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Since the year of 2017, the selling of Parle-G Biscuit is going down at a drastic level. Parle Products Pvt. Ltd. is the company which provides Parle Biscuits and other Parle products. The company provides employment directly to 1,00,000 permanent and contract workers.
The Journey of Parle Group…
Started in the year 1929, Parle Gluco which was later transformed into Parle-G. It was the largest biscuit selling brand in the year 2003. Parle-G is a household name for every millennial or 1980s kids.
However, the current economic slowdown is now also impacting on the FMCG Industry.
What is happening to Parle-G?
After the rollout of GST in 2017, the taxes on the biscuits was increased. As a result, the company has to reduce the number of taxes they were earlier offering in a small 5 Rs. pack.
Since the major customer base of Parle-G is people from Lower-Income Background, they stopped buying the biscuits. Because in the era of economic slowdown people are extremely price-sensitive and think even before spending a penny.
In order to survive, the company also held talks with GST Council and then Finance Minister, Mr. Arun Jaitley. However, they couldn’t succeed to convince the government to reduce the taxes on less costly biscuits.
What’s next with Parle-G?
As the sales of Parle-G Biscuits is reduced, subsequently the company has to reduce production. At present, the company is planning to reduce production by 8 to 10%.
If the production is reduced, it will affect the people working at Parle. As per the estimation, approximately 8000 to 10000 People will lose their livelihood if Parle takes this decision.
It is not only Parle. Other FMCG Companies are going through one or another scenario. All these things are for sure indicating that, something is seriously wrong with the economy!