'Health awareness is rising in India, we just need the right positioning'
The UK-based FMCG major’s new MD in India, Zubair Ahmed, a former Gillette India chief, has started the process of rescripting the company’s Indian strategy, with all growth options, organic and inorganic, on the table. Mr Ahmed spoke with ET on a...
NEW DELHI/GURGAON: Revival of growth in the Rs 64,000-core Indian fast moving consumer goods (FMCG) market in the past year or so, after almost a three-year hiatus, has got Rs 1,214-crore GlaxoSmithKline Consumer Healthcare (GSK) all perked up.
The UK-based FMCG major���s new MD in India, Zubair Ahmed, a former Gillette India chief, has started the process of rescripting the company���s Indian strategy, with all growth options, organic and inorganic, on the table. Mr Ahmed spoke with ET on a host of issues facing the company and how it���s poised in the midst of the all-charged up FMCG sector. Excerpts:
There seems to be a sudden sense of urgency in GSK India���s scheme of things, which has had a conservative stance all these years. What is your mandate?
GSK wants to shift gears and step up growth in India. We look to take our existing product portfolio to an optimal level bringing in brands from our global portfolio, and through acquisitions in nutritional and over the counter (OTC) space. GSK has an impressive array of brands in its global portfolio spanning healthcare domain. With health awareness rising fast, (in India) we see a clear space to be taken. All we have to do is to figure out how well we can fit these brands in the Indian context, both in terms of taste and pricing. With a dedicated R&D facility in India, we have a clear ���speed to market��� model in place with these brands.
There���s a big rush among all food and beverage companies to position themselves on the health and wellness platform. How well is GSK placed on this parameter?
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There are a lot of blank spaces in the health and wellness space that we intend to fill. We have a strong footprint in health platform and opportunities are limitless. Our flagship brand Horlicks, for instance, now straddles four levels of consumer needs to meet specific requirements, all of which are backed by clinically proven, well-researched claims. There���s the original classic Horlicks for consumers across all age groups, no-sugar Horlicks Lite positioned for adults which we have just rolled out, Horlicks for mothers and Junior Horlicks. Basically, we want to take our current portfolio to a new level. We also have a plan to drive out-of-home consumption through our vending machines, which we intend to set up for both hot and cold beverages. We have a big thrust planned for this through school project.
There���s a feeling amongst analysts that GSK India has not innovated enough and a strong healthcare brand like Horlicks is under-leveraged.
Horlicks can certainly do better and we are committed to that. GSK India���s R&D team is already working on how to leverage the equity of Horlicks across categories. However, we are not going to do so just to prop up our topline. While we plan to leverage the potential of Horlicks, it cannot be at the cost of diluting the core proposition of our flagship brand. We may relaunch Horlicks biscuits, may introduce nutritional food and beverage extensions of Horlicks, (and) it could happen this year.
GSK India���s current portfolio includes as many as four milk-based nutritional beverages. Doesn���t that lead to an overlap between these brands?
We have Horlicks, Boost, Maltova and Viva in our portfolio. But, we plan to segment the market with clear target for each of these brands. Take the original Horlicks, which typically witnesses a sales spike during the January-March exam period or during the monsoons. By segmenting Horlicks on four different platforms, we are not just addressing different consumer needs, (but) also even out cyclical sales. While Horlicks and Viva are white beverages, Boost, Maltova and Horlicks chocolate fall in the browns segment.
Almost every FMCG marketer has been making forays into rural markets with trials packs and smaller packs. GSK has stayed away. Why?
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Yes, so far we have not had a very aggressive rural presence, but we are looking at getting there. We have a plan to increase penetration in rural markets with smaller trial packs. We are working on a plan focused on an increased presence amongst the rural consumers.
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