• PAGE ONE
• INDEX
• HOME

Parrys record ad spend to help boost brand equity

Our Bureau

CHENNAI, July 20

PARRYS Confectionery Ltd (PCL) spent Rs 7.25 crore on advertising for the year ended March 31, 2001 as against the Rs 6.33 crore for the previous year.

Speaking at the annual general meeting of the company here on Friday the PCL Chairman, Mr M.V. Subbiah, said this was the highest in the company's history and added that this support in enhancing the brand image will continue in the current year as enha nced brand equity will be reflected in higher sales volumes in the years to come.

Mr N.C. Venugopal, Managing Director, PCL, told Business Line that the cost of media had shot up almost four-fold and to retain Parrys' share in the market it was essential to spend this amount.

Mr Subbiah said the company had focused on better product mix and widening of the distribution network. At present the company's direct coverage stands at over two lakh outlets.

The company also plans to expand its distribution network with special focus in the northern and eastern regions. During the current year the company will be more focussed on rural markets.

The company's joint venture proposal entered into with Chupa Chups SA of Spain was called off. The joint venture company Chupa Chups Parrys Pvt Ltd was liquidated with mutual consent.

Mr Venugopal explained that the joint venture was planned to manufacture lollipops for the Indian market. But the market conditions changed and the venture did not take off.

In the joint venture with CSM nv of Netherlands, the entire shareholding of CSM NV was purchased by Parrys Confectionery Ltd for a nominal value.

Leaf Parrys Ltd has now become PCL's wholly-owned subsidiary. The liabilities of Leaf Parrys Ltd with various banks were settled. The name of Leaf Parrys Ltd has since been changed to Confectionery Specialities Ltd.

Explaining why this joint venture did not take off, Mr Venugopal said the products made by the joint venture company were not tropicialised and hence did not do well in the market. These products were later withdrawn from the market.

Mr Subbiah saidthe Manapakkam factory was under a lock-out effective July 8. Mr Subbiah told Business Line that the management has settled with one section of the workers led by the management recognised union. Since the other union has not come forward to negotiate, the lock-out continues.