GlaxoSmithKline Plc (GSK)
is one of the world's leading
healthcare companies that was formed by the merger of
Glaxo Wellcome and SmithKline Beecham in the year 2000. GSK operates
in India through two subsidiaries—GlaxoSmithKline
Pharmaceuticals Ltd. (GSKRx) and GlaxoSmithKline Consumer Healthcare
Ltd. (GSKCH). GSKRx is in the pharmaceuticals business,
while GSKCH is mainly into health food drinks (malted milk foods) and
non-prescription medicare products.
GSKCH is headquartered in Gurgaon, and enjoys leadership
in the 90,000 tons Indian malted milk foods market. It is backed in
its success by technical and marketing inputs from GlaxoSmithKline
Plc, UK, which holds a 43% stake in the company. GSKCH has a
strong distribution network in India, comprising 2,200 wholesalers
and 575,000 retailers.
GSKCH's product range includes four brands of malted milk
food drinks: Horlicks, Boost, Maltova and Viva (Exhibit 1), under what
is referred to by the company as the Nutritional Products Group.
The malted milk foods market comprises of two segments—white
powders and brown powders (chocolate flavored). Horlicks and Viva
belong primarily to the white powders category, while Boost and
Maltova are brown powders. Horlicks has several brand extensions, such
as Women's Horlicks, Junior Horlicks, Horlicks Lite and Horlicks Biscuits. |