Mumbai : With economic slowdown biting into major companies of India, India’s popular biscuit making company Parle Products Pvt ltd may lay off up to 10,000 workers as slowing economic growth and falling demand in the rural areas could cause cuts, as told by a company executive today.
A drastic drop in the biscuit sales means the company may have to slash production, which may result in layoffs of 8,000-10,000 people, Mayank Shah, category head at Parle, said in a telephone interview from Mumbai. He also hinted at this drastic step if the government does not reduce the 18% GST on biscuits.
The popular Parle biscuit brand had been worsening since the rollout of the nationwide goods and services tax (GST) in 2017, which imposed a higher levy on biscuits costing as low as 5 rupees a pack. The higher taxes have forced Parle to offer fewer biscuits in each pack, hitting demand from lower-income consumers in rural India, which contributes more than half of Parle’s revenue.