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May, 14 2018

Parle Agro targets Rs 10K-cr turnover by 2022, to launch new categories

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

One of the biggest beverages-maker Parle Agro is planning to boost its sales and distribution network for its existing products, in addition, to launch of new categories to achieve its target of clocking Rs 10,000 crore topline by 2022, a top company official has said.

The city-based company expects to double the turnover of its flagship brands Frooti and Appy Fizz 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," saidParle Agro joint managing director and chief marketing officer Nadia Chauhan.

"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 added.

Its flagship brand Frooti has been growing at 25 per cent 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 per cent 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 said.

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

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 said.

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 consumptions 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 said.

"Currently, exports as a revenue stream is very small for us which is why we are looking some of the overseas markets for local manufacturing. We already have a manufacturing facility in Nepal," she said.

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

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