PARLE: DISTRIBUTION, LOGISTICS, AND MANAGEMENT A REPORT

2011

ABOUT THE BISCUIT INDUSTRY

The Indian bakery industry is dominated by the small-scale sector with an estimated 50,000 small and medium-size producers, besides the 15 units in the organized sector. Apart from the nature of the Industry, which gravitates to the markets and caters to the local tastes, the industry is widely dispersed also due to the reservation policies (relating to the small scale industries) of the government. The two major bakery products, biscuits and bread, account for 82% of all bakery production. The unorganized sector accounts for about half of the total biscuit production estimated at 1.5 million tons. It also accounts for 85% of the total bread production and around 90% of the other bakery products estimated at 0.6 million tons. The last includes pastries, cakes, buns, and others. Biscuits are estimated to enjoy around 37% share by volume and 75% by value of the bakery industry. The organized sector caters to the medium and premium segments, which are relatively less price-sensitive. The organized sector is unable to compete at the lower price range due to the excise advantage enjoyed by the informal sector. The organized segment in biscuits has witnessed a steady growth of about 7.5%, conforming broadly to the growth rate of GDP. Bakery industry in India is the largest of the food industries with annual turnover of about Rs. 3000 Crores. The biscuits are becoming quite popular in rural areas as well. Nearly 55% of the biscuits are consumed by rural sectors.The biscuit industry in India comprises of organized and unorganized sectors. The FBMI represents the organized biscuit industry consisting of small scale, medium and large biscuit manufacturers located in all zones and all states of the country. The biscuit industry is been experiencing steady growth of 14-15% annually. In 2008, the growth exceeded 16% mark on account of exemption from Central Excise Duty on biscuits. The Industry estimates project a 17+% growth of the industry. The sentiments are sedate in lieu of the economic downturn that has hit the entire country. The FMCG sector on its part too is reeling under this slump.

INDIAN BISCUIT INDUSTRY ANNUAL GROWTH RATE(%)

18 17 16 15 14 12 10 8 6 4 2 0 2003-04 2004-05 2005-06 2006-07 2007-08 2208-09 2009-10 14 14 13 15 17

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PARLE: DISTRIBUTION, LOGISTICS, AND MANAGEMENT A REPORT

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Even today the Indian Biscuit Industry is dominated by the unorganized sector with a composite market share of 55%.

Indian Biscuit Industry as on 2009-10

ORGANIZED UNORGANIZED

Indian Biscuit Industry market share as on 2009-10 (in %)

PARLE BRITANIA PRIYAGOLD SUNFEAST OTHERS

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PARLE: DISTRIBUTION, LOGISTICS, AND MANAGEMENT A REPORT

2011

Major industry players

Organized Indian Biscuit Industry

PARLE: HISTORY AND MORE ABOUT PARLE

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.

HISTORY OF THE COMPANY

In 1929 a small company by the name of Parle products emerged in British dominated India. The intent was to spread joy and cheer to children and adults alike, all over the country with its sweets and candies. The company knew that it wouldnt be an easy task, but they decided to take the brave step. A small factory was set up in the suburbs of Mumbai, to manufacture sweets and toffees. A decade later it was upgraded to manufacture biscuits as well. Since then, the Parle name has grown in all directions, won international fame and has been sweetening people's lives all over India and abroad. Apart from the factories in Mumbai and Bangalore Parle is also in Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit and confectionery plants in the country. Additionally, Parle Products has 7 manufacturing units and 51 manufacturing units on contract.

PARLE BISCUITS
Parle biscuits are linked with factors of power and wisdom providing nutrition and strength. Parle biscuits are indeed much more than a tea- time snack, they are considered by many to be an important part of their daily food. Parle provides one and all with a basket of biscuits which is not only satisfying but are also of good and reliable quality. Parle biscuits cater to all tastes from kids to senior citizens. They have found their way into the Indian hearts and homes. Parle G is a source of strength

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PARLE: DISTRIBUTION, LOGISTICS, AND MANAGEMENT A REPORT

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for both body and mind due to the sumptuous amount of milk and wheat. It is the Largest selling Biscuit Brand in the world.

THE PRODUCTION UNITS OF PARLE

The company also has plans to setup operations in Assam and Andra Pradesh in the near future.

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PARLE: DISTRIBUTION, LOGISTICS, AND MANAGEMENT A REPORT

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Parle Annual Production (Biscuits) in Million Metric Tonnes

2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

CSR ACTIVITIES

SARASWATI VANDANA Dedicated to enriching the lives of people across India, the Parle Centre of Excellence has been keenly involved in the promotion of 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 Kolkata, 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 Kolkata 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.

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PARLE: DISTRIBUTION, LOGISTICS, AND MANAGEMENT A REPORT

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GOLU GALATA 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. PARLE GOLU GALATA CONTEST 2008 The price distribution to felicitate the winners of Parle Golu Galatta 2008 was conducted at Kamaraj Arangam on the 17th of November 2008. Some of the most eminent personalities of Chennais social, entertainment and lifestyle circuits were present to make this a star-studded grand event. Famous movie actress Poornima Bhagyaraj, Venkatesh and Nisha, of the popular dance show Jodi No.1, the versatile television actor Preeti Srinivas, eminent star gazer Kaliyan Narayana,

Selvhi from Kumudham Bhakti and the dynamic social activist Daksha Raghunathan were the chief guests for the show. The melodious playback singer Ms Vinaya conducted the program for the evening with more than a 1000 people attending the function. The Kalakapovathu Yarr finalist Siva Karthikeyan, Arjun and Vadivel Balaji ensured that the audiences were kept in splits with their rib-tickling stories, jokes and anecdotes. Champion little-league singer Ms Oviya wowed all the adults present with her vocal histrionics and singing talent with Avigna giving a breathtakingly choreographed contemporary dance performance. An AV of all the prize-winning Golus and their proud winners was also played at the show, with the children from the 3 winning schools ensuring that there was never a dull moment throughout the evening.

MY GREEN PLANET

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Parle's products have been trusted by mothers and children across age groups as a nutritious snack that has helped them grow healthy and strong. It is but natural that Parle Products would like to return the favour to a generation that has helped it grow. Parle Products feels this is the best gift that we can give our kids. A cleaner, greener planet that they can treasure for generations to come. My Green Planet is an initiative that takes definitive steps towards conserving our eco-system. Parle Products is contributing in its own way by taking up various initiatives like planting more trees around India, conserving water, power and recycling waste. My Green Planet works across levels from school students to environmentalists to media professionals and through them educate and empower everyone about the cause of environment conservation. We believe that we haven't inherited the earth, but merely borrowed it from our children. OTHER INITIATIVES Installation of hand pumps and ceiling fans, action taken to prevent accidents and distribution of essential items to students. Interaction and distribution of gifts to children from Mother Teresa Foundation. Donation of stationery to children from 12 Gram Panchayat Schools.

Items distributed to students of Government High School. Empowering women by teaching them new skills. Sponsor to six mentally retarded children. Tree plantation drive for students.

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