Parle G, the brand which can be associated with every Indian, regardless of their financial background has decided to close its 90 years old unit at Vile Parle in Mumbai. The owners of the company decided to stop the operations of the unit and finally put its shutters down after its production figures crumbled immensely and affected the business of the firm.
The decline in business resulted in a closure of a 90 year old unit and this also means that world’s largest selling biscuit- Parle G will be finally walking out of Vile Parle. The unit had become a most renowned landmark for the area and its closure means that the zone will be losing its sheen. Commenting on the move, Arup Chauhan, Products Executive Director, Parle said that the production at the time of closure was negligible. It didn't make commercial sense to keep it running.
Currently, valued at Rs 10,000 crore, the company has its manufacturing units across the country. These units, apart from making the signature biscuits, also produce other candies and biscuits and supplies across the nation.
Owners halted production at the local factory two months ago following a reduction in production capacity over the last few years. At the time of the shutdown of the plant, which at its peak produced the largest volume of biscuits, there were around 300 workers, who have all taken VRS, explained Chauhan. He further stated that Parle has kept VRS process very smooth and handy so that its employees don’t get stuck in the official glitches.
Spread across about 10 acres, the factory houses Parle Products' HQ. Although Chauhan did not divulge details, the closely held Parle Products, named after the western suburb, is likely to retain the land, which sits on a prime location amid a host of residential complexes, for development. According to experts, the going rate for residences in Vile Parle is between Rs 25,000 and Rs 28,000 per sq ft.
Biscuits and confectionery maker Parle Products is planning to increase the prices of its glucose, Marie and milk biscuits by 4-5 per cent in the first quarter of 2018.
Parle Products Category Head Mayank Shah said “As of now, we have not taken any price hike (decision) but we would be thinking of a price hike considering the increased taxes. It will happen in the first quarter of next year, which is January-March. There might be an increase of 4-5 per cent in the price in brands which are below Rs 100 per kg. For mass (category) earlier we were taxed at a lower rate and now we are taxed at a higher rate, so there has been an impact there and they (mass offerings) have suffered a bit. Growth has been slow in the biscuit below Rs 100 per kg category at 6-7 per cent, compared to the industry growth of 14-15 per cent. Biscuits have been able to overcome both demonetisation and GST. Biscuits which were earlier taxed at a higher rate and now have been brought down under 18 per cent, have grown better. Because of the tax benefits (in biscuits above Rs 100 per kg) being passed on to the consumers, there has been a growth in consumption. Rural demand has also seen an uptick this year, with a growth of almost 60-70 per cent. Primarily, glucose, milk and Marie are the categories which will see increase in prices. Company will probably look at one category at a time for the price increase. Its flagship brand ParleG that is dominant in the glucose segment, BakeSmith English Marie and Milk Shakti are the brands that would see a price revision."
Company had not increased the prices of these products post the implementation of the Goods and Services Tax (GST), when the government had slapped a uniform tax rate on biscuits.
Biscuits below Rs 100 per kg, including the glucose category, and those above Rs 100 per kg were placed in the 18 per cent tax slab under GST.
Earlier, biscuits priced below Rs 100 per kg did not attract excise duty but the effective tax rate was around 9-10 per cent.
Low priced high nutrition biscuits that are largely priced below Rs 100 per kg is estimated to be a Rs 9,000 crore market, constituting 35 per cent of the Rs 25,000 crore organised biscuit market in the country.
With an aim to create a distinctive identity for its premium products, biscuits and confectionery maker Parle has created a new division Parle Platina, and is eyeing a quarter of its revenue from this segment over the next two to three years.
Mayank Shah, Products Category Head, Parle, said, "Brands like Hide & Seek, Milano, Mexitos and Simply Good are more futuristic and aspirational. These brands are very different from the mother brand, Parle. Hence, we wanted to create a distinct identity for these set of brands, and hence Parle Platina came about, which will consolidate our premium brands under one division."
The new division will also include the company's gourmet snack offering Parle Mexitos.
The premium segment is growing at 15-20 per cent for the company and Shah said, "There is a huge growth potential for premium products over the next 2-3 years and we see this segment contributing to about a quarter of our revenue."
Parle Products enjoys a market share of 15 per cent in the premium biscuit industry and the city-based company is aiming to increase it to 25 per cent in the next two years.
The premium biscuit industry stands at Rs 6,500 crore growing at 14-15 per cent, according to Nielsen.
The company's mass brands include flagship product Parle G, Parle Marie, Krack Jack and Monaco, among others.
The biscuit major will invest substantially in Parle Platina and will unveil a new packaging and logo, which will feature prominently for all products under this division.
Shah said, "Going forward, we will be adding new products, new formats and new innovations under the Platina division."
Parle Products, one of India’s pioneers in the biscuit and confectionary manufacturing segment, has announced winners of 14th Parle Saraswati Vandana.
Each year, Parle Products organises 'Saraswati Vandana' in the state during Saraswati Puja, inviting schools to participate in a competition.
The evening was attended by students and teachers from various schools across West Bengal.
Schools, their faculty and students were appreciated and felicitated with certificates and cash prizes. The winning school, La Maternelle High School, Kolkata won first place and a prize money of Rs 30,000, the second prize went to Udaypur Haradayal Nag Adarsha Vidyalaya, Belghoria and Hindu School, Kolkata who won Rs 15000 each.
Rani Binode Manjari Govt Girls School , Ashalata Basu Vidyalaya , Jodhpur Park Boys School , Belur Girls' High (H.S.) School and Saidabad Manindra Chandra Vidyapith were third place winners, the prize being Rs 10,000 each.
“We organize this event around Saraswati Puja not only because this is celebrated in most of the schools through the state, but also to connect and educate students about the culture and festivities in innovative and creative ways. This is our 14th year and we are delighted with the response we have received and sincerely thank the schools for their participation,” said Bhavin Panchamia, Senior Product Manager, Parle Products.
This year, Parle Products Ltd. invited over 600 schools from cities like Kolkata, Howrah, Siliguri, Durgapur, Asansol, Kharaghpur, Midnapore, Serampore, Chinsura, Chandannagar, Baruipir, Belghoria, Madhyamgram, Barrackpore, Burdwan, Bolpur, Krishnanagar, Behrampur, Malda, Ranaghat, and Raigunj.
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