India’s water purifier market is at a defining crossroads. For over four decades, Aquaguard—the flagship brand of Eureka Forbes—has stood tall as the category’s undisputed leader. But with digital-native entrants rewriting the rules of ownership, affordability and service, the once-stable industry is suddenly pulsing with competitive energy. With household health awareness rising and purifier penetration still at just 7%, this is shaping into one of the biggest consumer tech battles of the decade.
A Market Ready to Explode
India’s water quality challenges are well-known, and consumers are increasingly unwilling to compromise on safe drinking water. According to The Knowledge Co., the purifier category—valued at ₹8,860 crore in FY24—is set to reach ₹14,350 crore by FY29, growing at an impressive 10.1% CAGR.
And yet, for all the momentum, the biggest barrier is still affordability. Eureka Forbes CEO Pratik Pota puts it bluntly:
“Water purifiers are seen as expensive—both the upfront cost and lifetime cost of ownership.”
This perception has given digital-first challengers like Urban Company’s Native and Atomberg an opening. Their pitch: predictable servicing, transparent prices, and dramatically lower lifetime costs. It’s an assault aimed squarely at Eureka Forbes’ service-heavy model and its lucrative AMC (annual maintenance contract) revenue stream.
Incumbent Firepower: Strong Financial Momentum
Despite the competitive heat, Eureka Forbes has posted some of its strongest results in years. In the September quarter, revenue climbed 15% YoY to ₹773.4 crore, marking the company’s eighth straight quarter of double-digit growth. Net profit jumped 32%, and adjusted EBITDA crossed the ₹100 crore milestone for the first time.
Even more telling is the revival of its AMC business—which had been suffering from customer drop-offs and leakage to unorganized service providers. AMC growth returned to double digits, signaling an important turnaround in customer trust and retention.
Meanwhile, disruptors are scaling quickly. Urban Company’s entire services vertical delivered ₹262 crore in the same quarter, while Atomberg clocked ₹864.6 crore in FY24. These brands are barely a decade old, yet already snapping at the heels of the market giant.
The New Rules of Engagement
1. Affordable Purifiers for First-Time Buyers
Recognizing the affordability gap, Eureka Forbes rolled out a new entry-level line priced at ₹7,000, featuring filters with a two-year lifespan. This directly addresses the pain points exploited by new players.
More than 70% of buyers of these models are first-time users—meaning Eureka Forbes isn’t cannibalizing itself; it’s expanding the market.
2. Fixing the AMC Churn
Unorganized technicians have long siphoned revenue from the AMC cycle. To counter this, the company introduced:
- Cheaper replacement filters
- Simplified service options
- Outreach programs for lapsed customers
Urban Company’s CEO says Native is still unprofitable, but improving. In contrast, Eureka Forbes’ purifier-centric model continues to deliver consistent profitability—an advantage as competition intensifies.
3. Digitizing the Service Backbone
Eureka Forbes has moved aggressively to modernize its field operations:
- Full technician digitization
- Real-time tracking
- App-based service booking
- Slot selection
- Faster response times
Today, 60%+ of service requests come through digital channels, and the brand’s app attracts over 1 million monthly active users. Internal service quality metrics are at “lifetime highs,” according to Pota.
A Larger Installed Base: The Hidden Moat
Eureka Forbes’ 15 million customer database is unmatched. In a market where long-term revenue comes from filter replacements and upgrades, this is a powerful moat.
Interestingly, instead of treating unorganized technicians as threats, the company is now integrating them into its servicing ecosystem—turning a historical weakness into a potential strength.
Economy Products That Don’t Compromise Margins
Typically, low-cost segments squeeze profitability. But Eureka Forbes reports that its economy products are not loss-leaders, and margins have actually expanded over the past three years. This is a critical advantage, as rivals attract customers with low-friction, low-cost solutions.
The broader category is also evolving: consumers want value, not just cheaper devices. Premium and affordable segments are now growing simultaneously.
Competitive Landscape: Crowded, But Ripe
The field is no longer limited to legacy players like Kent. Global brands—LG, A.O. Smith, Whirlpool, Xiaomi—are dipping into India’s underpenetrated market. With China, South Korea and SEA showing purifier penetration of 20–60%, the runway in India is massive.
Urban Company and Atomberg have changed customer expectations. Transparent pricing, predictable servicing and digitally managed upkeep are now baseline demands—especially from young households.
But Pota believes the category leader has systemic advantages:
- An expansive service network
- Pricing across multiple tiers
- Deep understanding of India’s diverse water conditions
- Financial stability and strong ROCE (350%+)
“When categories grow, the strongest brands gain disproportionately,” he says.
The Road Ahead: Who Wins the Next Decade?
As health and hygiene become non-negotiable household priorities, water purification is shifting from a “nice-to-have” to a “must-have” category. Analysts widely agree the next five years will redefine this industry.
New-age brands have momentum, but the incumbent has maturity, reach, and financial muscle. The battle will hinge on two factors:
- Who solves affordability at scale?
- Who offers a frictionless, trustworthy service experience over years of ownership?
As Datum Intelligence’s Satish Meena puts it:
“Water is becoming a non-negotiable health category. Whoever solves affordability and service at scale will win the next decade.”
Takeaways
- India’s purifier market is growing fast but remains underpenetrated at 7%.
- Eureka Forbes is showing strong financial momentum despite fierce digital-era competition.
- Digital-first disruptors are changing expectations around pricing and service.
- The next phase of the battle will be defined by affordability, predictable service, and lifetime ownership value.
- With its large installed base and service transformation, Eureka Forbes is positioning itself to stay ahead—even as challengers rise quickly.
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Disclaimer
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