Parle cuts prices of mass-end brands, others may follow

MUMBAI: Parle Products, the leader in the overall biscuit space, has challenged rival Britannia Industries by cutting the price of some of its popular and mass-end brands, which could trigger a price war in these segments.

Parle Products has taken an indirect price cut on Parle G by about 4% (Rs 5 for a pack of 75 gm now as against 72 gm earlier), which makes it 10% cheaper to Britannia's Tiger, its rival in the glucose biscuit segment, according to a Religare report.

The Mumbai-based biscuit major has also cut the price of its Bourbon biscuits by 17% to Rs 20 for a pack of 150 gm, down from Rs 24. The price change positions the brand at a marginal discount to Britannia's Bourbon, which is priced at Rs 26 for a 100 gm pack.

The Religare report said the price cut also positions Parle's Bourbon at a discount to Mcvitties, which has priced its Bourbon at Rs 24 for a 100 gm pack. The move comes even as raw material prices are not entirely benign.