GlaxoSmithKline Consumer Healthcare (GSK Consumer Healthcare), makers of popular health drinks such as Horlicks, Boost and Maltova, has announced its entry into the breakfast foods market with the launch of Horlicks Oats.
The company is launching the product in the four southern States first and will go national at a later stage. Jayant Singh, Marketing Director, GSK Consumer Healthcare, told this correspondent that “The national market for oats is around Rs.200 crore out of which the southern market accounts for around Rs.150 crore or 75 per cent so it makes sense to enter this market first. The national market is growing at 25 per cent annually.''
The product will be launched in three packs — 200 gram (Rs.32), 400 gram (Rs.58) and the 1 kg pack (Rs.125).
The oats will be imported from Australia and packaging will be sub-contracted.
The company is targeting the urban population and according to Mr. Singh, “the product is targeted at those consumers willing to make healthy choices. It offers a three-way health advantage of lowering cholesterol, lowering sodium and being high in fibre.'' As a breakfast food category, Mr. Singh said that at Rs.200 crore, it is under-developed.
Eyeing opportunities
“If more serious players enter it, the category can grow. We have aggressive plans for the product and there will be big gains in growing the category and accelerating growth rates. We have the advantage of the Horlicks brand which is a trusted brand with a proven nutritional promise and are looking to extend it.''
Further, Mr. Singh said the company was looking at other opportunities for the Horlicks brand, “not limited to the breakfast foods category alone. However, we are still focussed on the powdered health drink business and are looking at recruiting more consumers and trying to upgrade them to premium categories like Horlicks Gold.''
GSK Consumer Healthcare has three manufacturing facilities in India — at Nabha in Punjab, Rajahmundhry in Andhra Pradesh and Sonepat in Haryana.
