India’s largest biscuit maker Parle Products Pvt Ltd may be forced to lay off up to 10,000 workers if the current economic slowdown persists, a report in the Economic Times stated.
The news comes as a slowdown in Asia’s third-largest economy has hit demand for everything from automobiles to retail products, forcing companies to curtail production and recruitment, while raising hopes that the Indian government would unveil an economic stimulus to revive growth.
“We have sought reduction in the goods and services tax … but if the government doesn’t provide that stimulus, then we have no choice but to let go of 8,000-10,000 people,” the Economic Times quoted Mayank Shah, category head at Parle Products, as saying.
A representative for Parle did not respond immediately to news agency Reuters’ request for comment.
Parle, popular for its Parle-G and Marie brand of biscuits, is not the only food product company to have flagged a slowing demand.
Earlier this month, biscuits maker Britannia Industries Ltd’s Managing Director Varun Berry said consumers were “thinking twice” about buying products worth just 5 rupees ($0.07).
Not only Fast-Moving Consumer Goods (FMCG) industry is facing this problem, even the Indian auto industry is staring at a huge fall down as the sale figures continue to go down every month. The figure fell to 30.9 per cent in July amid a raging fear of 10 lakh job losses in the automobile and allied sectors.
Source: India Times