Mumbai: Parle food company has announced that they might lay off 8000 to 10000 employees as the demand in the market for the economic parle products has been seeing a decline since a few days. India’s largest biscuit maker is facing a demand slowdown.
Due to the GST taxes, the company had to adopt a price hike that led to a change in the quantity of product. Hence the customer has started thinking twice while buying any products. In an interview with Bloomberg Quint the category head at Parle Product, Mayank Shah said.
“Consumers have become more value-conscious during the times of slowdown in the past six months. Consumers are not buying enough. Offtake from the shops is getting affected. The number of shops stocking products is the same, but the number of products being sold from these shops is going down due to weakening consumer demand.”
He further went on to say that the company had approached the government to waive the GST taxes from specific products of the company, “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.”
The Parle Company is famous for its economic biscuit packets like Parle G and Marie category. These two biscuits are mostly consumed by the middle class and the lower-class people of the society, but today the economy has hit people in a way that people are thinking twice to buy a product that costs less than rupees 5.
Parle is not the only food company that is affected by the economy. Before this the Britannia Ltd. Managing director, Varun Berry said in a conference that is thinking twice before purchasing a product which even costs Rs 5. His remark indicated towards a ‘serious issue in the economy’.
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