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USP Age
November, 2004

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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.

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.

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.

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