Parle Agro readies Rs 150 cr to improve production, sales

Written by Lalitha Srinivasan | Mumbai | Updated: Mar 7 2014, 08:07am hrs
Parle Agro, makers of Frooti, has kicked off an organisational transformation initiative to streamline its operations. To start with, the company is re-engineering its business processes to stabilise its sales and distribution operations and improve cost efficiencies. As part of the strategy, it is planning to invest R150 crore to expand its manufacturing and distribution this year.

Re-engineering our business processes will act as a potential catalyst in fostering a process and data driven culture with the help of better data and process management systems for informed decision making, said Nadia Chauhan, joint managing director, Parle Agro.

With this move, the company plans to inculcate a problem solving culture to facilitate a constructive approach towards all business challenges. The structural and cultural transformation of the organisation is an attempt to streamline our systems and processes. With this move, we hope to post higher growth and strengthen our execution in the marketplace, explained Chauahn.

Parle Agro plans to strengthen its new product launch capabilities to drive volumes in competitive markets. Parle Agros R&D team is currently working on developing new beverages and snacks to woo new consumers. In line with our growth plans, we are now investing in improving our efficiencies. The challenge today is to sustain growth in the long run and to have the capabilities to manage it seamlessly, said Chauhan.

In the packaged beverages and foods business in India, Parle Agro today faces stiff competition from both domestic as well as international players. Parle Agro today competes with PepsiCo India and Coca-Cola India in the F&B sector. To woo new consumers, Parle Agro is putting in place fresh action plan now, said an industry analyst with a domestic brokerage firm.

To fight multinational competition in the R30,000-crore Indian beverages market, the company is in the process of scaling up its returnable glass bottles (RGB) network and have plans to increase the network to over 40 plants within the next two years.

Last year, the company introduced its apple drink Appy Fizz in cans and returnable glass bottles (RGB) at select metros. To woo rural consumers, it is planning to introduce Frooti and Appy in small packs priced at R5.

Currently, the company is gearing up for the national launch of its fizzy coffee drink Caf Cuba.