India-based Luthra Water Systems has announced plans to set up a Rs350m ($7m) bottling plant at the Ahirwadi Village in the state of Maharashtra.

The proposed facility is specified for the European market and will be the company’s third to bottle Mulshi Springs, a natural spring water brand.

Construction of the plant is expected to start at the end of January and is scheduled to be complete by the end of March.

Luthra said the two plants currently in operation are able to pack about 200,000 bottles a day, with the new plant will adding a further 150,000 daily bottles to the total output. The firm expects to increase the combined bottling capacity from the three plants to 400,000 bottles a day .

Commercial production of Mulshi Springs in PET bottles will start at the beginning of April; in the next few months it will export to the EU and Australia on a test basis.

The company plans to start commercial exports of the high-end glass bottle version soon, and will also launch a PET version.

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Luthra hopes the business potential in the European will bring in Rs500m ($10m) during first year.

Two years from now, the company aims to achieve a turnover of Rs750m ($15m), which is more than twice the amount it will spend to set up the new plant.

Mulshi Springs is bottled specially for the Oberoi Group of Hotels and branded under the La’ Quila brand in four versions, with the 200ml, 500ml, 1l and 1.5l.