they can scale.