FMCG firm GSKConsumer Healthcare (GSKCH) today announced its foray into the Indian breakfast cereal market, which is currently dominated by firms like Kellogg's and PepsiCo, through its flagship brand 'Horlicks'.
The company has launched oats cereal, which is estimated to have a market size of around Rs 200 crore and is growing at the rate of 25% in India, under the Horlicks brand.
"Consumers have always had Horlicks drinks during breakfast. So,the brand itself is established among consumers. Being a health brand, we have been looking at opportunities which is relevant for us to enter in the nutrition space," GSKCH India Marketing Director Jayant Singh told PTI.
The company has placed the product in various retail outlets in South India. It plans to take it to the rest of the country after testing the market in the region.
"Out of the Rs 200-crore oats market in India, the southern region contributes about 75% to it. So we have set up internal targets to achieve in South India. All our marketing initiatives will be focussed in the region," Singh said.
As part of its strategy to make Horlicks an overall health drinks and food brand, the company has been extending the Rs 1,600 crore-brand into various categories, including biscuits, instant noodles and cereal bars.
Last year, GSKCH had announced an investment of over Rs 300 crore on repositioning Horlicks as the company's umbrella brand. Besides, the company had announced that it plans to achieve sales of Rs 300 crore by 2012 from its foods business.