Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Science
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Phone Reviews
  • Find Cricket Statistics
Hindi
More
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Science
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Phone Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / Parle sales drop amid economic-slowdown; 10,000 employees may be laid-off?
  • Business

    Parle sales drop amid economic-slowdown; 10,000 employees may be laid-off?

    Siddhant Pandey
    Written by
    Siddhant Pandey
    Twitter
    Last updated on Aug 21, 2019, 05:35 pm
    Parle sales drop amid economic-slowdown; 10,000 employees may be laid-off?
  • India's leading biscuit maker, Parle Products Pvt. Ltd. may have to lay off up to 10,000 of its employees, as economic growth continues to slow down, a company executive said yesterday.

    The economic slowdown in India has affected sales everywhere, as consumers are becoming more cautious with the money they spend.

    This has led to a steep drop in Parle's consumer consumption as well.

  • In this article
    Company considering sacking 8,000-10,000 employees, 10% of its workforce Parle seeking reduction in GST on biscuits under Rs. 100/kg Parle hiked prices by 5% after GST increased to 18% The FMCG company has sales of over Rs. 10,000 crore Consumer goods witnessing sharp rural slowdown: Market researcher Parle's competitor Britannia also facing heat amid economic slowdown
  • Details

    Company considering sacking 8,000-10,000 employees, 10% of its workforce

    Company considering sacking 8,000-10,000 employees, 10% of its workforce
  • According to Reuters, the fall in Parle's sales resulted in the company reducing production.

    This may result in layoffs of 8,000 to 10,000 people, said category head at Parle, Mayank Shah. That's about 10% of the company's workforce.

    Founded in 1929, Parle Products currently has 100,000 employees across 10 company-owned facilities, in addition to 125 third party manufacturing plants.

  • Quote

    Parle seeking reduction in GST on biscuits under Rs. 100/kg

  • Shah told The Economic Times, "We've sought reduction in the goods and services tax (GST) on biscuits priced Rs. 100/kg or below, which are typically sold in packs of Rs. 5 and below."

    He added, "If the government doesn't provide that stimulus, we have no choice but to let go 8,000-10,000 people from our workforce across factories, as slowing sales are severely impacting us."

  • Information

    Parle hiked prices by 5% after GST increased to 18%

  • Previously, Rs. 100/kg biscuits were taxed at 12%, and firms anticipated that the GST rate for premium biscuits would remain fixed at 12% and at 5% for lower-priced products. However, under the 18% tax structure, Parle was forced to hike prices by 5%.

  • Sales

    The FMCG company has sales of over Rs. 10,000 crore

    The FMCG company has sales of over Rs. 10,000 crore
  • Parle, known for popular biscuit brands like Parle-G, Monaco, and Marie, has sales of over Rs. 10,000 crore, most of which comes from rural markets.

    Since the price hike, Parle Products has reportedly been witnessing a downward trend in consumer sales in the last two quarters.

    Shah told Bloomberg Quint, "Consumers have become more value-conscious during times of slowdown in the last six months."

  • Information

    Consumer goods witnessing sharp rural slowdown: Market researcher

  • Further, as per market researcher Nielsen's growth forecast last month, India's consumer goods industry is witnessing a slowdown. The growth forecast for FMCG sector was revised to 9-10% in 2019 from 11-12% previously. The slowdown proved significant across all food and non-food categories, ET reported.

  • Britannia

    Parle's competitor Britannia also facing heat amid economic slowdown

    Parle's competitor Britannia also facing heat amid economic slowdown
  • Meanwhile, another biscuits and dairy company, Britannia Industries Ltd., is facing similar issues.

    Last week, Britannia managing director Varun Berry had said that consumers were "thinking twice" even before buying products worth Rs. 5.

    Berry revealed that the company has "only grown 6%" adding that the market growth is even slower.

    He said, "Obviously, there is some serious issue in the economy."

  • India
  • The Economic Times
  • GST
  • World Economy News
  • Bloomberg Quint
  •  
Latest News
  • Hong Kong suspends flights connecting India till May 3
    Hong Kong suspends flights connecting India till May 3
    India
  • Delhi government announces week-long curfew amid COVID-19 surge
    Delhi government announces week-long curfew amid COVID-19 surge
    India
  • Sensex crashes over 1,300 points in early trade
    Sensex crashes over 1,300 points in early trade
    Business
  • Happy birthday Arshad Warsi: Looking at the underrated actor's journey
    Happy birthday Arshad Warsi: Looking at the underrated actor's journey
    Entertainment
  • Coronavirus: Maharashtra declares six states as places of 'sensitive origin'
    Coronavirus: Maharashtra declares six states as places of 'sensitive origin'
    India
Related Timelines
  • LinkedIn lays off 960 employees, due to COVID-19 pandemic
    LinkedIn lays off 960 employees, due to COVID-19 pandemic
    Business
  • MakeMyTrip lays off 350 employees due to COVID-19: Details here
    MakeMyTrip lays off 350 employees due to COVID-19: Details here
    Business
  • Uber India fires 25% of its workforce: Details here
    Uber India fires 25% of its workforce: Details here
    Business
  • Ola lays off 1,400 employees due to COVID-19 pandemic
    Ola lays off 1,400 employees due to COVID-19 pandemic
    Business
Trending Topics
Bharti Airtel Mukesh Ambani WhatsApp Spotify Reliance Jio OPPO Isha Ambani
Next News Article
Share
Cancel

Want to share it with your friends too?

Facebook Whatsapp Twitter Linkedin
Copied

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Science News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Bharti Airtel Mukesh Ambani Indian Premier League Samsung Virat Kohli Rohit Sharma
Cricket News YouTube Hollywood News WhatsApp Bollywood News ISRO Spotify SpaceX Yoga Honda
Batman Football News BMW Vaccine Reliance Jio OPPO Food News, Healthy Recipes Apple Royal Challengers Bangalore Toyota
Fashion Tips Mercedes Sidharth Malhotra Isha Ambani India Vs England Cricket OnePlus Mobiles Android TV Smart TV Marvel Comics Avengers
Delhi Capitals Neha Kakkar X-Men TATA
About Us Privacy Policy Terms & Conditions Contact Us News Reviews News Archive Topics Archive Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2021