GSK to widen portfolio after CNS acquisition
Even as J&J’s OTC (over-the-counter) business consolidation plan in India following its worldwide acquisition of Pfizer’s consumer health business is likely to get delayed, the country’s another OTC major, GlaxoSmithKline Consumer Health, is all set to broaden its product portfolio following its parent’s recent acquisition of CNS Inc, a leading consumer health product company in the US.
GSKCH is the OTC business arm of the European drug giant GlaxoSmithKline (GSK Plc). GSK Plc had agreed to buy the US consumer healthcare group for $566 million early this month.
The global acquisition of CNS Inc will add the popular brands like Breathe Right nasal strips and FiberChoice dietary fibre supplements to GSK’s over-the-counter business globally including India.
However, the global business consolidation plan and the country specific product introduction strategies of the multinational company after the US acquisition, have not yet been announced.
GSKCH Ltd, one of the leading players in the Indian OTC market, manufactures and markets a number of products, including prominent household names like Horlicks, Boost, Viva and Maltova , Eno, Crocin and Iodex. The company with its manufacturing plants located in Nabha, Rajahmundry and Sonepat has a workforce of about 2,700 people.
With a strong marketing and distribution network in India comprising over 1800 wholesalers and direct coverage of over 4,50,000 retail outlets, the company is now all set to expand business segment with the additional portfolio from CNS, said industry analysts.
A GSKCH spokesperson, when contacted, declined to comment on the portfolio addition in India following the CNS acquisition.
"It is too early to make comments on the impact of the CNS acquisition in India at this point of time," he said.
Since the Indian OTC market is currently growing at much faster rate, most of the leading players in this segment have been increasingly focusing on expanding their product basket. GSKCH’s revenues were also encouraging during this financial year particularly led by its flagship brand Horlicks.
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