GSKCH to invest over Rs 300 cr on 'Horlicks' relaunch

New Delhi: GlaxoSmithKline Consumer Healthcare today said it is looking at investing over Rs 300 crore on a major brand building exercise to position 'Horlicks' as an umbrella brand of the company.
   
As part of the exercise, the FMCG firm is relaunching 'Horlicks' in a new look and promote the brand across media particularly focused on digital and mobile marketing space.
   
Besides, the company, which is aiming to achieve a sales of Rs 300 crore within the next two years from its foods business, is looking at foraying into other categories like breakfast and mid-meals.
   
"There is a fundamental shift towards synergising all our marketing activities on 'Horlicks' and bring under one platform. The idea is to position it as a range of health foods and beverage brand rather than just a health drinks brand," GSK Consumers Healthcare Executive Vice President (Marketing) Subhajit Sen told reporter here.
   
Under Horlicks, the company currently sells various health drinks like Lite Horlicks, Women's Horlicks, Junior Horlicks apart from  biscuits and cereal bars. It has also recently entered into the noodles market through 'Foodles'.
   
"We will be spending around Rs one crore every day on various advertising and promotional activities. This is an increased adspend by around 15-20 percent over last year," Sen said.
   
The company had last time relaunched Horlicks in 2005 and since then achieved a volume sales of 12 percent. Sen said the company hopes to maintain similar growth rate of 12-14 percent on the back of the relaunch.
   
"We will be engaging in a lot of above the line and below the line activities. We will go for sponsorships deals as a single brand rather than in a segmented way that we have been doing," Sen said.
    
Besides, the company said it is also planning to expand the product portfolio of the estimated Rs 1700-crore Horlicks brand, particularly into the foods segment.
   
"Foods segment is a major focused area for us. At present around 10-15 percent comes from food division. In the next 18-24 months, we expect a sales of Rs 300 crore from our food business," he said.
   
At present, GSKCH sells biscuits, noodles and cereal bars under the food category and accounts up to Rs 200 crore to the company's overall sales.
   
"We are focusing on expanding the brand into non-lunch and non-dinner like for breakfast, lunch box for kids, travelers and other mid-meals. We are evaluating every category," he said.
   
While he did not specify the time frame that the company is looking at launching the products, he said some of the new products will be introduced this year.