The Hindu Business Line : Parle ‘Musst’ contend with strong competition

Bangalore, June 27 Parle Products, which recently launched ‘Musst’ chips and sticks in Maharashtra, hopes to corner a 5-7 per cent share of the branded snacks market in the first year of operation. It plans to go national with its snacks within six months.

Parle’s launch is in competition to Pepsi’s ‘Lays’ and ‘Kurkure’ and ITC’s ‘Bingo.’

Organised retail of chips and sticks is estimated at Rs 2,500-3,000 crore. And Parle is looking at a 5-7 per cent share (in value terms) in the first year, says Mr Pravin Kulkarnii, General Manager (Marketing), Parle Products.

Pepsi’s Frito Lays division is a clear leader in the snacks segment, with a 75-80 per cent share in both volume and value terms. Parle will also have to contend with ITC, which entered the snacks category recently. So, how does Parle propose to tackle competition?

“We are giving more volume for the same price compared to competition. While we give about 75 grams for a Rs 10 pack of sticks, competition offers about 55 grams. In chips, our Rs 10 pack gives 60 grams, compared to 35 grams from competition,” says Mr Kulkarnii. “We are also looking at new categories and other innovations,” he adds.

In July, the company plans to enter the markets of Gujarat and Madhya Pradesh. A national rollout of its chips and sticks is planned within six months — starting with metros and mini-metros. Parle also has plans to take its snacks abroad. “We are talking to a few players in Africa. But it is still in the nascent stage,” he said.

(The company’s biscuits and confectionery are available globally in the markets of US, Gulf, West Asia, Korea, Africa and Australia.)

Parle has totally invested about Rs 20 crore on Musst Chips and Stix, which are currently being manufactured at the company’s own facility in Nasik.

Parle Musst Stix is available in four flavours — Masala Munch, Sweet Chilly, Chatpata Chat and Saambar, priced at Rs 5 for a 35 g pack and Rs 10 for a 75 g pack. Parle Musst Chips is available in Aloo Chat, Sweet and Spicy Chutney, Classic Salted and Red Chilly Achar flavours, priced at Rs 5 for 25 g and Rs 10 for 60 g.

The biscuits and confectionery maker already has a presence in the snacks category with Musst Bite (flavoured cheeselings). But the category hasn’t really taken off in the country, says Mr Kulkarnii. “India is not really ready for a product like cheeslings. It hasn’t yet developed a taste for it. As a category, it is still small in the country,” he said.

But Mr Kulkarnii hopes Parle can make it work with chips and sticks, although he admits competition will be fierce. “For instance, Lays has built brand equity for almost 10-15 years. It will be tough. And there is also competition from regional players.”

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