Why MNC health drink makers are exiting Indian market

Consumer preference for natural products, slowing growth and intensifying competition are providing serious food for thought to multinationals in the health food drinks market

In a span of three months, owners of two big health food drinks — Horlicks and Complan — have said they are looking to exit the category. Coming at a time when the broader consumer goods industry in the country has settled down after disruptions such as demonetisation and a new tax regime, statements by GlaxoSmithKline (GSK) and Kraft-Heinz, owners of Horlicks and Complan, have surprised many.

Horlicks is the leader in malt-based drinks, valued at Rs 78.70 billion in India, according to Euromonitor International. Horlicks’ estimated market share is 44-45 per cent, according to industry officials.

Complan, meanwhile, sits