Biscuit major Parle recently announced their entry into the breakfast cereal market.
In an interview with CNBC-TV18, Mayank Shah, Senior Category Head at Parle Products said that they expect about 7-8 percent share in the segment.
"The breakfast cereals category is still in a very nascent stage and so there is room for growth for multiple players. The market size for the category is about Rs 2,500 crore annually and over a period of time we are looking at about 7-8 percent share in this segment."
He expects festive season to drive growth in Q2 for the biscuits category.
"Q2 has seen good recovery in the biscuits category. The festive season is likely to really add to the growth this time because, after Q1 where consumer spending was relatively much less, we expect some kind of revenge buying and that would aid the growth and drive the growth of the biscuits category in Q2."
Shah said that they will take a decision on price hike post Diwali.
"We had taken a price hike about 4 months back and currently we are closely monitoring the situation. While it is a welcome move by the government of reducing import tax by 2.5 percent, typically it is not resulting in any kind of dip in prices. The second concern is an increase in MSP. While the hike in MSP is good for the agri sector and farmers, it has an impact on input costs and food inflation. So we will be taking a decision on price hike post-Diwali."
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