INDIA – Parle Agro, a beverage company, has announced plans to construct a new manufacturing plant in Vijaywada, Andhra Pradesh as it gears up to touch a turnover of Rs 10,000 crore (US$1.3 billion) by 2022.
It has already set up greenfield facilities in Sitarganj, Uttarakhand and Mysore, Karnataka, which are the largest in terms of size and manufacturing capacity amongst all of the company’s plants.
Parle Agro has a total of 67 manufacturing units in India, out of which nine are company-owned beverage units and one is a standalone preform manufacturing unit, with the rest being franchisee units.
“We don’t just expand in existing factories. We also expand through greenfield factory projects in new locations. Normally you would see us putting up one factory per year, just on the basis of the growth that we are currently experiencing,” Nadia Chauhan, Joint Managing Director and Chief Marketing Officer, Parle Agro said.
“We do hope that with this launch and all the other initiatives that we are quite aggressively driving in the market, by the end of the year at an overall level, across all our brands we should be able to end with 10 percent growth from 2019.”Nadia Chauhan – Joint Managing Director and Chief Marketing Officer, Parle Agro
Chauhan said in terms of marketing investment in the rest of the calendar year 2020, the company would be spending about Rs 40 crore (US$5.4 million) on the marketing of B-Fizz.
As for 2021, she said it “will be a time when everybody will sort of regroup and look at restructuring and planning for 2021, after having gone through 2020, so it will be a fresh perspective for 2021. Normally, if we look at last year, we spent about Rs 250 crore (US$34.07 million) to Rs 300 crore (US$40.8 million) on marketing.”
Chauhan said the company has set a target of clocking turnover of Rs 10,000 crore (US$1.3 billion) by 2022 and is banking on its newly launched brand B-Fizz to play a significant role in it.
According to a PTI report, the company, which clocked a turnover of Rs 6,500 crore (US$886 million) in 2019, had recently introduced its new offering B-Fizz, a malt-flavoured fruit juice based drink in the market and expects an overall growth of 10 percent this year.
“In general, as a company, we don’t go into a very large number of new product launches. We really stay quite focussed on select product launches and try to be able to build scale with them. By 2022 we would perhaps see one more new category that we would open,” Chauhan said.
The entire Appy Fizz and now B-Fizz category have been an area where the company has seen maximum growth and expansion, Chauhan added.
“Today one of the interesting signs that we see is that it (B-Fizz) is almost delivering at par with Appy Fizz, which today is more than a Rs 1,500 crore brand (US$204 million). We are seeing that B-Fizz is showing as strong a delivery and contribution like Appy Fizz,” she told PTI.
“We do hope that with this launch and all the other initiatives that we are quite aggressively driving in the market, by the end of the year at an overall level, across all our brands we should be able to end with 10 percent growth from 2019,” Chauhan further told PTI.
The brand has signed Priyanka Chopra Jonas as the national brand ambassador to maximise reach and awareness of the new launch, while Jr. NTR has been signed in as the brand ambassador for Southern India.
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