You are on page 1of 69

Success Story of Parle-G

Section I

1
Success Story of Parle-G
j

GOOD LEARNING
P – PERFECT
A – ATTRACTIVE
R – RELISHING
L - LEARNING
E - EATABLE
G - GENUINE

SYSTEMATIC STRUCTURISE

PARLE

STANDARD SAINITISE
SELF DISCIPLINE

2
Success Story of Parle-G
j
INTRODUCTION OF PARLE
Parle Products Pvt. Ltd. engages in the manufacture and marketing of biscuits and
confectionaries. It offers glucose, milk, sweet and salted cream, wafer crème,
cumin seed, and cheese biscuits; chocolate, mint, cola, and tropical fruit flavored
toffees and candies; and snacks. The company offers its products in India, the
Middle East, Africa, South East Asia, the United States, the United Kingdom,
Canada, Australia, and New Zealand. Parle Products Pvt. Ltd. was founded in 1929
and is based in Mumbai, India.

Parle Products Ltd. entered the snack market with the launch of Musst Chips and
Musst Stix in Maharashtra. It is selling these two new products at price points of
INR 10 and INR 5 but giving more quantity as compared to competition. The
company has set up a unit in Nashik for manufacturing the new brands. It intends
to promote these two products by extending its distribution network.

Parle Products Private Limited announced that it has launched new product-Parle
20-20. Parle's new 20-20 cookies promised to be a combination of crunch and
scrumptious delicacy. This summer experience the richness in taste with Parle's
brand new 20-20 cookies. Each biscuit is baked to perfection and comes in two
variants-Butter & Cashew Butter. Consumers especially the young adults are
looking for a tastier and crunchier variety of cookies than ever before. Parle 20-20
cookies are aimed towards young adults-the 'now' generation. This is the
generation that wants to live right now, and is in a hurry to cram a medley of
experiences into life. The now mantra of the day is 'instant gratification' which 20-
20 delivers without compensating on quality or taste.

Parle Ltd. has decided to unveil butter and cashew cookies under the 20:20 brand.
The new 20:20 brand would have the baseline Choice of Champions.

3
Success Story of Parle-G
j

PARLE PRODUCTS

MONACO BITES KISMI BAR

FUN CENTRE MANGO BITE

HIDE & SEEK MELODY

JEFFS MAGIX

KRACK JACK ORANGE CANDY

MARIE CHOICE POPPINS

MONACO ROL-A-COLA

Parle-G TOFFES

SIXER MILK SHAKTI

4
Success Story of Parle-G
j

Parle Products

Biscuit Goodies:
Parle-G Hide & Seek
Kackjack Hide & Seek Milano
Magix Digestive Marie
Monaco Parle Marie
Kreams Milk Shakti
Parle 20-20 cookies Goldenarcs
Nimkin Kreams Gold
Chox Monaco Jeera
Sweats :
Melody Kismi Gold
Mango Bite Orange Candy
Kaccha Mango Xhale
Poppins 2 in 1 Éclair
Kismi Toffee Golgappa
Kisme Toffee Bar Melody Softee
Mazelo Pale Lites
Snacks :
Musst Bites Jeffs
Cheeslings Musst stix & Musst Chips
Sixer Sixer Zeera

QUALITY OF PARLE
5
Success Story of Parle-G
j

Parle Quality:-

Hygiene is the precursor to every process at Parle. o husking the wheat and melting
the sugar to delivering the final products to the supermarkets and store shelves
nationwide, care is taken at every step to ensure the best product of long-lasting
freshness. Every batch of biscuits and confectioneries are thoroughly checked by
expert staff, using the most modern equipment hence ensuring the same perfect
quality across the nation and abroad.

Concentrating on consumer tastes and preferences, the Parle brand has grown from
strength to strength ever since its inception. The factories at Bahadurgarh in
Haryana and Neemrana in Rajasthan are the largest biscuit and confectionery
plants in the country. The factory in Mumbai was the first to be set up, followed
soon by the one in Bangalore, Karnataka. Parle Products also has 14 manufacturing
units for biscuits and 5 manufacturing units for confectioneries, on contract.

Quality Commitment:-

6
Success Story of Parle-G
j
Parle Products has one factory at Mumbai that manufactures biscuits &

confectioneries while another factory at Bahadurgarh, in Haryana manufactures

biscuits. Apart from this, Parle has manufacturing facilities at Neemrana, in

Rajasthan and at Bangalore in Karnataka. The factories at Bahadurgarh and

Neemrana are the largest such manufacturing facilities in India. Parle Products also

has 14 manufacturing units for biscuits & 5 manufacturing units for

confectioneries, on contract.

All these factories are located at strategic locations, so as to ensure a


constant output & easy distribution. Each factory has state-of-the-art machinery
with automatic printing & packaging facilities.

All Parle products are manufactured under the most hygienic conditions.
Great care is exercised in the selection & quality control of raw materials;
packaging materials & rigid quality standards are ensured at every stage of the
manufacturing process. Every batch of biscuits & confectioneries are thoroughly
checked by expert staff, using the most modern equipment.

MARKETING DEPARTMENT

7
Success Story of Parle-G
j
The Marketing Strength:-

The extensive distribution network, built over the years, is a major strength
for Parle Products. Parle biscuits & sweets are available to consumers, even in the
most remote places and in the smallest of villages with a population of just 500.
Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or
indirectly. A two hundred strong dedicated field force services these wholesalers &
retailers. Additionally, there are 31 depots and C&F agents supplying goods to the
wide distribution network. The Parle marketing philosophy emphasizes catering to
the masses. They constantly endeavor at designing products that provide nutrition
& fun to the common man. Most Parle offerings are in the low & mid-range price
segments. This is based on their understanding of the Indian consumer psyche. The
value-for-money positioning helps generate large sales volumes for the products.

However, Parle Products also manufactures a variety of premium products


for the up-market, urban consumers. And in this way, caters a range of products to
a variety of consumers.

Parle’s Core Value:-

An in-depth understanding of the Indian consumer psyche has helped Parle evolve
a marketing philosophy that reflects the needs of the Indian masses. With products
designed keeping both health and taste in mind, Parle appeals to both health
conscious mothers and fun loving kids. The great tradition of taste and nutrition is
consistent in every pack on the store shelves, even today. The value-for-money
positioning allows people from all classes and age groups to enjoy Parle products
to the fullest.

The Customer Confidence:-

8
Success Story of Parle-G
j
The Parle name conjures up fond memories across the length and breadth of
the country. After all, since 1929, the people of India have been growing up on
Parle biscuits & sweets.

Today, the Parle brands have found their way into the hearts and homes of
people all over India & abroad. Parle Biscuits and confectioneries, continue to
spread happiness & joy among people of all ages.

The consumer is the focus of all activities at Parle. Maximizing value to


consumers and forging enduring customer relationships are the core endeavors at
Parle.

Their efforts are driven towards maximizing customer satisfaction and this is
in synergy with their quality pledge. " Parle Products Limited will strive to provide
consistently nutritious & quality food products to meet consumers' satisfaction by
using quality materials and by adopting appropriate processes. To facilitate the
above we will strive to continuously train our employees and to provide them an
open and participative environment."

Corporate Social Responsibility:-

9
Success Story of Parle-G
j
Parle Products with its wide platter of offering of biscuits and sweets like Parle-G,
Krackjack, Monaco, Melody, Mango bite and many others since 1929 is also
actively engaged to change & uplift the social face of India. As a part of Corporate
Social Responsibility Policy Parle is keenly involved in the overall development of
younger generation with focused endeavor to built New Face of India and spread
happiness & joy all over.

Parle Centre of Excellence as an institution is dedicated to enrich the lives of


people through conducting various cultural programs across all region to facilitate
the all round development of the children. Every year, 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. The event is one of much fanfare
and celebration, keeping alive the culture and traditions of ages. Our involvement
in cultural activities has seen the inception of Golu Galata in Tamil Nadu, held
during Navratri. Its gives a platform to all the members of a household to showcase
their creativity and being judged by immanent personalities. Thousands of families
participate and celebrate the occasion on a grand scale.

These events give us a chance to interact with children on a one-to-one basis, and
promote our belief of fun and health for the whole family.

Press Release:-

10
Success Story of Parle-G
j
1. Wicked mother hides in the kitchen, gorging on Hide n Seek Biscuits. Little
Meghna comes running in, “I want choclit bifket” “No chocolate biscuits.
Daddy will buy some tomorrow” Little Meghna retreats, her chubby face
dropping a little. Wicked mother chuckles evilly and proceeds to demolish
the rest of the pack of Hide n Seek.

I wish this little story was true. Unfortunately, motherhood comes with many
sacrifices, including that of the last deliciously chewy, crunchy biscuit in a pack of
Hide n Seek.

Hide n Seek is a version of that Chocolate chip cookie. Little chips of chocolate
‘hide’ in the biscuit. With just the right amount of sweetness, these biscuits don’t
cloy. It is heavy on the chocolately flavour, which definitely goes down well with
the youngest members of my family, and I don’t just mean my children.

However, since that taste of cocoa is strong, the sugar lovers in the family-
incidentally, also the ones who have diabetes- can be heard complaining that the
biscuits are rather bitter. Not true. It’s just very chocolatey, as opposed to sugar
sweet.

Wicked mother rejoices at this, since this leaves her more to gorge on.

Hide n Seek comes in nice packaging but is a little on the expensive side, around
15 INR if I am not mistaken. A good 2-3 bucks more than other biscuits. But this is
also a nice thing to serve to guests, who might turn up their noses at plain Glucose
or arrowroot biscuits.

11
Success Story of Parle-G
j

They also work as great pacifiers for kids, and offer them something to chew on
and keep them busy. (I know. I know!). if your hubby slams down his cup in rage
at the sight of yet more Goodday cashew-and-what-nots adorning the table at tea-
time, trust me, feed him this and you’ll be certified a great wife, mom and biscuit
selector (just like those ads).

Store your Hide N Seek biscuits in a separate air-tight container. Do not commit
the cardinal sin of storing them with other strongly flavoured biscuits like, (horror
of horrors) pineapple or orange cream. These flavours will overpower the subtler
taste Hide N Seek.

Try crumbing these biscuits over Vanilla or Chocolate ice-cream, or over custard.
But however you have it, you are sure to love it.

And oh, don’t forget to share!

2. For the second, Parle Products Private Ltd has withdrawn the variants of its
chocolate-chip cookie brand, Hide & Seek. Having extended the Hide &
Seek franchise early last year to two new flavours - butter and cashew
badaam - the biscuit major has now restricted it to chocolate-chip cookie.

It has decided to bring them under the Parle franchise and re-named the same as
Parle Cookies. The brand is currently being test marketed in the south.

Explaining the rationale behind withdrawing the variants, Mr Mayank Shah,


Product Manager, Parle Products Private Ltd, said: "Hide & Seek has a strong
association with chocolate. It has always been accepted as a chocolate chip cookie
brand and people were not ready to accept the butter and cashew variants. We have

12
Success Story of Parle-G
j
now de-linked the variants and re-introduced them as Parle Cookies. The products
will soon be re-launched nationally."

Early last year, Parle Products had pitted its Hide & Seek variants against
Britannia's Good Day Cookies at the premium end of the biscuit market.

However, this was not the first time that Parle was introducing variants under its
Hide & Seek brand. Pioneering the chocolate-chip cookie category with its Hide &
Seek brand in 1998, Parle had subsequently extended the brand into three variants -
orange, coffee and mint. However, poor offtake led the company to discontinue
these products while the Hide & Seek chocolate-chip cookies continued to be
successful.

Meanwhile, Parle has pegged its growth rate between 12-13 per cent this year.
With no intentions of dropping prices for any of its brands, the company expects to
drive further penetration for its flagship glucose brand, Parle G, along with brands
such as Monaco and Krack Jack. "We still have a long way to go in biscuits. It is
not availability but acceptability which is an issue with consumers," says Mr Shah.

In the confectionery category, Parle Products has pegged its growth rates at 15 per
cent for its brands such as Poppins, Melody and Mango Bite. "We have to maintain
our prices for our confectionary brands to protect our bottom line since even with a
50 paise increase in price the volumes go down by more than 100 per cent," says
Mr Shah.

Besides, the company has decided to de-focus from its snack brands such as
Cheeselings, Jeffs and Sixer. "The products may be still available on the retail
shelves but we have decided not to focus on the snack brands," added Mr Shah.

3. Being the largest selling glucose biscuit brand has not made Parle
complacent. The Mumbai-based low-profile biscuits major believes there is
still scope in the category, and that it's time it built more `social' equity for
its largest selling brand, Parle G.

13
Success Story of Parle-G
j
Through yet another image-building exercise, it is giving scholarships to the
children of West Bengal and Tamil Nadu."Our corporate equity has been weak in
these States compared to Britannia. With academics being a priority in these States,
we have decided to strengthen the equity of our corporate brand in these parts,"
says Pravin Kulkarni, Marketing Manager, Parle Products.

"Parle G is all about all-round development and we owe children a lot for having
built equity for the brand all these years. It is our way of paying them back," states
Mayank Shah, Product Manager, Parle Products Pvt Ltd.

At the same time, Parle also recognises the growing threat of more glucose brands
entering its arena, especially domestic brands from ITC (Sunfeast) and Hindustan
Lever (Modern). There was a time when the biscuit maker was threatened, when
Britannia's Tiger made an entry into the glucose segment a couple of years ago.
Today, in spite of bigger FMCG majors such as ITC and HLL muscling their way
into the category, Parle is not exactly on shaky ground. Besides, the category is fast
expanding and its growth in the sluggish FMCG industry has helped the company
hold on to its dominant position.

For instance, the recent aggression on the part of ITC's Sunfeast brand does not
immediately bother Parle's marketers. "ITC may have a good distribution network
for cigarettes but it lacks experience in servicing the general and kirana stores. But
it is learning quickly, and with its deep pockets, it is a threat old players like us
should watch out for," says Shah.

Adds Kulkarni: "We are recognising the presence of these players and are already
trying to plug in the gaps needed. For instance, there are distribution gaps in the
eastern and southern markets (compared to the North and the West), and we are
enhancing our distribution in these parts.''

Observes A. Sundara Rajan, Chief Executive, Market Search, a research firm:


"Parle's equity extends into the heartland of India. At the same time, the company
realises that if it does not do anything, its equity will get eroded. Over the years
Parle has been enhancing its packaging and communication and luckily the market
has also been expanding." Thus, new players have not really poached on Parle's
territory and lack of penetration has helped all the players grow.

14
Success Story of Parle-G
j
Protecting the turf of its largest-selling glucose brand, Parle has also decided to
restrict its line extensions to avoid diluting its equity. While it has extended Parle G
to a more premium variant (Magix) in three flavours, it has deleted the Parle G tag
for its Milk Shakti brand and brought it under the generic Parle name.

It has also reacted to competition when the need has so dictated. Early this year, it
took on Britannia's brand of Good Day cookies. Parle Products introduced two new
cookie variants under its chocolate chip cookie brand — Hide & Seek. Sporting
flavours such as Butter and Cashew Badam, Hide & Seek is pitted against
Britannia's existing Good Day cookies that come in similar flavours. Hide & Seek
till then existed as a single chocolate chip cookie brand at the premium end of the
market.

However, this is not the first time that Parle has introduced variants under its Hide
& Seek brand. Pioneering the chocolate chip cookie category with its Hide & Seek
brand in 1998, Parle stretched it to three variants — orange, coffee and mint.
However, poor offtake led the company to discontinue the products. Claims
Sundara Rajan,"For the first time, Good Day will have a challenger brand at the
national level. All this time Good Day had competition in the cookie market
mainly from the regional players." In fact, cookies, which generally have high
butter content, are manufactured by a host of regional players (mainly the local
bakeries) and the big national players will have to fight for their share in this
segment from the unorganised local players.

Explaining the reasons for the earlier failure of the Hide & Seek variants, Lakshmi
Goyal, Business Director, O&M, the advertising agency handing the account, says,
"The chocolate variant had a broader appeal and this led to the other variants
falling by the wayside." The `exotic' nature of the variants did not help acceptance
in the market, and so, this time around, Parle has decided to include variants which
Indian consumers are more familiar with.

The variants are pegged at a slightly lower price compared to the chocolate chip
cookie (Rs 12 for 75 gm). Hide & Seek Cashew Badam is priced Rs 12 for 100 gm
while its Butter variant is priced at Rs 10 for 100 gm. Adds Sundara Rajan,
"Chocolate is an expensive ingredient and is expected to be costlier the other
variants."
15
Success Story of Parle-G
j
With the intention of launching a new campaign for Hide & Seek variants, Goyal
says, "Essentially we intend keeping intact Hide & Seek's brand values based on
indulgence."

Meanwhile, within the biscuit category, the cookie segment is growing rapidly.
Observes Sundara Rajan: "Today there is a gradual shift upwards in terms of taste.
Cookies having higher butter content are expected to be tastier."

Considering the biscuits category has been growing rapidly at near 8 per cent,
Parle has decided not to focus on its confectionery brands. "There is no big thrust
on confectionery since the kind of volumes we do are not enough to support the
advertising spends," says Kulkarni. In spite of having certain strong confectionery
brands such as Poppins, Mango Bite, Melody and Kismi, Parle realises that it
cannot get the margins in this category compared to its biscuits.

The company wants to continue having that strong emotional connect with
consumers and doing social deeds such as offering scholarships is part of its
corporate social responsibility initiatives, which should keep the biscuit major on
its pedestal.

4. Krackjack deserves points for having the sense to dispense with the
annoying Krack and Jack and their faux Laurel and Hardy routine for its
latest campaign. This ad represents, one of the few instances where a bizarre
idea works rather well for a change with spot-on execution. We won’t be
surprised if it evokes howls of protest from PETA, though Regards

Bekar Brand [Britannia Tiger Biscuits]: It would be slightly more apt for the
Indian Team to sing ‘Jayega Jayege Chalte Jayega’ as it waits for the returns of the
master blaster. Otherwise... haven’t we seen all this before? We’re expecting the
audience to get their running shoes on and scoot like a tiger was on their trail.

16
Success Story of Parle-G
j
5. Parle a name known for its original products. Parle is always the one to
introduce a type of biscuits while the other follow suit. Parle started as a
small scale industry in 1929. It started production of biscuits, which we still
enjoy as ‘Parle-G’.

Hide n Seek, everyone has played this game for sure. Here my tongue plays this
game with the chocolate chips each time I take a bite of Hide n Seek. I take mu
turn of closing my eyes as the chips hide inside the biscuit and before they can say
‘Ready’, I bite the crisp biscuit and let the chocolate chips melt in the mouth. So
anyways I am the winner here, unless my naughty brother comes and steals the
piece right from between my fingers. Bad for him as he is one year younger to me,
I can push him for his wrong doings.

‘Hide n’ Seek’ comes from the house of Parle. What distracts me are the chocolate
chips hidden in the biscuits. Hide n’ Seek are square shaped biscuits with diagonal
ridges and small grooves filled with chocolate chips. To ads to this chocolate is
also blended well with the biscuit preserving the crispiness of the biscuits at the
same time. To be very honest, these chocolate chips are the ones I love these
biscuits for. Though it cannot win my love for the yummy Bourbons, it still stands
a third in runnerup as compared to the classic taste of the yummy ‘Bourbon’ &
‘Pure Magic’. Now where these two win over Hide n’ Seek. Simple, these contain
a little bit of more chocolate than Hide n’ Seek. But Parle‘s Hide n’ Seek ha a
different game to play. Here’s the classic cream from traditional cream biscuits is
replaced by solid chocolate chips. Thus the work of two biscuits to press the
chocolate cream in between is done by a single piece of biscuit, thus giving the
quantity of biscuits in a pack some more room for advantage over the other two.

6. Although Britannia has more biscuit brands under its umbrella, has more in
the urban sector, it is Parle which steals the thunder. Thanks mainly to its
leading brand, Parle G, it retains, almost half the market share for biscuits in
India. The Glucose brand that enjoyed a monopoly in the market for decades
surpassed the expectations of its makers, in popularity. The brand recently
achieved the distinction of being the highest selling Glucose biscuit in the
world.

17
Success Story of Parle-G
j
Parle-G’s image as an affordable wholesome meal that could be used as a charger
when low on energy as well as a tasty accompaniment with chai helped it to
consolidate and retain its position as the number one biscuit brand for decades.

ORG figures show Parle-G enjoys a 69 percent share in the Glucose biscuit
market, pegged at close to 2.7 lakh tones a year. This is a sharp lead over closest
competitor Britannia Tiger, which has a 24 percent market share. The original
Glucose brand, Parle-G is on coupled with other glucose brands such as Parle-G
Magix and Parle-G Milk Shakti. These brands contribute more than 50 percent to
Parle Products Pvt. Ltd’s turnover. The other brand in its stable are: Monaco,
Krackjack, Marie, Hide n’ Seek, Chesslings, Jeffs, Sixer and Fun Centre. Parle
biscuits are even sold abroad in markets such as the US, Australia, and the
company is consolidating its position in places such as Abu Dhabi, Africa, Dubai,
South, America and Sri Lanka.

Lately the biscuit market has been seen buoyant growth. According to AC Nielsen
Indian Retail Store Audit Data of 2003, the biscuit industry in India grew by 11.7
percent last year, the highest in the Rs. 47,800 crore FMGC sector. The biscuit
market accounts for seven percent of the FMGC market sales in India.

However, Parle’s leadership position is not going to be easy. Competition is hungry


for a larger share in the pie. Britannia is eyeing the Glucose brand and aims to
overtake Parle’s within three years’ time. Britannia will also outsource its
production and plans to invest Rs. 4 crore in the biscuit segment. It will launch a
slew of products around Tiger, its leading Glucose brand.

The entry of big players in the field could mean more competition for old hands in
the game. Last year, Hindustan Lever Ltd (HLL) entered the market with its Kissan
Greedy Biskits in three flavours. It also tried to re-launch modern as a Glucose
brand. ITC’s food arm entered the market with its Sunfeast range of biscuits with
offerings in Glucose, Marie and cream segments. It wants to complete keenly with
Parle and Britannia.

A big threat to legitimate biscuit makers comes from the duplicate market.
Counterfeit biscuits are not only available cheap but they dent the brand equity of
legitimate brands.

18
Success Story of Parle-G
j
Besides smaller players are also entering the fray. According to the union food
processing ministry the production of biscuits in the organized and unorganized
sectors is estimated at about 11 lakh tonnes. Only 35 percent of this is made by the
organized sector. Recent strides by such small players as Surya Foods, which
makes Priya Gold biscuits, are also unnerving existing players. They could prove
to be surprise future leaders.

7. A newspaper once said "Biscuits are like potato chips, you can never stop
with one". I never realized this fact until I read this statement in the said
newspaper ( cant recall the newspaper and the place, but the statement
lingered on in my mind ) .

Biscuits are a household name these days. The markets are flooded with biscuits
of every taste and for every age group. Sometimes it would be just difficult for us
to decide on what to go for. These are good combinations with a hot cup of Tea or a
coffee. They make a quick and a tasty snack any time and in any situation. Glucose
biscuits are mainly the favourites of many as their intake charges them up.
Specially if a person is suffering from Low BP, then these glucose biscuits act as
energizers in emergencies. People suffering from Diabetes too carry them to
increase the glucose level in their body . Besides the delicious taste that it offers, it
is highly helpful for people suffering from the above 2 illness who take it for
reasons beyond its taste. A cream coloured yellow stripped wrapper with a cute
baby photo containing 10 - 12 biscuits with the company's name printed in Red and
you know these are Parle G biscuits. Times changed, variety of biscuits did come
and go but nothing has changed with these biscuits. Yes, the size of their packing
has definitely changed but for the consumers good as these are money savers pack.
The taste of these biscuits never changed since the time I tasted them to till date.
My morning tea is always combined with these biscuits. Over a period of time I
have got a feeling that these 3 small biscuits make me work energetically both at
home and at the work place the whole day. Parle G biscuits are always stocked at
my place for my kids who relish them happily and also for those demanding kid
guests when they come to my place. For my 8 year old son, these biscuits are a
constant favourite. Occasionally he switches over to some other brand, that is when

19
Success Story of Parle-G
j
he sees some of his friends munching at school but then he is back at his old
favourite. And same is the case with my 18 months old daughter. She would come
to me pointing towards the jar where these biscuits are stocked. As a mother it's a
joy to see my children relishing them with joy. At times these biscuits keep away
my headaches because the sight of these biscuits lightens up the face of my little
one who would otherwise cry constantly for some thing or the other. My kids
require no reason or occasion to munch their favourite biscuits. But these biscuits
go very well with any age group. Its soft and sweet taste is preferred alike by
everybody. Moreover it is enriched with the nutritional value which makes it all the
more wanted. Above all it is very fair to the wallets too which is again an added
advantage. I recalled an incident that took place some time back. Once my husband
was down with fever for more than 15 days.The doctors as usual diagnosed
something else and gave him the wrong medication. This made him very weak. No
amount of lime juice or Glucon D packets could revive his energy. So to enlighten
his mood we went to our cousin's place where his cousin offered him Parle G and
suddenly he felt the change. What I was unable to do Parle G did..! Since then
Parle G is stocked at my place. And I have been a constant admirer of this brand
for some emotional reasons mentioned just above. Now going back to its history :
Parle began its production in 1939 even before India's independence. Today Parle
enjoys 40% of the total biscuit market and 15 % of the total confectionary market
in India. Besides Parle G, Parle offers Parle Monaco, Parle Krackjack varieties in
biscuits and in confectionary items it offers melody, kismi, poppins and mangobite.
: The Parle brands have been constantly honoured internationally with the awards
at the Monde Selection. (courtesy www.parleproducts.com ) The ingredients used
to prepare the Parle G biscuits are Wheat Flour, Sugar, Edible Vegetable Oils,
Invert Syrup, Skimmed Milk Powder, Salt, Leavening Agents, Permitted
Emulsifier, Flavours and Dough Conditioners. Very rightly described as "SWAD
SE BHARA, SWASTHYA SE BHARA" means full with taste, full with health ".

Parle – The world of Happiness.

20
Success Story of Parle-G
j
Parle Awards:-

Almost all of our products


are market leaders and as
recognition of their quality,
have won us 111 gold, 26
silver and 4 bronze
Monde Selection medals
since 1971.

Parle products have been shining with the golds and silvers consistently at the
Monde Selection ever since they were first entered in 1971. Monde Selection is an
international institute for assessing the quality of foods and is currently the oldest
and most representative organization in the field of selecting quality foods
worldwide.

21
Success Story of Parle-G
j
Parle Products Pvt. Ltd. Is a US $ 450 million conglomerate started in India in
1929. We are in the business of manufacturing and marketing biscuits and
confectionaries.

We have State-of-the-art machinery with automatic printing and packaging


facilities. Our biscuit baking oven is the largest of its type in Asia.

Over the decades the efforts of our Research & Development wing have made the
repertoire of our products grow manifold. In biscuits we have Glucose, Milk, sweet
and salted cream, wafer crème, cumin seed and cheese categories.

In confectionery, we have a range of toffees and hard-boiled candies available in


chocolate, mint, cola, and tropical fruit flavors. Some of these are double layered
toffees and center filled candies packed in rolls or pillow packs, or have single or
double twist wrapping.

Almost all of our products are market leaders in their category and as recognition
of their quality, have won Gold, Silver and Bronze Monde Selection medals since
1971.

Parle enjoys a 40% share of the total biscuit market and a 15% share of the total
confectionary market, in India.

22
Success Story of Parle-G
j
VARIOUS UNIT OF COMPANY
There are five mother units and thirty-one contact manufacturing units in India.

The main difference between mother units and contact units is that mother units

produce more than one product that is PARLE G, MONACO, KRACK JACK,

SIXER, and HIDE AND SEEK etc. while contact unit manufacture only Parle-G.

Mother units are as follows:-

Mumbai (Maharashtra)

Bahadurgarh (Haryana)

Neemrana (Rajasthan)

Bangalore and Kolkata

IMPORTANT PEOPLE OF THE COMPANY:-

CHAIRPERSON : MR. VIJAY CHAUVAN

DIRECTOR : MR. ANUP CHAUVAN

EXECUTIVE DIRECTOR : MR. AJAY CHAUVAN

COMMERCIAL MANAGER : MR. AMOL

FACTORY MANAGER : MR. NIVATIA

PRODUCTION MANAGER : MR. RAJESH RAUL

STORE MANAGER : MR. DIXIT

23
Success Story of Parle-G
j
ORGANISATION STRUCTURE OF PARLE

CHAIRPERSON

EXECUTIVE DIRECTOR

PRODUCTION MANAGER PRODUCTION MANAGER

BISCUITS CONFECTIONERY

ENGINEER OFFICER
CHIEF ENGINEER

HRD

MANAGER
BISCUITS CONFECTIONERY PRINTING

PERSONEL
SUPERVISOR

ADMINISTRATOR

CHARGE HEAD

EMPLOYEE
EMPLOYEE

24
Success Story of Parle-G
j

Section II

INTRODUCTION of PARLE-G
It's a brand that has held its price line at Rs 4 for 25 years now -- the price was last
raised in 1994 by 25 paise. So, it's not for nothing that Parle-G is the world's
largest-selling biscuit by volumes.
Not that the company didn't try to raise prices to offset the overall hike in costs.
Three years ago it did so, but quickly rolled it back after volumes fell sharply and
consumers wrote to lodge their protest.
"We want to cater to the masses and have consciously tried not to increase the
price. Parle-G is available for Rs 50 a kg. There are very few food items that are
available for Rs 50-60 a kg," says Pravin Kulkarni, general manager (marketing),
Parle Products.
Parle is, of course, not doing it for charity. Soaring input prices meant it opted for
reducing the weight of the biscuit than increasing the price -- first from 100 gm to
92.5 gm in January 2008, and then to 88 gm in January this year -- in line with
other biscuit-makers and FMCG players.
Regular customers would have noticed the number of biscuits in a pack come
down from 16 to 15 even as each biscuit became lighter, but they seemed to

25
Success Story of Parle-G
j
understand the cost pressures on the firm. The gamble paid off: Parle was able to
sustain its volumes.
Strict cost control at every point in its supply chain also helped -- Parle entered into
forward contracts with suppliers, outsourced production, increased the number of
manufacturing locations to 60 and consolidated buying.
Raw material costs account for 60 per cent of the total costs in this segment and
packaging costs (plastic films) account for 20-25 per cent of this.
Nirmalaya Kumar, professor of marketing at London Business School, feels it's a
very smart strategy. "At this price point, price becomes more important than the
weight of the biscuit. It's very interesting and similar to the dollar stores in the
US," he says.
But price is not its only USP.
What makes the Parle G brand tick is also that it has been positioned on the health
platform (a single pack of biscuit offers 450 calories). Its earlier punchline was
Parle-G: swadh bhare, shakti bhare (full of taste and energy). Currently, the brand
uses two punchlines. Parle-G: G for Genius and Hindustan ki Taakat (the country's
strength).
The brand, says Kulkarni, meets different needs of customers: calories (energy),
nutrition and value-for-money -- enough reasons why Parle-G enjoys close to 70
per cent market share in the glucose biscuit category and probably has the deepest
reach.
It reaches 2.5 million outlets, including villages with a population of 500 people,
on a par with Unilever's Lifebuoy, ITC's cigarettes or mobile pre-paid cards.
It's also one of the few FMCG brands in the country, whose customers straddle
across income segments.
The brand is estimated to be worth over Rs 2,000 crore (Rs 20 billion), and
contributes more than 50 per cent of the company's turnover (Parle Products is an
unlisted company and its executives are not comfortable disclosing exact
numbers). Last fiscal, Parle had sales of Rs 3,500 crore (Rs 35 billion).
Competition has, of course, been trying to wean away customers from Parle.
Britannia re-launched its Glucose-D biscuit as Tiger in 1995 and boasts of 17-18
per cent share, while ITC's Sunfeast glucose has captured 8-9 per cent, according
to industry sources.
26
Success Story of Parle-G
j
Even Levers had forayed into this segment in 2003 and launched a glucose biscuit
branded as Modern, after it acquired the bakery business of Modern. There are
strong regional brands, including Priya Gold (west), Cremica (north) and Anmol
(east).
But they still have their work cut out.
Nirmalaya Kumar feels the Parle-G story is so fascinating that it deserves to be a
case study. What would be interesting to see is whether it will be able to retain its
leadership in the coming years as income grows in the hinterlands and consumers
upgrade and develop new tastes

Parle Products has been India's largest manufacturer of biscuits and confectionery,
for almost 80 years. Makers of the world's largest selling biscuit, Parle-G, and a
host of other very popular brands, the Parle name symbolizes quality, nutrition and
great taste. With a reach spanning even the remotest villages of India , the
company has definitely come a very long way since its inception.

Many of the Parle products - biscuits or confectioneries, are market leaders in their
category and have won acclaim at the Monde Selection, since 1971. With a 40%
share of the total biscuit market and a 15% share of the total confectionary market
in India , Parle has grown to become a multi-million dollar company. While to
consumers it's a beacon of faith and trust, competitors look upon Parle as an
example of marketing brilliance.

For over 65 years, Parle G has been a part of the lives of every Indian. From the
snow capped mountains in the north to the sultry towns in the south, from frenetic
cities to laid back villages, Parle G has nourished, strengthened and delighted
millions.

Filled with the goodness of milk and wheat, Parle G is not just a treat for the taste
buds, but a source of strength for both body and mind. Tear over a packet of Parle
G to experience what has nourished Generations of Indians since last sixty five
years, making it truly Hindustan Ki Taakat.

27
Success Story of Parle-G
j

Nutritious Parle- G Biscuits is the product of Parle Products Pvt. Ltd. The company
Parle Products Pvt. Ltd is the manufacturer of biscuits and confectionery. The
product Nutritious Parle- G Biscuits are tea- time snack and are considered to be an
important part of daily food. Nutritious Parle- G Biscuits cater to all tastes from
kids to senior citizens. Nutritious Parle- G Biscuits is prepared from milk and
wheat. Nutritious Parle- G Biscuits is a meal substitute and includes wheat flour,
sugar, partially hydrogenated edible vegetable oils, invert syrup, leavening agents,
salt, milk solids, emulsifiers and dough conditioners. Nutritious Parle- G Biscuits
also contains added flavors and Glucose, Levulose.

GLORIOUS HISTORY OF PARLE-G

Parle-G has been a strong household name across India. The great taste, high
nutrition, and the international quality, makes Parle-G a winner. No wonder, it's the
undisputed leader in the biscuit category for decades. Parle-G is consumed by
people of all ages, from the rich to the poor, living in cities & in villages. While
some have it for breakfast, for others it is a complete wholesome meal. For some
it's the best accompaniment for chai, while for some it's a way of getting charged
whenever they are low on energy. Because of this, Parle-G is the world's largest
selling brand of biscuits.

Launched in the year 1939, it was one of the first brands of Parle Products. It
was called Parle Glucose Biscuits mainly to cue that it was a glucose biscuit. It was
manufactured at the Mumbai factory, Vile Parle and sold in units of half and
quarter pound packs.

28
Success Story of Parle-G
j
The incredible demand led Parle to introduce the brand in special branded
packs and in larger festive tin packs. By the year 1949, Parle Glucose biscuits were
available not just in Mumbai but also across the state. It was also sold in parts of
North India. The early 50s produced over 150 tones of biscuits produced in the
Mumbai factory. Looking at the success of Parle-G, a lot of other me-too brands
were introduced in the market. And these brands had names that were similar to
Parle Glucose Biscuits so that if not by anything else, the consumer would err in
picking the brand. This forced Parle to change the name from Parle Glucose
Biscuits to Parle-G.

Originally packed in the wax paper pack, today it is available in a


contemporary, premium BOPP pack with attractive side fins. The new airtight pack
helps to keep the biscuits fresh and tastier for a longer period.

Parle-G was the only biscuit brand that was always in short supply. It was
heading towards becoming an all-time great brand of biscuit. Parle-G started being
advertised in the 80's. It was advertised mainly through press ads. The
communication spoke about the basic benefits of energy and nutrition. In 1989,
Parle-G released its Dadaji commercial, which went on to become one of the most
popular commercials for Parle-G. The commercial was run for a period of 6 years.

Parle-G grew bigger by the minute. Be it the packs sold, the areas covered or
the number of consumers. It became a part of the daily lives of many Indians. It
wasn't a biscuit any more. It had become an icon. The next level of communication
associated the brand with the positive values of life like honesty, sharing and
caring.

29
Success Story of Parle-G
j
In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero,
Shaktimaan that went on to become a huge success. The personality of the
superhero matched the overall superb benefits of the brand. Parle extended this
association with Shaktimaan and gave away a lot of merchandise of Shaktimaan,
which was supported by POS and press communication. The children just could
not get enough of Parle-G and Shaktimaan.

In the year 2002, it was decided to bring the brand closer to the child who is
a major consumer. A national level promo - `Parle-G Mera Sapna Sach Hoga' was
run for a period of 6 months. The promo was all about fulfilling the dreams of
children. There were over 5 lakh responses and of that, over 300 dreams were
fulfilled.

Dreams that were fulfilled ranged from trips to Disneyland at Paris &
Singapore; free ride on a chartered plane; 20 scholarships worth Rs 50,000; a
special cricket coaching etc.

The year 2002 will go down as a special year in Parle-G's advertising history. A

year that saw the birth of G-Man - a new ambassador for Parle-G. Not just a hero

but also a super-hero that saves the entire world, especially children from all the

evil forces. A campaign that is not just new to the audiences but one that involves a

completely new way of execution that is loved by children all over the world –

Animation

To make the brand much more interesting and exciting with children, it was
decided to launch a premium version of Parle-G called Parle-G Magix in the year
2002. Parle-G Magix is available in two exciting tastes - ‘Cocoh’ and ‘Cashew’.

30
Success Story of Parle-G
j
The year 2002 also witnessed the launch of Parle-G Milk Shakti, which has the
nourishing combination of milk and honey, especially launched for the southern
market.

Parle-G continues to climb the stairs of success. Take a look at the global
market where it is being exported. First came the Middle East then USA followed
by Africa and then Australia. An Indian brand, that's exported to almost all parts of
the world. After all that's what you would expect from the Parle-G World's Largest
Selling Biscuit.

SUCCESS STORY OF PARLE-G


Story on How They Won Customers:-

Many years ago, Shailendra Saraf was a biscuit salesman in Bombay. At his heart,
he is still a salesman, and he will continue to remain so. He has several reasons to
be a proud salesman, though he never allowed pride to come between him and his
job. The company Shailendra worked for was neither number one nor number two
in biscuit trade. Back then we did not know it was FMCG. The term ‘Brand’ wasn’t
in our horizon either. I do not remember being familiar with these in those days.
Today even school children know- “Which one is the leading Brand in what
category.” Just like Shailendra, we also liked to believe that he worked for a
company which was number three in the trade.

His territory was between Bandra and Andheri. Vile Parle, a station between
Bandra and Andheri is home to the number one biscuit Brand. Yes, you got it right,
“Parle G”. If you ever traveled by a local train in that section, you could smell the
rich aroma of Parle G biscuits when the train halted at Vile Parle station. It is well
known that ‘Olfaction’, the sense of smell, has an over riding influence in shaping
consumer behavior. And this accidental and occasional encounter people had with

31
Success Story of Parle-G
j
aroma at Vile Parle was deeply engraved in their minds. Consumers would rather
have a brand they had already smelt than to try some thing entirely unknown.

Against such odds Shailendra did his work. His customers were mainly grocery
store owners. He was required to visit at least 50 customers before calling it a day.
Each morning he would submit his report and orders received on the previous
working day. Before leaving for the field he would obtain, from his boss, special
instructions for the day, which among other things included a stereotyped quipping
“TARGET!” and the look (on boss’s face) that went with it. Though he fulfilled his
target each month but had this nagging feeling that next month he may fail.

One late afternoon when he was doing the Khar-Danda beat, he walked into a
store that was empty of customers and the owner had a painful expression on the
face. He struck a conversation with the shopkeeper and came to know that poor-
rich soul has been standing since six o’clock in the morning and was cursing
himself for being in such a vocation. Shailendra did his best to pacify the guy
before he walked out without asking for an order. He also carried with him the
guilt of not doing his duty, ‘asking for the order.’

He kept on debating in his mind, if he had done the right thing. As a result of this
the whole episode remained fresh in his mind till late that evening. It was at the
bed time he had this flash, “If this guy is at work at 6 am so will be other
shopkeepers. Why don’t I try to meet these people when they are fresh in the
morning?” Next day he got up at 5 am and was in field by 6 am. He could finish all
his calls by 10 am and reached office half an hour too late. Boss was angry, but
Shailendra had two day’s reports and orders with him. The orders looked good. If
the boss suspected some thing, he kept his suspicion to himself and decided to do
back checking himself. In a few weeks time Shailendra’s order book seemed
comfortable and he was now more confident about keeping his job even for the
next few months.

Future had more exciting things in store for Shailendra and he didn’t have any
idea about those. One day the same Khar-Dandha shop keeper wanted to talk to
him in confidence. By now the shopkeeper had figured out that Shailendra has
changed his routine as a result of the conversation they previously had. He told
Shailendra, “I know you are working so hard and proper, but your boss has some

32
Success Story of Parle-G
j
other plans for you. He has been back checking you and is going around the beat
like a mad man. He wants to frame you up into some thing. Tell me if you have
been fulfilling your target or not.” Then without waiting for an answer, he went on
to say, “I have made a plan to silence your boss for ever. Can you meet me this
Friday night for a few drinks? Of course it’s on me.”

That Friday night Shailendra was in for a bigger surprise. This shopkeeper had a
friend who was a supplier for the out going ships from the Bombay Port. Each
Friday he would order supplies required for next week’s sea faring vessels.
Shopkeeper's friend gave him his card and asked him to meet next Friday. From the
shopkeeper’s friend, next Friday, Shailendra received an order far in excess of his
monthly target. Shailendra was asked to come back again next Friday, and this
routine went on for several years even after Shailendra left that company.

How Parle Fought to Make Biscuit Affordable to All:-

Biscuits were very much a luxury food in India, when Parle began production in
1939. Apart from Glucose and Monaco biscuits, Parle did offer a wide variety of
brands. However, during the Second World War, all domestic biscuit production
was diverted to assist the Indian soldiers in India and the Far East. Apart from this,
the shortage of wheat in those days, made Parle decide to concentrate on the more
popular brands, so that people could enjoy the price benefits.

Thankfully today, there's no dearth of ingredients and the demand for more
premium brands is on the rise. That's why; they now have a wide range of biscuits
and mouthwatering confectionaries to offer.

33
Success Story of Parle-G
j

INGREDIENTS

There are mainly 6 ingredients in Parle – G glucose biscuits.

1) Wheat Flour.
2) Sugar.
3) Vegetables Oil.
4) Milk Powder.
5) Salt.
6) Flavor.

These materials make the glucose Biscuits tasty & eatable. And
following material makes it healthy & increases the quality of a product.

1) Partially Hydrogenated Edible.


2) Invert Syrup.
34
Success Story of Parle-G
j
3) Iron.
4) Calcium.
5) Dough Conditioners.
6) Baking Soda.

The raw material is mixed in certain proportion, to get the best quality of biscuits.
All the ingredients are tested in laboratory so that no low quality of raw material is
used in manufacturing process. The raw material is tested for their acidic value,
moisture it contains, and quality of milk powder.

MANUFACTURING PROCESS FLOW CHART

RAW MATERIAL TESTING

MIXING

MOULDING

BAKING

COOLING
35
Success Story of Parle-G
j

PACKING

A Secret Recipe (Actual Process):-

The production process of company is running continuously for 24 hours.


The factory is divided into 3 sections. First section is domestic product section. In
this section they are manufacturing only those goods, which is sale within the
boundary of country.

Second section is Export goods where only exported biscuits are made. The
process and the quality of products are same as Domestic product. Size and
packing process is different from domestic biscuits. Exporter biscuits are smaller as
compare to domestic biscuits.

Third section is of yummy tasty cream biscuits. They are also manufacturing
cream biscuits. This section is fully air-conditioned. They process of manu.

Actual process of production is divided into 5 steps. Following are the steps
of production process.

Checking Of Raw Material:-

36
Success Story of Parle-G
j

Before the starting to the actual process of making biscuits all raw material are

checked in laboratory if the quality of raw material is not good then they return

those raw material.

Mixing Of Ingredients: -

After the checking of raw material raw material are go for mixture. In mixing
department 3 big mixers are working known as Steven Mixers. These mixers
mix the all raw material in their appropriate ratio. Each mixer has capacity of
500 kg mixing at a time.

37
Success Story of Parle-G
j
Moulding Section: -

In moulding section the ready mixture go from one big machine. This machine

cut this mixture in a perfect size & shape of glucose biscuits. And stamp on that

biscuits as Parle-G.

Baking Section: -

In baking section biscuits are go from one big oven. These ovens are
categorized in eight parts. Parle agro has the biggest oven in Asia.

Cooling: -
After the process of baking the biscuits are very hot it should be cool before
packing. For cooling, biscuit rolled through conveyer belt.

Packing: -
Ready biscuits are sent for packing in packing section.

Open Rapper & Eat (Packing Process):-

Packing process of Parle-G biscuits is different for both Domestic products


and Export goods. Packing process of product is fully automatic. There are 10
38
Success Story of Parle-G
j
machines are setup for packing biscuits quantity wise like 200g, 1.5 kg etc. Out of
10 machines two machines are not convertible for packing different type of goods.
These two machines are made only for Family pack.

For export goods they are using special Aluminum foil pack because it
should be preserved for more than one year. The size of biscuits is small.

For cream biscuits, packing department is fully air-conditioned. Packing of


cream biscuits is done by quantity wise.

39
Success Story of Parle-G
j

PROCESS LAYOUT

STEPHAN MIXER

MOULDING OVEN

CURVE
PLATE
COOLING
CONVEYOR
CURVE
PLATE

STALKING TABLE MULTIPACK


MACHINE

BOX SEALING
TAPPING MACHINE
DIVERSION
BELT

CONVEYOR
BELT

DISPATCH 40
SECTION
Success Story of Parle-G
j

PROCESS LAYOUT OF PARLE PRODUCTS LTD.

First of all the parle products buys RAW MATERIAL from the various
suppliers and stored into the store room. This raw material is then sent to
laboratory for testing and after testing only it is used for manufacturing. The raw
material consist of Wheat flour, Sugar, Partially hydrogenated edible vegetable
oils, Invert syrup, Leavening agents (503 Baking powder) Milk, solids Salt
Emulsifiers (E 322 or E 471 or E 481) and Dough conditioners (E 223).

Such a mixture of raw material is taken and mixed into STEPHAN


MIXTURE, which is high power mixture machine. Specially made for mixture of
dough, from which the mixture is passed to molder called ROTARY MOULDER.
Through that moulder approximately 10,000 come out in a minute. Moulder had
260 cups fitted in it which gives shape to the biscuits and an impression embossed
on it of parle-g.

From rotary moulder the dough is passed through a 260 feet long OVEN
which is approximately 340* c. In oven there are three stages to be followed

 Removal of moisture.
 Building the structure of biscuits.
 Colourings of biscuits take place.

41
Success Story of Parle-G
j

From oven the hot biscuits are placed on the COOLING CONVYOR,
which is 260 feet long and the biscuits continues to run on it for 5 to 7 minutes so
that the biscuits become cool and all the moisture that biscuits contain gets
evaporated. And because of the above reason the factory has

“ S - FLOW LAYOUT ” in the factory.

The conveyor continues to move to COUNTING UNIT where biscuits are


counted and seen that it is going on properly or not.

The conveyor continues till the biscuits reach the STALKING TABLE at
which the biscuits are packed in very orderly manner.

From cooling conveyor sum biscuits are diverted through AUTO


FEEDING MACHINE to another stalking machine where packing is done.

From stalking table the biscuits are moved on conveyor to MULTI PACK
WRAPPING MACHINE were 16 biscuits are packed into a regular parle g
wrapper so that the weight of 16 biscuits comes up to 100 grams.

Then 24 packets of parle g biscuits are packed into a POLY BAG

And after packing it into poly bag it is sent to SEALING MACHINE where it is
sealed,

Then it is sent to CORRUGATE BOX SECTION in which 6 poly bags are


placed and

Then the boxes are kept on conveyor and sent to DISPATCH SECTION
from were the biscuits are sent to various places in India and all over the world.
42
Success Story of Parle-G
j

INVENTORY

The inventory of the company that is the raw material is of a week. They
store such inventory in storeroom and then are sent for testing in laboratory and
after testing it is sent for production.

SHIFTS

There is nearly 10,000 employees working in the company and are working
in three shifts.35,000 tones of biscuits are manufactured in a day of one particular
product, and there are such nine product manufactured in the factory.

WASTAGES

There are two type of wastage in factory. First is the waste materials fallen
on ground. Such waste material is of 1%, which is marginal and acceptable, which
goes into total waste. Second types of waste are the biscuit collected in tray of the
multi-pack wrapping machine, since these biscuit are broken they are not packed
and sold to the customer but collected in other tray and sold as broken pieces and
sold for less price for cattle feeding.

LOOSE BISCUIT

On the stalking table one to two rows of baked biscuits are kept aside for
selling it as loose biscuits. They are normally assumed to be damaged biscuits but
they are not damaged or broken but company keep such loose packets of biscuits
to sell it to the local people for marginal rate of Rs. 33 / kg.

43
Success Story of Parle-G
j

FOLLOWING ARE THE MACHINERY USED IN MANUFACTURING

STEPHEN MIXER:-

The Stephan TK Mixer is an ideal component to fully automatically feed the


down-stream make-up equipment for biscuits, bread, rolls, buns, cake, sweet
goods, cookies and crackers.

The advantages are compelling:

 High volume output results from the short kneading time and fast ingredient
charging: 1000 kg/h to 6000 kg/h depending on the model.
 Totally unassisted automatic discharge combines with predefining of the dough
into approximately 15 kg. Pieces, is the basis for a fully automatic operation
without the need for any full-time operator.

 Dosing of flour, water, yeast, salt, shortening and other nutrients.

 In a few seconds, all ingredients are homogeneously mixed. Then, as the dough
begins to develop, the Stephan energy meter control will ensure each dough is
finished to the same development.

 The Stephen Mixer is Most EconomicalWith: No-Time dough formula straight


liquid both (yeast slurry) system flour fermented liquid sponge system.

 From batch to batch, the doughs will be consistently uniform: "Process Control"

 Compact construction, no building preparation necessary, almost service-free


day-to-day operation.

44
Success Story of Parle-G
j
 The direct drive design allows the kneading element to be fastened directly onto
motor shaft. There is no coupling or power transmission.

 Easy to clean.

 Only solid stainless steel construction.

 Quiet operation, less vibration.

Count on a better result. In these competitive times, good kneading is not


enough. For a profitable operation, you need a short process time and an exact
control on input energy, which allows you to mix each dough to the same
development curve.

A short amortization of the capital investment occurs due to an increase in


productivity - more finished product from same amount of flour - and due to a
perception of better quality in the areas of longer shelf life, "a delicate crumb",
softer crumb structure, higher volume and increased flavor.

The process control is simple and reliable. The processes of ingredient


loading, mixing and dough discharge are controlled by each program.
Depending on the ingredient loading system design, the recipe change needs no
change of program. However, if the dosing system cannot be adjusted
independently, then a different program can be used for each recipe. The
ingredient loading system should be designed to allow each scaled ingredient to
be weighed during the mixing time of each previous batch. With this pre-scaling
or staging of ingredients, all ingredients are ready to be charged at the same
time. This system design will save time and thereby increase output. This
control system would operate the entire loading, batching, mixing, discharging

45
Success Story of Parle-G
j
and dough conveying system. This would include the logic for accurate scaling
of ingredients.

Here's how the Stephan Mixer works:-

The operation can be divided into four phases: loading, mixing, kneading
and discharging. After loading the mixer with all ingredients, the mixing process
starts.

The unique shape of the mixing/kneading tool, combined with the mixing
baffle, produces a very homogeneous mix. The combination of the mixing tool
allows for the optimum hydration of the flour. Due to this intensive hydration, a
higher yield is possible in the range of 1.5-3% depending on the type of dough.
This complete development leads to a delicate crumb and an extremely machine
able dough. Using a special attachment, the Stephan Mixer can knead the dough’s
under a vacuum, if it is desired to have a super fine pore structure like American or
English white pan bread.

Stephan Mixers are powerful and versatile:-

The Stephen Mixer feeds automatic make-up equipment totally


automatically. Quality improvement and automatic batching are the main
advantages of Stephen Mixer.

46
Success Story of Parle-G
j
Biscuits and rolls will have bigger volumes, more uniform texture and a
more tender and delicate crumb.

The Stephan Mixer is also used efficiently in the cookie and cracker industry
for products such as:-
Biscuits
Bread sticks
Soda crackers
Rotary cookies
Wire-cut cookies

With only two different mixing and kneading tools, all of the above
described products can be produced.

STEPHAN MIXER

47
Success Story of Parle-G
j

ROTARY MOULD

ROTARY
MOULD:-

 structure in
corrosion-
proof;
anodised aluminum
and Aisi 304 stainless steel
 satin stainless steel panelling

48
Success Story of Parle-G
j
 swivel wheels and
support feet

 trays loader with automatic chain feed

 feeder roller anodised aluminium

 presser roller in White rubber

 bronze moulder roller with quick change system

 scraper blade in stainless steel

 pressure adjustment of rubber roller on moulder


roller

 scraper blade adjustment

 closed ring outlet belt with tension and centering


adjustment

 belt cleaner blade with extractable drawer

 product outlet with power driven roller

 1.00 kW speed variator

COOLING CONVEYOR

49
Success Story of Parle-G
j

COOLING CONVEYOR:-

The biscuit coming from stripping conveyor is directed on to the cooling


conveyor to transfer the heat in the biscuit to atmospheric air as it is passing on it.
The total travel of the cooling conveyor is 1.5 times the oven length. As per need
specifications it need the travel of 150 ft. for effecting cooling. Cooling conveyor
is made in a modular construction of 2.5 Meters. Long and connected together to
form the required length. The supporting side channels are fabricated from 3mm
thick M.S. sheet.

Idle rollers are spaced at 750mm apart on conveying direction and 1700mm
on the return direction. All the idle rollers are of 48mm dia, mounted on 6004 ZZ
deep groove ball bearings with grinding finish and hard chrome plated for hygienic
conditions.

During the production practically about the droppings of oil from the cloth
due to rubbing of cloth against tie angles when producing high fat biscuits. To
minimize this is replaced the all tie angles also with idle rollers. This might costs
little extra, but you can maintain hygienic conditions at working area.

50
Success Story of Parle-G
j
Drive drums are two no’s. of 220mm dia and projections are made on the
surface of drums to minimize slip or covered with friction grip rubber tape. Manual
tensioning and tracking are provided.

You can rely only on feeder table to stack the oil sprayed biscuits, which
does not require more travel after oil spraying.

LAMINATOR:-

Laminators are generally used for production of all kinds of hard biscuits,
crackers and cocktail snacks. With laminator it is possible to create a puffy pastry-
like structure, which is of decisive importance for the quality level and
consequently for the sales success. Laminating of Dough band improves the
weight/volume ratio considerably i.e., quantity increase at same weight.

In this superior functioning machine the dough band received from sheeter
of 838mm width is passed through two shuttles. The dough sheet is cut into pieces
by a knife for a length of 1000mm (39") and these pieces are laid on bottom shuttle
by top shuttle. This bottom shuttle layers the pieces on first conveyor unit of
1000mm (39") wide production line very carefully. The first conveyor unit feeds to
the first gauge roll unit. No. of layers can be controlled by the speed of first
conveyor unit or increasing the speed of sheeting unit and laminator by A.C.
variable frequency drive.

BISCUIT BAKING OVEN:-

Construction:
51
Success Story of Parle-G
j
The oven body consists of steel steam tight tunnel with equally divided
zones of the radiators. Stainless steel expansion joints are provided between these
zones in order to eliminate the expansion of the oven section. The inspection doors
are provided for inspection of the baking goods during the process. And it is 260
feet long.

Firing Chambers:

The complete chamber are insulated with minerwoll filled from outside to
conserve heat and increase efficiency. The fully automatic imported burner shall be
fitted to the chamber and automatic temperature controller on the control panel
shall control the temperature.

Insulation:

The complete oven will be covered with 10" thick mineral wool insulation
from top, bottom and the sides. The bottom portion of the oven at the sides will be
covered with CRC sheets for the conveyor protection and to avoid heat loss.

Baking System:

The baking in the heating chamber takes place by radiators located under
and above the wire mesh band, which distribute heat for uniform baking. The
recirculation heating gases of these radiators can be controlled for each zone
separately. The closed recirculation system is having slight vacuum so that
combustion gases cannot enter into the baking chamber. The ventilating fan is for
circulation of the heating gases through the recirculation system and
thermostatically controlled burners provide the set temperature of the heating
gases.

52
Success Story of Parle-G
j
Fans:-

All the circulating fans are fabricated from M.S. & S.S. and will be well
balanced to avoid vibration and will give noise free operation in high speeds

ROTARY CUTTER:-

The single head rotary cutter prints fine design on a continuously fed dough
sheet and also cuts out the individual dough piece.

The unit powered by 1.5KW helical geared motor and speed controlled by
AC frequency controller. Drive is given to cutting roller only to accommodate
different sizes of dies in this machine.

Rubber lined anvil roller is adjustable in height so that pressure can be


controlled at both sides in parallel or independently. The anvil roll is being driven
by friction of the cutting web, which is independently powered by its own separate
drive. For safety reasons the cutting roll is provided with guard, removal of which
stops the motor.

COUNTING UNIT:-

The counting unit counts and see that the biscuit making process is going fine or
not, i.e. as per the program set in the machine, program is set as per the grams
required. Generally the counting unit takes 16 biscuits so that it leads to 100 grams.

SUGAR GRINDER:-

Turbulence System and Steam Extraction:

53
Success Story of Parle-G
j
APPLICATION: The machine is used to granule (crystal) sugar to make it in
powder form for using in biscuit recipe.

DESIGN: Hammer Mill type, body of the machine is fitted on a sheet metal
box/container/receiver with one air exhaust balloon. The driving motor is fitted on
the top of the box. In case of auto feeding a bucket elevator is fitted at one end of
the box.

OUTPUT: 10 Kg/min. (icing sugar)

FEEDING: Automatic

POWER LOAD: 5 HP for grinder, 1 HP for auto feeder with built-in control
panel

MULTIPACK WRAPPING MACHINE:-

This machine helps in wrapping the biscuits on the particular wrapper fixed
on the roller of the machine. The wrapper is feed into the machine and four-heater
roller, which is fitted on the machine, does the sealing of the wrapper. This heater
roller heat up the plastic and seals the packet. And at the same time the jaw cutter
cut the packet on the cutting edge marked i.e. as per the grams of the packet, which
is feed, in the automatic machine (100 – 120, 120 – 150, 150 -170, 170 - 190). The

54
Success Story of Parle-G
j
packets coming out from the wrapping machine in a minute is programmed in
computer and can be changed as per the need.

POLY BAGS:-

Poly bags contain 24 packets of parle g biscuits in one poly bag. There are 4
workers employed on this section who take care of the work by putting 24 packets
of biscuits in the bag and forwarding it to sealing machine section.

SEALING MACHINE:-

The sealing machine has heater rod for sealing the poly bag in which 24
packet of biscuit are placed, and it have a conveyer belt on other side so that when
the poly bag passes through the heater and get sealed then it is passed to the
tapping machine.

TAPPING MACHINE :-

Six such poly bags are placed in one such corrugated box and the box is
passed through the tapping machine where are tapped and then sent through a long
diversion conveyer belt. This belt helps to transfer the box to the dispatch section
directly. 36 boxes are arranged on pallet in the dispatch section, from where they
are transferred to the various dealers all over the India and worldwide.

55
Success Story of Parle-G
j
MACHINERY USED IN MAINTENANCE OF MAJOR MACHINERY

Laphe

Drilling machine

Shaper

Miller

Pantograph and many more.

USE OF COST CUTTING MEASURES:-

For example:

All the biscuits are manufactured in this factory i.e. In Mumbai one as the
load of work exceeded many factories were set up in other states of India. So the
cost of transportation decreases and more profit is earned.

Another example is of “Hide and Seek” one of the products of the company,
for which they used to import chocolate chips from Australia but later when it was
available in Chennai so the import was stopped and the cost dropped by a rupee
because the duty which was on the import was high and then another supplier was
found in Hyderabad and the price was again reduced by a rupee which finally
ended up at 14 rupees.

MARKETING STRATEGY

Parle G largest selling biscuit brand in world:-

56
Success Story of Parle-G
j
If you thought that a typical family run Indian company cannot top the worldwide
charts, think again. The homegrown biscuit brand, Parle G, has proved the belief
wrong by becoming the largest selling biscuit brand in the world.

Ajay Chauhan, executive director of Parle Products, told Business Standard: "The
more than 50-year-old brand, Parle G, has been rated as the largest selling glucose
biscuit brand in the whole world in terms of volumes. This came as a surprise to us
when we were made to understand that we have topped the worldwide charts of the
global biscuits industry. This was recently revealed by the US based Bakery
Manufacturers' Association."

The other global biscuit brands include Oreo from Nabisco and McVities from
UK-based United Biscuits among others. According to ORG-MARG reports, Parle
G commands a good 65 per cent market share in the domestic biscuit market. The
glucose biscuits category in India is estimated at Rs 15 billion. The Parle G brand
faces competition from Britannia's Tiger brand of biscuits.

The company's flagship brand, Parle G, contributes more than 50 per cent to the
company's total turnover. The other biscuits in the Parle Products' basket includes
Monaco, Krack Jack, Marie, Hide n Seek, Cheeslings, Jeffs, Sixer and Fun Centre.
Said Chauhan: "The core brands of the company in the biscuit category will
include only Parle G, Monaco and Krack Jack. The other brands will not be
aggressively supported by us in the market."

"This is because these three brands contribute substantially to our topline,"


Chauhan added.

The confectionery business, which is the other division of Parle Products, currently
contributes only 15 per cent to the company's total turnover. Interestingly, the
company started operations with the confectionery business in 1929.

Chauhan elucidated: "The confectionery business has now taken a backseat and
has become a smaller part of our business because in India biscuits have a larger
market."

The company commands a 40 per cent marketshare in the Rs 35 billion biscuit


market in India. In the confectionery segment, the company enjoys a mere 15 per
cent marketshare.

The company's confectionery portfolio comprises brands like Melody 2 in 1,


MangoBite, Poppins, Rol-a-cola, Kismi, Rosemint, Peppermint, Orange candy,
57
Success Story of Parle-G
j
Fruit Drops, Pick n Pack and Tangy. Chauhan has picked up three core brands from
this category as well, they being Melody 2 in 1, Poppins and MangoBite.

Hum Saath Saath Hai (Management of company): -

Management of company is Centralized i.e. they have only one purchase


department for different products.

Import-Export:-

The immense popularity of Parle products in India was always a challenge to our
production capacity. Now, using more modern techniques for capacity expansion,
we have begun spreading our wings and are going global.

Parle biscuits and confectionaries are fast gaining acceptance in international


markets, such as, Middle East, Africa, South East Asia and the more
sophisticated economies like U.S.A., UK, Canada, Australia and New Zealand
now relish Parle products.

As part of the efforts towards a larger share of the global market, Parle has initiated
the process of getting ISO 9000 certification.

58
Success Story of Parle-G
j

The Parle name symbolizes quality, health and great taste. And yet, we know that
constantly innovating and catering to new tastes have built this reputation. This can
be seen from the success of its new brands such as Hide & Seek, Mangobite etc.

Today, the Parle brands have found their way into the hearts and homes of people
all over India & abroad.

The Parle Biscuit brands, such as, Parle-G, Monaco, Krackjack, Marie Choice,
Hide & Seek and confectionery brands, such as, Melody, Poppins, Rolacola,
Mangobite enjoy a strong imagery and appeal amongst consumers across the
world.

Which has resulted into Parle-G being the “worlds largest selling biscuit".

Promotion Strategies

1. GOLU GALATA

59
Success Story of Parle-G
j
Parle Products is in the business of manufacturing and marketing biscuits and
confectioneries since 1929. Over these years Parle has been active across regions
conducting various social activities as part of our Corporate Social Responsibility
policy. In Tamil Nadu, traditionally, women decorate various dolls made of clay
during Navaratri celebrations by setting up 7-9 steps. This display is well decorated
and friends and relatives are invited to witness the same. Through a detailed
research, Parle found that due to time pressures, this tradition is slowly dying and
is getting restricted to a select few households.

Thus, to revive the fading event, Parle introduced this novel promotion called Parle
Golu Galata contest. Golu means Doll & Galata means Dhammal.

2. Parle Saraswati Vandana:-

Dedicated to enriching the lives of people across India, the Parle Centre of
Excellence has been keenly involved with promoting programmes to facilitate the
all-round development of children. Parle Saraswati Vandana, one of its initiatives,
is an inter-school contest based on the Saraswati Puja celebrations. It gives the
children an opportunity to exhibit their creative skills and makes the celebrations
even more special in the process. Started in the year 2002 in Kolkatta, it has seen a
tremendous increase in the number of schools participating each year, with entries
coming from schools of West Bengal.Every year a grand programme is organized
by Parle in Kolkotta to felicitate the winners. Here eminent personalities from the
field of literature, education, art, films, media and politics grace the occasion.
Performances by popular artistes make it a night to remember for every invitee
present there. The awards and adulation makes it unforgettable for the winners.

MATERIALS DEPARTMENT

60
Success Story of Parle-G
j
Safe Custody (Stores Management): -

Storage is an unavoidable activity. It increases the value of material by


simply carrying it. No transformation on any time is to be done. Stores as a vital
role to play in a Parle company. Material constitute major fraction of cost like 60%
to 80% of the total cost. The cost of capital block in inventories is substantial. This
working capital has to be properly managed otherwise company will face heavy
losses. Efficiency of storage of materials leads to better profitability. Material
pilferage, spoilage, theft and careless handling may lead to heavy losses & reduce
profits.

Store management has supposed to caring right kind of material in right


quantity. Neither in excess nor in short Material has to be provided quickly to right
person and at right place whenever required.

Store Management of Parle agro: -

In Parle company after receiving the material from supplier it should be


accounted properly. Material should standardized and calculate the proper quantity
as per documents.

Company stores the material in a right manner as per quality; preserve the
material properly against spoilage & pilferage.

Company removes the material when required. For removing the material
from storeroom facilitate location should be necessary.

They are using store ledger for keeping records. They are updating the
records on the right time.

They keep their storeroom clean & neat so the handling becomes easier.

61
Success Story of Parle-G
j
Company keeps proper control over theft, pilferage, and spoilage of goods.

In company the people in store department work in discipline. Procedure has


to be followed as per written policy.

Minimization of scrap, surplus and position through proper inventory control


and effective disposal of surplus and obsolete items.

Company verifies the store ledger balances and initiates the purchasing cycle
at appropriate time. So as to avoid the out of stock situations.

Company coordinates & cooperates with interacting departments such as


purchasing, manufacturing, planning, production and control, inspection etc.

Objectives of Material Department:-

The objectives of the Material Dept. are the pre defined goals or path under
which the material dept. will have to carry on its process regularly. In fact it gives a
direct to the material dept. in which way the material dept. increase their
reputation as well as How they can sale there products in the markets? After
consultation with the material manager of the company Mr. Vijay Singh we observe
that the company has following objectives to be fulfilled: -

 The primary objective of the company is to purchase the material at lower


cost.
 To maintain good relation ship with the suppliers, dealers, manufacturers,
distributors as well as with the outside people.
 To look after the proper keeping material in the dept. as per the standard
which are being set by parle.

62
Success Story of Parle-G
j
 Reduction in the wastages by the way of recycling or reutilization of the
best material.
 Development of personal by providing them up to date and sophisticated
knowledge regarding their work.
 To ensure quality of material being use and to make optimum utilization of
available resources.

The last but not least objective is to expand the market as well as to earn
goodwill in the market.

Waste Management:-

The company recycles the scrap materials arising out of manufacturing


process. The biscuit, which is being wrongly cutted out in manufacturing process
or the biscuit, which is broken from any side, or the biscuit, which is burned out
from manufacturing process, the company reuses these scrap material.

Inventory:-

The company has maintained adequate stoke of raw materials like wheat

flow, sugar, vanaspati, milk powder, refined salt, baking soda, calcium, & iron

which can satisfy the requirements of 3 days. Bunty Foods Pvt. Ltd; has 5 godowns

in which 2 godowns are for keeping Parle –G products & 3 godowns are for

keeping export items & 1 more godown which is under construction. These

63
Success Story of Parle-G
j
additional godowns will contain the re-export products. The company uses LIFO

method for calculating the inventory levels in the company.

Make or buy or import:-

Bunty Foods Pvt. Ltd believes in manufacturing of biscuits within the


company in order to ensure good quality, quantity & standard, which are being set
by Parle Company. In fact, Bunty Foods Pvt. Ltd is the manufacturing unit of
Parle Company. The purpose behind manufacturing of total product in the
company is to maintain the goodwill of the company.

FUTURE PROSPECTS
64
Success Story of Parle-G
j

Aaj Tak (Past, Present & Future Of Company): -

This is the first purely Indian company, which produces Biscuits, Toffees, and
candies etc. Naruttam Shah Chauhan formed this company in 1928. He was the
son of Mohanlal Dayalalji Chauhan who started the idea of manufacturing
process of parle-g biscuits when the ship sales to Germany. They have achieved
many numbers of awards & medals in National & International Marketing.

In 1929 first Parle industry was setup at Vile – Parle. After 10 years i.e. in
1939 they started the production of parle glucose biscuits. In 1949 they had
started the production of Monaco. After that they had started the production of
Krack Jack. Then they started production of different biscuits like Magix, Hide &
Sick, Cream biscuits in different flavors etc.

Now they have expanded their business perfectly. They have many numbers
of branches in India like Maharashtra, Bahadurgad, Delhi, Rajasthan, Bihar, Utter
Pradesh, Gujarat, Karnataka, Andhra Pradesh, and Tamilnadu. Now a days they are
producing more than 32 products. Their manpower is upto 10,000 members.

Currently the future plans are to tap international market more efficiently.

CONCLUSIONS

65
Success Story of Parle-G
j
PARLE-G is the world’s largest selling brand of Biscuits. Parle-G has a good
trick of tapping the consumers which many years ago Mr. Shailendra Saraf did.
Parle-G can be consumed by all age group and it is a favourite for many of them.
Parle-G has held its price line at Rs 4 for more than 25 years.
.

Launched in the year 1939, it was one of the first brands of Parle Products. It was
called Parle Glucose Biscuits mainly to cue that it was a glucose biscuit.

Par4le-G has so many features but its USP is health motive is a single pack i.e a
single pack of biscuit offers 450 calories. swadh bhare, shakti bhare (full of taste
and energy).

Parle-G uses healthy ingredients which if consumed provides 450 calories per
pack.

It has a very good Marketing Strategy that it caters even to smallest villages in
India. It is now concentrating in exports more.

Parle has a good Management Style that it can produce more and sell more.

The Materials Department of Parle is very efficient, the wastages are properly
reused, inventory is maintained of one week.

The Promotion Strategy used differs from time to time.

Waste Materials fallen on ground is total waste. Broken Biscuits are used for Cattle
Feeding.

There is nearly 10,000 employees working in the company and are working in
three shifts.35,000 tones of biscuits are manufactured in a day of one particular
product, and there are such nine product manufactured in the factory.

66
Success Story of Parle-G
j
BIBLIOGRAPHY

Books:-

1. Global Marketing.
–By Svend Hollensen.
4th edition. Apr 2007.

2. Brilliant Marketing.
-By Richard Hall. May 2009.

3. Marketing Communication.
–By Chris Fill.
5th edition. Feb 2009.

4. Fast Track to Success : Marketing.


-By Chris Ritchie. Apr 2009.

5. Marketing for Enterpreneurs.


-By Jurgen Wolff. Jul 2009.

6. Marketing Research.
- Debashish Pati.

7. Consumer Behaviour & Marketing Strategy.


–By Tata Mc Graw.

67
Success Story of Parle-G
j
7th edition. 2005.

8. Marketing Real People, Real Choice.


–By Michel R Sslomon.
3rd edition. 2005.

Web Bibliography:-

1. info@parleproducts.com

2. http://www.parleproducts.com/parlestory.html

3. http://www.parleproducts.com/contactus.html

APPENDIX

68
Success Story of Parle-G
j
QUESTIONNAIRE

Q.1) What is the Organisation Structure of the company?

Q.2) What are the products manufactured under your plant?

Q.3) Which is your Core product?

Q.4) Your Suppliers, whether they are closer or away from your factory?

Q.5) What % of material required for your products?

Q.6) Is there any separate storeroom in your plant?

Q.7) Is there any seasonal products?

Q.8) How do you get profit with very low cost?

Q.9) What is the strength of manpower in your plant?

Q.10) How Frequently you go for Market research?

Q.11) Which method you use for Inventory Control?

Q.12) What are your futures plans?

69

You might also like