PARLE PARLE PROJECTS

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INTRODUCTION Parle Products is an Indian private limited company. It owns the famous biscuit brand Parle-G.

As of 2012, it had a 35% dominant share of the Indian biscuit market

HISTORY

Parle Products company was founded in 1929 in British India. It was owned by the Chauhan family of Vile Parle, Mumbai. Parle began manufacturing biscuits in 1939. In 1947, when India became

independent, the company launched an ad campaign, showcasing its Gluco biscuits as an Indian alternative to the British biscuits. The Parle brand became well known in India following the

success of products such as the Parle-G biscuits and the Frooti soft drink.

The original Parle company was split into three separate companies, owned by the different factions of the original Chauhan family.

Parle Products(1950s), led by Vijay, Sharad and Raj Chauhan (owner of the brands Parle-G, Melody, Mango Bite, Poppins, Kismi toffee bar, Monaco and KrackJack)

Parle Agro (1960s), led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia (owner of the brands such as Frooti and Appy)

Parle Bisleri (1970s), led by Ramesh Chauhan

All three companies continue to use the family trademark name "Parle". The original Parle group

was amicably segregated into three non-competing businesses. But a dispute over the use of

"Parle" brand arose, when Parle Agro diversified into the confectionery business, thus becoming

a competitor to Parle Products. In February 2008, Parle Products sued Parle Agro for using the

brand Parle for competing confectionery products. Later, Parle Agro launched its confectionery

products under a new design which did not include the Parle brand name.[4] In 2009, the Bombay

High Court ruled that Parle Agro can sell its confectionery brands under the brand name "Parle"

or "Parle Confi" on condition that it clearly specifies that its products belong to a separate

company, which has no relationship with Parle Products.

Vision To ensure benefit to society and to the corporation for sustainable development by imparting

measurable values to all stakeholders in every aspect of our operations. Ensuring Corporate

Social Responsibility is adopted through principles implementations that contribute to our

country’s social, cultural, and environmental development and help in developing the awareness

on these issues.

Mission To work on the popularity, adoption, and implementation of the concept of Corporate Social

Responsibility while adding measurable values to the community and to our company along with

managing related processes to the advantage of all concerned in a way that becomes model for

other corporations for replication. The Company’s CSR mission is to contribute to the social and

economic development of the community. Through a series of interventions, the Company seeks

to mainstream economically, physically and socially challenged groups and to draw them into

the cycle of growth, development and empowerment. At the core of this is its commitment to

reach out to marginalized communities through its LEAP – “Livelihood Empowering Action

Plans “that ensures multi-stakeholders approach in creating a sustainable impact through various

social-economic projects listed in “Annexure A ”The Company’s strategy is to integrate its

activities in community development, social responsibility and environmental responsibility and

encourage each business unit or function to include these considerations into its operations.

ABOUT COMPANY Products Private Limited is a Private incorporated on 09 December 1950. It is classified as Non-

government company and is registered at Registrar of Companies, Mumbai. Its authorized share

capital is Rs. 37,290,000 and its paid up capital is Rs. 19,410,000. It is involved in Manufacture

of other food products.

Parle Products Private Limited's Annual General Meeting (AGM) was last held on 30 September

2015 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last

filed on 31 March 2015.

Directors of Parle Products Private Limited are Vijay Kantilal Chauhan, Raj Kantilal Chauhan,

Sharad Pitamber Chauhan, Arup Sharad Chauhan, Ajay Vijay Chauhan and Samar Sharad

Chauhan.

Parle Products Private Limited's Corporate Identification Number is (CIN)

U15400MH1950PTC008334 and its registration number is 8334.Its Email address is

secretarial_mum@parle.biz and its registered address is NORTH LEVEL CROSSING, VILE

PARLE EAST MUMBAI MH 400057. Current status of Parle Products Private Limited is -

Active.

Since then, Parle Products has come a long way. Today, it boasts of housing over 40 brands

across 5 categories - Biscuits, Confectionery, Chocolates, Snacks and Rusk. It is pertinent to note

here that the brand has recently forayed into Pulses category with Fresh Harvest.

Age India looks at the 88-year old homegrown manufacturer of biscuits and confectionery and

reveals how the brand is still relevant to the India market and is giving some international players

a run for their money.

GROWTH OF PARLE COMPANY

The humble rectangular Parle G biscuit is a regular feature in almost everyone's morning

breakfast. One of the most popular biscuits, Parle G is a chai staple in the country and most of us

have also grown up having or still have it with a glass of milk. And remember, some of us even

used to make cakes using Parle G as a key ingredient? While it is a well-known fact that Parle G,

from the house of Parle Products - a home-grown brand - is one of the oldest biscuit brands in

India, the biscuit major is often mistaken to be the first brand the company launched with.

Remember the orange candies wrapped in transparent wrapper. A lesser known fact is that Parle

Products started its historical journey in 1929 with its confectionery brands.

SWOT ANALYSIS OF PARLE COMPANY SWOT analysis is the firm should identify its internal Strengths (S) and Weaknesses (W)

and also examine external Opportunities (O) and Threats (T).Strength

STRENGTHS:

1. Low cost

2.Good advertising and visibility

3.Celebrity brand ambassadors

4.Most trusted brand having high brand loyalty

5.Top of the mind biscuit brand

WEAKNESS:

1. Many competitors in this segment

2. Nothing unique in the product now.

3. Storage

4. No differentiation

OPPORTUNITIES

1. Tie-up with schools as a part of meals

2. Tie up with corporates/hotel chains

THREATS

1.Similar biscuit categories

2.Highly advertised brands like BRITANIA

3.Increase in sale of cheap bakery

4.Emerging substitutes like wafers, snacks and toast

5. Margin war among the major brands

STP Analysis

STP

Segment People looking for an affordable foods brand

Target Group Lower and middle class families in rural and urban areas

Positioning A good quality affordable foods brand

BCG MATRIX

The Boston consulting Group ‘s portfolio matrix allows a firm to visually display information

about each of its. The BCG matrix has as its axes the market growth rate (Broken into high and

low growth) and the relative market share as compared to the largest competitors (high and low

relative market share).

The BCG matrix method is based on product life cycle theory that determine the product

portfolio of a unit which contains both high growth product & low growth product having 2

Dimensions: Market share & Market growth.

BCG MATRIX CONSISTS OF 4 CATEGORIES:

STARS:

(High growth & High market share)

Stars are market leaders and growing fast. Stars have large reported profits but require a lot of

cash to finance the rapid growth. As per the company’s survey, Parle G is touching the peek

of success & therefore comes under the STAR category thereby the Co. can invest a large

sum for its upliftment.

CASH COWS:

(Low growth, High market share)

A cash cow usually generates more cash than is required to maintain its market share. It is in

low-growth market but has a dominant market share. Profits & cash generation should be

high due to its Low growth, the investment needed to be Low to keep Profits High

The products like krackjack, parle Marie, hide & seek comes under this category.

. QUESTION MARK:

(High growth, Low Market share)

It has worst cash characteristics because of High demands & Low returns due to Low market

share makes the Co. to sell off & deliver cash. Products like CHOX, NIMKIN KREAMS

GOLD, PARLE 20-20, MONACO JEERA comes under this.

DOGS:

(Low growth, Low market share)

The products like SIXER, JEFFS, MUST BITES, MUST STIX &MUST CHIPS Conclude

with DOGS as they need to be Divested because they are doing no good for the Co. & have

remained as a liability.

Parle Marketing Mix Let us start the Parle Marketing Mix:

Product:

Parle brand is one of the most recognized biscuit manufacturing company in India. Though

famous for Parle G, Parle products offer various options in other segments and even in the

biscuit category. It offers many other products like KrackJack, Monaco, Kreams, Golden Arcs,

Parle Marie, Milk Shakti, Parle Hide & Seek, Bourbon, Top, Happy Happy, 20-20, simply good,

Namkeen parle magix, cheeselings. In the confectionery, it offers products like Melody, Mango

Bite, Eclairs whereas in the Snacks segment it provides Nachos, Cake, Rusk and wafers. This

gives an insight in the Parle marketing mix. Hence all the products of Parle are such that they can

be consumed at any point of time and by anyone. In fact, the biscuits offered cater to all kinds of

segment be it lower or upper middle class and are available in different product sizes. In the

confectionery segment, the appeal has been universal.

Price:

Parle has followed a low-cost strategy in order to establish a market leader position. This is the

backbone pricing strategy of the Parle brand as a part of its marketing mix. The low price of the

Parle products along with the promise of high quality helps in fighting the competitors. Though

Parle believes in focusing on quality, it still has been able to manage low cost due to the high

volumes of production. It comes in base pack of Rs 2 for biscuits whereas the toffees range from

1 to 2 rupees. The low pricing strategy of Parle G has enabled it to retain its position as a market

leader despite several new biscuit brands coming in the market as its competitors. Parle G

focuses on a volume strategy and hence keeping its prices slightly lower helps it to reach out to a

huge audience.

Place:

Parle products are widely available across all geographies across India. With a presence of very

strong distribution network, Parle has been able to reach over 6 million retailers all over India.

Parle has over 23 manufacturing units which caters to over 1500 wholesalers. Apart from that,

there are depot agents which further help in expanding the distribution network. This is the

reason why Parle products are present in every place be it small shops or grocery stores to large

retail stores/chains. Restaurants, hotels and even small dhabas prefer keeping Parle G as the

biscuit to be served along with tea or coffee. The wide distribution and availability of the brand

ensures that people keep Parle-G as their first preference of biscuit over other brands.

Promotion:

Parle brand uses all media like TVC, print, online ads etc as a part of its marketing mix

promotion & marketing strategy. Parle brand has always been associated with positive emotions

and has incorporated qualities like sharing and caring. Parle was able to connect with the

children by sponsoring shows like Shaktimaan where Parle started giving out merchandise for

the same. Moreover, it started promotions on a national level scale by fulfilling the dreams of

selective children. Parle has been active when it comes to promotions or tv advertisements.

Specifically, to Parle G, the company promoted using the logo of a young girl and later also had

an ambassador for the brand. Moreover, all the products have attractive and distinct packaging

which attracts the target group. Apart from Parle G, all other products of the company are also

promoted extensively with innovative marketing campaigns. Parle has actively been involved in

print and press media. Hence, this concludes the Parle marketing mix.

Packaging and Labeling Packaging: The time spent by a customer for picking up a product from a retail outlet is a few

seconds; therefore, a package should appeal to a customer within such a small interval of time. In

this, both packaging & labeling play an important role in attracting customers both visually &

psychologically.

BALANCE SHEET

Parameter MAR'17 (₹ Cr.)

MAR'16 (₹ Cr.)

YoY %Change

EQUITY AND LIABILITIES

Share Capital 14.00 14.00 0.00%

Share Warrants & Outstanding’s

Total Reserves 5.75 5.71 0.68%

Shareholder's Funds 19.75 19.71 0.20%

Long-Term Borrowings 0.00 0.00 0.00%

Secured Loans 0.00 0.00 0.00%

Unsecured Loans 0.00 0.00 0.00%

Deferred Tax Assets / Liabilities -0.04 -0.04 0.28%

Other Long Term Liabilities 0.00 0.00 0.00%

Long Term Trade Payables 0.00 0.00 0.00%

Long Term Provisions 0.00 0.00 0.00%

Total Non-Current Liabilities -0.04 -0.04 0.28%

Current Liabilities

Trade Payables 0.05 0.04 34.78%

Other Current Liabilities 0.00 0.00 0.00%

Short Term Borrowings 0.00 0.00 0.00%

Short Term Provisions 0.04 0.03 40.60%

Total Current Liabilities 0.09 0.07 37.50%

Total Liabilities 19.81 19.75 0.33%

ASSETS

Non-Current Assets 0.00 0.00 0.00%

Gross Block 0.40 0.40 0.00%

Less: Accumulated Depreciation 0.36 0.35 5.32%

Less: Impairment of Assets 0.00 0.00 0.00%

Net Block 0.03 0.05 -35.73%

Lease Adjustment A/c 0.00 0.00 0.00%

Capital Work in Progress 0.00 0.00 0.00%

Intangible assets under development 0.00 0.00 0.00%

Pre-operative Expenses pending 0.00 0.00 0.00%

Assets in transit 0.00 0.00 0.00%

Non Current Investments 0.00 0.00 0.00%

Long Term Loans & Advances 0.00 17.23 -100.00%

Other Non Current Assets 0.65 0.65 0.00%

Total Non-Current Assets 0.68 17.94 -96.19%

Current Assets Loans & Advances

Currents Investments 0.00 0.00 0.00%

Inventories 17.23 0.00 100.00%

Sundry Debtors 0.05 0.06 -6.13%

Cash and Bank 0.26 0.23 12.69%

Other Current Assets 1.58 0.00 100.00%

Short Term Loans and Advances 0.00 1.52 -99.97%

Total Current Assets 19.13 1.81 956.36%

Net Current Assets (Including Current Investments) 19.03 1.74 992.66%

Total Current Assets Excluding Current Investments 19.13 1.81 956.36%

Miscellaneous Expenses not written off 0.00 0.00 0.00%

Total Assets 19.81 19.75 0.33%

Contingent Liabilities 0.00 0.00 0.00%

Total Debt 0.00 0.00 0.00%

Book Value (in ₹) 14.11 14.08 0.20%

Adjusted Book Value (in ₹) 14.11 14.08 0.20%

PROFIT AND LOSS ACCOUNT

Parameter MAR'17 (₹ Cr.)

MAR'16 (₹ Cr.)

Change %

Operating Income 0.27 0.24 11.00%

Less :Inter divisional transfers 0.00 0.00 0.00%

Less: Excise 0.00 0.00 0.00%

Net Sales 0.27 0.24 11.00%

EXPENDITURE:

Stock Adjustments 0.00 0.00 0.00%

Raw Materials Consumed 0.00 0.00 0.00%

Power & Fuel Cost 0.01 0.01 -7.55%

Employee Cost 0.10 0.10 -5.61%

Cost of Software developments 0.00 0.00 0.00%

Operating Expenses 0.00 0.00 -16.32%

General and Administration Expenses 0.09 0.10 -5.14%

Selling and Marketing Expenses 0.00 0.01 -47.77%

Miscellaneous Expenses 0.00 0.00 0.00%

Expenses Capitalised 0.00 0.00 0.00%

Total Expenditure 0.20 0.21 -6.79%

PBIDT (Excl OI) 0.07 0.03 128.27%

Other Income 0.00 0.00 0.00%

Operating Profit 0.07 0.03 128.27%

Interest 0.00 0.00 2439.20%

PBDT 0.07 0.03 126.45%

Depreciation 0.02 0.02 0.00%

Profit Before Taxation & Exceptional Items 0.05 0.01 300.00%

Exceptional Income / Expenses 0.00 0.00 0.00%

Profit Before Tax 0.05 0.01 300.00%

Provision for Tax 0.01 0.00 228.53%

PAT 0.04 0.01 336.47%

Extraordinary Items 0.00 0.00 0.00%

Adj to Profit After Tax 0.00 0.00 0.00%

Profit Balance B/F 1.80 1.79 0.50%

Appropriations 1.84 1.80 2.15%

Equity Dividend (%) 0.00 0.00 0.00%

Earnings Per Share (in ₹) 0.03 0.01 339.68%

Book Value (in ₹)