TIL Desk/Business/Mumbai/ Popular Indian biscuit maker Parle Products may cut up to 10,000 jobs owing to the prevailing macro-economic situation, according to a company executive.
Rural distress has taken a heavy toll on fast moving consumer goods (FMCG) sales for the past few quarters. Companies like Hindustan Unilever, Nestle have reported weak growth owing to the slowdown in consumption.
According to reports, Mayank Shah, category head at Parle Products, has said that if there is no tax relief in the form of a GST rate cut, the company may have to lay off 8,000 to 10,000 people.
Apart from the auto sector, FMCG companies are also facing strong headwinds. Hindustan Uniliver, which saw a significant decline in its sales volumes during the June quarter, had said that “the near-term demand will remain subdued given the macroeconomic conditions.”
The stressed rural sector, which comprises one-third of the company”s market, is the key factor behind the company”s tepid performance. The revival of the distressed agriculture sector would be a positive for the FMCG industry.
