- Parle Biscuits’ net profit for the FY19 was Rs 410 crore versus Rs 355 crore posted the previous year, according to information shared by the Tofler market website.
- Parle Products had indicated in August that people would have to be laid off as slow growth and falling demand for cookies at the entry-level could trigger production cuts after an 18 percent GST was slapped on it.
Privately owned Parle Biscuits, part of the Parle Products company, reported an increase in net profit for the financial year 2018-19 (FY19) of 15.2 percent year-on-year (YoY), even as the group, together with other top manufacturers of biscuits, demanded a cut in goods and services tax (GST) from the government.
Parle Biscuits ‘ net profit for the FY19 was Rs 410 crore versus Rs 355 crore posted the previous year, according to information shared by the Tofler market website. Total revenue increased by 6.4 percent to Rs 9,030 crore, with operating revenue alone rising by almost 6 percent from the previous year to Rs 8,780 crore. Other revenue in FY19 jumped 26% to Rs 250 crore, helping top-line growth.
Parle Products had indicated in August that people would have to be laid off as slow growth and falling demand for cookies at the entry-level could trigger production cuts after an 18 percent GST was slapped on it.
The reason cited behind this slowdown is the liquidity crunch in the banking sector, economic uncertainties and lack of new investments.
In August, Parle had demanded a cut in the Goods and Services Tax (GST) along with other biscuit manufacturers, adding that 10,000 employees would be forced to be laid off. Mayank Shah, head of the Parle group, said in an interview that demand for famous Parle biscuit brands such as Parle-G had deteriorated after India introduced a national goods and services tax (GST) in 2017, which levied a higher levy on biscuits costing as low as 5 rupees or 7 cents a bag.
The higher taxes forced Parle to sell fewer biscuits in each box, hitting demand from rural India’s lower-income customers, contributing more than half of Parle’s income and home to two-thirds of Indians.
Parle Products has more than 1 lakh people as employees and operates 10 company-owned plants. More than half of Parle’s over Rs 10,000 crore sales come from rural markets.
The largest-selling biscuit brand in the world is owned by Parle Products Private Limited which is an Indian food products company and has a 35 percent share of the Indian biscuit market Parle Products company was founded in 1929 in British India by the Chauhan family of Vile Parle, Mumbai. Parle began manufacturing biscuits in 1939. Later it was divided into three different companies, Parle Products, Parle Agro and Parle Bisleri.