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ABOUT THE INDIAN BISCUIT INDUSTRYBiscuits 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.


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.



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)



HISTORYA 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 PROFILEThe 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 Parle4


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.



HOW PARLE FOUGHT TO MAKE BISCUIT AFFORDABLE TO ALLBiscuits 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



FEATURES OF PARLE GTests on samples of the worlds largest-selling biscuit brand and Indias 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 Vegetable Oils, Invert Syrup, Skimmed Milk Powder, Salt, Leavening Agents, Permitted Emulsifier, Flavors and Dough Conditioners. Nutritional value: The pack is also point out that it contains Glucose, Milk, Iron and Calcium and is intended to picture itself as some kind of 'energy' food. Very rightly described as SWAD SE BHARA, SWASTHYA SE BHARA means full with taste, full with health.



MANUFACTURING UNIT: There are five mother units and thirty one contract manufacturing units in India. The main difference between mother un