Mumbai, May 19: The next world war — if there ever is one — will not be over territory (land), but water.

The apocalyptic prophecy may never come true, but corporate skirmishes have already begun over a scarce commodity: clean drinking water.

Sparkling pure water has never looked so alluring before.

The water purification business has emerged as the next money spinner for consumer goods manufacturers, with more and more players entering the fray, including Hindustan Unilever.

Sharda Prasad of Philips Consumer Lifestyle says the vulnerability of the water distribution system to contamination and the onset of water-borne diseases, especially during monsoon, have made the Indian consumer anxious, even paranoid, about ensuring clean and potable water for the family.

“This changing attitude of consumers indicates huge potential for growth in this segment. With almost 94 per cent of the market untapped, it's a good time for companies to be in this space,” adds Prasad.

The Indian water purification market stands at Rs 800 crore and is growing at 15 to 20 per cent annually, market watchers say.

The market penetration is low at barely 6 per cent; the field is dominated by Eureka Forbes, which controls 70 per cent of the market, followed by Kent, a reverse osmosis player, and Ion Exchange’s Zero B.

But now the new entrants have started to shake up the market.

Philips, which launched four models of the Philips Intelligent Water Purifier last year, says it is “delighted” with the response.

Philips products are priced Rs 6,995 onwards and go up to Rs 10,495 for the fully loaded autonomous models with battery back-up.

Hindustan Unilever has stormed the water purification space with its resin technology based Pureit, arguably the cheapest offering among the new entrants.

Running on a “germkill” battery kit, Pureit costs Rs 1,800. The battery kit priced at Rs 300 lasts for about 1,500 litres, offering water at 20 paise per litre.

The company plans to sell 1.5 million purifiers and seven million batteries by 2010.

“HUL has a unique distribution network in terms of how it acquires and services the customer. Customers interested in Pureit will have to call a helpline asking for a free home demonstration,” said a company official.

Whirlpool India is also rolling out a “direct flow reverse osmosis water purifier” across the metros, mini metros and key cities.

The three models in the Purafresh range priced between Rs 12,500 and Rs 22,000, are certified by the Water Quality Association, USA.

“We have entered this category as we see long-term benefits,” said Shantanu Das Gupta, vice-president of Whirlpool India Ltd.

But is the market big enough to accommodate all the players?

“There is enough space in the market since only 6 per cent households currently use purifiers. HUL and others have finally identified the opportunity which we saw 25 years ago. However, only the businesses that deliver quality after-sales service will be the ones which will survive and be successful,” said S.K. Palekar of Eureka Forbes.