DEMAND AND SUPPLY ANALYSIS OF PARLE G ABOUT THE INDIAN BISCUIT INDUSTRY Biscuits are a household name these days. The markets are flooded with biscuits of every taste and for every age group. Sometimes it would be just difficult for us to decide on what to go for. These are good combinations with a hot cup of Tea or a coffee. They make a quick and a tasty snack any time and in any situation. In India per capita consumption of biscuits is estimated at a low 1.5 kg, reflecting the huge potential for growth of the industry. Over 900 million Indians buy and eat biscuits with varying frequency in any year. The penetration of branded product in this segment is quite significant, and is valued at Rs 2,500-3,000 Crore. None of the other wheat-based segments is as developed as the biscuits industry. The biscuit segment has developed with large markets of mass consumption covering over 90% of the overall potential market. The Indian biscuits' market is estimated to be 1.1 million tonnes per annum and valued at over Rs 50 billion. The unorganized sector accounts for over 50% of the market. The market has been growing at a CAGR of 6-7% pa. The present biscuits-bakery sector in India looks like a battlefront. The battle being led by stalwarts like Britannia and Parle with close competition from other companies like ITC, Nutrine, HUL 1
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DEMAND AND SUPPLY ANALYSIS OF PARLE G
ABOUT THE INDIAN BISCUIT INDUSTRY
Biscuits are a household name these days. The markets are flooded with biscuits of every
taste and for every age group. Sometimes it would be just difficult for us to decide on what to
go for. These are good combinations with a hot cup of Tea or a coffee. They make a quick
and a tasty snack any time and in any situation.
In India per capita consumption of biscuits is estimated at a low 1.5 kg, reflecting the huge
potential for growth of the industry. Over 900 million Indians buy and eat biscuits with
varying frequency in any year.
The penetration of branded product in this segment is quite significant, and is valued at
Rs 2,500-3,000 Crore. None of the other wheat-based segments is as developed as the
biscuits industry. The biscuit segment has developed with large markets of mass consumption
covering over 90% of the overall potential market.
The Indian biscuits' market is estimated to be 1.1 million tonnes per annum and valued at
over Rs 50 billion. The unorganized sector accounts for over 50% of the market. The market
has been growing at a CAGR of 6-7% pa. The present biscuits-bakery sector in India looks
like a battlefront. The battle being led by stalwarts like Britannia and Parle with close
competition from other companies like ITC, Nutrine, HUL Kissan, Kwality and even
international brands like Kellogs, Nestle, Sara Lee and United Biscuits.
There are two entrenched players in the biscuits market - Parle and Britannia have 85% of
the market share. Britannia is undoubtedly the leader with brands like Tiger, Little Hearts and
Milk Bikis. Britannia's Tiger brand is selling largely in the rural areas which actually
constitute 56% of the biscuit market. But in the Glucose segment Parle G is the market
leader. Also players like HLL and ITC have huge presence in the market.
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DEMAND AND SUPPLY ANALYSIS OF PARLE G
In India, there is a huge unorganized sector. Biscuits market on an average grew at 8% per
annum in the last five years. The rural penetration of the branded biscuits segment is also
significant. Towns with populations of less than a lakh contribute significantly to the
industry's turnover, with some estimates placing it at 40%. However, rural markets largely
consume lower-priced varieties, and it is here that branded biscuits meet with stiff
competition from the unorganized sector.
The unorganized sector in the biscuits segment does exert pressure on the Pricing policies of
the organized players. But only up to a point since the penetration of brands in this business
even in the rural areas is fairly significant.
Therefore, the value for only the branded business segment is more indicative of the
industry's competitive pressures.
The duty structure still favors the unorganized sector. Except for select low-priced varieties,
the excise duty on biscuits is a hefty 16%. However, bowing to pressure from the Federation
of Biscuit Manufacturers of India, 50% of the excise was exempted for biscuits with a
maximum retail price of Rs. 5 for a weight not exceeding 100 grams.
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DEMAND AND SUPPLY ANALYSIS OF PARLE G
ABOUT THE COMPANY
Parle Products Pvt. Ltd.
Legal status: Corporation
Net worth: US $ 450 Million
Year established: 1929
Year started export: 1982
Market share
Biscuit segment: 40%
Confectionary: 15%
Wholesalers: 1500
Retail outlets: 4, 25,000
Annual sales: 179.9 million kg (in volumes)
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DEMAND AND SUPPLY ANALYSIS OF PARLE G
HISTORY
A long time ago, when the British ruled India, a small factory was set up in the suburbs of
Mumbai city, to manufacture sweets and toffees. The year was 1929 and the market was
dominated by famous international brands that were imported freely. Despite the odds and
unequal competition, this company called Parle Products, survived and succeeded, by
adhering to high quality and improvising from time to time.
A decade later, in 1939, Parle Products began manufacturing biscuits, in addition to sweets
and toffees. Having already established a reputation for quality, the Parle brand name grew in
strength with this diversification. Parle Glucose and Parle Monaco were the first brands of
biscuits to be introduced, which later went on to become leading names for great taste and
quality.
PARLE COMPANY PROFILE
The Parle Products Pvt. Ltd. is a US $ 450 million conglomerate started in India in 1929.The
first glucose biscuit to be introduced from the House of Parle is Parle g which is 78 year old
brand. They are in the business of manufacturing and marketing biscuits and confectionaries.
They have State-of-the-art machinery with automatic printing and packaging facilities. Their
biscuit baking oven is the largest of its type in Asia.
Over the decades the efforts of their Research & Development wing have made the repertoire
of their products grow manifold. In biscuits they have Glucose, Milk, sweet and salted,
cream, Digestive, cumin seed and cheese categories. In confectionery, they have a range of
toffees and hard-boiled candies available in chocolate, mint, cola, and tropical fruit flavors.
Some of these are double layered toffees and center filled candies packed in rolls or pillow
packs, or have single or double twist wrapping.
Almost all of their products are market leaders in their category and as recognition of their
quality, have won Gold, Silver and Bronze Monde Selection medals since 1971. Parle enjoys
a 40% share of the total biscuit market and a 15% share of the total confectionary market, in
India. Parle has more than 50 manufacturing units and equal number of distribution points
spread all over India and abroad.
Maximizing value to consumers and forging enduring customer
relationships are the core endeavors at Parle
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DEMAND AND SUPPLY ANALYSIS OF PARLE G
PARLE G - THE EVOLUTION!!!
Makers of the world's largest selling biscuit, Parle-G, and a host of other very popular brands,
the Parle name symbolizes quality, nutrition and great taste. With a reach spanning even the
remotest villages of India, the company has definitely come a very long way since its
inception.
Parle-G has been a strong household name across India. The great taste, high nutrition, and
the international quality, makes Parle-G a winner. No wonder, it's the undisputed leader in the
biscuit category for decades. Parle-G is consumed by people of all ages, from the rich to the
poor, living in cities & in villages. While some have it for breakfast, for others it is a
complete wholesome meal. For some it's the best accompaniment for chai, while for some it's
a way of getting charged whenever they are low on energy. Because of this, Parle-G is the
world's largest selling brand of biscuits.
Launched in the year 1939, it was one of the first brands of Parle Products. It was called Parle
Gluco Biscuits mainly to cue that it was a glucose biscuit. It was manufactured at the
Mumbai factory, Vile Parle and sold in units of half and quarter pound packs.
The incredible demand led Parle to introduce the brand in special branded packs and in larger
festive tin packs. By the year 1949, Parle Gluco biscuits were available not just in Mumbai
but also across the state. It was also sold in parts of North India. By the early 50s, over 150
tones of biscuits were produced in the Mumbai factory. Looking at the success of Parle-G, a
lot of other me-too brands were introduced in the market. And these brands had names that
were similar to Parle Gluco Biscuits so that if not by anything else, the consumer would err in
picking the brand.
This forced Parle to change the name from Parle Gluco Biscuits to Parle-G.
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DEMAND AND SUPPLY ANALYSIS OF PARLE G
HOW PARLE FOUGHT TO MAKE BISCUIT AFFORDABLE
TO ALL
Biscuits were very much a luxury food in India, when Parle began production in 1939. Apart
from Glucose and Monaco biscuits, Parle did offer a wide variety of brands.
However, during the Second World War, all domestic biscuit production was diverted to
assist the Indian soldiers in India and the Far East. Apart from this, the shortage of wheat in
those days, made Parle decide to concentrate on the more popular brands, so that people
could enjoy the price benefits.
Thankfully today, there's no dearth of ingredients and the demand for more premium brands
is on the rise. That's why; they now have a wide range of biscuits and mouthwatering
confectionaries to offer. Be it a big city or a remote village of India, the Parle name
symbolizes quality, health and great taste! And yet, we know that this reputation has been
built, by constantly innovating and catering to new tastes.
In this way, by concentrating on consumer tastes and preferences and emphasizing Research
& Development, the Parle brand grows from strength to strength
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DEMAND AND SUPPLY ANALYSIS OF PARLE G
FEATURES OF PARLE G
Tests on samples of the world’s largest-selling biscuit brand and India’s first glucose
biscuit, introduced way back in 1939 i. e. Parle-G
The familiar face of Parle-G biscuits. The child's face and the yellow and white strips
haven't changed much.
According to ORG-MARG reports, Parle G commands a good 65 per cent market share in the
domestic biscuit market.
Ingredients:
The ingredients used to prepare the Parle G biscuits are Wheat Flour, Sugar, Edible