Glaxosmithkline Consumer Healthcare is looking to acquire brands as it chases growth in India but is wary of the high valuations sought by potential targets. GSK Consumer, which makes malted beverages 'Horlicks' and 'Boost' and distributes over-the-counter products 'Crocin', 'Eno' and 'Iodex', is looking to expand its portfolio by acquisitions in its core categories and those which are synergistic.
Consumer goods firms in India have been rapidly expanding, launching new products and snapping up brands locally and overseas. GSK Consumer's Horlicks and Boost compete with 'Complan' of H.J. Heinz , and 'Bournvita' of Cadbury, which was bought over by Kraft Foods last year.
Some deals may get ruled out because of regulatory issues, the 'single-biggest' challenge for an acquisition is the high valuations sought by potential sellers. Last year, GSK launched products in six new categories, including instant noodles and biscuit, and plans to launch products in more categories this year. Horlicks Foodles, GSK's noodles brand, has captured about 3.5% share in a market dominated by Nestle's 'Maggie'.crackcrack
