On April 01, 2020, GSK announced the completion of its divestment of Horlicks and other Consumer Healthcare nutrition products in India, to Unilever, including the merger of its Indian listed entity, GlaxoSmithKline Consumer Healthcare Limited ("GSK India"), with Hindustan Unilever Limited ("HUL").1
Background
India provides a large market to various healthcare products of the GSK company. As part of the transaction, HUL will distribute these Consumer Healthcare brands, which include market leaders like Sensodyne, Crocin, Otrivin and Eno, for GSK in India. GSK will continue to be responsible for demand generation, portfolio strategy, R&D and marketing for these brands. GSK also completed the divestment of Horlicks brands rights and other Consumer Healthcare nutrition products to Unilever in other markets for cash proceeds equivalent to £397 million. Bangladesh closing is expected to follow later this quarter, subject to local procedures. GSK India is not part of the GSK Consumer Healthcare Joint Venture with Pfizer and the merger of GSK India and HUL therefore does not impact the Joint Venture.
GlaxoSmithKline Consumer Healthcare Limited (GSKCH) brands such as Horlicks, Boost, and Maltova will now be part of the company's food and refreshments business falling under the nutrition category. As part of the merger, 3,500 employees of GSKCH will now become part of the Indian arm of the Anglo Dutch giant Unilever. Under the deal, HUL will distribute GSK's brands like Eno, Crocin, Sensodyne etc in the country. About GSK Consumer Healthcare India GSK Consumer Healthcare India is a leading fast-moving consumer healthcare company with over 500 employees in India and category-leading brands such as Sensodyne, Eno, Crocin and Otrivin. Its Mission Health program touches the lives of approximately 90,000 people by focusing on health and well-being with projects dedicated to neglected tropical diseases, dengue management, cleft and palate surgeries and plastic waste management.
Conclusion
GSK merger with HUL will certainly increase the sales of its nutritional products in the Indian market and will help common public in India to get within reach of the nutritional products with beneficial effects, with HUL being the distributor. It will boost the Indian pharmaceutical market in the field nutritional products.
Footnote
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