- India’s largest biscuit maker, Parle Products which owns Parle-G could lay off up to 10,000 workers if the brutal consumption slowdown persists.
- Parle which is popular for Parle-G and Marie brand of biscuits is not the only food company warning for a slowing demand and layoffs.
India’s largest biscuit maker, Parle Products Pvt Ltd could lay off up to 10,000 workers if the brutal consumption slowdown persists.
This news surfaces at the time when Asia’s third-largest economy has badly hit demand for everything from automobiles to retail products, forcing companies to stop production and hiring of new people in hope that the Indian government would launch some economic stimulus to revive the dying economy.
“We have sought a reduction in the goods and services tax … but if the government doesn’t provide that stimulus, then we have no choice but to let go of 8,000-10,000 people,” the Economic Times quoted Mayank Shah, category head at Parle Products, as saying.
Parle which is popular for Parle-G and Marie brand of biscuits is not the only food company warning for a slowing demand and layoffs. Recently, Managing Director of biscuit maker Britannia Industries Ltd Varun Berry said that consumers are thinking twice even before buying products worth just 5 rupees which is $0,07. Berry cited his fears about the economy and said there is some serious issue in the economy.
The reason cited behind this slowdown is the liquidity crunch in the banking sector, economic uncertainties and lack of new investments.
These reports are coming after the drastic slowdown of the Indian economy among which Automobile is facing the worst hit among all sectors.
Recently, Managing Director of Mahindra & Mahindra (M&M), Pawan Goenka commenting on the situation of poor auto sales leading to thousands job said that next fear is of suppliers and dealers going bankrupt if the this continues and the upcoming festival season turns out to be slow in terms of demands.
In a similar way, The country’s largest carmaker Maruti Suzuki India Ltd. has reported 37 percent domestic passenger vehicle sales from the last year earlier in July. Second-ranked Hyundai Motor India Ltd. recorded a 10 percent drop while total sales fell 16 percent at Mahindra and Mahindra Ltd. At Toyota Motor Corp. and Honda Motor Co., the sales fell 24 percent and 49 percent respectively in July.
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.
Let’s hope the government takes some steps to revive the dying economy of India.