International BusinessParle to push sales on lower price points
Confectionery brand Parle Products Private Limited will consider bringing more products in small packs at a price point of Rs 5 and below.
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The company sells candies including Orange, Kismi and Kacha Mango between 25 paise and 50 paise. Besides, its glucose biscuit Parle G is being sold at Re 1, Rs 2, and Rs 4 while Parle Kream comes in packs of Rs 2 and Rs 5. The 20-20 cookies is also priced at Rs 5.
“About 70 per cent of the total sale volume comes from products priced at Rs 5 and below,” Rao said. It is hopeful that this would increase to 75 per cent when more products are sold with lower price points.
“The contribution of low value products is next to Parle G in revenues. Parle G accounted for 70 per cent of the total Rs 3,000 crore turnover. The Indian biscuit industry is estimated at Rs 11,000 crore and the company is optimistic of growing at 20 per cent this year,” he said. The chocolate segment contributed about Rs 250 crore to the revenues and has a 15 per cent market share in terms of volumes.
Parle’s low-priced products are available through over 2.5 million outlets including grocery stores, pan shops and other small businesses. “The modern format stores contribute only six per cent to the total business. Bulk of the business happens only through the small businesses,” he said.
The company has over 60 contract manufacturing units (CMUs) apart from eight company-owned manufacturing units across the country.