Why are you setting up a different distribution network for the Bailley bottled water brand?
We began setting up a distribution network focused only on Bailley about a year ago. The business model required for bottled water is very different. Water is consumed everywhere. So you need to house it at biggest retail shops and even at the paan-beedi outlets. Not all of these stores will offer beverages and other products. So distribution cannot be the same. Between two beverage outlets, you can find at least 10 outlets that sell water. So, while there are 40 lakh outlets for bottled water, there are only 15 lakh beverage outlets in the country. Another reason for a separate business model is that the retailer is very price sensitive. He doesn’t look at the brands but only at the margins that he gets from manufacturers. Hence, it is important to have manufacturing plants near the market to save on logistics costs. Then this also means having more manufacturing plants… Yes. From just six plants, we have increased the number to 26 in the last year. In another year, Parle would be r
We began setting up a distribution network focused only on Bailley about a year ago. The business model required for bottled water is very different. Water is consumed everywhere. So you need to house it at biggest retail shops and even at the paan-beedi outlets. Not all of these stores will offer beverages and other products. So distribution cannot be the same. Between two beverage outlets, you can find at least 10 outlets that sell water. So, while there are 40 lakh outlets for bottled water, there are only 15 lakh beverage outlets in the country. Another reason for a separate business model is that the retailer is very price sensitive. He doesnt look at the brands but only at the margins that he gets from manufacturers. Hence, it is important to have manufacturing plants near the market to save on logistics costs. Then this also means having more manufacturing plants Yes. From just six plants, we have increased the number to 26 in the last year. In another year, Parle would be rolli
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