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.