Zydus Cadila to foray into malted beverage space

After foraying into several healthcare consumer products such as Sugar Free Natura, EverYuth and Dermacare, Ahmedabad-based Cadila Healthcare (Zydus Cadila) is planning to enter the malted food and beverages (MFB) segment.

While officials are tightlipped about the project citing confidentiality, sources close to the development said that the company is conducting research and development (R&D) on the product.

At an early development stage, the project has been kept under wraps by Cadila Healthcare. Moreover, the company is yet to decide a brand name for the MFB.

The move is seen as an obvious step towards the company’s attempts to consolidate its healthcare consumer products.

 

It is aiming at creating a distinction between its pharmaceutical and healthcare consumer products. The firm is also considering to shift its consumer products division to its listed arm, Carnation Nutra-Analogue Foods Ltd (CNAFL).

CNAFL is the manufacturer of the popular margarine brand ‘Nutralite’. Eventually, Cadila Healthcare plans to increase its brands in the healthcare and nutraceutical segments.

The company is likely to add more products to its current portfolio.

Currently, Zydus has top selling consumer products like Sugar Free Gold, Sugar Free Natura, Sugar FreeD’lite, Everyuth and Dermacare in the Cadila Healthcare basket.

The company has begun aggressive marketing and advertising campaigning of its Sugar Free brand and has roped in actor Bipasha Basu as its brand ambassador. Apart from the Sugar Free brand, the group’s Nutralite has also been a popular product in the market.

A healthy cholesterol-free butter substitute, Nutralite, is one of the largest selling table margarines in India.

While CNAFL seems to have no serious competition in the analogue food products category, Amul has also forayed into the margarine product segment with its ‘Delicious Table Margarine’ that may turn out to be a potential rival for Nutralite.

Cadila Healthcare’s plans of foraying into fresh segments might give impetus to its performance given the 25 per cent growth rate in the consumer products division in 2007-08.