Indians are bracing for summer, with temperatures expected to cross 45C in some parts of the country. But the war with Iran is already putting India’s $6bn bottled water industry under strain as manufacturers struggle to access crucial raw materials.
Last month, market leader Bisleri increased prices by 11%, external, making a box of 12 one-litre bottles costlier by 24 rupees ($0.26; £0.20). Brands like Bailley and Clear Premium Water have also increased their prices, Reuters news agency reported.
According to a study by Data for India, about 15% of urban households, external and 6% of rural households depend on bottled water for their drinking needs. Relying on bottled water is expensive, especially for people in rural areas. But access to clean water remains a challenge in many parts of India, especially in summer, due to reasons including water shortages, groundwater contamination and infrastructure gaps.
Brands and bottle manufacturers warn that a prolonged war will risk making a crucial commodity prohibitively expensive for many Indians. About 20% of the world’s oil and liquefied natural gas usually passes through the narrow Strait of Hormuz, which is now almost completely blocked by Iran. The disruption in global shipping has sent global fuel prices soaring.
India, which relies heavily on oil and gas imports to meet domestic demand, is feeling the pressure.
Vijaysinh Dubbal, president of the Maharashtra Bottled Water Manufacturers Association, explains that the main reason bottled water – which is largely sold in plastic bottles – has become expensive is because of the surging costs of crude oil. The price of a barrel of Brent crude oil briefly hit $119 (£90) earlier this week, close to its highest since the start of the US-Israel war with Iran.
Crude oil is used to make Polyethylene Terephthalate (PET) resin pellets – granules that are heated and passed through moulds to create PET preforms. These preforms, which look like plastic test tubes, are sold to brands and bottle manufacturers to be shaped into plastic bottles of the desired shape and size.
“The cost of preforms has increased from 115 rupees a kg to around 180 rupees per kg. There is also a shortage in the supply of preforms,” Dubbal says, adding that about 20% of bottle manufacturing plants in Maharashtra state have temporarily shut operations.
