Group members

• Namrata Dedhia 16• Allen Lopes 48• Poonam Mane 51• Yukti Marvah 53• Sanket Mazgaonkar 54• Jeet Mehta 55

Introduction

• In 1929 a small factory was set up in the suburbs of mumbai city, to manufacture sweets and toffees.

• A decade later, in 1939, parle products began manufacturing biscuits.

• Parle glucose and parle monaco were the first brands of biscuits to be introduced .

• It has a 40% share of the total biscuit market & a 15% share of the total confectionery market in India.

• Hygiene is the precursor to every process at PARLE.

• PARLE appeals to both health conscious mothers & fun loving kids.

• The value for money positioning allows people from all classes & age groups to enjoy PARLE products to the fullest.

HIERARCHY OF ORGANIZATION

CHAIRMAN AND MANAGING DIRECTOR

• EXECUTIVE DIRECTOR

• ASSISTANT MANAGER

• SENIOR OFFICER

• MANGERIAL STAFF CADET

• STAFF

• WORKERS

Beginning of a new era

• Once they started with confectionary business, there was no looking back for the Parle’s.

• They started with biscuits in 1939. After a decade PARLE came out with soft drink spearheaded by Prakash Chauhan.

• As the company flourished over the years, the chauhan brother decided to part ways.

• Now the companies are separately known as Parle Products and Parle Agro.

Parle Products Pvt Ltd

• Headed by – Ajay & Vijay Chauhan• Products manhufactured.• 40% share of the Indian biscuit. • 15% share of the confectionery market

within the country.• major biscuit brands • principle confectionery brands • It is the largest supplier of biscuit to the

world.

The Parle Empire

• More than 10000 members • 1st factory in Mumbai• More than 65 contract manufacturing &

mother units.

Distribution Network

• The company has around 1,500 wholesalers, serving in excess of 425,000 retail outlets.

• Parle maintains a 200 strong dedicated field sales force to service wholesalers and retailers.

International Operations

• Parle’s international operations consist of serving markets in the Middle East, Africa, South America, Sri Lanka, Australia and North America.

ACHIEVEMENTS

• Parle products have been shining with the golds and silvers consistently at the Monde Selection ever since they were first entered in 1971.

INDIAN FMCG MARKET – BRAND PENETRATION

Category Within Category (%) Highest penetration Brand (Company)

Toilet soap 91 Lifeboy(HLL)

Washing Cakes/Bars 88 Wheels(HLL)

Edible oil 84 Double tran mustard

Tea 77 Lipton Taaza

Washing powder/liquid 70 Nirma (Nirma)

Salts 64 Tata salt (Tata)

Biscuits 61 Parle G (Parle)

Skin cream 58 Fair & Lovely (HLL)

Talcum Powders 65 Pond’s (HLL)

Indian FMCG companies – Overall Rural Market Penetration.

In %

Company Household penetration

HLL 88

Nirma chemical works 56

Colgate/ Palmolive 33

Parle foods 31

PARLE’S PRODUCTS

• PARLE has its wide range of biscuits, confectioneries & snacks.

• Parle-G & Monaco tops the biscuit segment. Melody is the most famous among the confectioneries, while Must bytes is becoming a favourite snack with the youth.

PARLE-G

• For over 65 years, Parle G has been a part of the lives of every Indian.

• not just a treat for the taste buds, but a source of strength for both body and mind.

• “Hindustan Ki Taakat”

KRACK-JACK

• The original sweet and salty biscuit is one of the most loved biscuits in the country

• taste of relationships captured in a biscuit.

KRISPY CREAMS & MONACO

• Combination of crispyness of Krackjack and sweetness of cream biscuit. A mouth watering delicious combination!

• A light crispy biscuit sprinkled with salt.

Parle ‘Kreams’

These kreeeeeeeemy biscuits are available in 6 flavors-

HIDE & SEEK, MILANO

• Choco biscuit that flirts with your taste buds.

• The ingredients that go into making this prized cookie are a well-guarded secret

DIGESTIVE MARIE & MARIE

• With five times more fibre than the regular Marie. With lower fat and calories than other digestive biscuits

• It’s lighter. It’s crispier. And it’s tastier, making it even more appealing than before.

MILK SHAKTI & 20-20

• The Shakti of milk fortified with the goodness of honey

• Parle presents 20-20 Cashew and butter cookies where every cookie is baked to perfection to deliver the perfect taste and aroma.

RAW MATERIAL TESTING

MIXING

MOULDING

BACKING

COOLING

PACKING

Manufacturing process flow chart

STEPHAN MIXER

MOULDING OVEN

COOLING CONVEYOR

STALKING TABLE

CURVEPLATE

CURVEPLATE

MULTIPACK MACHINE

SEALING MACHINE

BOX TAPPING

DIVERSION BELT

CONVEYOR BELT

DISPATCH SECTION

Competitor analysis• “Britannia and Parle together command a 75-78

percent market share. The glucose segment accounts for 35 percent of the overall biscuit market. Parle’s Parle-g is the leader in the Glucose segment, wherein is has 55% share.

• Salty biscuits (Parle’s Monaco and Britannia’s Snax) and sweet salty biscuits ( Parle’s Kracjack and Britannia’s 50-50) are the other two most popular segments in the biscuit market.

• It has recently launched Hide and Seek, chocolate chips biscuits which will compete with Britannia’s Bourbon.

Marketing

• Parle plays a high volume, low margin game. But Britannia and Sunfeast look at two-pronged strategy- High margins in cream variants and volumes from the Marie and Glucose segments.

• Through yet another image-building exercise, it is giving scholarships to the children of West Bengal and Tamil Nadu

• Enhancing the packaging & communication

• Introducing new variants• Maintaining social equity & CSR.

CSR• Parle Centre of Excellence-an institution dedicated to

enrich the lives of people through conducting various cultural programs across all regions to facilitate the all round development of the children.

• Parle organises Saraswati Vandana in the state of West Bengal during the festival of Saraswati Puja, inviting schools from all across the state to participate.

• Golu Galata in Tamil Nadu, held during Navratri - platform to all the members of a household to showcase their creativity and being judged by eminent personalities. Thousands of families participate and celebrate the occasion on a grand scale.

7 P’s • Product- Parle offers a range of products from

biscuits to confectionaries to snacks.• Price- Parle has adopted an efficient pricing

strategy. Its competitors cannot even think of reducing their prices!

• Place- The Parle empire stretched its arms far & wide.

• Promotion- From introducing new variants, to changing packaging techniques, Parle has done it all!

• People- Includes the staff & the customers.

• Process- Raw-material testing – mixing – baking – cooling -- Packaging

• Packing- it is very crucial to any product.

P.R .Strategy•

PR means getting people to talk and think about your business in a positive way. It can be a vital weapon in your business' armory.

• Golden rule of maintaining PR “You will be judged by what you do, not what you say.”

6 Rules followed by Parle to maintain Public Relation with customers

• 1) Answer your phone• 2) Don’t make promises unless you WILL keep

them• 3) Listen to your customers • 4) Deal with complaints • 5) Be helpful • 6) Train your staff to be ALWAYS helpful,

courteous, and knowledgeable

• Customer care number behind every pack of Biscuits

• Public visits - schools, colleges• Invitation of suggestions

Parle agro

• Parle Agro has been a trusted name in the beverage industry providing wholesome and health agro-based drink brands.

• It has successfully launched some of India’s leading beverages like Frooti, Appy nectar, Appy Fizz and N- joi, and packaged drinking water, Bailey, over the last two decades.

• Frooti is India’s first national mango drink.

Fast facts

• Headed by – Ramesh Chauhan• Products manufactured – Mineral water &

juices• 65% share of the national market.• 2.40 crore bottle sales a month alone in

mumbai.• Bought Bisleri plant from the Italian firm

‘FELICE BISLERI’ in 1969.• Largest supplier of mineral water in India.• Major brands – Appy, Appy fizz, Frooti etc.

Parle agro empire

• 26 factories all over India.• Bisleri has 8 plants & 11

franchises in India.• 21000 outlets among 300 towns.

Distribution network

• 2000 trucks operating over the country.

• Distributors commission ranges from 3.5 % to 5.5%

• No incentives & schemes for its distributors.

• Free delivery.

International operations

• Consist of serving markets in malaysia, Australia, UK, Nageria, Saudi Arebia & UAE.

• Also planning to launch its products in Europe countries by 2011.

• PARLE AGRO VISIONTheir vision is to be the leader in business. They will stand apart from the competition by being a first in the market to innovate, to introduce new product & create new categories.

• PARLE AGRO MISSIONTheir mission is to be the leaders in business by maintaining high quality, introducing new & innovative products, reaching very part of India, remaining customer centered, constantly upgrading their knowledge & skill.

International achievements

• Entered in UAE & Saudi Arabia market.• Entered UK market• Entered Malaysian market• US market being catered by one buyer.• Reentered in Australian market• Performs exported to Nigeria.

Current scenario

43%

7%15%

35%fruiti

N-joi

Appy nectar

Appy fizz

Parle Agro’s Products

Bisleri• Its has 60% market

share in packaged drinking water in India.

• Its operation run throughout the subcontinent of India.

• It has 8 plants & 11 franchise allover India.

FROOTI• Unique flavour and

taste which is widely accepted & has an amazing consumer appeal.

• Light & refreshing beverage.

• Offers dual benefit of both health & taste.

Appy Nectar• Refreshing drink made

of juicy rich apples .• Black slim tetra pak

with pull- tab packaging

• containing more fruit pulp as compared to other fruit drinks.

• No preservatives making it completely natural.

Appy fizz

• light sparkling blend apple fruit with mild carbonation.

• it is real fruit based & all flavoured

Competitors DABUR• Real was launched in 1996. • 100% preservative free. • market share of 55%. • the largest range of 9 juice that comprise orange, mango,

pineapple, mixed fruit, grape, tomato, litchi & Cranberry. • Real junior, available in 125 ml packs, targets children below 6

years . • India’s first packaged fruit plus vegetable juice, is a

combination of juicy orange & sweet carrot. • The 6 layered tetrapak carton helps in retaining the freshness

of the juice for longer period of time.• Dabur Food produces around 50 million liters of juice

annually . • The plant procures fruits worth Rs 6 crore from West Bengal,

North-East Bihar, Uttar Pradesh, Maharashtra & Andhra Pradesh. It has the highest capacity utilization of litchi, pineapple, guava, mango & grapes round the year.

Pepsi’s Tropicana • India is a very important market for

Tropicana . among the top 10 biggest markets for the brand. available in mango, apple, grape, & cranberry flavours & a cocktail in Ruby- Red . They come in tetra pack of 1 liter & PET bottles of 500 ml & 1 liter.

Coca- cola’s Maaza• Launched in 1993, a drink that offered the

same real taste of fruit juice& is available throughout the year.

• In 1993, Maaza was acquired by coca- cola India.

• Maaza currently dominates the fruit drink industry.

• “Taaza Mango Maaza mango” • available in 200ml, 250ml in RGB & 125ml,

200ml in tetra pack .

Kinley • Introduced in August 2000 • Kinley is available in 1 liter, 2 liter

PET bottle, 5, 15, 20 & 25 liters bulk jar for in home consumption.

Particulars Schedule 31st Mar. 2008 31st Mar. 2007

Rs

SOURCES OF FUNDS

Shareholders Funds

Share Capital 1 1,5028,303,501 494,424,200

Reserves and Surplus 2 3,256,895,868 2,043,487,720

4,759,726,218 3,537,911,920

Loans Funds:

Secured Loans 3 4,781,956,249 4,017,001,091

Unsecured Loans 4 2,715,025,000 2,728,278,673

7,496,981,249 6,745,279,764

Total 12,256,707,467 10,283,191,684

APPLICATION OF FUNDS:

Fixed Assets

Gross Block 5 7,991,237,254 6,293,018,984

Less: Accumulated Depreciation (2,703,349,785) (2,348,210,752)

3,944,808,232 3,117,386,104

Less: Provision for Impairment - (299,895,000)

Add: Provision for impairment no longer required - 299,895,000

Net Block 5,287,887,469 3,944,808,232

Capital Work-in-Progress (including capital advances)

6 645,731,922 417,970,903

Investments 7 1,774,411,015 826,010,046

Deferred Tax Assets (Net) 447,318,890 730,339,915

Current Assets, Loans & Advances 8

a) Inventories 2,743,097,581 1,837,331,733

b) Sundry Debtors 4,405,134,521 2,830,570,850

c) Cash & Bank Balances 356,686,604 2,261,941,693

d) Other Assets 101,034,268 57,170,335

e) Loans and Advances 1,075,196,283 757,796,513

8,681,149,257 7,744,811,124

Less:

Current Liabilities & Provisions 9

a) Current Liabilities 4,320,335,001 3,078,945,393

b) Provisions 259,456,085 301,803,143

4,579,791,086 3,380,748,536

Net Current Assets 4,101,358,171 4,364,062,588

Total 12,256,707,467 10,283,191,684

Notes forming part of the Accounts 20

Turnaround strategies• Management change – they call upon the

consultants to manage the turnaround of the firm. • Situation analysis - a situation analysis is

performed to evaluate the prospects of survival. Assuming the firm is worth turning around, depending on the root causes of the distress one or more of the following turnaround strategies may be selected and presented to the board:

– Change of top management – Divestment (Dispossess, free, rid, deprive ) of

certain assets (Give eg)– Reformulation of strategy – Revenue increase – Cost reduction – Strategic acquisitions

• Emergency action plan - achieve positive cash flow as soon as possible by eliminating departments, reducing staff, etc.

• Business restructuring - once positive cash flow is achieved, the strategic plan is implemented, improving continuing operations, adjusting the product mix and repositioning products if necessary. The management team begins to focus on achieving sustained profitability.

• Return to normalcy - the company becomes profitable and the changes are internalized. Empl oyees regain confidence in the firm and emphasis is placed on growing the restructured business while maintaining a strong balance sheet.

Thank you