Wipro, ITC, Cadila in the race to acquire Complan

ITC, Wipro Consumer Care & Lighting and Cadila Healthcare are preparing to buy Kraft Heinz India’s famous nutritional drink brand, Complan, Mint has reported. Investment bankers JP Morgan and Lazard, which are managing the transaction, have set the deadline to submit bids as September 15. The bids are expected to be in the range of USD 700-800 million, sources told the paper.

Kraft Hienz’s announcement to sell Complan comes on the heels of rival GlaxoSmithKline initiating the sale of Horlicks earlier this year.

Complan accounts for approximately 8 percent share of the Rs. 5,500 crore nutritional drink market in India. The market is dominated by Cadbury’s Bournvita and Nestle’s Boost, besides Horlicks and Complan.

As per Euromonitor International, malt-based drinks such as Horlicks and Bournvita have witnessed a slowdown in growth from 13.2 percent in 2014 to 8.6 percent in 2017. However, as a segment, supplement nutrition drinks have registered a relatively higher growth than malt-based drinks. Yet, their market shares have slipped from 21.3 percent in 2014 to 11.5 percent in 2017, Mint has reported. The entry of new competitors into the segment, such as Wander AG’s Ovaltine and Cadila’s ActiLife has also challenged the dominance of existing brands.