'Parle-G has sheer economies of scale which we can't match without impacting our margins,' a senior official at ITC Foods said. 'This is despite Parle seeing the highest revenue CAGR of 32 per cent during the period, the highest among FMCG companies,' Mour said.Įven rivals agree that it's tough to match Parle-G in pricing. 'Historical analysis of the biscuits category reinforces that even a single margin disruptive player can impact the margin profile of the entire category,' Anand Mour of ICICI Securities said in a recent note.īetween FY06 and FY11, Parle Biscuits' EBITDA margin declined by 720 bps to 2.9 per cent in FY11 and Britannia's EBITDA margin declined by 550 bps to 5.5 per cent. ITC's Sunfeast brand too had over 9 per cent share in the glucose segment last year.Īnalysts said that Parle's relentless focus on top line has driven its rivals to shift strategy from glucose to other sub-segments such as cream and cookies.

Net result: Parle-G increased its share from 67 per cent in 2002 to 79 per cent in 2012 while the share of Britannia's Tiger fell to 9 per cent from 26 per cent during the same period. The company also managed to keep prices unchanged for over a decade - between 19 - even as the prices of raw materials such as wheat, sugar and milk escalated up to 150 per cent. But when Parle-G sponsored children's television show Shaktimaan on Doordarshan, it literally rescued the brand. There was a time when Parle-G's dominance was threatened by rival brands, especially Britannia's Tiger, which targeted kids. This affordability proposition is exactly what has been paying off for Parle-G despite rivals such as ITC and Britannia entering the space. 'Even after 70 years, we haven't digressed from that philosophy and the pricing has helped the brand become a staple today,' Chauhan added.

Parle g biscuit girl photo