Parle-G's ₹5 pack
Parle-G is one of India's best-known biscuits, and its small packs have long been sold at round price points, with the ₹5 pack among the most familiar. Over the years, Parle has held those price points through several rounds of cost and tax changes by changing what the pack contains instead of what it costs.
When GST began in 2017, biscuits were taxed at a higher rate than before; Parle said it would not raise prices on packs below ₹10, but would reduce the number of biscuits. In August 2019, as demand slowed, Parle said it might cut up to 10,000 jobs and asked for a lower GST rate on cheaper biscuits. In August 2022, facing high input costs, its category head said the company would keep price points and reduce grammage instead. Reports put the ₹5 pack at about 100 g in earlier decades and about 55 g by 2023. When GST on biscuits was cut in September 2025, the industry moved to bigger packs at the same price points.
Chapter 3: Your price floor
Every product and every deal needs a floor: a price below which you will not go. Without one, discounts and special orders slowly eat the margin.
- Set a variable-cost floor and a full-cost floor for each product
- Decide when to accept a low-price order
- Protect margin when you cannot change the price
This article is adapted from the book. Examples marked “Example” use invented names and numbers; company stories are based on public sources listed in the book. Education only: not investment, tax or legal advice.
