The Mumbai-based Rs 1,800 crore Parle Products is planning to consolidate its presence in northern biscuits market. It plans to set up a manufacturing plant in Uttar Pradesh.
The move is significant because it will mean Parle’s first production unit on one of the largest biscuit markets in the country. The plant will also mean a larger battle with north India’s dominant biscuit brand, Priyagold, on its homeground.
Company executives told Business Standard that apart from UP, Parle is also planning to increase its national market share (currently, around 40 per cent) with production facilities in Gujarat and Maharashtra.
While plans on the other production facilities are still at the finalising stage, work has already begun on setting up a plant situated on the outskirts of Ahmedabad.
The new plant at Ahmedabad will be a multi-product facility and is likely to commence production in 2007. The plant would manufacture the group’s flagship product, Parle G biscuits as well as a new brand of cream biscuits.
Executives said that they were still working out details such as the capacity of the plant, the number of products to be produced and so on. The investment for each facility is estimated to cost upwards of Rs 20 crore.
“The upcoming production plants are indicators of the new ground we hope to break in the biscuit industry. We are hoping to enhance our presence to cover 72 per cent of the population through our range of biscuits,” said Amol Chouhan, director, Parle Products. Apart from expanding its national footprint, Parle is also looking at expanding its global reach.
The company is also increasing its international operations and will soon be present in more countries. Company executives claim that Parle already sells in 40 countries.
The company is also looking at expanding the capacity of its other plants in Delhi and Mumbai. Currently, the company has 20 brands of biscuits and is planning new rollouts and variants over the next few months. For instance, a variant of its snack, Cheeslings, will be launched in a week.