UK food firm set to relaunch Ovaltine in India

UK-based food company Associated British Foods (ABF) is all set to relaunch its popular malted beverage brand Ovaltine in India. The brand was first exported to India during British rule in the 1920s.

Over the years, the brand disappeared from the Indian shelves but now the company is keen to have a larger presence of Rs 25,000 crore ($5,680 million) food and beverage market in India.

In addition to Ovaltine, the company is also keen on launching range of bakery products and branded staples. Twinings Tea, another of the company's brand is already available in India. ABF sells a range of flavoured tea-bags in India like Earl Gray, Darjeeling Tea and Lemon Tea among others. The company is said to be evaluating various options including a possible joint venture with the local company.

When contacted, the company declined comment on the matter.

ABF also has a significant presence in the branded staples segment and is the largest purchaser of products from the UK farmers. It is the world's second largest sugar producer, with Silver Spoon sugar being the best selling sugar brand in the UK. Other brands include Allinsons bread, a crispbread, Ryvita and Speedibake, the label for frozen bakery products.

ABF is a diversified international food, ingredients and retail group with sales of £6.0 billion ($11.55 billion) and a presence across 46 countries.

At present, the malted beverage market in India is dominated by brands like Bournvita from Cadbury and Horlicks from the GSK Consumer range. ABF is the largest producer of malt based hot beverages in Continental Europe, Thailand and China.

Associated British Foods is the latest international food company which is looking at the Indian market. Last week a delegation of European food companies visited India to get a better understanding of the Indian market as well as potential opportunities.

Most of these companies, like Danish Crown and Sovena are in the process of firming up their entry plans. Global dairy major group Danone, which along with the Wadia group is a stake holder in Britannia and said to be working out with a plans to strengthen its presence in India.