Ways2Capital Reviews : After Horlicks, Complan Is Up For Sale! PE funds, Other FMCG Companies In Race

On June 18, 2018, news about Kraft Heinz considering sale of its brand Complan in India came, with an estimated deal size of ~$1billion.

Along with the domestic and international players (Emami, Wipro, ITC, Abbott, Zydus Wllness), the big PE firms such as Blackstone and Carlyle are said to be in the race to acquire consumer food division of the Kraft Heinz Co. in India, as per the media reports.

The Indian consumer division sale of Kraft Heinz could include the entire consumer healthcare business, which includes brands such as Complan, Glucon-D, Nycil and Sampriti Ghee. Earlier GlaxoSmithKline also put its consumer healthcare business in India on the block, which includes Horlicks. (Read here Horlicks may be put on block, who will be interested?)

Kraft Heinz was created two years ago after the merger of Kraft Foods and Heinz, and it sells 13 different brands, each with annual sales of $500 million or more. The consumer business had an annual sales of ~1,800cr in FY17, out of which Complan contributed ~40%. Heinz had acquired Complan brand from Glaxo in 1994. Complan currently has ~8% market share in the malted food drink (MFD) industry.

The MFD industry is estimated at ~Rs8,000cr. Horlicks enjoys the leadership position in this category with 44.3% value market share. The slow growth and in the intensifying competition in the category is expected to be the reason why the MNCs are looking for an exit. 
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About Bhoomi Desai