Parle may lay-off up to 10,000 employees amid slump in demand
Team Udayavani, Aug 21, 2019, 5:30 PM IST
Bengaluru: Parle Products Pvt Ltd, the country’s biggest biscuit maker, is likely to lay off up to 10,000 employees amid a falling demand for consumer goods.
Sales have been impacted owing to the slow economic growth witnessed in Asia’s third-largest economy, forcing companies to curtail production and raising hopes that the India government will unveil an economic stimulus to revive growth.
The company, which recorded a turnover of about Rs 10,000 crores and provides jobs to nearly one lakh people, is expected to go on a lay-off spree if the situation does not improve, the Economic Times reported.
“We have sought reduction in the Goods and Services Tax (GST) on biscuits priced at Rs 100 per kg or below, which are typically sold in packs of Rs 5 and below, but if the government doesn’t provide that stimulus, then we have no choice but to let go of 8,000-10,000 people from our workforce across factories as slowing sales are severely impacting us,” the daily said quoting Mayank Shah, category head of Parle Products.
Parle, which makes the popular Parle-G biscuits, blames the Goods and Services Tax (GST) that was rolled out in 2017, for its poor sales. The company says its sales were affected post-implementation of GST since the higher tax was imposed even on biscuits costing Rs 5 per pack, Reuters reported.
The Marie biscuit maker said the higher taxes have forced the company to provide fewer biscuits in each packet. This, in turn, affected the demand from consumers in rural India, which is said to contribute over half of the company’s revenue.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
CBDT allows tax officials to waive or reduce interest due from assessee
Markets fall in early trade amid unabated foreign fund outflows
New software for fast-tracking project approvals: Karnataka Minister Patil
In-flight passengers can access WiFi services only when allowed, say new rules
SEBI mulls separation of non-regulated activities; ‘cross-default’ definition for debenture trustees
MUST WATCH
Latest Additions
Temple idols found desecrated in Hyderabad, case registered
Rebels to be shown the door: Maharashtra BJP chief Bawankule
Rohit Shetty says ‘Singham Again’ his fastest Rs 100 crore film, thanks audience for support
SC junks plea against quashing of LOC issued to ex-house help of Sushant Singh Rajput
People of Wayanad will ask me not to come there often: Priyanka Gandhi
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.