Einstein International Journal Organization(EIJO)

Abstract

This paper presents a comparative analysis of the financial performance of Nestlé India Ltd. and Parle Products Pvt. Ltd. over the period 2011–2020, with a focus on profitability, liquidity, and solvency. Using secondary data drawn from audited reports, industry databases, and regulatory publications, the study applies ratio analysis, descriptive statistics, and paired sample t-tests to examine firm-level outcomes. Results indicate that Nestlé consistently outperformed Parle in profitability, achieving substantial and sustained net profits, while Parle reported negligible returns despite wide market penetration. Liquidity analysis reveals that Nestlé maintained ratios close to conventional benchmarks, reflecting disciplined working capital practices, whereas Parle exhibited extreme volatility, with excessively high reserves followed by instability in later years. Solvency analysis highlights Nestlé’s dynamic shift toward equity-driven financing, in contrast to Parle’s rigid debt-averse model. Together, the findings underscore the decisive role of ownership structures and governance philosophies in shaping financial outcomes in India’s FMCG sector. For managers and policymakers, the evidence highlights the importance of balancing profitability with efficient liquidity management and prudent leverage to ensure resilience and competitiveness in a rapidly evolving market.

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