India’s leading biscuit maker, Parle Products Pvt Ltd may cut up to 10,000 workers as slowing economic growth and falling demand in the rural heartland which causes a decrease in production, as per the company executive.
Category head at Parle, Mayank Shah said in an interview that sharp drop in Parle’s biscuit sales means the company may have to slash production, which may result in layoffs of 8,000-10,000 people.
“The situation is so bad, that if the government doesn’t intervene immediately … we may be forced to eliminate these positions,” said Shah.
Shah added that, to review the tax rates, held over the past year with the government’s GST council as well as former Finance Minister Arun Jaitley, Parle having the annual revenue of more than $1.4 billion.
As per the Market research firm, India’s consumer industry was losing steam as spending in the rural heartland cools and small manufacturers lose competitive advantages in a slowing economy.
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Parle is not the only food product company to have flagged slowing demand.