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Parle Agro to enter new categories; eyes Rs 10,000 crore topline by 2022

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Leading beverages-maker is planning to enter new categories and ramp up the sales and distribution network for its existing products to achieve its target of clocking Rs 10,000 crore topline by 2022, a top company official has said.

Parle Agro to enter new categories; eyes Rs 10,000 crore topline by 2022
The city-based company expects to double the turnover of its flagship brands Frooti and Appy Fizz to achieve this target

According to a PTI report: The city-based company expects to double the turnover of its flagship brands and to achieve this target. While the former grosses Rs 2,200 crore now, the latter fetches around Rs 700 crore in topline.

“We are at Rs 4,200 crore now and we hope to be an Rs 5,000-crore company by December. We are looking at doubling this up over the next few years and have set an aggressive target of Rs 10,000 crore turnover by 2022,” , Joint Managing Director and Chief Marketing Officer, Parle Agro was quoted by PTI as saying.

“It is an aggressive target involving big plans not just in terms of furthering our sales and distribution network for existing products but also creating some new products and new categories over the next few years,” she was further quoted by PTI as saying.

Its flagship brand Frooti has been growing at 25 percent and the company aims to double this in the next two-three years from Rs 2,200 crore now.

The mango-based beverages category is estimated to be over Rs 8,450 crore now, and Frooti enjoys 26 percent of this segment, she said.

Parle Agro dominates the sparkling fruit juices category with its Rs 700 crore brand Appy Fizz, which it targets to be a Rs 1,000-crore brand by 2020.

The company recently roped in Hindi actor Salman Khan as the brand face for Appy Fizz and Chauhan said it is part of the strategy of growing the category and the brand.

“We really hope that this gives us huge penetration as a brand and achieve our goals of growth,” she told PTI.

Appy Fizz is one of the fastest growing brands in its portfolio, clipping at 50 percent.

Chauhan plans to expand the distribution footprint and drive sales with innovative packaging, differentiated SKUs and aggressive pricing for Appy Fizz.

“Over the next two years we will have lots of innovation and packaging, which we hope to increase our market penetration. Today Appy Fizz is available at about 6 lakh outlets, while Frooti is at almost 2 million outlets. We want to take Appy Fizz to the level of Frooti when it comes to retailing,” she was quoted by PTI as saying.

The company has earmarked Rs 200 crore for marketing activities in 2018, of which Rs 100 crore will be invested in Appy Fizz alone and the rest primarily in Frooti.

The Rs 10,000-crore fruit-based beverages market is dominated by mango, and last year the company had launched Frooti Fizz in the fruit-plus fizz category and is looking at other fruits to drive this category.

Parle Agro, which exports to 50 countries, is also evaluating opportunities to locally manufacture its products in some of its key export markets.

“We are aggressively planning to convert some of these markets to into manufacturing hubs for both captive consumption as well to serve nearby markets. We are looking at the Middle East, East Africa, and the US for manufacturing base, as these are also big markets for us,” Chauhan told PTI.

“Currently, exports as a revenue stream is very small for us which is why we are looking some of overseas market for local manufacturing. We already have a manufacturing facility in Nepal,” she was further quoted by PTI as saying.

Parle Agro has 12 beverages manufacturing facilities and 56 bottling plants for water brand Bailley.