top of page

From ₹60,000 to ₹17,000 Crore: The Parle-G Miracle

  • Writer: Mark Hub24
    Mark Hub24
  • Jan 21
  • 9 min read

In 1928, a tailor from Gujarat named Mohanlal Chauhan bought a decrepit cattle shed in Mumbai for ₹75,000. He sailed to Germany, learned confectionery-making, imported machinery for ₹60,000, and in 1929 started producing orange candies with just 12 workers—mostly family members. The founders were so busy they forgot to name the company, so people called it after the location: Vile Parle. Ninety-six years later, that forgotten name became the world's largest-selling biscuit brand. Parle-G now produces over 100 crore packets monthly, generates ₹17,000 crore revenue, reaches 6+ million retail stores, and if you lined up all Parle-G biscuits consumed annually, you could circle Earth 192 times. This is the story of how a Swadeshi dream became India's most affordable, most beloved biscuit.

markhub24

The Swadeshi Spark: A Tailor Becomes Confectionery Maker (1920s-1929)

Mohanlal Chauhan hailed from Pardi near Valsad in Gujarat. The early 1900s saw the Swadeshi movement spread across the subcontinent, urging Indians to boycott British goods and support indigenous businesses. The Chauhans—silk traders in Mumbai—were deeply influenced by this nationalist fervor.

Mohanlal moved to Mumbai to make a living. At first, his profession was tailoring. However, it was not profitable, and so he moved into the food business by selling snacks. He ran a bakery making bread, buns, rusks, scones, nankhatai, turnovers, and other items.

But Mohanlal wanted something bigger—an Indian confectionery brand to compete with British imports. In 1928, Narottam Mohanlal Dayal (sources vary on exact family member names; Mohanlal Dayal Chauhan or Mohanlal Chauhan appear interchangeably) bought an old, decrepit factory for Rs 75,000. The factory needed extensive work. It was located between two sleepy villages—Irla and Parla—in an area that would later become Vile Parle suburb of Mumbai.

To learn confectionery-making, Mohanlal sailed to Germany—an extraordinary journey for an Indian in the 1920s—and worked in confectionery factories there. He returned in 1929, armed with both skills and imported German machinery worth Rs 60,000.


The Humble Beginning: 12 Workers in a Cattle Shed (1929)

In 1929, Parle Products was officially founded. An acre-and-a-half of land was acquired, and the factory—40 feet wide and 60 feet long—was housed in what had been a cattle shed. Just 12 men were employed from surrounding villages, with family members playing multiple roles: engineers, mechanics, managers, and confectionery makers.

It is believed that the founders were so busy managing the factory that they forgot to name it. Everybody just started referring to it by the suburb it was located in—Vile Parle. Thus, the Parle brand was born not through deliberate branding strategy but through practical necessity.

The first product? Parle Orange Candy, launched in 1929. This marked the beginning of a decade-long focus on confectionery items. Other products included kismi toffee and various candies that quickly gained popularity.

Mohanlal had five sons: Maneklal, Pitambar, Narottam, Kantilal, and Jayantilal. All five brothers worked together under their father, contributing to building what would become India's most iconic food brand.


The Biscuit Entry: British Army Supplier (1939-1947)

It wasn't until 1939—ten years after founding—that Parle made its foray into the world of biscuits with the introduction of 'Parle Gluco Biscuit.' However, there was a catch: Parle began manufacturing biscuits in 1939 with a license to supply their biscuits only to the British Army.

During the years 1939 to 1947, Parle's focus shifted exclusively towards producing biscuits for the British army, limiting public access to these baked delights. This wartime supply contract ensured consistent demand and revenue but meant ordinary Indians couldn't buy these biscuits.


Independence and Swadeshi Marketing (1947)

With India gaining independence in 1947, everything changed. Parle redirected its efforts toward the wider market. In 1947, the company launched an ad campaign showcasing its Glucose biscuits as an Indian alternative to British biscuits—tapping directly into post-independence nationalist sentiment.

This positioning was brilliant. The message: Why buy foreign biscuits when India can make equally good, more affordable ones? The Parle brand became well-known throughout India following the success of this campaign and products like Parle-G biscuits.


The Icon: A Girl Who Became a Nation's Favorite (1960s)

The wrapper features a young girl—an illustration created by Everest creative Maganlal Daiya back in the 1960s. The girl pictured is Neeru Deshpandey from Nagpur (some sources say the illustration was generic, but Neeru is commonly cited as the model).

Interestingly, people created their own stories about the kid being a girl and assigned names of their own accord. The illustration became so iconic that generations of Indians grew up recognizing that chubby-cheeked child on the yellow packet.


The Rebranding: Parle Gluco Becomes Parle-G (1985)

Parle-G biscuits were earlier called 'Parle Gluco' Biscuits until the 1980s. The evolution of 'Parle Gluco' into 'Parle-G' in 1985 was prompted by rising competition in the glucose biscuit market. To distinguish itself from other brands flooding the market with similar names, Parle opted for a distinctive identity.

The "G" in the name Parle-G originally stood for "Glucose." However, a later brand slogan brilliantly repositioned it: "G for Genius." This clever reinterpretation transformed a functional ingredient reference into an aspirational attribute, connecting the affordable biscuit with intelligence and capability.

This decision proved monumental. Parle-G went on to become the world's highest-selling biscuit brand—a title it maintains to this day according to Nielsen reports.


The Family Split: Three Companies (1950s-1970s)

Between the 1950s and 1970s, the original House of Parle was amicably split into three separate non-competing entities, owned by various Chauhan family factions. The separation was mainly because Jayantilal (the youngest of Mohanlal's five sons) had a lifestyle different from his four older brothers.

The four older brothers got the biscuits and confectionery business as their share, and even to this day, they remain together with no further separation. Jayantilal took the beverages section as his share, which was further divided between his two sons.

The three companies today are:

Parle Products (1950s): Led by Vijay, Sharad, and Raj Chauhan (grandsons of Mohanlal through his son Kantilal). Owns Parle-G, 20-20, Monaco, KrackJack, Magix, Melody, Mango Bite, Poppins, Londonderry, Kismi Toffee Bar.

Parle Agro (1960s): Led by Prakash Jayantilal Chauhan (later by his daughters Schauna, Alisha, and Nadia). Owns Frooti, Appy, Bailey.

Parle Bisleri (1970s): Led by Ramesh Jayantilal Chauhan. Owns Bisleri water.

All three companies continue to use the family trademark name "Parle." In 2008-2009, legal disputes arose when Parle Agro diversified into confectionery, potentially competing with Parle Products. The Bombay High Court eventually ruled that Parle Agro could use "Parle" or "Parle Confi" on condition that it clearly specified it belonged to a separate company.


The Historic Milestone: India's First ₹5,000 Crore FMCG Brand (2013)

In 2013, Parle-G became India's first fast-moving consumer goods (FMCG) brand to cross the ₹5,000 crore mark in retail sales. This was a watershed moment—achieving five-figure crore revenue from a single biscuit brand was unprecedented in Indian FMCG history.

Parle-G's sales were three times higher than Maggi's. The company sold more than 120 crore biscuit packets or 12,000 crore individual biscuits in that year alone. Each household, on average, consumed 400 Parle-G biscuits annually.

Parle-G increased its market share from 67% to 80% in 2013 within the glucose biscuit segment—near-monopolistic dominance.


Manufacturing Scale: Circle the Earth 192 Times

As of 2022, Parle-G boasts a staggering production of over 100 crore (1 billion) packets per month. The numbers are almost incomprehensible: if you lined up all the Parle-G biscuits consumed annually, end to end, you could go around the Earth 192 times.

Parle operates multiple manufacturing facilities across India: Mumbai, Kanpur (Uttar Pradesh), Neemrana (Rajasthan), Bengaluru, Hyderabad, Kutch, Khopoli, Indore, Pantnagar, Sitarganj, Bahadurgarh, and Muzaffarpur. International plants operate in Cameroon, Nigeria, Ghana, Ethiopia, Kenya, Ivory Coast, Nepal, and Mexico.


Distribution Mastery: 6 Million Retail Stores

By January 2013, Parle-G's distribution network had covered 6 million retail stores. This extraordinary reach ensured that whether you're in a Mumbai high-rise or a village of 100 people near the Line of Control, Parle-G is available.

Parle products can be bought only from distributors, not directly from the manufacturer. This strategy scales their distribution channel extensively. Even billion-dollar companies must buy Parle-G from distributors—no one gets direct access. Parle's distributors are loyal, and vice versa.


The Pricing Philosophy: ₹4 for 27 Years (1994-2021)

Price has been Parle-G's most vital success factor. The company did not raise its price of ₹4 per packet from 1994 to 2021—an extraordinary 27-year price freeze. Parle knew that price had a significant share in Indian customers' purchase behavior, especially among lower-income consumers who formed the bulk of their customer base.

However, due to inflation and rising raw material costs, Parle was eventually forced to increase the price. In 2021, Parle hiked the price to ₹5 for the standard biscuit pack. Even at ₹5, Parle-G remains one of the most affordable biscuits with the best taste.


The Pandemic Boom: ₹13,000+ Crore Revenue (2020)

In 2020, Parle Products posted a 38% increase in net sales, crossing ₹10,000 crore mark. The revenue number of Rs 13,000+ crore was higher than rivals Britannia and Nestle India, making Parle Products India's biggest food company by annual revenue.

The COVID-19 pandemic, surprisingly, boosted Parle-G's revenue. The brand witnessed a spike in sales due to increased home consumption, bulk buying, and its positioning as an affordable, nutritious staple during uncertain times.

Parle-G became the second Indian FMCG brand to gross sales of Rs 7,500 crore in one year (after crossing ₹5,000 crore in 2013). The company's net profit margin reached sub-9% level from 4% in 2019—demonstrating improving profitability alongside revenue growth.


Current Status: ₹17,000 Crore and World's Largest (2024-2025)

Today, sales figures have surged to ₹16,000-17,000 crore. According to a 2011 Nielsen report (still widely cited as the most recent comprehensive global survey), Parle-G is the best-selling biscuit brand in the world—a title it has maintained.

Parle Biscuits (a subsidiary of Parle Products) reported twofold jump in profit to Rs 1,606.95 crore for FY24, while revenue from operations was up 2% to Rs 14,349.4 crore. Total revenue stood at Rs 15,085.76 crore in FY24.

Parle makes approximately 40% of its revenue through Parle-G alone—despite offering 200+ products. This illustrates the 80-20 rule: 20% of products generate 80% of revenue.

The Chauhan family's net worth is pegged at $5.5 billion (approximately Rs 45,579 crore), making them one of the wealthiest business families in India.


Brand Positioning: Bharat ka Apna Biscuit

Parle-G uses solid brand positioning: "Bharat ka Apna Biscuit" (India's own biscuit), "G for Genius," and "Hindustan ki Taakat" (India's strength). These slogans tap into national pride, affordability, and aspirational messaging simultaneously.

To create brand association and establish connection with customers, Parle never changed its packaging design. This consistency benefited the brand in standing out from competition and produced high recall value among consumers. The yellow wrapper with the chubby girl became one of India's most recognizable packages.


What Made Parle-G the World's Largest

Swadeshi Roots: Born from nationalist fervor, positioned as Indian alternative to British biscuits—emotional connection beyond taste.

Unwavering Affordability: 27-year price freeze (₹4 from 1994-2021) made quality biscuits accessible to every economic class.

Distribution Excellence: Reaching 6 million+ retail stores ensured availability everywhere—from metros to remote villages.

Consistency: Never changed packaging, taste, or brand essence across 85+ years—building multi-generational loyalty.

Quality at Scale: Maintaining consistent taste and quality while producing 100 crore+ packets monthly—operational excellence.

Economies of Scale: Multiple manufacturing facilities, massive volume enabled lowest cost per unit, maintaining margins despite low prices.

Emotional Positioning: Not just a biscuit but "India's biscuit," "G for Genius," "Hindustan ki Taakat"—aspirational messaging at affordable prices.

Universal Appeal: Consumed by people from every strata—urban high-rises to smallest villages, chai-time companion for all.

No Direct Sales: Distributor-only model created loyal network incentivized to push the brand.

Product Simplicity: No artificial flavors or preservatives—just wheat flour, sugar, vegetable oil, keeping costs low and trust high.


Cultural Impact: More Than a Biscuit

Parle-G has become a verb. "Bhaiya, ek Parle-G de do" (Brother, give me one Parle-G) is said even when people want any biscuit at tea shops—similar to "Xerox" for photocopying or "Google" for search.

High-end restaurants have started using Parle-G to make premium desserts. Farzi Cafe invented Parle-G cheesecake. Mumbai's 145 offers Parle-G Eatshake. The humble biscuit has achieved gourmet status while maintaining mass-market affordability.


Challenges and Future Vision

Parle faces competition from Britannia (which operates with 12% net margin vs Parle's sub-9%), ITC's Sunfeast, and PriyaGold. However, Parle-G's dominance in the glucose segment (80% market share) remains unchallenged.

Parle Products aims to reach sales of Rs 20,000 crore by 2025. If the company maintains 8-10% net margins, the total valuation could reach Rs 75,000-100,000 crore when combined with Parle Agro and Bisleri.


The Legacy: 96 Years of Genius'

From a cattle shed with 12 workers to the world's largest-selling biscuit brand generating ₹17,000 crore, Parle-G's journey embodies the Swadeshi dream realized. Mohanlal Chauhan, who started as an unsuccessful tailor, built a business that would outlive him by a century and counting.

The biscuit that cost ₹4 for 27 years, that never changed its packaging, that's available in the remotest village and the fanciest restaurant, that Indians call by name regardless of which biscuit they're actually buying—that's not just market leadership. That's cultural integration.

Every time an Indian dips a Parle-G into chai, every time a mother gives her child "Genius" biscuits for snack, every time a villager near the LoC buys the only packaged food available in his shop—they're experiencing 96 years of tradition, affordability, and the promise that quality doesn't require wealth.

From forgotten name to world's largest. From ₹60,000 machinery to ₹17,000 crore empire. From 12 workers to circling Earth 192 times annually. That's not just business success—that's Parle-G: G Maane Genius, indeed.

© MarkHub24. Made with ❤ for Marketers

  • LinkedIn
bottom of page