)
Parle Products, which makes the Parle-G biscuits, is eyeing the Rs 1,650-crore crackers segment as its next avenue for growth. High growth in its traditional glucose biscuits market is not possible anymore, according to a top official. The company is targeting around 30 per cent annual growth in the crackers biscuit segment in the coming years, which also has higher margins.
The crackers segment is divided into two categories, salted and non-salted. While the first one is around Rs 650 crore, the latter's current size is close to Rs 1,000 crore.
The glucose biscuits market is not witnessing any exciting movement, as consumers are opting for premium products. The glucose segment is also quite huge in size, close to Rs 6,500 crore, and maintaining annual growth of 30 per cent, will not be possible in the present market conditions. The cookies and creams segment is growing at 15 per cent. (BISCUIT WARS)
"Crackers will be the next big driver and a growth of around 30 per cent is expected in the coming years. Our offering in the segment is an affordable price point, which makes it equally successful in the hinterland as well," said Mayank Shah, group product manager, Parle.
Parle has Krack Jack and Monaco as its leading brands in the segment. Parle's direct competition would be from Britannia Industries, which has 50:50 and Timepass. Krack Jack is already a Rs 500-crore brand from Parle's stable.
The crackers segment now has a pie of around five per cent of the total biscuits market, while cream and cookies account for 15 per cent. Glucose contributes 30 per cent to the total market but companies are now more focused on other segments.
"We have a strong presence in the cream and cookies as well but that will now go through consolidation," said Shah
Analysts suggested that with changing consumer preference and higher margins, crackers would be the next big growth-driver but companies needed to be more active to lift this segment up. Shah made a similar point saying the segments needed "disruptive action", which would put it in the high growth lane.
"Higher rising income in rural areas opens a big opportunity. The bottom of the pyramid is witnessing increased consumption. Though crackers are urban-centric products, it's doing well in rural areas as well," Shah said.
