SBCH to strengthen nutrition drinks segment through acquisitions

SmithKline Beecham Consumer Healthcare Ltd, a 40 per cent subsidiary of the UK-based SmithKline Beecham plc, is looking for brand acquisitions for its nutritional drinks business. The company had bid for Glaxo’ Complan brand, which eventually went to Heinz India.

Simon J Scarff, SBCH managing director, says the company is looking for acquisitions of brands in the nutrition segment. "If we come across a good opportunity, we would acquire it," he says.

SmithKline’s consumer business in India comprises of nutrition drinks (Horlicks, and Boost which together accounts for a market share of 63 per cent); oral care products Aqua Fresh toothpaste and tooth brushes; and over-the-counter products Crocin and Eno.

The nutrition drink business accounts for three fourths of the company’s turnover. The company also markets Ribena and Gopika ghee and Horlicks biscuits.

In order to increase its profitability in the slow-growing nutrition business, the company has launched various brand extensions of Horlicks with the "intention of positioning Horlicks as a product for all age groups", says Mr Scarff.

The company has launched Horlicks Junior and three-in-one sachets for kids and Mother Horlicks for pregnant women. The company is also planning to leverage the Horlicks and Boost brands for the launch of future products. The company is also planning to launch more products from its global product portfolio.

In the relatively new oral care segment, SBCH has attained 1.5 per cent market share in the first two months of operations.

Earlier, in 1998, SmithKline Beecham Asia Pacific, the 100 per cent arm of SmithKline Beecham plc, decided to focus on the oral healthcare and OTC businesses and decided to transfer the rights of the 21,000 tonnes per annum manufacturing facility that is being built at Sonepat, Harayana to SBCH. The Rs 40-crore unit is designed to cater to the requirements of the entire Asia-Pacific region for malt milk products, company officials say.