GSK Consumer Board Meets On Sale Of Horlicks In India
A board meeting of GlaxosmithKline Consumer Healthcare at Gurgaon is scheduled today to discuss plans to sell one of its most iconic brands, Horlicks.
Multinational food companies Nestle, Unilever, Danone, PepsiCo, Abbot, Mondelez and homegrown ITC are the likely contenders for the 146 year-old brand.
Horlicks, which has a huge market in South India, also has and a 42.5 per cent majority share of the Rs 7200 crore malt-based hot drinks in India. Its nearest competitor, Cadbury’s Bournvita has a 12.6 per cent market share.
ITC, which recently launched its packaged milk processing facility recently, is a likely strong contender because malt-based brands could be a natural addition to its expanding food portfolio.
Nestle, the world’s biggest packaged food company, which recently crossed Rs 10,000 crore in sales in India, owns malt drink Milo, which remains small.
French firm Danone SA’s Protinex and Abbot’s Pediasure and Ensure are increasing spending in this category.
GSK needs cash to fund a $13 billion buyout of Novartis’ stake in their global consumer healthcare joint venture. There are chances that it could sell its consumer health nutrition business in India, Nigeria and Bangladesh.
The total sale could fetch more than $4 billion.