CHENNAI:The Chennai corporation has lined up the launch of bubble top water cans under the Amma brand by end of February ‘if all goes well’, according to sources.
The local body has managed to convince packaged drinking water manufacturers association to fill cans at just 25 paise per litre, which equates to '5 for a 20 litre can.
The corporation would cover the remaining costs including the seal caps, stickers and transportation. “Initially, we proposed '6 but the Mayor’s office asked us to see if we can reduce further,” said an association member. The cans will be contributed by the manufacturers.
The corporation intends to sell these cans at less than '10 while the market rate is '30-35. “The filling rate is '7-8 usually and we make a minimum '3 profit. The '5 quotation will only give us a negligible profit, “ said a manufacturer, requesting anonymity.
The rise in groundwater level post December 1 monsoon also played a huge role in the change of mindset for manufacturers. “Manufacturers in the city peripheries who have access to ample ground water will be able to provide us with more cans but that would mean an increase in transportation charge for us. We are working out the logistics and there will be another meeting in this regard before things can be finalised,” said an official.
However, not all manufacturers are on board with the idea. As such, the suppliers will not be able to meet the quoted requirement with reports suggesting that the corporation wanted supply of nearly eight lakh cans in the city.
There are around 350 manufacturers located in Chennai, Kancheepuram and Tiruvallur districts. Yet, association members are of the opinion that roughly 50 to 70 members may be interested.
“They wanted three lakh cans for south Chennai alone and for the total city the demand was more than five lakh cans. This would mean that we divert a majority portion of our production into the corporation’s hands which is not possible,” said Ilangeshwaran, a manufacturer.
“There will also be pressure from retailers because we will have to decrease the supply to them in order to divert cans for the Corporation,” said S. Sundar, Chennai zone secretary of the association.
Another office-bearer of the association told DC that while the idea may sound entertaining for manufacturers now, it had a bit of short-term about it.
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