Parle Products, the renowned biscuit maker behind brands such as Parle G, Monaco, and Melody, faced a notable slowdown in growth, registering a 4% increase in fiscal year 2023. This marks a departure from the consistent double-digit growth observed over the past three years, although it retains its position as the country’s largest food company.
According to the latest filing with the Registrar of Companies, Parle Products posted net sales of Rs. 17,223 crores, with profits more than tripling to Rs. 905 crores for the year ending March. In the previous fiscal year, it recorded sales of Rs. 16,490 crore and a profit of Rs. 255 crores. Notably, in fiscal year 2022, the company achieved a significant milestone by crossing $2 billion in annual revenues, making it the first packaged food company in India to achieve this feat, with the eponymous glucose biscuit brand surpassing the billion-dollar sales mark.
Mayank Shah, Senior Category Head at Parle Products, attributed the slowdown in growth to inflationary pressures, necessitating price hikes throughout the year. The overall biscuit market saw a decline in volumes, particularly in the first part of the fiscal year. Shah also noted the emergence of regional players in the second half, driven by falling input costs, with their full impact expected to be evident in the current fiscal year.
Parle’s value-for-money strategy, particularly for the Parle G brand, has been crucial in sustaining growth, especially during periods of inflation when consumers tend to opt for smaller packs.
However, the growth slowdown in FY23 was also influenced by a rural slowdown, as approximately 60% of Parle’s sales come from villages, a market that experienced a decline last calendar year. In consumer price terms, Parle Products reported sales of nearly Rs 23,000 crore and aims to cross the $3 billion sales mark by the next fiscal year.
Parle Products outpaced rivals, including Britannia and Nestle, nearly three years ago, becoming the country’s biggest food company by annual revenue. While Britannia leads in market share value, Parle leads in volume, selling about 1.2 million tonnes of biscuits annually.