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Parle Agro Pvt Ltd in Soft Drinks (India)

Local Company Profile | 01 Jul 2014

STRATEGIC DIRECTION

Parle Agro Pvt Ltd aims to strengthen its presence in soft

drinks by introducing new products over the forecast period.The company aims to focus on high-growth categories ofbottled water and juice drinks in order to continue itsremarkable growth sustained over the review period.

The company has plans to continue its expansion ofpackaged drinking water (PDW) brand, Bailey, acrossvarious cities through the franchisee model.

KEY FACTS

Summary 1 Parle Agro Pvt Ltd: Key FactsFull nameofcompany:

Parle Agro Pvt Ltd

Address:Off Western Express Highway, Sahar - Chakala Road,Parsiwada, Andheri (E), Mumbai 400 099, India

Tel: +91 (22) 6734 8000

www: www.parleagro.com

Activities:Producer of soft drinks, packaged foods, plastics(PET)

Source: Euromonitor International from company reports,company research, trade press, trade sources

COMPANY BACKGROUNDFounded in 1985, Parle Agro is a privately held soft drinksmajor in India. Over 80% of its revenues are attributed toits beverages division. It also has separate divisions for itsconfectionery and snack brands.

The companys flagship brand is Frooti, which is a majorbrand in juice drinks. It has also diversified into bottledwater, carbonates, confectionery, PET packaging and snacks.The bottled water brand Bailey did not cater to the bulkwater as of 2010.

The company enjoys a nationwide manufacturing anddistribution network.

In 2010, Parle Agro launched flavour extensions to its rangeof Hippo healthy snacks. It also launched Appy nectar in a250ml PET format. This is expected to lead to increasedretail consumption of the product, as the earlier cartonpackaging was thought to be less mobility-friendly andappealing to younger consumers.

The company registered a decline in share in juice drinks

and hence tied up with Bollywood megastar Shahrukh Khanto be the brand ambassador. The company is hoping for20% increase in sales as a consequence of this strategy.

PRODUCTION

Parle Agro manufactures all of its products at plants spread

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across the country. Employing 49 facilities for its bottledwater production by mid-2012, the company is expected toincrease its production capabilities to 60 plants by the end of2012. Bailey had 53 BIS Certified operational packageddrinking plants to date.

The company exports some products to neighbouring Nepaland Bangladesh, as well as to Russia, Canada and the US.

The companys PET manufacturing plant at Silvassa has the

capacity to produce over 8 million PET preforms and over 5million closures per day. In addition to meeting Parle Agrospackaging demands for its soft drinks, the factory alsohandles PET packaging for Hindustan Unilever and AtcoHealthcare, among others

COMPETITIVE POSITIONING

Parle Agro Pvt Ltd was ranked fourth in overall soft drinkswith an off-trade value share of 4% in 2013. The companyspresence was much more pronounced in juice, while itcaptured 21% value share of juice drinks (up to 24% juice)

in 2013. However, the companys share recorded a declinein overall juice mainly due to growing competition fromnectars, 100% juice and other juice drinks brands includingSlice and Maaza.

The company has a product portfolio encompassing almostall soft drinks categories in India, including bottled water,juice and carbonates.

Parle Agros brands carry a standard-price positioning.Brands such as Bailley, Frooti and Appy, are designed for thestandard-priced segment.

In 2012, actor Shahrukh Khan endorsed Parle Agros Frootibrand nationally, while its competitor Coca-Cola signed upwith actors Imran Khan and Parineeti Chopra to promoteMaaza.

In 2013, Parle Agro introduced carbonated coffee under thebrand name Caf Cuba. Through the launch, the companyaimed to expand its portfolio of soft drinks and strengthenits position in carbonated beverages.

Summary 2 Parle Agro Pvt Ltd: Competitive Position 2013

Product type Value shareRankSoft Drinks 4.4% 4

Bottled Water 1.4% 6

Carbonates 0.3% 3

Juice 15.8% 4Juice drinks (up to 24% juice) 20.4% 3Nectars (25-99% juice) 8.7% 3Source: Euromonitor International from company reports,company research, trade press, trade sources, trade interviews

Euromonitor International 2014

http://www.euromonitor.com/

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