PLI for food processing: Parle Products expects 20-25% growth in exports

Biscuits major Parle Products expects 20-25 per cent growth in exports on the back of the government's production-linked incentive (PLI) scheme in the food processing sector, for which it has received approval, according to a senior company official.

The company, which exports its products to over 100 countries globally, feels that the PLI scheme will help it in becoming cost competitive, besides increasing competitiveness abroad with offerings of quality products.

"This (PLI scheme) is going to help us a lot in terms of improving our presence in the global market and increasing our share... We expect that this will definitely help us in terms of high double-digit growth in our exports," Parle Products Senior Category Head Mayank Shah told PTI.

Elaborating further he said, "we are expecting at least 20-25 per cent growth coming in from exports as a result of this initiative primarily because it will not only help us in terms of improving our offering, but also help us in terms of being cost competitive."

Terming exports as a "significant part" of the company's total turnover, Shah declined to share the exact details, citing the company being a privately held firm as the reason.

Parle Products also has its own manufacturing locations in Africa and a plant in Mexico.

"We also have our products, which are manufactured in India, exported to more than 100 countries globally. Now, this (PLI) is going to definitely help us in terms of increasing our competitiveness abroad, offering better products, quality products in a better way," Shah said.

Given the current situation, he said the PLI scheme will not only help in terms of companies coming up with good products, better quality products, better investments in plant and machinery but it will also help in terms of shoring up of volumes.

When asked if Parle will be setting up new manufacturing plants or will expand the existing facilities to meet the requirements of the PLI scheme, he said, "we're looking at setting up new plants as well as expanding existing capacity."

The food processing ministry on Monday said it has approved 60 applications of investment proposals by packaged food companies, including Amul, ITC, HUL, Britannia Industries, Parle Agro, Tata Consumer Products and Nestle India seeking benefits under the PLI scheme.

In March this year, the government had approved the PLI scheme for the food processing sector, entailing an outlay of Rs 10,900 crore.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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