HUL buys Horlics for over 31000 crore
Horlics, the drink being used by hundreds of people as energy supplements for the past 100 years has been bought by Hindustan Unilever (HUL), the country’s largest consumer company. HUL told on Monday that it has approved merger with Glaxosmithkline (GSK), a company manufacturing Horlicks. HUL has to spend Rs 31,700 crores for this merger.
4.39 shares of HUL have been kept against GSK’s 1 share in the country’s largest consumer product deal. Apart from the Nutrition Business GSK with this deal, the distribution rights of several over-the-counter (OTC), including Sensodyine, Oral Care Brands and Eno, Crosin, have also been received by HUL.
Significantly, Horlicks took entry in India with the British Army after World War I (1914-18). After the entry, Horlicks was given as supplement food to the Indian soldiers in the British Army. After independence, the company introduced Horlix’s marketing strategy to make it useable among the middle class family, as a great nutrition drink for children’s growth.
Although Horlicks brand in England is 140 years old and in the deal with HUL, the company’s business in England will not be affected. Its ownership in England will remain near the Glaxosmithkline.
