Parle-G Biscuit Story: The first FMCG company to cross the $2 billion mark was groundbreaking!

Parle-G Biscuit Story

Parle-G Biscuit Story

Parle-G Biscuit Story: All of you must have tasted Parle-G sometimes. We all have eaten a lot of Parle-G in our childhood. Even today, we eat Parle-G with the same interest as we used to eat it in childhood. But now Parle evolved a lot since it started. Parle has increased its portfolio.

Today in this new article in Bhartiye Times, we will tell the Parle-G Biscuit story and Revenue model of Parle-G

When did the Parle company start?

One of the most famous brands in India Parle was started by Mohanlal Dayal during the time of British India in 1929. Mohanlal Dayal went to Germany to learn the process of candy-making and when came from Germany he established the factory of Parle. He started the company as an alternative to British-branded biscuits and to support the Swadeshi movement.

Mohanlal Dayal established the company with only 12 people and now in 2023 they have more than 50000 employees and company produces 1 billion biscuits per month and in one year almost 14 thousand crore biscuits are produced.

The first product which was made by Parle was orange candy. Later, gradually it became famous all over India. Seeing the popularity of Parle candy Mohanlal Dayal thought of expanding the business and started making Palre Gluco biscuits in 1939.

How did Parle-G gets its name?

When the company was first started, it was started at a place named Ville Parle, and from there people started calling the biscuits Parle Biscuit. Seeing this popularity, Mohanlal Dayal named the company Parle.

Mohanlal Dayal started Parle Gluco in 1939 and rebranded Parle Guluco into Parle-G in the 1980s to avoid competition with Britannia Gluco and other biscuit companies.

Later, the company expanded and started producing many items in 1963 they launched products called, Kisme, In 1966 Poppins, In 1983 Melody, In 1986 Mangi Bite, Parle Atta, Rusk, and many more.

Why is Parle-G Price so cheap?

First of all, let us know its price and how many grams were available in 1995 with that price. Since 1995 Parle-G’s price has increased by only 1 rupee. In 1995 100 grams of Parle-G used cost 4 rupees and in 2023 55 grams of Parle-G cost 5 rupees.

So, If we see from 1995 to 2023 Parle-G’s Price is not increased much but the quantity of Parle-G decreased by almost 50 percent.

In this, the company is not earning money by increasing the price of the product but instead, it is selling the product by reducing its quantity, in which the company is making a profit. The rate of the product was not increased much but the quantity was reduced by 50 percent due to which less raw material is used and the cost is also reduced and the company earns a profit. This process is called shrinkflation.

Another reason for keeping the price of Parle products low is that the company has been known by the name Parle for many years and the name itself is the face of the company. Due to this Parle name, Parle sells its other products easily in the market without much promotion. It sells its other products so easily because of the brand value of Parle. Parle G is their oldest and most famous product. By keeping its price low, the company earns profits from its other products.

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Parle-G Products are given below

Parle-G Royale
Parle-G Cookies
Parle-G Kismi Cinnamon
Parle-G Oats & Berries
Parle-G Gold
Parle-G Chotta Bheem and many more.

Revenue Model of Parle-G

Parle was the first FMCG company whose revenue was Rs 5000 crore in a single year in 2013 and in 2022 it was the first Indian FMCG company whose revenue was 2 billion dollars in a single year.

Branding

Parle’s biggest technique to capture the market is that it sells its new products in the name of Parle. Because Parle’s name is already very popular in the market and with this name, it can easily sell any of its new products in the market. First, it created its brand name and later launched many new products under the same brand.

Cost Efficiency

Parle buys raw materials in bulk due to this Parle gets a huge discount on the raw materials and it also eliminates the middle man it directly buys the raw materials from the manufacturer. The cost of middlemen also gets eliminated.

Wastage Control

A lot of work is done in the factory while making the product tons of products are made but there is only 0.8 percent wastage.

Pricing Strategy

It follows the simple rule of sales maximization. Higher the sales higher the Profit. They produce the products in mass for mass consumption this is why their product price is so low.

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