Kid’s nutrition brand Horlicks is planning to drop its prices approximately 5th part for its low units pack. The reason behind the drop is to push up the sales in small town, where nutrition and hygiene of kids is a great issue.
On the other hand, the British giant is also stepping in the market with the launch of high margin specialised variants.
GSKCH Managing Director Manoj Kumar said in an interview, “The category is having a volume growth problem. The rural economy has not been good over the last two years. So, the slowdown of the small town phenomenon over the last two years hurt this category the most,” GSKCH managing director Manoj Kumar told ET in an interview. In the past two months, the Rs 5,500-crore health foods category has seen a spurt of activity from rivals threatening Horlicks’ share. Last month, Nestle relaunched its fortified milk drink Milo with under 10% sucrose per pack. French firm Danone SA’s Protinex Grow is the other brand GSK needs to watch out for.” “Since a significant portion of our category is in rural and small towns, we are very much linked to the revival of the economy there. We are playing both the mass and high-science segment with clinical claims,” Kumar said.
Danone announced that it plans to double the revenue in India by 2020 and also it will introduce 10 healthy products.
There’s lot more competition in kids’ nutrition. We see all this activity as negative for GSK Consumer. Mead Johnson’s Enfagrow, for example, claims it provides highest levels of nutrition compared to leading children nutrition brands in India,” Edelweiss Securities.