GSK puts Horlicks under review, hints at sale of Indian consumer biz to fund $13 bn Novartis buy

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26 Aug, 2025 12:21

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British drug giant GSK on Tuesday said it has put its popular nutritional health brand Horlicks under "strategic review" to fund the USD 13 billion acquisition of Novartis consumer health business.

GSK said it will assess shareholding in its Indian subsidiary, GlaxoSmithKline Consumer Healthcare hinting at a possible sale of the Indian unit.

"GSK also to initiate strategic review of Horlicks and other consumer nutrition products to support transaction funding. Review will include an assessment of Group’s shareholding in Indian subsidiary, GlaxoSmithKline Consumer Healthcare Ltd," GSK said in a press statement.

The majority of Horlicks and other nutrition products sales are generated in India, with the Horlicks range widely recognised as a portfolio of premium nutrition products.

Horlicks alone contributed around three-fourths of GlaxoSmithKline Consumer's sales of Rs 4,208.57 crore in FY17.

In India, these products are sold by GlaxoSmithKline Consumer Healthcare Ltd, a public company listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The strategic review will include an assessment of GSK’s 72.5 percent shareholding in the company.

GSK expects the outcome of the strategic review to be concluded around the end of 2018. There can be no assurance that the review process will result in any transaction.

“India remains a priority market for GSK investment and growth. The Consumer Healthcare business will continue to invest in growth opportunities for its OTC and Oral Health brands, such as Sensodyne and Eno,” GSK said.

The Group is also actively investing in its Pharmaceutical and Vaccines businesses, including building new manufacturing capacity in Vemgal, Karnataka and Nashik.

In India GSK operates its business through two listed entities – the pharmaceutical business is housed under GlaxoSmithKline Pharmaceuticals and consumer health business under GlaxoSmithKline Consumer Healthcare.

Horlicks’ share in total health drink market stood at 44.8 percent in value terms and 50.6 percent in volume terms in FY17.

Horlicks and Boost (the other popular health drink), together had a 56.3 percent market share in value terms and 64.4 percent in volume terms in March 2017.

Horlicks brand is under pressure in India with stagnation of sales due to intense competition from Abbott, Nestle and Danone. Abbott’s Pediasure has emerged as popular brand among pediatricians and commands a premium in terms of pricing among nutritional health drinks.

GSK last year dumped JWT – an ad agency it has worked with for almost eight decades. GSK has been launching high-margin specialised variants of Horlicks to address top-end consumers and dropped prices of its popular products to push up sales in small towns.

The malt-based drink market in India was estimated at 1.1 billion (retail sales) in 2015, according to a study by research firm Euromonitor International.

GlaxoSmithKline Consumer market capitilisation is at Rs 28,000 crore.

Shares of GlaxoSmithKline Consumer rose 2.14 percent and were trading at Rs 6645.05 on BSE at 2.07 pm, the benchmark Sensex rose 0.45 percent to 33,215.21 points.