For most people, a period of disruption is the time to focus on survival. But for Schauna Chauhan of Parle Agro, the period of disruption is the time for innovation and doubling down on the growth agenda. That is the reason why, when after the pandemic newer challenges emerged in the form of supply chain disruptions and steep inflation due to geopolitical crises, Chauhan decided to go all out in search of new sets of rules to stay ahead of the curve. It was one thing to enter the dairy category at the peak of the pandemic, for instance. But it is another thing that despite challenges on multiple fronts, Chauhan is now doubling down on her bet—this despite a murky track record of corporate biggies in the country’s dairy space. That is when her experience comes in handy.
The CEO of Parle Agro—makers of popular packaged beverages such as Frooti and Appy Fizz—remains as confident about success in the dairy space as she was when the company invested heavily to enter the business in mid-2021, a time marked by the deadliest Covid-19 wave. Dairy is a category where multiple attempts by corporate giants like Coca-Cola or Nestlé have reaped limited success against the strong home-grown milk cooperatives. One of the key factors, say experts, in Parle Agro’s early success in the category this time is its pricing. While dairy beverages packed in carton or PET bottles from most leading brands are priced at a premium than packaged colas, Chauhan has priced her dairy beverages—sold under the SMOODH brand—at a lower price band, starting at `10. “At least for the next two years, there’s going to be tremendous amount of focus on our dairy based beverages. We’ve recently launched lassi and launched flavoured milk a year ago. So, there’s going to be tremendous amount of focus on distribution for our milk-based products as well,” she says.
Additionally, to back her aggressive plans, Chauhan is also working to increase production capacity as the new products attract consumers’ attention. The company is already in the process of investing in two greenfield projects in Vijayawada and Gwalior to ramp up production.
For Chauhan, who is actively working to diversify Parle Agro’s portfolio that is now heavily skewed towards its traditional brand Frooti (it contributes 45-50% towards its top line) believes in the ‘learning on the go’ mantra.
“The best form of education is practical education,” says Chauhan, who now has close to two and half decades of experience under her belt. “Because you know, during difficult decision-making, data may drive you towards one direction, while your intuition may point towards a completely opposite way. That is when your experience comes in handy,” Chauhan tells BT.
It is no wonder then that after taking the plunge during the difficult times and, eventually, setting her house in order, Parle Agro has managed to grow 12% year-on-year during the summer months this year.
@arndutt