Company profile

Name of the company: Parle Products Pvt ltd. Established in the year: 1929 Chairman: Sharad Chauhan Directors: i) Anup Chauhan ii) Amol Chauhan Address of head office: V.S. Khandekar marg, VILE PARLE(East), Mumbai-400057. Address of Contractor Manufacturing Unit (C.M.U) :- Bunty Foods, Plot no. A-66, Anandnagar M.I.D.C, Ambarnath- 421506. Web site: www.ParleProducts.com

Bunty Foods (C.M.U) Hierarchy

Chairman Directors Office manager Production manager Shift Incharge Supervisor
Workers
Maintainance Department Incharge

Company History
A long time ago, when the British ruled India, a small factory was set up in the suburbs of 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 fought to make biscuits affordable, despite World War II. -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 tonnes 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. Originally packed in the wax paper pack, today it is available in a contemporary, premium BOPP pack with attractive side fins. The new airtight pack helps to keep the biscuits fresh and tastier for a longer period. Parle-G was the only biscuit brand that was always in short supply. It was heading towards becoming an all-time great brand of biscuit. Parle-G started being advertised in the 80's. It was advertised mainly through press ads. The communication spoke about the basic benefits of energy and nutrition. In 1989, Parle-G released its Dadaji commercial, which went on to become one of the most popular commercials for Parle-G. The commercial was run for a period of 6 years.

Parle-G grew bigger by the minute. Be it the packs sold, the areas covered or the number of consumers. It became a part of the daily lives of many Indians. It wasn't a biscuit any more. It had become an icon. The next level of communication associated the brand with the positive values of life like honesty, sharing and caring. In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero, Shaktimaan that went on to become a huge success. The personality of the superhero matched the overall superb benefits of the brand. Parle extended this association with Shaktimaan and gave away a lot of merchandise of Shaktimaan ,which was supported by POS and press communication. The children just could not get enough of Parle-G and Shaktimaan. In the year 2002, it was decided to bring the brand closer to the child who is a major consumer. A national level promo - `Parle-G Mera Sapna Sach Hoga' was run for a period of 6 months. The promo was all about fulfilling the dreams of children. There were over 5 lakh responses and of that, over 300 dreams were fulfilled. Dreams that were fulfilled ranged from trips to Disneyland at Paris & Singapore; meeting their favorite film star Hrithik Roshan free ride on a chartered plane; 20 scholarships worth Rs 50,000; a special cricket coaching camp with the Australian cricketer - Ricky Ponting; etc. Parle-G continues to climb the stairs of success. Take a look at the global market where it is being exported. First came the Middle East then USA followed by Africa and then Australia. An Indian brand, that's exported to almost all parts of the world. After all . that's what you would expect from the Parle-G World's Largest Selling Biscuit

Product Mix

Parle Product Pvt. Ltd. is the niche player in the biscuits & confectionary markets. In the fruit drink segment where Parle Agro Pvt. Ltd .,has a huge popular product Known as MANGO FROOTI.& APPY FIZZ. As for its mineral water business, Bailey, Parle Agro has opted for backward integration and gone into the production of performs and caps. It holds the dominant position in national as well as in International market.

PARLE-G

MONACO BITES

FUN CENTER

HIDE & SEEK

KRACK JACK

MARIE CHOICE

MONACO

NIMKIN

PARLE CREAM

MILK SHAKTI

MAGIX

SIXER

JEFFS

TOFFIES

KISMI

MEOLDY

POPPINS

ROL-A-COLA

MANGO BITE

ORANGE CANDY

Following are the various product of parle which succeed in acquiring dominant position in various segment:Parle-G being the largest selling glucose biscuit brand has not made Parle complacent. The Mumbai-based low-profile biscuits major believes there is still scope in the category, and that it's time it built more `social' equity for its largest selling brand, Parle G. Launched in 1939, the more than 50-yearold brand of Parle-G is India's first glucose biscuit to be introduced from the House of Parle. With a dominant volume share in the glucose biscuit market, Parle-G is pegged as the largest-selling biscuit brand in the world, making up almost 80 per cent of Parle Products' turnover of Rs 1,300 crore. Hide & Seek is India's first and only chocolate Chip Cookie, Although the basic difference between a biscuit and cookie is that Cookies are considered to be more Sweet and chewy while biscuits are brittle.Hide & Seek was launched in India in 1998. Although there were certain variants of Hide & Seek like orange flavour, only chocolate flavour survived. Hide & Seek is positioned as a premium snack cookie. The cookie market is estimated to be around 500 crore in the 5000 crore biscuit market. The baseline for Hide & Seek is " TASTE ITNA KI DIL AA JAYE" Monaco Bites is essentially a sub-brand of Parle's flagship salt cracker brand, Monaco, and is, in a way, a new avatar of Cheeselings. Infact, the Cheeselings brand was brought under the Monaco portfolio a couple of years ago, and its relaunch as Monaco Bites is clearly an attempt to extend the Monaco brand franchise into new, emerging snacking segments. Monaco

Bites is not a biscuit or a cookie or a wafer. They are actually creating a new bites' segment with this brand. In the 7000 crore Indian Soft drinks industry dominated by the cola majors, Parle Agro is fighting for its share with its mango- drink Frooti and the apple drink Appy Fizz. Appy was launched in 1986 as an apple drink in tetra pack after the mega success of Frooti. But Appy was not that successful compared to Frooti. This year we saw the new avatar of Appy in Appy Fizz. Appy Fizz is now being relaunched as a Cool Drink to Hang Around With. With its champagne shaped bottle and smart advertising, Parle has succeeded in creating a Fizz in the segment, which is basically the Indian Youth. Going by the demand in the College canteen for this drink, Appy Fizz has been able to catch the fancy of the early adapters. Within its confectionery portfolio, Parle has pegged its toffee brands such as Kismi, Lux, Dairy and Mayfair at the 25 paise price point. However, it expects the 50 paise price point to be more viable. It already has a host of hard-boiled confectionery brands operating in that segment including the likes of Mango Bite, Tangy and Pick 'n' Pack. This segment is expected to be a focus area for the company. Explains Nair, "Although the 25 paise segment is the biggest potential segment, most of the bigger companies cannot cover their overheads. The 50 paise segment is the most viable followed by the Re 1 price point."
As for its mineral water business, Bailley, Parle Agro has opted for backward integration and gone into the production of preforms and caps. In this segment, the company has gone into packs of various sizes from 20-litre bulk packs to 200-ml pouches and bottles and 150-ml cups.

MARKETS

Import-Export
The immense popularity of Parle products in India was always a challenge to their production capacity. Now, using more modern techniques for capacity expansion, they have begun spreading their wings and are going global. Parle biscuits and confectionaries are fast gaining acceptance in international markets, such as, New-Zealand, Singapore, Canada, Nepal, Angola, Abu Dhabi, Africa, Dubai, South America and Sri Lanka. Even the more sophisticated markets like USA & Australia, now relish Parle products. As part of the efforts towards a larger share of the global market, Parle has initiated the process of getting ISO 9000 certification.

MARKET SHARE

45 40 35 30 25 20 15 10 5 0 parle britannia priya gold ITC others 2006 2005

Parles shares have also dropped from 42.2(2005) to 38.4(2006) per cent in the same period. Britannias shares have dropped from 35.8 per cent to 30.5 per cent (volumes) Even PriyaGold has seen a minor dip from 6.4 per cent to 5 per cent. ITCs Sunfeast has been a big gainer with its share increasing from 2.7 to 6.7 per cent. Other companies shares increased from 12.9 to 19.4. Parle holds 52% market share globally. In Indian market terms of value, Britannia leads the market with 37 per cent market share, followed by Parles 31.3 per cent and ITCs 6.3 per cent.

RAW MATERIALS:The ingredients used for manufacturing biscuits are :

Wheat flour Sugar Vanaspati Milk powder Flavours Refined salt Baking soda Calcium and iron Edible vegetable oil Leavening agents

METHOD OF PRODUCTION:Raw materials which is used for making goods firstly it is tasted in laboratory to ensure that material possess the required quality. After getting assurance from quality wise it was send for production purpose. In a earlier stage all raw material are getting mixed in a mixture. Than it is followed by Dough feeding hopper in which material from mixture which is in a liquid form converted into thick form than it passes through Metal Detector in which the thick become thin through reciprocating device then it send to Rotary moulder in which the materials are moulded in Biscuits shape. After moulding it passes through oven. In each oven there are 8 chambers which can be kept at temperature between 120C to 320C according to requirement. After biscuits are baked they are send for packaging of the same. From the initial stage till the end it takes 10 to 12 minutes including packaging of each batch. There are 2 shifts of workers in 24 hrs production process. In each shift there are 90 to 100 workers. In each day they produce 90 tonnes (approx). They are producing Parle-G in the packs of 25gm , 50gm, 100gm, 150gm, 250gm, 300gm, 500gm out of which 50gm,100gm are in a great demand. They are also producing Mini Parle-G for exporting in a pack of 19gm which has great demand too.

Suppliers:The Parle has strategy by fixing the suppliers for various products required for making finished goods by passing tender submitted by various suppliers in a beginning of financial year, which is a best method of bargain. There are few suppliers from Maharashtra only which are currently supplying raw-material to industry.

LOGISTICS:-

As demand for Parle products dispersed and spread over a wide geographical area. There is no dislodging Parle-G in its segment. Industry observers mainly attribute it to its well-entrenched distribution (the company covers 12-15 lakh outlets across the country) which can beat any new player wanting to make an entry. In any case, the volumes are expected to come from this segment alone with the others (the non-core segments) such as the salty and cream biscuits commanding meagre volumes between three and four per cent of the entire biscuit category, according to the company. The Marie segment, however, seems to register higher volumes of 12-13 per cent while the sweet and salty category registers a nine per cent volume in the market. Logistics is a process of planning, implementing and controlling efficient and cost-effective flow of materials and information from point of origin to point of consumption. Hence, Logistics is nothing but the process of strategically managing the movement and storage of materials, parts, and finished inventory from suppliers, between enterprise facilities and customers. Some of the functions of logistics are as follows :

Transportation Management :- A company doesnt have its own transportation service. It has given to few Logistics Pvt. Ltd. on contract basis.

Warehousing:- As there is huge demand of Parle products so they are always in short supply. But as finished products are ready than they are kept at the place allotted in a factory premises to store the goods. There is no much cost incurred in warehousing.

Inventory:- The company has large no. of suppliers so there is no need for much inventory.

Marketing and advertising strategy: The company wants to continue having that strong emotional connect with consumers and doing social deeds such as offering scholarships is part of its corporate social responsibility initiatives, which should keep the biscuit major on its pedestal.

OUR COMMENTS

We have analyzed the parle in SWOT strategy Strength: One of its brand which named Parle-G become worlds largest selling biscuits which bare available in the all packs from 19gms to 500gms whose prices varies from Re. 1/- to Rs. 24/- which can be purchased by a common man due to which the volumes of that particular brand touched the sky. As there are only 6 mother units of Parle and 49 contracter manufacturing unit which helps them to increase their production capacity efficiently with their growing demand globally. Parle Pvt. Ltd. is a niche player in the biscuits & confectionaries market & it is also cover the fruit drink segment which is managed by Parle Agro Ltd. WEAKNESS:Protecting the turf of its largest-selling glucose brand, Parle has also decided to restrict its line extensions to avoid diluting its equity. While it has extended Parle G to a more premium variant (Magix) in three flavours, it has deleted the Parle G tag for its Milk Shakti brand and brought it under the generic Parle name.

OPPORTUNITIES:They can tap the global market by playing low price game over there for eg. The company can also tap 25 and 50 paise segment of confectionery items which has a biggest potential in Indian market which cant beaten by bigger companies. Threats: From the latest sales volume mentioned above we have derived that Other
companies shares increased from 12.9 to 19.4. it indicates that the share of ITC, its new competitor & also the share of unorganized biscuit companies is increasing rapidly so considering that Parle should take required steps to overcome these threats.

CONTROVERSY

FDA forces Parle to change packaging of its cream biscuits

Old packaging
Mumbai , June 6 BISCUIT-MAKER Parle Products Pvt Ltd has been forced to make changes in the packs of its pineapple and orange cream biscuits after the Maharashtra Food and Drug Administration (FDA) trained its guns on it. In February, the FDA had asked the company to withdraw its stocks of these cream biscuits as it charged that the company was misleading consumers. While stocks of these products have already been withdrawn in key cities of Maharashtra such as Pune, Nashik and Mumbai, the company made changes to the packaging recently to make sure its business remained unaffected. The matter is sub judice now as a result of a petition filed in the Bombay High Court by Parle after the State Food Inspector confiscated 50 tonnes of Parle pineapple and orange cream biscuits in February. The move was the result of a claim made by the FDA that the packaging of the flavoured cream biscuits depicted pineapples and oranges though there was no real fruit in the biscuits. Officials at Parle Products said, "We have changed the packaging for the products since the FDA felt that we were misleading illiterate consumers by printing pictures of the fruits and not the biscuits."

New packaging According to the company officials, "Parle cream biscuit packs should not be a case of confiscation when it is a known fact that similar standard international trade practice norms are admissible under the Prevention of Food Adulteration Act. Globally, cream biscuits and confectionery have been using pictures of fruits on the packs to denote the kind of flavour that the product has. The labels clearly mention that the product consists of `flavoured' cream in the case of biscuits. It is in this respect that the confiscated Parle cream packs were merely following established international norms." A related issue is that of the privileges enjoyed by import brands vis--vis local ones, say Parle officials. Foreign biscuit brands do show actual fruits on the pack to connote flavour and are available on the same shelf as the local brands. Also, while there are weight norms for Indian brands, imported brands do not follow such norms. However, Indian export packs have to conform to the packaging standards of that market. The FDA had seized Parle biscuits underRule No. 37 of The Prevention of Food Adulteration Act, 1955 and has called it a case of misbranding. Parle Products, however, says the action taken by the FDA is unjustified and claims that the obligation of a food inspector in terms of seizure of edible goods is possible only if they appear adulterated or misbranded. In the case of the Parle biscuits, they were not adulterated and were completely fit for human consumption, says the company.