Parle Products, the company behind well-known brands like Parle G, Monaco, and Melody, witnessed a deceleration in growth, settling at 4% during FY23. This marked a shift from its consistent double-digit growth seen over the past three years, though it retained its position as the largest food company in the country.
The biscuit manufacturer reported a net sales figure of INR 17,223 crore, experiencing a more than threefold increase in profit, reaching INR 905 crore for the fiscal year ending in March. Comparatively, in the preceding year, the company recorded sales amounting to INR 16,490 crore and a profit of INR 255 crore, as indicated in its latest filing with the Registrar of Companies. In the fiscal year 2022, the venerable 90-year-old company achieved a milestone by surpassing $2 billion in annual revenues, making it the first packaged food company in India to achieve this feat. Notably, its iconic glucose biscuit brand crossed the billion-dollar sales mark during this period.
“Growth slowed down mainly due to inflationary pressure which forced us to hike prices in a staggered manner throughout the year. It also led to the overall biscuits market declining by volumes, especially in the first part of the fiscal. We also saw regional players springing up in the second half when input costs fell, full impact of which will be seen during the current fiscal,” said Mayank Shah, senior category head at Parle Products.
In recent years, particularly amid the pandemic, Parle’s emphasis on providing value for money, particularly with its flagship product Parle G, has played a pivotal role in sustaining the brand’s growth. This strategy has proven especially effective during periods of inflation, as consumers tend to reduce expenditures and prefer smaller packaging options.
Nevertheless, the performance in FY23 was hindered by a slowdown in rural areas, which account for approximately 60% of Parle’s sales. This market began to decline in the previous calendar year. Parle reported sales of nearly INR 23,000 crore in consumer price terms, expressing optimism that it is poised to surpass the $3 billion sales milestone by the upcoming year.
Nearly three years ago, the company outpaced rivals, including Britannia and Nestle, to become the country’s biggest food company by annual revenue. Britannia had revenues of INR 15,618 crore while Nestle had sales of INR 16,896 crore last fiscal.
Certainly, while Britannia holds the top position in the biscuits category in terms of market value, Parle takes the lead in terms of volume, selling approximately 1.2 million tonnes of biscuits each year. Britannia has consistently been increasing its market share in recent years.
As per Kantar, Parle Products has consistently secured a position among the top fast-moving consumer brands in India for the past decade.
