Parle Products Pvt Ltd, a leading Indian biscuit maker, is planning to lay off up to 10,000 workers as slowing economic growth and falling demand in the rural areas and interior parts had been the concern of huge production cuts, a company executive said on Wednesday.
A sharp drop in Parle’s biscuit sales means the company may have to slash production, which may result in layoffs of 8,000-10,000 people, Mayank Shah, category head at Parle, said in a telephone interview from Mumbai.
Worried about GlobalRecession & Potential Layoffs in Auto Sector, Real Estate Sector, Startups or now even Food products players like Parle Products etc?
A downturn in Asia’s third largest economy is denting sales of everything from cars to clothing, forcing companies to curtail production and raising hopes that India Government would unveil an economic stimulus to revive growth.
Parle Products is not the only food product company which had been hit due to the slowing demand. Parle may axe up to 10,000 jobs amid sluggish demand.
Varun Berry, managing director of Britannia Industries Ltd , Parle’s main competitor, said earlier this month that consumers were “thinking twice” about buying products worth just ₹5.
“Obviously, there is some serious issue in the economy,” Berry had said on a conference call with analysts.
Parle Products, India’s largest biscuit maker is likely to cut 10000 jobs across the functions over weakening demands.
Market research firm Nielsen had already forcasted previous month India’s consumer goods industry was losing steam and momentum as spending in the rural heartland cools and small manufacturers lose competitive advantages in a slowing economy.
Parle, founded in 1929, employs about 100,000 people, including direct and contract workers across 10 company-owned facilities and 125 contract manufacturing plants across India.
Once known as Parle Gluco, the Mumbai-headquartered company’s flagship biscuit brand was renamed as Parle-G, and became a household name in India through the 1980s and 1990s. In 2003, Parle-G was considered the world’s largest selling biscuit brand.