Manila Water eyes provincial expansion for bottled water unit
MANILA, Philippines - Healthy Family, a unit of Ayala-led Manila Water Co. Inc., targets to reach more customers outside Metro Manila as it ramps up its purified water retail business and increase its market share.
Through subsidiary Manila Water Total Solutions, Healthy Family is looking to expand its five-gallon bottled water business to nearby provinces, particularly Laguna and Pampanga.
“We want to make it available outside Metro Manila so next year we are expanding in North and South Luzon. Our goal is to become the market leader in terms of drinking water,” Healthy Family general manager Sharon Marcial told reporters.
Healthy Family is a five-gallon bottled water which utilizes a fully-automated closed-loop production system eliminating human intervention to prevent contamination.
The shelf life of each bottle is up to six months.
The expansion would entail establishing two new plants which would likely cost around P100 million each.
This would add to the existing five plants of Healthy Family located in Quezon City, Pasig, Taytay, Taguig and Tanyag in Paranaque which had half a billion peso budget and produce a total of 70,000 bottles of five gallons daily.
To date, Healthy Family has 285 distributors spread across 100,000 households in Metro Manila and now sells an average of 500,000 bottles monthly.
Healthy Family also serves 150 clients from hospitals, hotels and resorts, restaurants, BPO offices, banks and government agencies.
Its product is still concentrated in the household sector getting 80 percent of total sales.
In 2015, Manila Water ventured into the business of distributing bottled water, adding a new revenue stream for a company that has been mainly supplying water and wastewater services.
Manila Water Total Solutions is a wholly-owned corporation of Manila Water engaged, among others, in the provision of consultancy and related services for the implementation of water and used water network-related projects.
The two-pronged strategy of MWTS is to develop and scale after-the-meter services with special focus on real estate developers and to develop and launch new business models in the East Zone market and beyond.