India’s Largest Biscuit Maker Parle, May Lay Off Up To 10,000 Employees

Parle Products Pvt Ltd, the country’s largest biscuit company, might lay off up to 10,000 workers due to the slowing down of economic growth. Falling demand in the rural market could cause production cuts, a company executive said on Wednesday.

Founded in 1929, the company Parle has a strength of about 1,00,000 Employees, including direct and contract workers. Parle owns 10 company-owned facilities and 125 contract manufacturing plants.

The biscuits were sold under the 18% tax structure after the government introduced the GST two years back forcing companies to increase prices which affected their sales. Parle, too, had increased prices by about 5%, which led to sales declining significantly.

“We have sought reduction in the goods and services tax (GST) on biscuits priced at Rs 100 per kg or below, which are typically sold in packs of Rs 5 and below, but if the government doesn’t provide that stimulus, then we have no choice but to let go of 8,000-10,000 people from our workforce across factories as slowing sales are severely impacting us,” said Mayank Shah, category head of Parle Products.

 

Parle is not the only food product company facing slowing demand.

The managing director of Britannia Industries Ltd, Varun Berry, said earlier this month that consumers were “thinking twice” about buying products worth just Rs.5.
“Obviously, there is some serious issue in the economy,” Berry said on a conference call with analysts.

According to a report published in Reuters, India’s auto sector is also facing worst-ever slump this year, nearly 3,50,000 people have lost their jobs since April, forcing companies to shut down.