Smithkline Beecham acquires Viva and Maltova

08 February 2000

SmithKline Beecham Consumer Healthcare, the Rs 705.7-crore nutrition company, has acquired Viva and Maltova health food drink brands from Jagatjit Industries Ltd. SBCH is a 40 per cent affiliate of SmithKline Beecham of the UK.

The deal was fixed at a price of Rs 86.25 crore and the transfer of brands is effective 1 January 2000.

The acquisition will increase SmithKline's market share to a little over 70 per cent of the health food drink market in India. Viva and Maltova together have over eight per cent market share. The health food drink market is estimated at around 90,000 tonnes per annum.

Viva is largely consumed in Andhra Pradesh, while Maltova is popular in the South and the North. The two brands are also exported Sri Lanka, Bangladesh, Myanmar and the Middle East.

"Both Viva and Maltova are a strategic fit in our game plan and complement our existing product portfolio", says Simon Scarff, managing director, SBCH.

The brands fits in well with the strong penetration of Horlicks and Boost, which have become household brands in the South and the East, says a company release.