GSK to sell Horlicks; Nestle, other food groups likely suitors

Agencies
March 28, 2018

London/New York, Mar 28: Food giants Nestle , Kraft Heinz and Unilever are expected to bid for GlaxoSmithKline`s Horlicks health nutrition business, which could fetch more than $4 billion, according to people familiar with the matter.

GSK has started a strategic review of Horlicks - a malt-based drink brand popular in India – and some of its smaller products, after buying Novartis out of their consumer healthcare venture for $13 billion on Tuesday.

The main asset on the block is GSK`s 72.5 percent stake in its Indian subsidiary GlaxoSmithKline Consumer Healthcare . The sources said the stake was worth $3.1 billion at current market prices but GSK wanted a premium in any sale.

They estimated the consumer health nutrition business, which also has smaller operations in Nigeria and Bangladesh, could fetch more than $4 billion.

Nestle, the world`s biggest packaged food company, has previously told GSK privately of its interest in Horlicks on several occasions, the people said.

Nestle already owns the malt drink Milo, but it is not a big-seller in India. The Swiss company declined to comment.

Unilever, the world`s largest tea company, and Kraft Heinz, which sells the powdered drinks Crystal Light and Kool-Aid, also declined to comment.

Horlicks is more than 140 years old with origins dating back to 1873, when two British-born men, James and William Horlick, first founded a company in Chicago to manufacture the drink. It was introduced to India by Indian soldiers who had fought with the British Army in the First World War.

Associated British Foods , which owns the malt drink brand Ovaltine, could look at the business to scale up in a key emerging market, the sources said, although the size of the GSK business could be a deterrent.

An ABF spokesman declined to comment.

The Indian business has an enterprise value of about 29 times core earnings, said one of the sources, meaning any deal premium will value it well above what many packaged food and drink brands fetch. The valuation is inflated by the high growth rates seen in the Indian market.

Nestle and Unilever could purchase the asset through their local Indian subsidiaries, Nestle India or Hindustan Unilever .

Other potential suitors might include Coca-Cola , PepsiCo , Suntory, Mondelez International and JAB, the coffee business owner that recently agreed to buy Dr Pepper Snapple, one of the sources said.

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News Network
February 9,2020

Panaji, Feb 9: RSS general secretary Suresh Bhaiyyaji Joshi on Saturday said that anybody who wants to work (in India) will have to do so with the Hindu community and for their empowerment.

Addressing a lecture on the topic "Vishwaguru Bharat, an RSS perspective" at Dona Paula in Panaji, Mr Joshi referred to his communication with an intellectual who had said that India should become a "supre-rashtra" in the year 2020.

"Anybody who wants to work (in India) will have to work with the Hindu commumnity by taking them along and for their empowerment. Hindus have witnessed the rise and fall of India since the time immemorial. India cannot be separated from (the) Hindu (community). Hindus have always been at the centre of this nation," Mr Joshi said in Marathi.

He also added that since Hindus are not communal or antagonist, "nobody should be reluctant to work for the Hindu community".

The RSS leader further said, "The world says India will become a superpower in 2020, but I remember my conversation with an intellectual who had said that India should become a super-rashtra (super nation) in 2020".

Goa Chief Minister Pramod Sawant was among those who attended the lecture.

"To create awareness and unity amongst Hindus does not amount to (taking) an action against others (community). No one should feel it that way. We can say with utter self confidence before the entire world that Hindus becoming strong won't result in destructive activities, but (such proposition) will work for the society and humanity," he added.

Invoking history, Mr Joshi said Hindus never invaded other countries. "Whatever wars (they had fought) were for self defence. Everyone has the right to self defence," he said.

"It is India's duty to teach the world to walk on the path of ''samanvay'' (coordination). Nobody else other than India and Hindus can do this," Mr Joshi said.

He said some communities in the world keep preaching that only their path is "great".

"But we are from the (Hindu) community which says that we have our own path so as you. When the world will accept this ideology, then all the issues would get solved. It is the duty of India to take the world on that path," he added.

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News Network
February 2,2020

Lucknow, Feb 2: In an early morning firing at Lucknow's Hazratganj, the city centre, Vishva Hindu Mahasabha state president Ranjit Bachchan was killed while he was out on a morning walk on Sunday.

Ranjit Bachchan was taking a stroll in Hazratganj in the morning when bike-borne assailants opened fire on him and killed him on the spot. The Mahasabha leader was shot in the head multiple times.

The incident took place near the CDRI building in Lucknow's Hazratganj.

In the firing, Ranjit Bachchan's brother also suffered bullet injuries. He has been rushed to the trauma centre. Ranjit Bachchan was a resident of Gorakhpur.

The early morning shootout in the Uttar Pradesh capital's central area has caused tension in the area.

Dinesh Singh, DCP Central Lucknow, said, "The body has been identified as of Ranjit Bachchan, who had gone out on morning walk when some unknown assailant shot him. A police team has been formed and further investigation is being carried out."

Before being associated with the Mahasabha, Ranjit Bachchan was a Samajwadi Party member and was often spotted with former UP chief minister Akhilesh Yadav.

The Samajwadi Party has hit out at the Yogi Adityanath government over the law and order situation in the state and demanded immediate resignation of the government.

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News Network
February 3,2020

Bengaluru, Feb 3: India's manufacturing activity expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output, a private survey showed on Monday, suggesting the economy may be getting back on firmer footing.

In response to the jump in sales, factories hired new workers at the fastest rate in more than seven years.

If sustained, the improvement in business conditions could point to a gradual economic recovery in coming months, as forecast by analysts in a Reuters poll last month, after growth slowed to a more than six-year low in the July-September quarter.

The Nikkei Manufacturing Purchasing Managers' Index , compiled by IHS Markit, jumped to 55.3 last month from 52.7 in December. It was the highest reading since February 2012 and above the 50-mark separating growth from contraction for the 30th straight month.

"The PMI results show that a notable rebound in demand boosted growth of sales, input buying, production and employment as firms focused on rebuilding their inventories and expanding their capacities in anticipation of further increases in new business," Pollyanna De Lima, principal economist at IHS Markit, said in a news release.

A new orders sub-index that tracks overall demand hit its highest level since December 2014 and output grew at its fastest pace in over seven and a half years, pushing manufacturers to hire at the strongest rate since August 2012.

Meanwhile, both input costs and output prices rose at a slower pace, indicating overall inflation may have eased after hitting a more than five year high of 7.35% in December, although probably not below the Reserve Bank of India's medium-term target of 4%.

That might keep the central bank, which cut its key interest rate by a cumulative 135 basis points last year, on the sidelines over the coming months.

"To complete the good news, there was also an uptick in business confidence as survey participants expect buoyant demand, new client wins, advertising and product diversification to boost output in the year ahead," added De Lima.

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