DECLARATION

I ASTHA AGARWAL Roll no. 0901570032 student of MBA third Semester of

INVERTIS INSTITUTE OF MANAGEMENT STUDIES, Bareilly hereby declare

that I have completed my summer training in Finance on the project titled

“COMPARITIVE ANALYSIS OF PARLE AND BRITANNIA” is my original work

and the same has not been submitted for the award of any other diploma or degree.

Place: Bareilly

Date: 17-08-2010

(ASTHA AGARWAL)
 PROJECT REPORT
ON

comparative analysis of parle

and britannia
IN
PARLE BISCUITS PVT LTD.

Submitted in Partial Fullfiment of the

Requirement of MBA Program of
INVERTIS INSTITUTE OF
MANAGEMENT STUDIES

Project Guide
mr. shishir shrivastava
(hr executive)

Submitted by
ASTHA AGARWAL
2
 PREFACE

Work experience in an in-dispensable of every professional course. As we all

know that without the practical experience or knowledge the theoretical knowledge
has become worthless. So the practical training in any organization is must for each
and every individual who is undergoing management course. Without the practical
exposure one can not consider himself as a qualified capable manager.
“PARLE” (A unit of biscuit production industry)
Entering in the organization is like stepping into altogether a new world. At
first very thing seems strange and unheard but as the time passes, one understands the
concept and working the organization and there by develop the professional
relationship. The main motto of this training is just to modify the theory so as to apply
it to given practical solution.
This report is the crux of the whole project-work experience. It is an attempt to
elucidate the more importance aspect of research that is concerned to project and a
detailed analysis of each facts and findings with comments and explanatory notes.
The chief aim of this project-report is to given a clear and systematic picture
of whole research that was conducted for the accomplishment of project work.
I sincerely believe that there is no better place to learn this practical site of
management than the industry itself.So far as the limits of my space would allow,
therefore I have tried to suggest the best alternative to eliminate deficiencies in the
existing system. MS. ASTHA AGARWAL

3
 ACKNOWLEDGEMENT

First of all I am thankful to the PARLE BISCUITS Pvt Ltd., Pantnagar where I able
to prepare this project report. I express great sense of gratitude to Mr.Manoj
Dangwal ,Personnel Executive, PARLE who give me the opportunity to work with his
prestigious his valuable guidance, integrated support
And perceptive criticism helped me to conceptualize this research work his guidance
is precious and unforgettable experience which will help me in my future.
I Special thanks to Mr. shishir shrivastava , Hr executive for pay his kind support,
guidance and cooperation for the successful completion of this study.
His academic excellence, immense interest, scholarly suggestions and affable
temperament have been the source of inspiration and motivation which helped me to
complete this research work.
I want to offer my sincere thanks to all the staff members of PARLE .I also
indebted to the respondents for their valuable support and kind cooperation for the
purpose of study.
I express my great sense of gratitude to my caring family for their encouragement
and moral support made, as and when required to complete this study.

MS.ASTHA AGARWAL

4
 TABLE OF CONTENTS

S.NO CONTENTS

1. Executive Summary

2. Statement of the Problem

3. Objectives of the Study

4. Limitations of Study

5. Introduction of Sector and Industry

6. Introduction of organization

7. Analysis

8. SWOT Analysis

9. Findings

10. Recommendations and Suggestions

11. Conclusion

12. Appendix

13. Bibliography

5
EXECUTIVE SUMMARY

The researcher undertake her project in a unit of biscuit manufacturing

industry in India, viz. – PARLE, Rudrapur. The Project title is Comparative analysis
of Britannia and Parle.
The main task assigned to the researcher is to find and evaluate the financial
analysis of Parle and Britannia and to calculate the respective financial ratios which
will prove helpful in the financial analysis.
The Summary of the project work is as follows in chronological sequence-
The report is concerned with the introduction to industry and also concerned
introduction to the company.
The Project profile comprises of project title, significance, methodology,
scope and limitation of the study.
In facts and findings where researcher has presented all the collected
information.
The research includes the analysis and interpretations of the collected data and
the SWOT analysis.
In the end the research contains conclusion made by the researcher.

6
“QUALITY, HELTH AND GREAT TASTE”…..

The Parle story unfolded in the year 1929, with the establishment of its first
confectionery factory in the western suburbs of Mumbai, presently known as the
landmark region of “vile Parle”. Thereafter in 1939 Parle started the manufacturing of
biscuits, which henceforth became its core activity. PARLE BISCUITS LIMITED is a
subsidiary to PARLE PRODUCTS LIMITED, MUMBAI, which is closely held
company run by the Chechens. The company commands a 40 % market share in the
Rs. 35 billion biscuit markets in India.
Parle-G; its first venture became an instant favorite amongst the masses, leading the
glucose category with the huge market share of 65 %. It’s topped charts worldwide by
becoming the world’s largest biscuit selling brand as revealed by the US-based bakery
manufactures association in 2002. The products portfolio also comprises of
KRACKJACK, MONACO, HIDE ‘ N’ SEEK and its variants.
The success and survival of Parle is its adherence to quality and diversification in its
core area. The strong and extensive distribution network assures the availability of
Parle biscuits even remote region. Most of its offerings are in the low and mid price
range making it affordable to the masses. Parle understands the psyche of the Indian
consumer and provides them value-for-money.
There are four of its own at Mumbai (head office), Bahadurgarh (Haryana), Neemrana
(rajas than) and distribution of the biscuit are controlled by the “business development
department”, Mumbai office with assistance from the regional sales offices at new
Delhi, Calcutta, bangalore and Mumbai.

To reduce freight rates and increases production, Parle has tie-ups with contract
manufacturing units supervised by a “Parle officer”. These units are provided with
the processing charges biscuits, which are transferred to depots established at strategic
location.

7
Statement of the Problem

To analyze the financial status of Parle Products in the organization as compared to

competitors (ITC, Britannia & Priyagold).

Objectives of the Study

1. To find out Parle Coverage in various areas of Jaipur.

2. To check the Brand availability of the company products at different stores.

3. To compare the Brand with its competitive Brands like ITC, Britannia,
Priyagold in terms of coverage, number of brands available and monthly sales.

4. To analyze that which type of biscuits and candies are most preferred and
demand by the customer. It was done by asking storekeepers as well as
customer.
5. To analyze the availability of new Parle products launched in the market.

6. To compare the organized retail stores with unorganized retail stores in terms
of brand availability.

Reference Period

This study is conducted for the period of 45 days starting from 15th of JUNE 2010 to
30th of JULY 2010.

8
PROJECT METHODOLGY

Research Type:

EXPLORATORY RESEARCH

EXPLANTION: The study was conducted by Parle Products Pvt. Ltd in 6-7 areas of
Rudrapur mentioned below (source list) for the first time regarding market review and
comparative analysis between unorganized and organized retail stores.. Thus it is an
exploratory type of research.

9
Sample Design

A sample design is a definite plan for obtaining a sample for a given population. It
refers to a techniques or procedure adopted in selecting items for the sample.

Sampling:
Further, the design that has been adopted for the study of the given topic is
CONVENIENT SAMPLING.

EXPLANATION: During the course of the study we visited a no. of stores that were
scattered all over Jaipur (source list mentioned below). Apart from this we had no
written record of the number and names of the stores in the city. It was very difficult
to tabulate a record of all the retailers and wholesalers present in the city and then
carry out our study, in the short span of time that was allotted. As a result we had to
select the retailers according to our convenience. We went to the areas and surveyed
all shops that could possibly be approached.

The following is the sample design that has been adopted for the study.

1. Population:- Finite(Jaipur)
2. Sampling Unit:- Areas of Jaipur
3. Source list:-

Unorganized retail stores (Areas):

a. Mansarover
b. Vaishali Nagar
c. Chitrakoot
d. Sodala (Ajmer Road, Hatwara road, Ram Nagar)
e. Raja park
f. Adarsh Nagar
g. Janta colony

10
 h. Sethi colony
i. Bapu Nagar

Organized retail stores:

a. Spencer`s Retail
b. Reliance Retail (Reliance Fresh)
c. Aditya Birla (More)
d. Vishal Mega Mart

4. Sample size:- A total of 410 unorganized retail stores with 30 organized retail
stores and 100 consumers.

Tools and techniques for Data Collection

Tools and techniques for:

1. Primary Data:- The researchers collected primary data during the course of
research period with the help of the questionnaire that was designed for the
storekeepers as well as consumers to collect the information that was required
to carry out the research.
2. Secondary Data:- Secondary data was collected from books, articles, Internet
and previous research papers that had been conducted by the company
representatives and officials.

Tools and techniques of Analysis

Simple statistical tools and techniques like average, ratios, pie charts, tables and
graphs in addition to hypothesis testing (z-test, for difference between
proportions) & factor analysis method are used to analyze the data.

11
Limitations of the Study

1) The study was conducted in 45 days that is not enough for such a vast topic.

2) It was difficult for the storekeepers to pinpoint the sales of a particular brand
in both organized and unorganized retail stores.

3) No proper data was available about the stores in the city.

4) There were not a big number of organized retail stores in Jaipur to carry out
the research more efficiently.

5) As the nature of research was exploratory so it was difficult to cover each and
every retailer.

6) Many retailers don’t express their original perception and views because of
biasness.

12
 INTRODUCTION

SECTOR
Fast moving consumer goods (FMCG), are products that are sold quickly at
relatively low cost, have a quick turnover and get replaced within a year. Though the
absolute profit made on FMCG products is relatively small, they generally sell in
large quantities, so the cumulative profit on such products can be large. Examples of
FMCG generally include a wide range of frequently purchased consumer products
such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and
detergent, as well as non durables such as glassware, light bulbs, batteries, paper
products and plastic goods. FMCG also includes pharmaceuticals, consumer
electronics, packaged food products and drinks, although these are often categorized
separately. Some of the best known examples of Fast Moving Consumer Goods
companies include Clorox, Colgate-Palmolive, General Mills, H.J. Heinz, Reckitt
Benckiser, Sara Lee, Nestle, Unilever, Proctor and Gamble, Coca Cola, Carlsberg,
Kimberly-Clark, Kraft, Pepsi, Warburton’s, Wilkinson and Mars.

Scope of the sector: The Rs 86,000-crore Indian FMCG sector is expected to

maintain its double-digit growth for the quarter ended March 31, 2009. Being a sector
led by domestic growth, it is least likely to be affected by the financial meltdown. The
FMCG industry is set to grow 20-30 per cent in 2009-10, up from 10-20 per cent in
2008-09. The growth would be driven by the launch of new products and increasing
rural consumption. A well –established distribution network, intense competition
between the organized and unorganized segments characterizes the sector.

13
The introduction of goods and services tax (GST) in Union Budget 2009 by April 1,
2010, may help FMCG companies save on distribution costs, remove multiple taxes
and bring down prices in the long run.
Though the hike in minimum alternate tax from 10% to 15% would adversely hit
companies with factories in excise-free zones, they rule out increasing consumer
prices.

Retail sector: Retail became a buzz word in India before recession; in fact the word
'booming' was found only attached to this sector. But as recession took

its toll, 99% of sectors went for a toss including retail. The market has just started
picking up and India is reclaiming to regain its position in the retail segment.
In a recent report, the authors of AT Kearney's 2009 global retail development index
said that India's largely unmodernised retail sector remained attractive to both
domestic and international retailers, in spite of government regulations that prevent
100 per cent foreign ownership of retail stores.
For most of the retailers like Pantaloon, Vishal, Cantabil and Priknit, retail still
continues to buzz everywhere in India with many foreign brands coming in, whether
it's the largest US retailer Wal Mart which opened its first store, last month, in Punjab,
in a joint-venture with Bharti Enterprises, Or Tesco and Carrefour which are also
planning joint venture stores.

Even as corporates are expecting the new Congress-led United Progressive Alliance
Government at the Centre to open up fully FDI in retail sector, a Parliamentary
Committee has argued for a total ban on even the domestic heavyweight corporates
from entering retail trade in grocery, fruits and vegetables.

Also, there is expectation the forthcoming Union Budget may spell out a policy
position. Retail giant Ikea holding back its plans to enter India is being bandied about
as a setback for the country. There is also talk that investments and flow of technical
knowhow could be hampered if the sector is not opened up to overseas.investors.

But over all if we see, the issue to be debated shouldn't be whether FDI in organized

14
retail is desirable, but what its impact would be on small retailers in the unorganized
sector, and whether we have policies to protect the vulnerable sections.

It was meant to revolutionize the way we shopped, spent, consumed and lived. With
its ‘Retail Revolution’, India was making an indelible mark on the global retail map.
The billion plus consumers and steady economic development were fuelling the
growth of India’s $ 25 billion organized retail market. And the Indian blue chip
companies started to go the retailing way — Bharti, Reliance, Tata, Mahindra, Aditya
Birla Group and RPG — all were making the retail foray. As the sector grew at the
rate of 30-40% per annum over the last decade, India became the preferred destination
for global brands and retail chains to cash in. But with the Q3 growth for FY2008-09
at 10-12% as against 35% of the previous year accompanied with closures of Indian
retailers, pulling out from certain cities and the Subhiksha saga unfolding, the dismal
story of revolution is now unraveling.

Organised Retail Sector: It was meant to revolutionize the way we shopped, spent,
consumed and lived. With its ‘Retail Revolution’, India was making an indelible mark
on the global retail map. The billion plus consumers and steady economic
development were fuelling the growth of India’s $ 25 billion organized retail market.
And the Indian blue chip companies started to go the retailing way — Bharti,
Reliance, Tata, Mahindra, Aditya Birla Group and RPG — all were making the retail
foray. As the sector grew at the rate of 30-40% per annum over the last decade, India
became the preferred destination for global brands and retail chains to cash in. But
with the Q3 growth for FY2008-09 at 10-12% as against 35% of the previous year
accompanied with closures of Indian retailers, pulling out from certain cities and the
Subhiksha saga unfolding, the dismal story of revolution is now unraveling.

INDUSTRY

Indian Biscuit Industry: According to Indian Biscuit Manufacturers' Association

(IBMA), after stagnating growth of about 14 per cent in 2006-07, biscuit industry

15
grew by 17 per cent in 2007-08 due to excise duty exemption on biscuits with MRP
up to Rs 100 per kg, Indian Biscuit Manufacturers Association. ). Therefore, Indian
biscuit industry has demanded a reduction in value added tax to four per cent from the
current level of 12.4 per cent on biscuit, so that the growth rate can go up to 20 per
cent.

The Rs 8,000-crore industry hopes that the biscuit segment will have over 20 per cent
annual growth in the next five years if VAT is reduced to four per cent

India, world's third largest biscuit producer after the US and China, produces nearly
19.5 lakh tonnes annually and the states, however, have imposed the VAT at 12.5 per
cent, which is very high.

According to IBMA, organised sector produces around 55% and the balance 45%
being contributed by the unorganised bakeries. In terms of volume biscuit production
by the organised segment in 2006-07 is estimated at 1.47 million tonnes. Per capita
consumption of biscuits in the country is only 1.8 kg, as compared to 2.5-5.5 kg in the
South Eastern countries, and in Europe and US, respectively.
In India per capita consumption of biscuits is estimated at a low 1.9 kg, reflecting the
huge potential for growth of the industry. Over 900 million Indians buy and eat
biscuits with varying frequency in any year.
The penetration of branded product in this segment is quite significant, and is valued
at Rs 2,500-3,000 crore. None of the other wheat-based segments is as developed as
the biscuits industry. The biscuit segment has developed with large markets of mass
consumption covering over 90% of the overall potential market. The unorganised
sector accounts for over 50% of the market. The market has been growing at a CAGR
of 6-7% pa.
Biscuit is a hygienically packaged nutritious snack food available at very competitive
prices, volumes and different tastes. According to the NCAER Study, biscuit is
predominantly consumed by people from the lower strata of society, particularly
children in both rural and urban areas with an average monthly income of Rs 750.

Bread and biscuits are the major part of the bakery industry. Biscuits stands at a
higher value and production level than bread.

India Biscuits Industry came into limelight and started gaining a sound status in the

16
bakery industry in the later part of 20th century when the urbanized society called for
readymade food products at a tenable cost. Biscuits were assumed as sick-man's diet
in earlier days. Now, it has become one of the most loved fast food product for every
age group. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at
cost. States that have the larger intake of biscuits are Maharashtra, West Bengal,
Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the
most industrially developed states, hold the maximum amount of consumption of
biscuits. Even, the rural sector consumes around 55 percent of the biscuits in the
bakery products.
The annual production of biscuit in the organized sector continues to be
predominantly in the small and medium scale sector before and after de-reservation.

ANNUAL GROWTH RATE OF BISCUIT INDUSTRY IN INDIA

17
PARLE is a biscuit manufacturing unit of Uttaranchal in Rudrapur . The introduction
of PARLE can be bifurcated into following parts.
1.1.1 Brief history
1.1.2 Quality of products.
1.1.3 Core values.
1.1.4 Awards.
1.1.5 Annual production

HISTORICAL BACKGROUND

Parle Products Pvt. Ltd.: A cream colored yellow stripped paper with a cute baby
photo containing 10-12 biscuits with the company’s name printed with in Red. Times
changed, variety of biscuits did come and go but nothing has changed with these

18
biscuits. Yes, the size of their packing has definitely changed but for the consumer
good as these are money saver pack.
The Parle name conjures up fond memories across the length and breadth of the
country.
After all, since 1929, the people of India have been growing up on Parle biscuits and
sweets.
Initially a small company was set up in the suburbs of Mumbai city to manufacture
sweets and toffees. The year was 1929 and the market was dominated by famous
international brands that were imported freely. Despite the odds and unequal
competition, this company called Parle Products, survived and succeeded by adhering
to high quality and improvising from time to time
A decade later, in 1939, .Parle products began manufacturing biscuits, in addition to
sweets and toffees. Having already established a reputation for quality, the Parle
brand name grew in strength with this diversification. Parle Glucose and Parle
Monaco were the first brands of biscuits to be introduced, which later went on to
become leading names for great taste and quality.
For around 75 years, Parle have been manufacturing quality biscuits and
confectionary products. Over the years Parle has grown to become a multimillion
dollar company with many of the products as market leaders in their category. The
recent introduction of Hide & Seek chocolate chip biscuits is a product of innovation
and caters to a new taste, being India’s first ever chocolate chip biscuits.
Apart from the factories in Mumbai and Bangalore Parle also has factories in
Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit and
confectionery plants in the country. Additionally, Parle Products also has 7
manufacturing units and 51 manufacturing units on contract.
All these factories are located at strategic locations, so as to ensure a constant output
and easy distribution.

19
QUALITY OF PRODUCTS

Hygiene is the precursor to every process at Parle. From husking the wheat and
melting the sugar to delivering the final products to the supermarkets and store
shelves nationwide, care is taken at every step to ensure the best product of long-
lasting freshness. Every batch of biscuits and confectioneries are thoroughly checked
by expert staff, using the most modern equipment hence ensuring the same perfect
quality across the nation and abroad.

Concentrating on consumer tastes and preferences, the Parle brand has grown from
strength to strength ever since its inception. The factories at Bahadurgarh in Haryana
and Neemrana in Rajasthan are the largest biscuit and confectionery plants in the
country. The factory in Mumbai was the first to be set up, followed soon by the one in

20
Bangalore, Karnataka. Parle Products also has 14 manufacturing units for biscuits and
5 manufacturing units for confectioneries, on contract.

CORE VALUE

An in-depth understanding of the Indian consumer psyche has helped Parle evolve a
marketing philosophy that reflects the needs of the Indian masses. With products
designed keeping both health and taste in mind, Parle appeals to both health conscious
mothers and fun loving kids. The great tradition of taste and nutrition is consistent in
every pack on the store shelves, even today. The value-for-money positioning allows
people from all classes and age groups to enjoy Parle products to the fullest.

AWARDS
Parle products have been shining with the golds and silvers consistently at the Monde
Selection ever since they were first entered in 1971. Monde Selection is an
international institute for assessing the quality of foods and is currently the oldest and
most representative organization in the field of selecting quality foods worldwide.

ANNUAL PRODUCTION:

The organized biscuit manufacturing industry‘s annual production figures show YOY
growth indicating rising consumption pattern in India.

Annual Production Figures in Million Metric Tonnes

21
COMPANY PROFILE

ABOUT THE COMPANY UNIT IN RDR:

BHOOMIPUJAN - 4 TH MAY 2004

MACHINE ERECTION ACTIVITY - 21 ST SEP. 2004

FOUNDED BY -MR. NAROTAM CHAUHAN

PRODUCT PROFILE IN PANTNAGAR PLANT:

 PARLE – G BISCUITS
 ORANGE CREAM BISCUITS

WHOLE COMPANY BRANDS:

 PARLE – G

 CREAM BISCUITS:-
 KRACKJACK
 MONACO
 ORANGE
 MARIE CHOICE
 BOURBON
 HIDE SEEK
 CHOCOLATE
 FUN CENTER
 ELAICHI
 CHEESLINGS
 PINEAPPLE

22
  SIXER
 MANGO

Brands

An in-depth understanding of the Indian consumer psyche has helped Parle evolve a
marketing philosophy that reflects the needs of the Indian masses. With products
designed keeping both health and taste in mind, Parle appeals to both health conscious
mothers and fun loving kids. The great tradition of taste and nutrition is consistent in
every pack on the store shelves, even today. The value-for-money positioning allows
people from all classes and age groups to enjoy Parle products to the fullest.

Biscuit goodies: Confectionary:

Parle-G GolGappa
Krackjack Classic Mint
Monaco Lite Mint
Monaco Funion Kismi
Kreams Orange Candy
Hide and Seek Mango Bite
Hide and Seek Milano Melody
Poppins
Eclairs- 50 p
Bourbon Melody Softe- 1Rs.
Kismi Bar
Parle Marie Chox
Kacha Mango
Milk Shakti Mazelo
Imli Bite
Kismi Gold
Parle 20-20 Cookies Munch on snacks:
Nimkin Musst Bites

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 can treat
you with a basket of biscuits which are not only satisfying but are also of good and

23
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

For over 65 years, Parle G has been a part of the lives of every Indian. From the
snow capped mountains in the north to the sultry towns in the south, from
frenetic cities to laid back villages, Parle G has nourished strengthened and
delighted millions. Filled with the goodness of milk and wheat, Parle G is not just
a treat for the taste buds, but a source of strength for both body and mind. Tear
over a packet of Parle G to experience what has nourished Generations of Indians
since last sixty five years, making it truly Hindustan Ki Taakat. Pack Sizes
available: 16.5G, 38.5G, 60.5G, 82.5G, 99G, 209G, 313.5G, 418G, 825G

Krackjack

The original sweet and salty biscuit is one of the most loved biscuits in the
country.
It’s not just a biscuit, it’s the taste of relationships captured in a biscuit.
A little sweet and a little salty crafted in such a delicate and delicious balance,

24
you can never get enough of it. Have it anytime you like with anything you like.
Pack Sizes available: 75G, 170G, 240G

Monaco

Share the company of great taste anytime, anywhere with Monaco. A light crispy
biscuit sprinkled with salt, Monaco adds a namkeen twist to life’s ordinary
moments. Pack Sizes available: 75 G, 120 G, 240 G

Hide and Seek

The ingredients that go into making this prized cookie are a well-guarded secret.
What is is the effect it has on those who eat it. A cookie with a reputation for
romance. Indulge in the sinful taste of Milano and everything that follows it.
Pack Sizes available: 25 G, 62 G, 100 G, and 200 G

Hide and Seek Milano

25
 The ingredients that go into making this prized cookie are a well-guarded secret.
What is is the effect it has on those who eat it. A cookie with a reputation for
romance. Indulge in the sinful taste of Milano and everything that follows it.
Pack Sizes available: 65 G, 135 G

Kreams

Orange: Tickle your senses with Parle Orange Kream – The tangy orange
cream between two scrumptious biscuits makes for a real treat.
Age no bar! Pack Sizes available: 80 G, 90 G, 160 G, and 180 G

Parle Confectionaries: Right from candies to toffees, the sweet 'n' treat category of
the Parle product range is a genuine treat for every snack lover. This category can
satisfy one's taste and at the same time create a desire for more. These confectioneries
are a sheer delight to the taste buds and have a universal appeal. Parle Biscuits and
confectioneries, continue to spread happiness & joy among people of all ages.

Melody

26
 Caramel meets chocolate to yield an outcome nothing less than delectable. Parle
Melody comes with an irresistible layer of caramel on the outside and a
delightful chocolate filling within. Pop it in your mouth and relish the unique
experience. It won’t be too long before you find yourself asking the age old
question ‘Melody itni chocolaty kyon hai?'

Mango Bite

Need a quick escape from everything ordinary? Just pop a Mango Bite and dive
into a tropical mango paradise. Sit back, roll it around and enjoy one wave after
another of juicy mango treats that go on and on and on.

Orange Candy

27
Feel like eating an orange but don’t want to be bothered with peeling one? How
about just unwrapping one then? Parle Orange Candy. This little candy is a
mouthful when it comes to the tangy, juicy taste of real oranges. A bite-sized
orange in a wrapper.

Kachcha Mango Bite

The glider got copied and became a jet plane. Western hits got copied and
became Anu Malik songs. The typewriter got copied and became a keyboard.
Similarly, we have managed to copy the tangy flavour of raw mangoes in a candy
which is a little sour, a little sweet and certainly a little mischievous. We call it
Kaccha Mango Bite. It truly is a ‘kacche aam ka copy’.

Kismi Toffee

28
 It’s everything that the Kismi Toffee Bar is, only smaller. Wrapped in the distinct
flavour of elaichi (cardamom) this toffee is sure to send your sweet tooth on a
joyride.

Golgappa

Mention Golgappa to lovers of roadside snacks and watch them get excited. Just
the very memory of the sweet tangy taste of Golgappa is enough to make the
taste buds tingle, the mouth water and the senses to party. Now imagine if you
can have the Golgappa whenever and wherever you want it, even as you are
reading this, for example. It is possible with Parle Golgappa. It captures the same
magic of the popular street side Golgappa in a Goli or a hard boiled candy, if you
prefer. So pop in a Golgappa and treat your senses to a fun filled trip, whenever
and wherever.

Parle Snacks: Salty, crunchy, chatpata and crispy caters to the bunch of Parle
snacks. Parle snacks are a complete delight to the taste buds and can create the desire
for more and more. These snacks will not only satisfy your tummy but will also
sustain a feel in your mouth to associate you with the bond of Parle.

Musst Bites

29
 Cheesy fluffy baked snacks that are so irresistible that you don’t want to share
them. Available in mouthwatering Garden Spices, sweet and sour Tangy Tomato,
tantalizing Chatpata Chat and heavenly garden spices, you are going to have a
hard time deciding which one you want for yourself.

MAJOR BISCUIT PRODUCERS IN UTTAR PRADESH

1) PARLE PRODUCTS PRIVATE LIMITED.

2) ITC SUNFEAST LIMITED

3) BRITANNIA

4) SURYA FOOD AND AGRO LIMITED (PRIYAGOLD).

PARLE PRODUCTS PRIVATE LIMITED

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

30
 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. Parle G, a premium glucose biscuit is the
world’s largest selling biscuit.
A factory of these glucose biscuits is situated in Neemrana is producing 7000
metric tonnes every month. A list of premium quality biscuits and confectioneries
is produced and distributed across nations.

ITC LIMITED

ITC is one of India's foremost private sector companies with a market capitalization
of nearly US $ 18 billion and a turnover of over US $ 4.75 billion. ITC has a
diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information
Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other
FMCG products. ITC's diversified status originates from its corporate strategy aimed
at creating multiple drivers of growth anchored on its time-tested core competencies:
unmatched distribution reach, superior brand-building capabilities, effective supply
chain management.

BRITANNIA

31
 By 1910, with the advent of electricity, Britannia mechanized its
operations, and in 1921, it became the first company east of the Suez Canal to use
imported gas ovens. Britannia's business was flourishing. But, more importantly,
Britannia was acquiring a reputation for quality and value. As time moved on, the
biscuit market continued to grow… and Britannia grew along with it. In 1975, the
Britannia Biscuit Company took over the distribution of biscuits from Parry's who till
now distributed Britannia biscuits in India. In the subsequent public issue of 1978,
Indian shareholding crossed 60%, firmly establishing the Indian ness of the firm. The
following year, Britannia Biscuit Company was re-christened Britannia Industries
Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark.

SURYA FOOD AND AGRO LIMITED

The wondrous magical journey of the company Surya Food & Agro Ltd. began in
Oct. 1993 & since then The Researchers have been one of the leading manufacturers
of biscuits in northern India. Our brand “PRIYAGOLD” has been a perennial
household favorite since then. On a profound level spread in to western as well as
southern India, the inevitable cycle of distribution network has helped us to spread
into western India as well. Our obsession is to make the finest quality biscuits
available to the consumers & our constant endeavor is to provide our consumers, a
palate to look forward to a taste & flavor that is uniquely “PRIYAGOLD”.

32
HUMAN RESOURCES:

>PEOPLE PERSPECTIVE IS IMPORTANT

>EMPLOYEE ORIENTED
>CONTINUOUSLY MOTIVATE
>TRAIN & DEVELOP THE WORKFORCE

EMPLOYEE PROFILE:

TOTAL NO. OF WORKERS - 763

STAFF MEMBERS - 46

Parle products pvt ltd. Mumbai promotes the company, which is holding
company of the Parle biscuits pvt ltd. The directors of M/s Parle products pvt
limited are:

BOARD OF DIRECTORS:

MR. ATUL K. SHAH

MR. R.S. NEVATIA
MR. BRAJESH K.TRIPATHI
MR. S.N.VERMA

AUDITORS:

DELLOIT HARSHSKIN & SONS

BANKER:

33
UTI
PUNJAB NATIONAL BANK
CBOP

MOTHER UNIT:
PARLE PRODUCTS PVT. LTD.
NORTH LEVEL CROSSING
VILLE PARLE (EAST)
MUMBAI

CORPORATE OFFICE:
NIRLON HOUSE
A.B.ROAD
MUMBAI.

MOTHER UNITS: -

Mumbai, Nasik, Banglore, khaboli, Bahadurgarh (Haryana), Bhuj (Gujarat),

Neemrana (rajas than), sitarganj, pantnagar.

THE CUSTOMER CONFIDENCE

The Parle name conjures op fond memories across the length and breath of the
country. After all, since 1929, the people of India have been growing up on Parle
biscuits and sweets.

34
Today, the Parle brands have found there way into the hearts and homes of people all
over India and abroad. Parle biscuits and confectioneries continue to spread happiness
and joy among people of all ages. The consumer is the focus of all activities at Parle.
Maximizing value to consumer and forging enduring customer relationships are the
core endeavors at Parle.

Our efforts are driven towards maximizing customer satisfaction and this is in synergy
with our quality pledge. "Parle Products Limited will strive to provide consistently
nutritious and quality food products to meet consumers' satisfaction by using quality
materials and by adopting appropriate processes. To facilitate the above we will strive
to continuously train our employees and provide them an open and participative
environment."

MISSION STATEMENT

> Grow then higher then market growth rate, while maintaining leadership in the
industry.

> Export 1 % of annual turnover.

> Have access to customized information globally.

> Aim to zero defect products, there are exceeding customer’s expectations.

> Develop process flexibility and innovation to get significant portion of turnover
from new products.

35
> Expand distribution network in neighboring countries, presence in other countries.

> Impart training, motivation and respect to all employees and associates.

Parle Social Responsibility

Parle Products with its wide platter of offering of biscuits and sweets like Parle-G,
Krackjack, Monaco, Melody, Mango bite and many others since 1929 is also actively
engaged to change & uplift the social face of India. As a part of Corporate Social
Responsibility Policy Parle is keenly involved in the overall development of younger
generation with focused endeavor to built New Face of India and spread happiness &
joy all over.

Parle Centre of Excellence as an institution is dedicated to enrich the lives of people

through conducting various cultural programs across all region to facilitate the all
round development of the children. Every year, Parle organises Saraswati Vandana in
the state of West Bengal during the festival of Saraswati Puja, inviting schools from
all across the state to participate. The event is one of much fanfare and celebration,
keeping alive the culture and traditions of ages. Our involvement in cultural activities
has seen the inception of Golu Galata in Tamil Nadu, held during Navratri. Its gives a

36
platform to all the members of a household to showcase their creativity and being
judged by immanent personalities. Thousands of families participate and celebrate the
occasion on a grand scale.

These events give us a chance to interact with children on a one-to-one basis, and
promote our belief of fun and health for the whole family

ANALYSIS

After visiting the PARLE factory as industrial visit the researchers analyzed that the
best selling branded biscuit company offers its customers with large variety of biscuits
(parle-g, krack-jack, Monaco, hide and seek etc.), confectionaries (mangobite,
melody, poppins) and snacks (Musst bites)

It aims “TO SERVE PEOPLE AND NATION”

37
The privately owned self financed company provides motivation and confidence to its
staff and other related members by providing various facilities and organizing certain
events. It has a very open work culture. The atmosphere is so comfortable and relaxed
that helps in increasing productivity and efficiency. It lunches and outstation team-
building exercises that augment inter-personal relations and mutual understanding.

Parle has found its way into the Indian hearts and home. It spreads happiness and joy
among the people of all ages.

As one comes to visit their plant, they welcome them whole-heartedly and cooperate
with them in the best way they can. They are the strict followers of Japanese culture.

1.1 Visibility of PARLE products

For Biscuits:

Table 1.3.1
BRAND (Biscuits) No. of shops Total % VISIBLE
Parle-G 410 410 100.0
Krackjack 385 410 93.9
Monaco 394 410 96.1
Monaco Funion 75 410 18.3
Hide&Seek 255 410 62.2
Milano 85 410 20.7
Orange Kream 330 410 80.5

38
 Mango Kream 388 410 94.6
Elachi Kream 393 410 95.9
Pineapple 381 410 92.9
Chocolate Kream 377 410 92.0
Golden Arch 35 410 8.5
Nimkin 101 410 24.6
Marie 198 410 48.3
Milk Shakti 185 410 45.1
Bourbon 210 410 51.2
20-20 Butter 340 410 82.9
20-20 Cashew 332 410 81.0

Chart 1.3.1

39
Interpretation:-
Brands such as Parle G, Krackjack, Monaco, Orange Kream, Mango Kream,
Pineapple Kream, Chocolate Kream, Elaichi Kream are visible in almost all
stores (90-100 %) but brands such as Monaco Funion, Golden Arch & Nimkin
were not available in many stores.

For Confectionary:

40
 Table 1.3.2

BRANDS (Confectionary) No. of shops Total % VISIBLE

GolGappa 258 410 62.9
Classic Mint 136 410 33.2
Lite Mint 108 410 26.3
Kismi 222 410 54.1
Orange Candy 300 410 73.2
Mango Bite 337 410 82.2
Melody 352 410 85.9
Poppins 222 410 54.1
Eclairs- 50 p 168 410 41.0
Melody Softe- 1Rs. 146 410 35.6
Kismi Bar 165 410 40.2
Chox 155 410 37.8
Kacha Mango 177 410 43.2
Mazelo 160 410 39.0
Imli Bite 97 410 23.7
Kismi Gold 45 410 11.0
Musst Bite 43 410 10.5

41
 Chart 1.3.2

Interpretation:-

The brands such as Orange Candy, Mango Bite & Melody have good
availability but Kismi Gold and Musst Bite are rarely available .

42
 1.2 New Products Visibility
Table 1.4.1
BRANDS
Available Not Available Total % VISIBLE
(Confectionary)
Nimkin 101 309 410 24.6
Golden Arch 35 375 410 8.5
Melody Softe- 1Rs. 146 264 410 35.6
Mazelo 160 250 410 39.0
Imli Bite 97 313 410 23.7

Chart 1.4.1

Interpretation:

The newly introduced biscuit brand Golden Acrh was available in only 8.5
% retail outlets which is a very low figure. And Nimkin was present in only
25 % outlets.
It appears that demand for their confectionary brands is increasing as they
were present in considerable amount.

43
 1.3 Coverage with respect to competitors

Table 1.5.1
BRAND Direct Indirect No Coverage
PARLE 367 43 0
ITC 308 21 81
BRITANIA 305 27 78
PRIYAGOLD 281 26 103

Chart 1.5.1

Chart 1.5.2

Chart 1.5.3

44
 Chart 1.5.4

Chart 1.5.5

45
Interpretation:

Among the competitors only Parle covers most of the outlets (90%) directly,
rest covers approx. 70-75 % of outlets directly. Also ITC, Britannia &
Priyagold has no presence in approx. 20-25 % outlets but Parle full coverage.
This is the strength of Parle company.

1.4 Brand availability with respect to competitors

46
 Table 1.6.1
BRAND No. of Brands
Nil 1 to 5 6 to 10 11 to 15
PARLE 0 20 88 302
ITC 81 227 85 17
BRITANIA 78 193 99 40
PRIYAGOLD 103 112 144 51

Chart 1.6.1

Chart 1.6.2

Chart 1.6.3

47
Chart 1.6.4

Chart 1.6.5

48
Interpretation:-

Parle in addition to a big share of direct coverage also has74% of outlets where
11 to 15 brands are present as compared to competitors viz ITC, Britannia &
Priyagold having 4%, 10% & 13% respectively. Priyagold although has less
coverage (75%) than competitors but where present were in good variety i.e
35% outlets has 6 to 10 brands compared to Parle (21%), ITC (21%), and
Britannia (24%).

49
50
SWOT ANALYSIS OF PARLE PRODUCTS

STRENGTH WEAKNESS

1. Low price as compared to 1. Breakage of biscuits while

competitors delivering to retailers
2. Sizeable market share in the 2. No proper replacement system
country. for broken biscuits to retailers
3. Offers variety of products under 3. Improper and irregular supply.
its brand. 4. Less share in Premium biscuit
4. Different sizes of packets are market.
available. 5. Dependent on its flagship brand,
5. An experienced team of sales Parle-G
and marketing executives. 6. Poor packaging in family pack
6. Deep and effective coverage of glucose biscuits.
7. Largest distribution system. 7. Lack of schemes for retailers
and distributors.

51
 OPPORTUNITY THREAT

1. Rising demand for innovative 1. Highly advertised brands such

packaging in packaged foods. as Britannia.
2. Retaining loyal retailers or 2. Ever increasing competition
wholesalers. from multinationals and local
3. Improving supply system for companies.
established brands. 3. Increase in sale of cheap local
4. Huge scope for some Parle bakery products.
products in medical shops. 4. Emerging substitutes like
5. Information revolution brought wafers, snacks and toast.
about by the television. 5. Margin war among the major
6. Good scope for snacks and Brands
namkeens, if launched and
properly promoted by Parle.

52
Balance Sheet of Parle Biscuits ------------------- in Rs. Cr. -------------------
Mar '07 Mar '08 Jul '08 Mar '09

12 mths 12 mths 4 mths 12 mths

Sources Of Funds
Total Share Capital 3.60 3.50 3.50 14.00
Equity Share Capital 3.60 3.50 3.50 14.00
Share Application Money 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00
Reserves 38.15 44.79 44.79 26.93
Revaluation Reserves 0.00 0.00 0.00 0.00
Networth 41.75 48.29 48.29 40.93
Secured Loans 2.60 1.73 1.73 0.68
Unsecured Loans 0.00 0.00 0.00 0.00
Total Debt 2.60 1.73 1.73 0.68
Total Liabilities 44.35 50.02 50.02 41.61
Mar '07 Mar '08 Jul '08 Mar '09

12 mths 12 mths 4 mths 12 mths

Application Of Funds
Gross Block 6.49 10.51 10.51 6.43
Less: Accum. Depreciation 0.89 1.94 1.94 0.96
Net Block 5.60 8.57 8.57 5.47
Capital Work in Progress 8.88 10.50 10.50 12.79
Investments 5.17 10.02 10.02 5.78
Inventories 2.64 2.90 2.90 0.00
Sundry Debtors 17.36 12.63 12.63 14.52
Cash and Bank Balance 3.14 1.22 1.22 0.43
Total Current Assets 23.14 16.75 16.75 14.95
Loans and Advances 3.08 5.79 5.79 3.29
Fixed Deposits 0.00 0.00 0.00 0.00
Total CA, Loans & Advances 26.22 22.54 22.54 18.24
Deffered Credit 0.00 0.00 0.00 0.00
Current Liabilities 0.02 0.38 0.38 0.49
Provisions 1.48 1.22 1.22 0.18
Total CL & Provisions 1.50 1.60 1.60 0.67
Net Current Assets 24.72 20.94 20.94 17.57

53
Miscellaneous Expenses 0.00 0.00 0.00 0.00
Total Assets 44.37 50.03 50.03 41.61

Contingent Liabilities 0.00 0.00 0.00 0.00

Book Value (Rs) 115.98 137.98 137.98 29.23

Key Financial Ratios of Parle

------------------- in Rs. Cr. -------------------
Biscuits

Per share ratios

Jul '
Mar ' 09 Jul ' 08 Mar ' 08 Mar ' 07
09

Adjusted EPS (Rs) 2.56 2.56 24.09 24.09 21.42

Dividend per share 1.50 1.50 1.50 1.50 2.00
Leverage ratios
Long term debt / Equity - - - - 0.06
Total debt/equity 0.01 0.01 0.03 0.03 0.06
Owners fund as % of total
98.35 98.35 96.53 96.53 94.13
source
Fixed assets turnover ratio 4.95 4.95 3.16 3.16 5.17
Liquidity ratios
Current ratio 27.38 27.38 14.04 14.04 17.41
Current ratio 8.97 8.97 4.45 4.45 17.41
Quick ratio 27.38 27.38 12.23 12.23 15.65
Inventory turnover ratio - - 11.46 11.46 12.68

54
Balance sheet of Britannia-

Mar ' Mar ' Mar ' Mar ' Mar '
09 08 07 06 05
Sources of funds
Owner's fund
Equity share capital 23.89 23.89 23.89 23.89 23.89
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 800.65 731.92 590.93 525.20 419.63
Loan funds
Secured loans 2.20 1.94 1.53 1.62 6.14
Unsecured loans 22.97 104.16 3.25 7.74 -
Total 849.70 861.91 619.60 558.45 449.66
Uses of funds
Fixed assets
Gross block 511.50 453.18 392.12 315.37 250.35
Less : revaluation reserve - - - - -
Less : accumulated depreciation 233.67 212.19 193.75 174.81 154.39
Net block 277.84 240.99 198.37 140.56 95.95
Capital work-in-progress 6.02 9.69 16.03 11.08 31.70
Investments 423.10 380.83 320.05 359.86 330.08
Net current assets
Current assets, loans & advances 553.66 577.48 382.61 349.10 278.07
Less : current liabilities & provisions 437.55 370.31 323.03 318.22 320.37
Total net current assets 116.11 207.17 59.58 30.88 -42.30
Miscellaneous expenses not written 26.64 23.23 25.58 16.06 34.24
Total 849.70 861.91 619.60 558.45 449.66
Notes:
Book value of unquoted investments 423.07 380.81 352.55 392.33 228.56
Market value of quoted investments 2.15 2.93 2.12 2.88 2.02
Contingent liabilities 162.96 169.55 102.63 67.24 61.24
Number of equity sharesoutstanding
238.90 238.90 238.90 238.90 238.90
(Lacs)

55
 SIGNIFICANT RATIOS

2009-10 2008-09

Measures of Investment

Return on equity Profit after tax % 26.1 18.3

Shareholders’ funds

Book value per share Shareholders' funds Rs. 306.6 246.6

Number of equity shares

Dividend cover Earnings per share times 3.8 2.6

Dividend (plus tax) per share

Measures of Performance

Profit before tax & exceptional

Profit margin % 9.2 5.7
item
Net Sales + Other Income

Debtors turnover Gross Sales times 56.5 81.0

Debtors + Bills receivable

Stock turnover Gross Sales times 8.7 10.8

Stock
56
 Measures of Financial
Status

Debt ratio Borrowed capital % 14.5 0.8

Shareholders’ funds

Current ratio Current assets times 1.6 1.2

Current liabilities

Tax ratio Tax provision % 17.8 9.1

Profit before tax

57
FINDINGS

After close study of the present market situation prevailing in the areas assigned
the researchers, following are the observations.

1. Availability of all the products is not uniform in all the towns. For instance,
the supply is not meeting the demand in particular areas or shops.
2. Golden Arch and Nimkin, newly launched products, have very less
availability.
3. Breakage problem in the Family packs of glucose biscuits is leading to the
decline in sales in this category.
4. Schemes, Discounts, offers, coupons etc. are not reaching to the retailers
and customers whereas Priyagold and ITC on the other hand are doing that.
5. Retailers and even wholesalers are not satisfied with the supply system of
Parle.
6. It was found that Parle (especially Parle- glucose) is most favored brand
and is sold most. Parle biscuits are the retailers and consumers prime
choice.
7. Very little range of Parle biscuits were visible in organized retail outlets.
8. Musst bites is not accepted by the general masses due to its dissatisfying
taste.
9. Lack of marketing efforts for the promotion of new products like Golden
Arch, Nimkin.
10. Britania is emerging as major Competitor in the organized retail outlets.

58
RECOMMENDATIONS & SUGGESTIONS

59
1. Company should start a program for the loyal retailers and wholesalers to
reduce their complaints by providing timely supply and replacement. This
will help in increasing their sales.
2. The packaging of Parle Glucose biscuits (1/2 and 1 kilogram packs) must
be improved for its better sales. The company should come up with double
packaging as people refuse to buy family pack biscuits with loose
packaging.
3. Salesmen should be properly dressed and should have good communication
skills to effectively promote the new products recently launched, by making
sure that the product reaches each and every retailer and also increase the
visibility of the products by arranging the product clearly on the shelf or
rack and show its prominence.
4. To increase the number of stock keeping units {SKU} available in the
retailers store. Each salesman should stress the retailers to keep the
maximum SKUs and to maintain these SKUs throughout. With this, the
replacement of the damaged and expired biscuits should be prompt and
without any hassles, so that retailer can be saved from the loss of the
expired and damaged goods.
5. Company should adopt innovative packaging techniques, as they have their
own packaging unit as consumers are highly attracted towards new
packaging.
6. The company should take proper measures that the schemes and offers are
not gulped by the middlemen ,and that it benefits the retailers and
customers.

60
It was concluded that Parle is the first preference of both the customers and
retailers (Organized and unorganized both) because of its price and brand image.

Brand Parle G dominates the volume-dominated biscuit market. Even in today’s

times when multinationals are beefing up their operations and trying to change the
dynamics of the market, Parle G’s numero uno position is unchallenged. Its
competitors have roped in superstars like King Khan and Sachin Tendulkar, but
Parle G has only gone from strength to strength. Brand Parle G is iconic and has
evolved over the years. Trust, relevance, affordability are its hallmarks, which
have withstood pressures from the hyper-competitive marketplace.

61
The Parle Biscuit brands, such as, Parle-G, Monaco, Krackjack, Marie Choice,
Hide & Seek and confectionery brands, such as, Melody, Poppins, Mangobite
enjoy a strong imagery and appeal amongst consumers across the world. Which
has resulted into Parle-G being the “world’s largest selling biscuit".

The Parle name symbolizes quality, health and great taste. Constantly innovating
and catering to new tastes PARLE-G has built its reputation. This can be seen
from the success of its new brands such as Mazelo, Imli Bite etc.

Parle Products Pvt Ltd., is now lagging in services to retailers because of improper
supply and distribution in some areas and competitors taking advantage of these
points.

62
63
BIBLIOGRAPHY

I. Websites:

Google search: (www.google.com)

wikipedia search: (www.wikipedia.com)

www.parleproducts.com

64
 A
PROJECT REPORT ON
COMPARATIVE ANALYSIS OF PARLE AND
BRITANNIA

In partial fulfillment of the requirement for the award of

MASTER OF BUSINESS ADMINISTRATION

AT

INVERTIS INSTITUTE OF MANAGEMENT STUDIES

SUBMITTED BY:

ASTHA AGARWAL

65