Industry News

Parle to Diversify Product Portfolio

India: Snack and Premium biscuits market is set to see some more competition as Parle, which makes biscuits and confectionary products is going to launch new products in this segment. The company has been largely dependent on biscuits for its revenues and wants to diversify in order to reduce dependence from biscuits. Currently Parle has a share of 10% in snacks and confectionaries and it wants to take it to 30% in coming three years.

Parle sees a lot of scope to bring out innovation in snacks and premium products range. Premium products are growing and expected to grow in coming years. The company will also increase its distribution network by 20-25 percent in east and south region to market the existing and new products more efficiently. At present Parle sells its products through 58 lakhs outlets in India.

Currently, biscuits account for 80% of Parle’s total sales, while snacks and confectionaries contribute 3% and 17% respectively. Premium products market is expected to get bigger as consumers are having higher disposable income and they are opting for premium products. Parle will launch products with existing brands and may also introduce new brands.

According to TechSci Research, India is witnessing increase in consumption of biscuits, snacks and packaged food among all age groups and this is expected to rise in coming years. India’s biscuit market is fragmented among local and some major players across different region like India’s east region is dominated by local players like Anmol, Bisk Farm and Tiger biscuits from ITC thereby making the region tough to penetrate. Country’s south region has big presence of local bakeries and some other local players therefore Parle’s planned product range with increased distribution network might force other players to bring new products with more choices. Above all this is good for consumers, who will have varieties of products to choose from.