Parle Agro Pvt Ltd, a beverages company that sells Frooti and Appy Fizz, reported a 12% drop in standalone revenues for the 12 months ended March 2024. The company’s revenue decreased from ₹3,654 crore to ₹3,209 crore, and profit declined from ₹160.8 crore to ₹21 crore due to increased taxation on Appy Fizz, which moved to a 40% tax bracket. The company’s joint managing director, Nadia Chauhan, attributed the decline to significant tax policy changes. To mitigate the impact, Parle Agro made substantial investments in the dairy category, exceeding ₹600 crore. The company is confident that this strategic shift will redefine its growth trajectory and drive expansion for Appy Fizz. Despite the challenges, India’s non-alcoholic, ready-to-drink beverage market is projected to reach ₹1.5 trillion by 2030. However, carbonated or aerated beverages face a steep 40% tax rate in India, which is imposed through a combination of GST and compensation cess. The industry is batting for lower taxation on aerated drinks.

Source: https://www.livemint.com/companies/frooti-maker-faces-12-revenue-drop-amidst-tax-hike-challenges-parle-agro-itc-coca-cola-reliance-11732105279774.html