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HUL completes the Acquisition of GlaxoSmithKline, Buys Horlicks

GlaxoSmithKline Consumer Healthcare Limited merges with Hindustan Unilever Limited in a deal worth USD 4.161 Billion

India: FMCG giant Hindustan Unilever Limited (HUL) announced closing of acquisition of GlaxoSmithKline Consumer Healthcare Limited (GSKCH) on 1st April 2020. The merger was announced to take place 15 months prior the actual merger, which was delayed due to few necessary pending approvals. The deal was worth INR 317000 Million (USD4.161 Billion) with an exchange ratio of 4.39 HUL shares for each GSKCH share. HUL further bought the renowned milk powder brand Horlicks from GSKCH in a deal worth INR 30450 Million (USD399.72 Million) as per the available option in the original agreement.

As per the merger and acquisition, 3500 employees from the nutrition team of GSKCH will move to HUL. Post the acquisition, leading brands under GSKCH like Horlicks, Boost, Maltova and Viva will operate under HUL with Horlicks holding the volume share of approximately 50% in the Health Food Drinks (HFD) market.

Chairman of HUL said, “Brands such as Horlicks and Boost are iconic, and we are excited to have them in the Hindustan Unilever fold. The merger gives us a unique opportunity to live our purpose and serve India where Nutrition related challenges form the largest causes of disease– Malnutrition and Micronutrient deficiency - and aligns well with the Government’s ambitious Swasth Bharat and Poshan Abhiyan programs.”

According to TechSci Research, the merger of HUL and GSKCH will offer HUL ample opportunities in the Health Food Drinks (HFD) market as the company it acquired i.e., GlaxoSmithKline Consumer Healthcare Limited (GSKCH), is a leading company in the FMCG sector. Both the parties are expected to highly benefit by joining hands as this merger goes parallel with HUL’s strategy to establish a long lasting and lucrative food and refreshment business in India.

According to a recently published report by TechSci Research, “India Milk Protein Market by Type (Milk Protein Concentrates, Milk Protein Isolates and Others), By Application (Sports Nutrition, Infant Formula, Dairy Products and Others), By Functionality (Emulsification, Foaming & Thickening and Others), By Processing Method (Pasteurization, Creaming & Homogenization and Others), By Livestock, By Form, By Company and By Geography, Forecast & Opportunities, 2024," India milk protein market is projected to witness robust growth during the forecast period  owing to the rising use of milk proteins in the dairy industry for the manufacture of different types of cheeses, and also for enhancing the nutritional value of various dairy products. Moreover, high demand from the sports nutrition as well as among the gym-going population that is increasingly becoming aware of health and fitness, is expected to drive the growth of the market during the next five years. Additionally, rapid adoption of milk proteins as a fortifying agent in the food and beverage sector is anticipated to fuel significant growth of the market during the forecast years. Additionally, milk-protein is also being widely used in personal care sector like body lotions and moisturizers, which is likely to have a positive impact on the growth of the market during the next five years. Based on the type of protein, India milk protein market is dominated by whey protein concentrates due to wide application in the food and beverage industry. The sports nutrition accounts for the largest share in the application segment, due to increased consumption of high protein foods.

According to a recently published report by TechSci Research, “India Non-Alcoholic Beverage Market By Product Type (Carbonated Beverage & Non-Carbonated Beverage), By Packaging Type (Bottle, Cans & Others), By Pack Size (Below 250ml, 250ml-1L, Above 1L), By Distribution Channel (Modern Departmental Stores, Traditional Departmental Stores, Convenience Stores, Online & Others), By Region, Competition, Forecast & Opportunities, 2025,” growth of non-alcoholic beverage market in India can be attributed to rising awareness about healthy lifestyle & wellness, rising disposable income and an increasing number of people consuming soft drinks and juices with their meals. Moreover, marketing activities by leading brands, endorsements by leading film stars, etc., are also driving non-alcoholic beverage consumption in India. Additionally, changing tastes and preferences of consumers, and consumer propensity towards consumption of fast foods & beverages has led to the rise in the consumption of non-alcoholic beverages in the country.

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