2024-11-20 18:50:00 :
Beverage company Parle Agro Pvt Ltd, which sells beverages under the Frooti and Appy Fizz brands, saw standalone revenue fall by 12 per cent in the 12 months ended March 31, 2024, according to data shared by business intelligence platform Tofler.
The company reported revenue of $3,209 crore in the previous financial year; from $Revenue reported in the same period last year was Rs 3,654 crore. Profits also fell $160.8 Crores Rs. $The brand saw an increase in taxes of Rs 21 crore on account of higher taxes on its Appy Fizz brand, which was hiked from 12 per cent to 40 per cent in FY24.
“Parle Agro’s revenue and profit decline in FY 2023-24 is mainly due to significant tax policy changes. Appy Fizz, a fast-growing challenger brand in our portfolio, has seen a significant four-fold rise in Goods and Services Tax (GST), from 12% to 40%. This tax increase has had a big impact on our pricing strategy, resulting in us adjusting portion sizes for consumers,” said Nadia Chauhan, joint managing director and chief marketing officer, Parle Agro. Parle Agro is promoted by Prakash Chauhan and his family in Mumbai.
To be sure, Parle-Agro’s portfolio of fruit drinks, sparkling drinks and bottled water rivals beverage giants like Coca-Cola, Dabur, PepsiCo, Amul and Britannia. The company has partnered with big Bollywood stars like Alia Bhatt and Varun Dhawan, who endorse its brand.
Chauhan said the company had made “significant investments”, more than $Rs 600 crore was allocated to the dairy category to cope with higher taxes on carbonated drinks. “This strategic shift is redefining our growth trajectory. The category also mitigates the volatility of seasonal beverages, especially given the significant impact of non-seasonal rainfall in the last financial year,” she added.
Dairy drinks
In 2021, the Mumbai-based beverage maker re-entered the dairy beverage market with the launch of Smoodh flavored milk, priced at $10. Target the mass consumption basket.
“Additionally, with a comprehensive portfolio restructure and increased liquidity $With 20 coins, we are confident that we will once again promote the substantial expansion of Appy Fizz. We have witnessed a growth rate of over 30-40% so far in FY 2024-25 compared to the previous year. Appy Fizz will return to its baseline performance. ” Chauhan added.
The non-alcoholic ready-to-drink beverage market in India is expected to reach $By 2030, the current scale will reach 1.5 trillion $According to the Indian Council for Research on International Economic Relations (Icrier), the figure is Rs 60,000 crore.
Nonetheless, carbonated or aerated drinks, including low-sugar, fruit, flavored and zero-sugar drinks, still face a high tax rate of 40% in India.
This high tax burden is levied through a combination of 28% GST and 12% compensation cess, regardless of sugar or fruit content.
The Indian beverage industry has been campaigning for lower taxes on aerated drinks.
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