Parle Agro eyes growth in south

Strengthens manufacturing, sales and distribution network in the region

By Author  |  Published: 10th Jun 2019  12:15 amUpdated: 9th Jun 2019  8:43 pm
Parle Agro
Nadia Chauhan

Hyderabad: Parle Agro, which is aiming to become a Rs 10,000 crore entity by 2022, from Rs 5,000 crore now, is expanding its operations and presence in south India. The company believes that an aggressive marketing strategy for the south is a key to help its brands Frooti and Appy Fizz capture greater market share and further consolidate its foothold in the region.

Nadia Chauhan, joint managing director, Parle Agro, told Telangana Today, “South India is one of the major contributing regions for Parle Agro’s brands. It is the second most contributing region for Frooti after north. To strengthen our connect across all markets, including the south, we have adopted a hyper-local strategy. The growth rates in south are the largest in India and this trend is set to continue.”

“While the fruit-flavoured still drink category is growing at 6.3 per cent nationally, south has shown an impressive growth of 18 per cent within the category. Apple as a sub-category has seen phenomenal growth in south, growing at 41 per cent vis-a-vis 4.3 per cent nationally. Parle Agro’s apple juice brand Appy is today the category leader with over 85 per cent market share. Our company’s growth is also driven by Appy Fizz, the fastest growing brand in the beverage category. Regionally, Telangana has been a huge market for Appy Fizz,” she added.

On the manufacturing front, the company has created a network of 13 beverage plants in India with three plants in south- Hyderabad, Chennai and Mysore. Its latest manufacturing plant with highly automated facilities was opened in Mysore recently.

She informed, “We are increasing our manufacturing infrastructure by opening one plant every two years. We are also building our distribution infrastructure to ensure local integration with our brands.”

National scenario
She said, “In the last five years, we have doubled our turnover twice. With our aggressive marketing strategy, we had been able to leap the category growth every year. Over the next few years, we see the ability and potential to double our turnover once again. For a long period, our focus had been on Frooti as a brand but over the last five years, we had been making massive efforts to build Appy as a brand. Appy Fizz is growing at a rate of 75 per cent nationally. We are expanding our product portfolio and national sales distribution to reach our target of Rs 10,000 crore turnover by 2022.”

The company, which operates in beverages, packaged drinking water and PET preforms, caters to over 1.5 million outlets in India through more than 5,000 channel partners. It plans to expand its outlets to 1.8 million this year. The company which has seen growth in both urban and rural markets, has marketing spends of nearly Rs 200 crore.

With its brands Frooti, Appy, Appy Fizz, Frooti Fizz, Bailley (water brand), Frio, Dhishoom and Café Cuba, the company is continuously making efforts to bring in innovation in packaging to make it more ergonomically convenient to customers.

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