For decades Tamil Nadu’s hospitality, even at low income households and labour colonies, would go this way: a guest would be asked if he/she would like to have a cup of coffee. If the offer is declined the host will persist: “at least have a cup of Horlicks please!” The household’s monthly budget invariably included a bottle of Horlicks.
In the pre – Operation Flood era of Kurien, milk was in short supply in Tamil Nadu as in several other states. The sustained and strong publicity blitz created a huge demand for Horlicks in the country, especially in brand-addicted Tamil Nadu and coastal Andhra. For decades, Horlicks commanded overwhelming demand. It still accounts for 75 per cent of sales of GlaxoSmithKline’s (GSK) Indian consumer products business.
At an impressive regal launch in
Kerala of GSK’s (then Hindustan Milkfoods Manufacturing Co) another product Boost, a young marketing executive, Lakshmiram, paraded an elephant to signify the strength assured by Boost. Such grand promotions have continued for decades, which included engaging icons like Sachin Tendulkar. (Remember his ‘Boost is the secret of my energy’ slogan?)
In 1974, when I had an opportunity to look closely at the White Revolution triggered by Kurien, as his guest at Anand I raised the issue of very high prices of baby foods and other milk powders (including Horlicks). That was met with his characteristic tongue in-cheek chuckle: “internationally powdered milk is cheaper than fresh liquid milk. I’ll tell you a secret. My daughter was never fed with milk powder. When liquid milk is available at such cheap rates why would you foolishly feed your child with milk powder?” Remember this milk czar was selling Amul milk powder in tonnes!
When milk flooded Gujarat, Punjab, Karnataka and other states, Horlicks and other powdered milk suffered sales in these states. But they were sustained by states like Tamil Nadu which continued to stick to familiar brands.
GSK’s plan to sell its stake in the Indian subsidiary, GSK Consumer Healthcare, was a surprise. Horlicks is estimated to account for 60 per cent of the malted food drinks’ market. Several multinationals including ITC, Nestle, Pepsico and Unilever are reportedly interested to bid for the Rs 3000 crore plus business. There is an the interesting reason for GSK’s plan to disinvest: the proceeds are to fund buying pharma giant Novarti’s stake in its joint venture with GSK’s Plc’s global consumer healthcare business.
