Glaxosmithkline Consumer Healthcare Ltd. - (Amalgamated) Stock Analysis

Glaxosmithkline Consumer Healthcare’s (GCH) core business is manufacturing of health drinks under the brand Horlicks. The history of the company goes way back in 1950s when bottled Horlicks was imported from England. But in the year 1955 due to change in import policy, import of Horlicks was stopped.

During 1956-57 a team of Horlicks visited India to explore possibilities for setting up a plant in India. For this the company approached Maharaja of Nabha, Pratap Singh in Punjab. Later in October 1958 with the support of Maharaja, Hindustan Milkfood Manufacturer (HMML) was established to produce Horlicks.

In the year 1969 Beecham plc acquired Horlicks England, which led the company to become major shareholder in HMML. In 1979 Beecham India was merged with Hindustan Milkfood Manufacturer. Later Beecham plc, UK got merged with SmithKline USA.

In January 2000 the name was changed to Glaxosmithkline Consumer Healthcare.

It exports products to countries like Bangladesh, Myanmar, Sri Lanka, Middle East, Fiji, Mauritius, Nepal, Bhutan and many more.

GCH has manufacturing plants located at Punjab, Andhra Pradesh, Haryana, Hyderabad, Chennai, Guwahati, Ghaziabad, Bangalore and Gurgaon.

Glaxosmithkline Consumer Healthcare has entered into an agreement with Laclede to purchase its dry mouth brand Biotene for $170 million.

In 2011 GSk has launched Sensodyne in an attempt to enter the Indian tooth paste market. "

Products

Nutritional drinks- Under this it manufactures and markets wide range of health drinks. Besides Horlicks, it has created brands like, Boost, Maltova and Viva. Apart from youth, it also caters to other consumers like mothers with Mother’s Horlicks and Horlicks Lite for diabetic consumers.

OTC Products- It promotes and distributes over the counter drugs like pain relief balm -- Iodex, pain relief tablet and syrup -- Crocin and drug for acidity problems -- Eno.

The company’s nutritional food services division has also developed vending of Boost and Horlicks. Around 500 vending machine have been placed in corporates, schools and hospitals.

Award and Recognition

It manufacturing plants have received various certification for its quality and health and safety systems such as OHSAS 18001, ISO 9001:2000 and ISO 14001:2004 by DNV and SA8000.

The company’s Sonepat factory has won the prestigious “National Energy Conservation Award – 2007” from the President of India in the Food Processing Sector.