Parle Products Goes For Expansion Mode To Thwart Competition

 Parle  Products  the leading  biscuit manufacturer  in India  has adopted  a aggressive  expansion plan  to maintain its leadership position in biscuit segment through increasing its production  capacities and distribution channels .

A report

The Rs6,000 crore biscuits major Parle Products, which has pilfered Britannia Industries Ltd’s market share, is looking to maintain its leadership in the branded biscuits segment.
Parle claims to hold a market share of 40% in volume and 32% in value terms in the branded biscuits segment. At present, Britannia has a market share of 28% in volume terms and 32% in value.

Analysts estimate Britannia has lost about 4% volume share in the last three years, whereas Parle has gained the same.
Going forward, the company plans to double its distribution network and increase the number of its manufacturing units.

source
complete story  on -DNA

Parle Counters Competition With Plans To Increase Capacities

 Parle  have  taken on to competition  with  declaration  that it   would enhance its capacities in tune of 15 % . with  competitors planning for  expansions such as Britannia , ITC , Unibic  and new entrants  like Shakti Bhog and United Biscuits it has to be aggressive to protect its turf  . Parle has recently   being elevated itself to No-1  company   in  Indian biscuits  market  by volume of sales .

 

Article
Parle Products is extending its distribution network and increasing manufacturing capacity by a fifth to maintain its market share. The leading biscuit maker has been unable to meet the growing demand for its products through its distribution channels.

Praveen Kulkarnii, general manager (marketing) of Parle Products, said they had not been able to meet the demand due to supply issues. “We are increasing our capacity by 15-20 per cent. The franchisees for outsourced manufacturing would be making investment for capacity addition.”

Parle, which clocked a turnover of Rs 4,000 crore in 2009-10, markets products such as Parle G, Melody, Monaco and Krack Jack. The company is expecting its sales to grow by 15-20 per cent this financial year.

The company is looking at expanding the product portfolio by introducing newer categories. “Parle Top, which was launched recently, will be extended to other markets in a few weeks. We will be spending around Rs 5-10 crore for advertising,” said Kulkarnii.

The market is split between three major players — Parle, Britannia and ITC — and a clutch of regional players.

“We are aware of the increasing market share of our rivals. We are trying to plug in the gaps in distribution. We are beefing up our marketing strategies and promotions, advertising to woo consumers,” said Kulkarni

read more on 
http://www.mydigitalfc.com/news/parle-increase-capacity-strengthen-distribution-255

New Index for Growth - Biscuits

Interesting observations by  Mr Subir  Roy  on  making development Index linked with quality of biscuit  of  a nations .He tracks  down  biscuits  in India  from era of fifties and sixties  to   improved versions of biscuit  available in present time . For  him  development  has  to been seen  through quality and competition  available  in items  like food . Interesting essay  how things have changed for  biscuit  industry  in India

Excerpt

"Much fine-tuning needs to be done before the new development index can be applied usefully across countries but the candidate has great potential. A key decision will be to determine whether the index is to be based on a particular biscuit or biscuits in general. While one biscuit will have all the virtues of specificity, the genre scores in comprehensiveness. My earliest memories, going back to the fifties, is of biscuits being a tremendous treat, the excitement over the prospects of being able to consume a couple of them being akin to the excitement over developing the country rapidly, five years at a time, that was then widespread. Then came a long interregnum, from the sixties through to the eighties, when developmental progress floundered and with it the quality of biscuits. Things began to change in the nineties and if you want a measure of the country picking itself up and going places, all you have to do is to look at the sea change that has been taking place in last 10 years or so in biscuits. Not only has quality improved, increasing competition has kept prices low and the sharp rise in real per capita incomes in the last several years is accurately reflected in the higher value that biscuits have been delivering.


Read more on
http://www.business-standard.com/india/news/subir-roynew-development-index/407675/

United Biscuit buys SSFI in Himachal Pradesh

Finally UB ( United Biscuits ) ,UK has bought a SSFI unit in Himachal Pradesh to launch its product in India . Earlier in my blog I have reported news on United Biscuits moving into India and launching its product . It has been busy with building a team and time has come to translate into manufacturing .UB has got popular brands like McVities Hoola Hoops and Jacobs Cream Cracker .
United biscuit would test launch its product from this facility in first quarter of 2010 . The brands it would go in for world famous Digestive biscuit McVities . The Indian operations is headed by Jayant Kapare . For last year it has been scouting for manufacturing unit and now its has finally taken oven this biscuit manufacturing plant in Himachal Pradesh .
UB would have to face tough competition from already entrenched players like Britannia , Parle and ITC . UB has to work it out a recipe compatible with Indian taste and to market aggressively for brand recall.As history shows that Foreign brands could not make much headway in Indian biscuit market .
Product like Britannia Digestive , Marie Gold , Nutri Choice and ITC s Marie lite would give to tough competition . Indian biscuit market is worth Rs 6000.00 crore and fiercely competitive with dozens of local players apart from the BIG 3 ,namely Cremica , Priya gold , Dukes and Bisk farm.It would be interesting to see how Indian players respond to UB s McVities.

United Biscuits is owned by private global investment firm Blackstone and European private equity firm PAI .

Source ET
read more on

Indian Biscuit Industry Review

India is the third largest biscuit manufacturing country after USA and CHINA .Estimated annual turnover of Indian biscuit industry is around INR 65.0 billion .Biscuit Industry in India is entering into competitive phase from period of two major players dominating the industry to number of player making mark on national scene and getting share of the market which is good for the industry.

Apart from Big 3( Britannia , Parle , ITC ) there are around 150 medium to small biscuit factory in India . These Industry are now facing problem from increase of raw material price. With Govt VAT upto 12.5% has added to their woes .

Biscuit consumption per capita in India has grown to 2.1kg per capita in comparison to 10kg per capita consumption in USA ,UK and Europe . GCC has consumption upto 6 kg per capita .


According to IBMA, the biscuit industry in India witnessed annual growth as 15% in 2003-04, 14% in 2004-05 and 2005-06, 13% in 2006-07, 15% in 2007-08 and 17% in 2008-09. While the growth rate has been stagnating during last 4 years, it has picked up momentum during the 2007-08 and the first quarter of 2008-09 mainly on account of exemption from Central Excise Duty on biscuits with MRP up to INR 100 per kg, as per Union Budget for 2007-08.

The organized biscuit manufacturing industry‘s annual production were around 1.1 million tons in 2003-04, 1.25 million tons in 2004-05, 1.4 million tons in 2005-06, 1.6 million tons in 2006-07 and 1.7 tons in 2007-08.

Rural -Urban market penetration for biscuits has been 75%/85% for urban market and 55% /65% for rural market .

Branded /Organised to Unbranded/Un organised market share of biscuit has been 60% for Organised sector and 40% for Unorganised sector .

Biscuit consumption pattern in the country are Northern India 25%, Western India 23%, Southern India 24% and Eastern India 28%.

Export share is around 15% of total production .

Major types of biscuit popular in Indian market are Glucose , Marie , Cream, Crackers ,Digestive ,Cookies and Milk .

Major manufacturers are Britannia, Parle, ITC , Priyagold, Anmol, Sunfeast, Biskfarm, Dukes, Cremica, Priya, Veeramani, Bonn, Bhagwati, Raja, Champion, Sobisco, Madhabi, Nezone, Windsor, Cookieman, Ankit, Shangrila, Nalanda, Unibic , Cookie Man ,RajaBiscuit

Major  Multinationals  have  started  entering  into these lucrative market   major  names  are  Kraft , United Biscuits , Pepsi , Unibic , GSKB, Ceylon Biscuits  and  other new domestic  entrant  has been  Shakti  Bhog