Unilever invests in India with €3.3bn deal for Horlicks

Unilever has agreed to buy GlaxoSmithKline’s nutritions arm, including Horlicks, a week after press reports the two were in exclusive talks.

The €3.3bn (2.9bn) deal will give the British-Dutch consumer goods company a substantial presence on the growing Indian market.

It will buy GSK’s health food drinks portfolio in India, Bangladesh and 20 other mainly Asian markets, the companies said this morning.

The business turned over around €550m in 2018, mainly through sales of Horlicks and Boost.

Since being introduced in the 1930s, Horlicks has built up a strong following in India.

Seen in the UK as a nighttime drink designed to help pensioners sleep, in Asia it is mainly fed to children at breakfast.

Yet, despite double-digit growth over the last 15 years, Unilever still believes the products have great potential to grow in the country.

Unilever head of food and refreshment Nitin Paranjpe said: “We are delighted to be acquiring the GSK health food drinks portfolio.

“The iconic Horlicks brand has a deep heritage, credibility and resonance around the world.

“The acquisition is transformative for our foods and refreshment business allowing us to enter the health foods drinks category, further strengthening our position in health and wellness.

“It is rare to be able to acquire brands with such leading market positions and fantastic consumer equity in one of the world's most exciting and fast-growing markets.”