ITC May Be Open To Buying Horlicks If The Valuation Is Right
It looks as though ITC Ltd may be open to acquiring Horlicks from GSK if it offered at “the right price” according to MD Sanjiv Puri. Two malted food drinks are currently available for acquisition Complan, and Horlicks. As of now, Horlicks is the largest malted food drinks brand in the country.
However, ITC indicated that they would not be interested in purchasing Complan, but that they would be open to purchasing Horlicks if the price is right. “If it (Horlicks) is the right price, why not? But I don’t think the bid has been opened for that”, Sanjiv Puri said when questioned on whether ITC was in the running.
According to the Times of India, an ITC source seemed to indicate that the company is likely to bid for the entire consumer nutrition business of GSK which includes brands like Boost. “As GSK is selling the entire consumer business, then we may bid for it.” the source added.
YD Deveshwar, ITC Chairman also indicated that the city-based diversified conglomerate would certainly get into a health drink segment. “We may look for a health drink. It can be a protein supplement or protein-based milk drink. The company can develop it organically. For acquisition, we shall look for a fair valuation,” he added.