Friends, in the last 85 years, governments have changed, prices of things have changed, and people’s lifestyles have changed, but one thing has not changed and that is this packet of Parleji biscuits. In 1994, when flour was priced at ₹ per kg, Parleji was available at ₹, and today in 2024, flour was priced at ₹ 10. Kilogram, yet it is only ₹ 5000000. Recently, in 2023, they estimated the sales of 177000 crores. This clearly shows that the company is focused on biscuits and confectionaries. They are the market leaders and why not, they hold a market share of 40% in the biscuit market of India and hold a market share of 40% in the total confectionery market.
Talking about it, they also hold shares at 15. Today they have more than 125 plants where about 1 lakh employees work. These people normally make 40 crore Parlezi biscuits in a day i.e. 3 to 4 crore packets. If converted into, then about 2 lakh packets are being consumed by our people every minute. Now it is obvious that if a company has been leading in the market for 85 years then it means there is no issue of profit. Crores of rupees are being earned but the question arises if this company is not increasing its prices. So
How are they generating so much profit every year and what is the reason that Gluco Biscuits like Tiger and Sunfish are not able to compete with Parlezi? We will not only know the answers but we will also know Who started the brand, what was the reason and how did this biscuit become such a hit? Apart from this, when Parle got divided into three parts i.e. when the business was divided among three owners, then what products were the three owners making, and which were the main products? Who is making Parle ji? We are going to know the answers to all these questions in today’s video. So let’s start with the year 1929.
Swadeshi movement started in India i.e. the government was promoting Indian products and in the same year, Mohanlal Dayal ji bought a factory for confectionery manufacturing. The factory was established at the place of a factory named Will Parle. Initially, there were only 12 people, out of which most of them were family members, that is, all his own people in the factory were engineers, managers, and makers. Then that year The first product made in that factory was Orange Candy and Parle started like this, then gradually people started knowing about the factory but still, they did not have any brand name.
So people used to say on their own that Parle’s factory is Parle’s factory, due to which they later named the company Parle because of that place. After this, in 1939, after 10 years, they launched their first biscuit which was named Parle Gluco. This was also a reason for making biscuits. At that time in India, biscuits were imported and secondly, they were quite expensive due to which only rich class people could buy them. To solve this problem, Perle launched its first Perle Gluco Biscuit so that even a common man can now afford it.
Now there was no competition and the demand was very high, hence biscuits became popular very quickly after 20 years in 1960, Lay faced some problems because Britannia had entered the market with its glucose biscuits and some More brands came and started selling glucose biscuits. Due to similar names, the customer did not understand which one was Parle and which one was Britannia, so he would directly ask the shopkeeper to give him Glucose biscuits and he would give him any biscuits. Now this confusion is over.
Parle started incurring losses due to this, so to avoid this confusion, they adopted a new packaging which came with a yellow wax paper wrapper with an image of a little girl and a red-colored logo on it. The logo was also brought but still, the packaging failed, so in 1982 they changed the name of Parle Gluco to Parle G. G means Glucose. Now some people will say G means genius, not glucose. Yes, they changed that later along with duplication. To avoid this, they also changed the packaging material. Instead of paper, they brought low-cost plastic. Now all this is happening.
Due to changes, Parle stood out from the rest and from then till today i.e. in 30 years, they have not changed the packaging and today Parle sells everything from candies, biscuits, soft drinks, but all these products are not of one company because in 1960 This company was divided into three parts in the year 2010, Parle Agro, Parle Bisleri and main company Parle. Talking about Parle Agro makes products like Fruity Appy Smooth and Bailey Water. Second, Parle. You must be aware of Bisleri that it makes soda and jars from water bottles. The third and main company is Parle which is Parle’s Crack Jack Hyde.
And Seek Eclairs makes all this and today we are talking about it. The biggest plus point of Pale is their distribution system because you will find their biscuits everywhere, whether it is in a big departmental store, a shop, or a normal tea shop. Now it is common to find biscuits in cities. You will find Parleji biscuits even in small villages and remote areas, which is why today their biscuits are available in more than 25 lakh retail outlets. If you look at most of the Parleji products, they are either in low or mid-range price segments.
These come in price ranges like Salty and Cream Biscuits priced at Rs. 1 Lee Candies and their main Biscuit Parlezi also starts from Rs. 5 10 20 50. Now this is because it is based on the mindset of the Indian customer. We understand that in India, people only want value for money products i.e. as is the price, so is the work. Apart from this, Parle G also makes premium products in some amount like Hide and Seek Mino so that it can reach the urban consumer also. If we talk about profit margin, then Paley gives a commission of Rs 4 to its distributors and Rs 10 to 12 to retailers, now this much
Even after taking out the margin, he sold the biscuits at ₹ for 25 years, although in between he reduced the price by 50 paise. Had increased it but due to a price increase, sales started falling so they were forced to keep the same price again but when Parlezi’s sales fell, sales of two people increased – Britannia and Sunfeast. Today Britannia Tiger has the share of glucose biscuits at 17 to 18. And Sunfeast Glucose has a market share of 8 to 9 but even together both of them are not able to sell as much as Parlezi. Today, people of every age are consuming Parlezi whether they want to or not.
It doesn’t matter whether you are poor or rich, live in cities or villages, some people take it for breakfast, for some it is a complete meal, some people eat it for energy and for some it is a companion for tea, so come on now. We’re going to undertake a SWOT analysis, which you may apply to your job as well. The full form of SWOT is Strengths, Weaknesses, Opportunities, and Threats. First of all, let’s talk about the strengths. The biggest strength of Paralezi is their price where the Rest of the brands were giving 12 biscuits for ₹, this one was giving 16 biscuits for ₹, and that too if we look at 100 g, then according to this 1 kg is.
Biscuits became ₹ 440, now ₹ 440 is very reasonable for any 1 kg food product, that is why you must have seen that Parlezi was the only brand which used to do one kg packaging and still does so because of one thing, it It was clear from the beginning that we will not increase the price, if the margin is less then what will we do? They will sell the goods to more people and that is why they are surviving in the market. Apart from this, their second strength is market share. They know that whether any other product of ours gets sold or not, Perle ji will definitely be sold and this is what they take advantage of. someone new
When a person brings out a biscuit, they are not much worried about its distribution because Parle ji is going to every shop of theirs, so they send the new product along with it. Now, if any shopkeeper sells another Crack Jack or 2020 If he refuses to take it then they don’t even give him parlage, due to which the shopkeeper is forced to keep the remaining biscuits too. After this, their third strength is large manufacturing units. Parle has set up its factories in four places mainly for biscuits and confectionery. The first is in Mumbai, second in Haryana, third in Rajasthan, and fourth in Bangalore in Haryana and
The factories in Rajasthan are among the largest manufacturing units in India, apart from this there are 19 more There are also manufacturing units where biscuits and confections are made on a contract basis. Now their location has also been strategically planned so that there can be constant and easy distribution of the products. After the strengths, now let us talk about the weaknesses. The biggest weakness of Parle is the Breakage of Biscuits: Many times it happens that the biscuits get broken at the time of delivery and then the company does not even accept them back.
The biggest reason for breakage is their packaging. You all must have seen how normal the packaging of Parle is, it uses just a simple plastic wrapper, so packaging is definitely such a thing that if you work on it then the biscuits will be in better condition. It can be delivered to the customer. Now let us assume for once that ₹ 5000000 and many times people do not like to take a family pack with loose packaging. Weakness After this, now let’s talk about the opportunity. If we talk about the Indian biscuit industry, the organized sector has a market share of 60%.
Coming to the unauthenticated sector, if Parle wants, it can make it unofficial on this 40, similarly, for rural areas, they can make such a product that can be distributed through Parleji and they can build a new market there also. The last one is the threats. If anyone is giving competition then it is Britannia because these people promote their products highly through advertisement and their products and packaging are also better than Parle’s, that is why customers are more attracted towards Britannia’s packaging. Apart from this, if we talk about Sunfeast of ITC, then their
Promotion is also much more than that of palay, which is why the market share of both these brands is much less but still, it becomes a problem for palay. Apart from this, many other bakery products have come into the market nowadays. For Fan Rusk Toast Wafers due to which Parleji’s sales are definitely being affected because these substitute products are replacing Parleji but to deal with them, Parle has introduced its own snacks like Rusks and Namkeen, due to which today They have brands in 40 categories which range from biscuits to
Many products are made including candy and one of these products is the world’s largest-selling biscuit product which we know as Parli Ji.