Note on Parle Foods.

sunandaC

New member
Parle Products has been India's largest manufacturer of biscuits and confectionery, for almost 80 years. 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.

Many of the Parle products - biscuits or confectioneries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit market and a 15% share of the total confectionary market in India , Parle has grown to become a multi-million dollar company. While to consumers it's a beacon of faith and trust, competitors look upon Parle as an example of marketing brilliance.

INTRODUCTION

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. 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.


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.

HISTORY

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.

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.

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.
Thankfully today, there's no dearth of ingredients and the demand for more premium brands is on the rise. That's why, we now have a wide range of biscuits and mouthwatering confectionaries to offer.


GLOBAL ENVIRONMENT

Going international is yet another trend followed by modern business houses. Internationalization and globalization is fast becoming imperative for modern business due to technological innovations, crumbling trade barriers, global flow of capital and technology, information explosion, intensity of market competition, changing life styles and the demand for new products. Production facilities are being set up in different countries and products are being sold through a global network. Gradually, business houses are exposed to global competition which augurs well for consumers. Internationalization of business is a means of sustaining a strong domestic base in terms of technology, product, market and the capital over a longer period.

At the company level, globalization means two things:
(a) The company commits itself heavily with several manufacturing locations around the world and offers products in several diversified industries.
(b) It also means the ability to complete in domestic markets with foreign competitors. In the popular sense, globalization refers mainly to multi-plant operations.


 RELATING PARLE-G WITH THE GLOBAL ENVIRONMENT


According to Parle-G, the term GLOBALISATION does not merely mean imports and exports, but letting your presence felt all over the world. Expansion and recognition are the main factors of going global. 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, Abu Dhabi, Africa, Dubai, South America and Sri Lanka. Even the more sophisticated markets like USA & Australia, now relish Parle products.
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.

Other international companies choose India as a global market because labour in other countries is costly as compared to in India. In India things are quite easier. Government has become more liberal for MNC’s to enter Indian market which results in high competition with the in-house companies. For example: China has a huge impact on the Indian market. Cameras from Japan and China are of hi-tech technologies which are available at the cheapest rates. There is a huge gap between the prices of Indian products and such other imported products. Another example is of Intel-II.

They have now started manufacturing chips in India which further resulted as a tough competition to other Indian companies. Another international biscuit making company is ITC which winded up its business within a year due to tough competition laid by Parle-G.

Parle-G has a strong base in India since 1939. it has now become the largest biscuit selling company in entire India and is also proved to be three times more then the US based biscuit manufacturing companies. Parle-G has 40 factories working all over the country including 6 mother units. These mother units are located at Mumbai, Rajasthan, Haryana, Bangladesh, Bhuj and Uttaranchal.

Raymond Vernon had introduced a product-cycle theory in late 1960s, but this theory is still relevant till today. This theory explains that how companies go global. Initially, small scale companies produce attractive products and sell them in their home markets. Sooner or later, foreigners come to know about these products. As the popularity of these products increases they start exporting them abroad. As the foreign demand grows, the economies of foreign production changes. Eventually, the company starts setting up their own plants globally. In this manner various companies go global.
But Parle-G doesn’t agree with this theory laid by Vernon. According to them there are four stages that the company should follow for going global. They are: infancy, growth, maturity and decline. Parle-G is yet at the growth stage of the theory for going global.

Going global for any company involves risk. Hence, Parle-G recruits a special team for market surveys called a market research team. This team keenly studies the culture, market situation, fashions, preferences, habits and taste of the consumers of the country they are going to enter. As Parle-G is meant for poor class of population, other variety in biscuits made by Parle-G are for middle and upper class people, they need to study all levels of society to launch the product similar to their conclusions. Supplying or launching a new product requires sample testing before the same. According to Parle-G, company should behave in the same manner and culture as of its host country. They need to follow their laid rules and regulations and their local laws.

Parle-G will continue in its host countries the same performance appraisal methods as in its home country. Because they follow the norm which says that the employees are of same capabilities and talents everywhere even though the working conditions are not the same. Hence, they would appraise the performance of their employees based on caliber and not based on the impression of the host countries.


POLITICAL ENVIRONMENT

Ø RELATING PARLE-G WITH THE POLITICAL ENVIRONMENT

Two basic political philosophies are in existence all over the world viz., democracy and totalitarianism. Parle-G follows totalitarianism as its basic philosophy. Totalitarianism is also called as authoritarianism, individual freedom is completely subordinated to the power of authority of the company and concentrated in the hands of one person or in a small group which is not constitutionally accountable to the employees. In this method, final decision is taken by the head only but after negotiating with everyone by conducting several meetings.

Parle-G biscuit is basically aimed for poor category of people as its price is only Rs.4 since last 10 years which is affordable to any class of the population. Therefore government should see that such companies which provide economic help to the country should not be disturbed in any sense. Infact government should help in such a way that such companies grow even more which can further improve the economic conditions of their domestic countries. But in India the situation is totally opposite. Parle-G pays excise duty which if it doesn’t pay can reduce its MRP even lesser while other products such as cheese, jam, butter which are consumed by middle or upper class people are exempted from paying excise duty. In this way government in spite of many requests is not giving its helping hand to Parle-G.

“Constitution has put several road blocks which have checked the pace of the company’s economic development.”

Parle-G is totally in favour of the above statement as they say new rules and policies depend on government to government. They adopt various laws for their own mutual benefits.


ECONOMIC ENVIRONMENT

Economic environment refers to all those economic factors which have a bearing on the functioning of a business unit. Any business firm depends on the economic environment for all the inputs needed and also to sell their finished goods. Thus, it can be said that business depends on economy and economy does not depend on the business.

The major macro-economic factors which have considerable influence on business are:
1) Growth strategy
2) Economic systems
3) Economic planning
4) Industry
5) Agriculture
6) Infrastructure
7) Financial and fiscal sectors
8) Removal of regional imbalances
9) Price and distribution controls
10) Economic reforms
11) Human resources
12) Per capita and national income



 RELATING PARLE-G WITH THE ECONOMIC ENVIRONMENT

As part of the efforts towards a larger share of the global market, Parle has initiated the process of getting ISO 9000 certification. Parle-G had laid down its first factory in late 1929. this factory used to manufacture only sweets and candies. But later by 1989 they also started producing biscuits.

The four main contents used in Parle-G biscuits are:
1) Wheat
2) Vanaspati
3) Sugar
4) Salt

Process flow chart

Raw material testing

Mixing

Moulding

Baking

Cooling

Packing

Producers exploit consumers by various tactics. Therefore, Parle-G had started conducting consumer awareness so as to protect their consumers from getting fooled. In these awareness campaigns they suggested various means for identification of original Parle products. Following are some indications that will differentiate original from the duplicate ones.

Ø There are errors in the spelling which can exploit people. GLUCO biscuits is the original name but the duplicate name is GLUCOSE biscuit.

Ø On all the Parle-G products we find a Parle logo but in duplicates there is no such logo found.

The total work strength of Parle-G in its Mumbai factory is 730 blue color workers out of which 70 are female workers. Other than its labour staff there are 200 more administrative staff.

For maintaining cordial relationships between management staff and labour staff there is one labour union at present. Earlier there were two labour unions which divided the labourers into two sections. This increased competition which gave good productivity initially but later proved to be the cause of industrial dispute in Parle-G. The two unions started internal disputes which forced the company to reunite both the unions into one union. This was the last case of industrial dispute occurred in Parle-G. Since then there is no such case of industrial dispute.

Positive points of Parle-G:

Over the years, Parle has grown to become a multi-million US Dollar company. Many of the Parle products - biscuits or confectionaries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971.

Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market, in India. The Parle Biscuit brands, such as, Parle-G, Monaco and Krackjack and confectionery brands, such as, Melody, Poppins, Mangobite and Kismi, enjoy a strong imagery and appeal amongst consumers.

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. This can be seen by the success of new brands, such as, Hide & Seek, or the single twist wrapping of Mango bite.

In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the Parle brand grows from strength to strength.

Negative points of Parle-G:

HLL and ITC’s entry into biscuits will affect Parle
After testing the waters with niche offerings in untapped segments of the biscuit market, heavyweights Hindustan Lever and ITC have now forayed into the mass biscuit market. While ITC has launched its glucose brand, Sunfeast, HLL has decided to differentiate its product, Modern ‘Energy’ Biscuits, by using wheat and soya as ingredients. Importantly, both ITC’s and HLL’s new offerings are priced at Rs 4 for a 100 gram pack, the same level as Parle G and Britannia’s ‘Tiger’ glucose biscuits.

Given HLL’s and ITC’s massive distribution reach, this new development would clearly have a significant impact on the market shares of both Parle and Britannia. In case the taste of the new products do not go down very well with consumers, the already established players may get some breathing space, but it will be only a matter of time before that gets corrected and the pressure will soon be back on. Structurally, the entry of players such as HLL and ITC in the mass biscuit market is bound to affect the dominance of Britannia in the biscuits market. What’s more, competition from regional players such as Surya Foods, known for its ‘Priya Gold’ range of biscuits, has also increased. It certainly doesn’t help that the company has just had a change in leadership.

Further, since the company has hived-off its dairy division, overall growth rates would clearly be lower than what investors have been used to for a while. As far as profitability goes, much depends on the company’s ability to further reduce costs, unless there is a further reduction in excise rates. Given the increase in competition, taking price hikes may still be some time away. In such a scenario, Britannia’s long-term growth rate would turn out to be much lower than earlier estimates. It’s no wonder then that the stock has underperformed the market and peers in the FMCG sector by a huge margin during the current rally. The stock still gets a discounting of around 14 times FY04 earnings, which, considering that growth rates will drop, gives the feeling that the stock’s underperformance will continue.

ITC Ltd has posted a 21.8% rise in net profits to Rs 323.51 crore for the October-December 2002 quarter (Q3) compared to the corresponding period of the previous fiscal. Net sales during the quarter was reported at Rs 1,647.60 crore, up 12.2% over the corresponding of the previous period.
In the nine months ended December 2002, ITC’s net profits were up 16% to Rs 1,047.93 crore.

ITC said: "The company’s corporate strategy aims at creating multiple drivers of growth anchored on its core competencies."
Its current focus is nearly exclusively on four business groups: FMCG, hotels, paperboards, paper & packaging and agri-business.

FUTURE PLANS

We strike to provide consistently high quality, nutritious, safe food products to meet the needs and expectations of the customers by using quality raw materials and adopting appropriate process.We will continously endeavour to achieve customer satisfaction by the implementation of food safety.
Management system based on the good manufacturing and hygiene practices. The maintenance and up-key of the implemented system and continuous improvement of the same are the responsibility of all at Parles and all of us will participate in all the Hazard analysis and Critical Control point related activities. To that end we will strive continuously to train our employees and provide them an open and participative environment.

OBJECTIVES FOR 2008

(1) Customer Focus: We must beat the customers expectations by ensuring zero defect products from all locations.We must increase direct customer interface by ensuring maximum school children and other visitors at all locations.


(2) P.Q.S Focus: Parle Quality System = PQS = Productivity Quality Safety.
Productivity improvement by reducing downtime, breakdowns, wastages, rework, thereby saving natural resources like
fuel and power and also improving productivity/ efficiency of people by imparting training and other developmnetal opportunities.
Quality improvement bystrict adherence to quality assurance norms without any compromises.

Safety improvemnet by adhering in true spirit to HACCP (Hazard Analysis and Critical Control Points) philosophies.
 
Parle Products has been India's largest manufacturer of biscuits and confectionery, for almost 80 years. 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.

Many of the Parle products - biscuits or confectioneries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit market and a 15% share of the total confectionary market in India , Parle has grown to become a multi-million dollar company. While to consumers it's a beacon of faith and trust, competitors look upon Parle as an example of marketing brilliance.

INTRODUCTION

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. 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.


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.

HISTORY

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.

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.

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.
Thankfully today, there's no dearth of ingredients and the demand for more premium brands is on the rise. That's why, we now have a wide range of biscuits and mouthwatering confectionaries to offer.


GLOBAL ENVIRONMENT

Going international is yet another trend followed by modern business houses. Internationalization and globalization is fast becoming imperative for modern business due to technological innovations, crumbling trade barriers, global flow of capital and technology, information explosion, intensity of market competition, changing life styles and the demand for new products. Production facilities are being set up in different countries and products are being sold through a global network. Gradually, business houses are exposed to global competition which augurs well for consumers. Internationalization of business is a means of sustaining a strong domestic base in terms of technology, product, market and the capital over a longer period.

At the company level, globalization means two things:
(a) The company commits itself heavily with several manufacturing locations around the world and offers products in several diversified industries.
(b) It also means the ability to complete in domestic markets with foreign competitors. In the popular sense, globalization refers mainly to multi-plant operations.


 RELATING PARLE-G WITH THE GLOBAL ENVIRONMENT


According to Parle-G, the term GLOBALISATION does not merely mean imports and exports, but letting your presence felt all over the world. Expansion and recognition are the main factors of going global. 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, Abu Dhabi, Africa, Dubai, South America and Sri Lanka. Even the more sophisticated markets like USA & Australia, now relish Parle products.
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.

Other international companies choose India as a global market because labour in other countries is costly as compared to in India. In India things are quite easier. Government has become more liberal for MNC’s to enter Indian market which results in high competition with the in-house companies. For example: China has a huge impact on the Indian market. Cameras from Japan and China are of hi-tech technologies which are available at the cheapest rates. There is a huge gap between the prices of Indian products and such other imported products. Another example is of Intel-II.

They have now started manufacturing chips in India which further resulted as a tough competition to other Indian companies. Another international biscuit making company is ITC which winded up its business within a year due to tough competition laid by Parle-G.

Parle-G has a strong base in India since 1939. it has now become the largest biscuit selling company in entire India and is also proved to be three times more then the US based biscuit manufacturing companies. Parle-G has 40 factories working all over the country including 6 mother units. These mother units are located at Mumbai, Rajasthan, Haryana, Bangladesh, Bhuj and Uttaranchal.

Raymond Vernon had introduced a product-cycle theory in late 1960s, but this theory is still relevant till today. This theory explains that how companies go global. Initially, small scale companies produce attractive products and sell them in their home markets. Sooner or later, foreigners come to know about these products. As the popularity of these products increases they start exporting them abroad. As the foreign demand grows, the economies of foreign production changes. Eventually, the company starts setting up their own plants globally. In this manner various companies go global.
But Parle-G doesn’t agree with this theory laid by Vernon. According to them there are four stages that the company should follow for going global. They are: infancy, growth, maturity and decline. Parle-G is yet at the growth stage of the theory for going global.

Going global for any company involves risk. Hence, Parle-G recruits a special team for market surveys called a market research team. This team keenly studies the culture, market situation, fashions, preferences, habits and taste of the consumers of the country they are going to enter. As Parle-G is meant for poor class of population, other variety in biscuits made by Parle-G are for middle and upper class people, they need to study all levels of society to launch the product similar to their conclusions. Supplying or launching a new product requires sample testing before the same. According to Parle-G, company should behave in the same manner and culture as of its host country. They need to follow their laid rules and regulations and their local laws.

Parle-G will continue in its host countries the same performance appraisal methods as in its home country. Because they follow the norm which says that the employees are of same capabilities and talents everywhere even though the working conditions are not the same. Hence, they would appraise the performance of their employees based on caliber and not based on the impression of the host countries.


POLITICAL ENVIRONMENT

Ø RELATING PARLE-G WITH THE POLITICAL ENVIRONMENT

Two basic political philosophies are in existence all over the world viz., democracy and totalitarianism. Parle-G follows totalitarianism as its basic philosophy. Totalitarianism is also called as authoritarianism, individual freedom is completely subordinated to the power of authority of the company and concentrated in the hands of one person or in a small group which is not constitutionally accountable to the employees. In this method, final decision is taken by the head only but after negotiating with everyone by conducting several meetings.

Parle-G biscuit is basically aimed for poor category of people as its price is only Rs.4 since last 10 years which is affordable to any class of the population. Therefore government should see that such companies which provide economic help to the country should not be disturbed in any sense. Infact government should help in such a way that such companies grow even more which can further improve the economic conditions of their domestic countries. But in India the situation is totally opposite. Parle-G pays excise duty which if it doesn’t pay can reduce its MRP even lesser while other products such as cheese, jam, butter which are consumed by middle or upper class people are exempted from paying excise duty. In this way government in spite of many requests is not giving its helping hand to Parle-G.

“Constitution has put several road blocks which have checked the pace of the company’s economic development.”

Parle-G is totally in favour of the above statement as they say new rules and policies depend on government to government. They adopt various laws for their own mutual benefits.


ECONOMIC ENVIRONMENT

Economic environment refers to all those economic factors which have a bearing on the functioning of a business unit. Any business firm depends on the economic environment for all the inputs needed and also to sell their finished goods. Thus, it can be said that business depends on economy and economy does not depend on the business.

The major macro-economic factors which have considerable influence on business are:
1) Growth strategy
2) Economic systems
3) Economic planning
4) Industry
5) Agriculture
6) Infrastructure
7) Financial and fiscal sectors
8) Removal of regional imbalances
9) Price and distribution controls
10) Economic reforms
11) Human resources
12) Per capita and national income



 RELATING PARLE-G WITH THE ECONOMIC ENVIRONMENT

As part of the efforts towards a larger share of the global market, Parle has initiated the process of getting ISO 9000 certification. Parle-G had laid down its first factory in late 1929. this factory used to manufacture only sweets and candies. But later by 1989 they also started producing biscuits.

The four main contents used in Parle-G biscuits are:
1) Wheat
2) Vanaspati
3) Sugar
4) Salt

Process flow chart

Raw material testing

Mixing

Moulding

Baking

Cooling

Packing

Producers exploit consumers by various tactics. Therefore, Parle-G had started conducting consumer awareness so as to protect their consumers from getting fooled. In these awareness campaigns they suggested various means for identification of original Parle products. Following are some indications that will differentiate original from the duplicate ones.

Ø There are errors in the spelling which can exploit people. GLUCO biscuits is the original name but the duplicate name is GLUCOSE biscuit.

Ø On all the Parle-G products we find a Parle logo but in duplicates there is no such logo found.

The total work strength of Parle-G in its Mumbai factory is 730 blue color workers out of which 70 are female workers. Other than its labour staff there are 200 more administrative staff.

For maintaining cordial relationships between management staff and labour staff there is one labour union at present. Earlier there were two labour unions which divided the labourers into two sections. This increased competition which gave good productivity initially but later proved to be the cause of industrial dispute in Parle-G. The two unions started internal disputes which forced the company to reunite both the unions into one union. This was the last case of industrial dispute occurred in Parle-G. Since then there is no such case of industrial dispute.

Positive points of Parle-G:

Over the years, Parle has grown to become a multi-million US Dollar company. Many of the Parle products - biscuits or confectionaries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971.

Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market, in India. The Parle Biscuit brands, such as, Parle-G, Monaco and Krackjack and confectionery brands, such as, Melody, Poppins, Mangobite and Kismi, enjoy a strong imagery and appeal amongst consumers.

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. This can be seen by the success of new brands, such as, Hide & Seek, or the single twist wrapping of Mango bite.

In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the Parle brand grows from strength to strength.

Negative points of Parle-G:

HLL and ITC’s entry into biscuits will affect Parle
After testing the waters with niche offerings in untapped segments of the biscuit market, heavyweights Hindustan Lever and ITC have now forayed into the mass biscuit market. While ITC has launched its glucose brand, Sunfeast, HLL has decided to differentiate its product, Modern ‘Energy’ Biscuits, by using wheat and soya as ingredients. Importantly, both ITC’s and HLL’s new offerings are priced at Rs 4 for a 100 gram pack, the same level as Parle G and Britannia’s ‘Tiger’ glucose biscuits.

Given HLL’s and ITC’s massive distribution reach, this new development would clearly have a significant impact on the market shares of both Parle and Britannia. In case the taste of the new products do not go down very well with consumers, the already established players may get some breathing space, but it will be only a matter of time before that gets corrected and the pressure will soon be back on. Structurally, the entry of players such as HLL and ITC in the mass biscuit market is bound to affect the dominance of Britannia in the biscuits market. What’s more, competition from regional players such as Surya Foods, known for its ‘Priya Gold’ range of biscuits, has also increased. It certainly doesn’t help that the company has just had a change in leadership.

Further, since the company has hived-off its dairy division, overall growth rates would clearly be lower than what investors have been used to for a while. As far as profitability goes, much depends on the company’s ability to further reduce costs, unless there is a further reduction in excise rates. Given the increase in competition, taking price hikes may still be some time away. In such a scenario, Britannia’s long-term growth rate would turn out to be much lower than earlier estimates. It’s no wonder then that the stock has underperformed the market and peers in the FMCG sector by a huge margin during the current rally. The stock still gets a discounting of around 14 times FY04 earnings, which, considering that growth rates will drop, gives the feeling that the stock’s underperformance will continue.

ITC Ltd has posted a 21.8% rise in net profits to Rs 323.51 crore for the October-December 2002 quarter (Q3) compared to the corresponding period of the previous fiscal. Net sales during the quarter was reported at Rs 1,647.60 crore, up 12.2% over the corresponding of the previous period.
In the nine months ended December 2002, ITC’s net profits were up 16% to Rs 1,047.93 crore.

ITC said: "The company’s corporate strategy aims at creating multiple drivers of growth anchored on its core competencies."
Its current focus is nearly exclusively on four business groups: FMCG, hotels, paperboards, paper & packaging and agri-business.

FUTURE PLANS

We strike to provide consistently high quality, nutritious, safe food products to meet the needs and expectations of the customers by using quality raw materials and adopting appropriate process.We will continously endeavour to achieve customer satisfaction by the implementation of food safety.
Management system based on the good manufacturing and hygiene practices. The maintenance and up-key of the implemented system and continuous improvement of the same are the responsibility of all at Parles and all of us will participate in all the Hazard analysis and Critical Control point related activities. To that end we will strive continuously to train our employees and provide them an open and participative environment.

OBJECTIVES FOR 2008

(1) Customer Focus: We must beat the customers expectations by ensuring zero defect products from all locations.We must increase direct customer interface by ensuring maximum school children and other visitors at all locations.


(2) P.Q.S Focus: Parle Quality System = PQS = Productivity Quality Safety.
Productivity improvement by reducing downtime, breakdowns, wastages, rework, thereby saving natural resources like
fuel and power and also improving productivity/ efficiency of people by imparting training and other developmnetal opportunities.
Quality improvement bystrict adherence to quality assurance norms without any compromises.

Safety improvemnet by adhering in true spirit to HACCP (Hazard Analysis and Critical Control Points) philosophies.

Hey sunanda, as we know that Parle is the leading company of biscuits in India named Parle G. Well, i liked your information and thanks for sharing. BTW, i am also uploading a presentation on Parle foods and would like you to check it.
 

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