Hyderabad: The country’s most popular biscuit maker Parle Products recently said that they might have to give pink slips to 10,000 employees amidst the macro-economic situation. The fact that Parle’s biscuits are the most affordable and widely consumed shows that all is not well with India's economy.
The company says that the problems began when the government started putting all biscuits under the 18 per cent GST slab. The sub-below for Rs 100 per kg of biscuits were taxed at 12 per cent. The new tax structure compelled companies like Parle Products to increase the prices of their products.
Parle Products was founded in 1929 and makes popular biscuits such as Krack Jack, Marie biscuits, Milano and Parle G that are more popular brands among others. Parle’s basic pack sells for Rs 5 and Rs 10. In 2003 the company was one of the largest biscuit selling brands and currently clocks annual sales of Rs 10,000 crore.
The new tax structure is not only impacting Parle but Britannia also. The second-largest biscuit maker in the country has also seen a decline in its sales. Varun Berry, managing director of Britannia, was quoted saying that the customers think twice before buying products costing Rs 5 also.