JAKARTA/SINGAPORE May 7 Indonesia's biggest
bottled water producer Danone AQUA plans to double its annual
production capacity to as much as 20 billion litres in the next
3-5 years to fend off rising competition and meet surging
demand, its top executive said on Wednesday.
The move comes as global food and beverage companies
including Japan's Asahi Group Holdings Ltd and
Coca-Cola Co are increasingly jostling for market share
in the world's fourth most populous nation with around 240
Danone AQUA, which controls around 40 percent of Indonesia's
bottled water market and is run by France's Danone SA,
also plans to launch new products and step up its marketing,
President Director Charlie Cappetti told a media briefing.
Danone AQUA, which invests around $100 million a year in
Indonesia, currently has 17 AQUA plants in the country and hopes
to open 10 more in the next few years, Cappetti said.
"The Indonesian market is changing rapidly. The Japanese are
coming and there's a lot of money available to enter the
market," Cappetti said. "I think everyone is discovering the
water business in Indonesia and wants to be part of the game."
In October last year, a unit of Asahi set up a joint venture
with Indonesian instant noodle maker PT Indofood CBP Sukses
Makmur to produce and distribute bottled water in
Southeast Asia's biggest economy.
The venture is set to compete with established brands like
Danone-run AQUA and Coca-Cola's AdeS. A 1.5 litre bottle of AQUA
costs around 3,000 rupiah ($0.26), while premium brands like
Evian, which is also owned by Danone, sell for at least double
By 2018, the value of the Indonesian bottled water market is
set to surge 66.1 percent to 44.9 trillion rupiah ($3.9
billion), according to market consultancy Euromonitor
International, which took into account inflation rate estimates.
This outpaces the expected 34.5 percent increase in the
value of the global bottled water market to $254.4 billion over
the same period, Euromonitor added.
"The bottled water market in Indonesia has seen increasing
competition due to exploding bottled water consumption," said
Janice Wung, research analyst for energy and environment at
consultancy Frost & Sullivan.
"The almost non-existent anti-bottled water campaign in this
part of the world compared to the U.S. and Europe, together with
the economic growth, has presented Indonesia as a lucrative
market to global bottled water companies," Wung added in an
(Reporting by Fergus Jensen and Eveline Danubrata; Editing by