Smithkline Plans Rs 250cr Unit
SmithKline Beecham Consumer Healthcare Limited (SBCH) yesterday announced plans to set up a Rs 250 crore state-of-the-art factory to manufacture its 'Horlicks' health drink.
The factory will come up on a 140 acre greenfield site in Sonepat, Haryana and will be funded mostly through internal accruals.
A SBCH release quoting Simon Scarff, managing director, said, "The factory will have an installed capacity of 26,000 tonne and will deploy the latest continuous process methodologies including spray drying. In addition, the facility will have a high level of automation and will provide a world class hygiene environment conducive to the manufacture of malted foods."
Work on the facility is expected to begin in October 1998. Several leading firms have been commissioned by SBCH to deliver the standards and specifications for the project. Alfa Laval is being awarded the contract for turnkey process plant design and supply, while M A Project of Denmark has conceptualised the design of the production block. The factory is expected to go on stream by 2002.
Scarff said, "We anticipate strong future demand for Horlicks which has shown a consistent annual value growth of about 25 per cent in the last three years. Although we are augmenting capacities at our plant in Rajahmundry as an immediate measure, we believe that it is prudent to create substantial additional capacity for Horlicks to meet the growing needs of the market place in the medium to long term. I am confident that our shareholders will recognise this to be a significant step in enhancing the value of their holdings".
Horlicks is made from natural ingredients like milk, wheat and malted barley. The malting of barley through natural process of germination releases enzymes. These enzymes break down complex carbohydrates to simple sugars that are easily assimilated by the body.
The brand "Horlicks" came into existence way back in 1873. In its earlier days, Horlicks was imported into the country from the U K. Local manufacturing began in the 1960s. Calcium was added to the product in 1988 as a nutritional enhancement. In 1994, Horlicks was relaunched with the addition of vitamins and minerals. A new version, 'New Horlicks', with nutrients was launched earlier this month.