For Office

Use:
Grade

Communication for Managers

Group Assignment No. 1

“GlaxoSmithKline”

Submitted by: -

Group No.: 13
1. Animesh Jain (191107)
2. Kruti Khubchandani (191124)
3. Nihar Parikh (191132)
4. Vats Maheshwari (191162)

Section: A

Batch: MBA-FT (2019-2021)

Institute of Management, Nirma University

Date of Submission: 21st October, 2019

1
Acknowledgement

We would begin by expressing our deepest gratitude and appreciation to Institute of

Management, Nirma University for providing us with an opportunity of studying the
subject of Communication for Managers as a part of our course.

We would like to express our gratitude towards Prof Krishna Kanabar and entire CFM
team for giving us all the insights and explain us all the details of report writing and stated
all the detail to be included under various headings.

Her valuable insights based on her rich experience helped us to analyze the organization in
a manner it should have been done and also for always being there to address our doubts
and queries.

2
 UNDERTAKING

To Whom It May Concern:

We, Animesh Jain, Kruti Khubchandani, Nihar Parikh & Vats Maheshwari hereby declare that
this assignment is our original work and is not copied from anyone/ anywhere. If found similar to
other sources, we shall take complete responsibility of the action, taken thereof by, CFM Team.

Group No.: 13

Section: A

Batch: MBA – FT (2019 – 2021)

Date : 21st October, 2019

Signature :

Name: Animesh Jain Kruti Khubchandani Nihar Parikh Vats Maheshwari

Roll No.: 191107 191124 191132 191162

3
Contents
Executive Summary....................................................................................................................... 1
Business Information..................................................................................................................... 2
Industry Information ........................................................................................................................ 2
Products & Services ........................................................................................................................ 3
Market.............................................................................................................................................. 4
Technology & Innovation................................................................................................................ 4
Organizational information .......................................................................................................... 5
History ............................................................................................................................................. 5
Management team (India)................................................................................................................ 7
Achievements and Awards .............................................................................................................. 7
Alliance............................................................................................................................................ 9
Environmental Analysis .............................................................................................................. 10
Competitors ................................................................................................................................... 10
Economic Environment ................................................................................................................. 12
Performance analysis .................................................................................................................. 13
Financial Information .................................................................................................................... 13
Performance Analysis & Inferences .......................................................................................... 14
Expansion ...................................................................................................................................... 14
Corporate Social Responsibility Expenditure ............................................................................... 14
Advancing towards International Market ...................................................................................... 14
Annexure ..................................................................................................................................... 16
References .................................................................................................................................... 21

4
Executive Summary
GlaxoSmithKline Consumer Healthcare ltd. India is a 60-year-old company with its
headquarters in Gurugram, Punjab. The company mainly deals with over-the-counter (OTC)
drugs which include medicines, that are directly sold to a consumer without a prescription
from a healthcare professional. The Indian consumer healthcare industry is the fastest growing
industry and it is expected to reach Rs.50,000 crores in the next 7-8 years. The company
stands at third position after Nestle and Britannia. And to cope with the changing technologies
and trend it had launched vending machines. Financially the company is growing. There is a
substantial increase in the profits of the company over the past two years. The company has
been consistently performing no matter of challenges and maintaining its products well.

Word Count: 125

1
Business Information

Industry Information

Consumer healthcare industry includes products in wellness, nutrition, skin health, and oral
health. Consumer healthcare products mainly deals with over-the-counter (OTC) drugs which
include medicines, that are directly sold to a consumer without a prescription from a
healthcare professional.
Globally, the presence of consumer healthcare industry has been prominent for quite some
time and the industry is growing at a rapid rate. There are some macro-economic factors that
govern the industry and the most substantial amongst them is self-selection, where the
consumers choose and buy the product for themselves. Increasing pressure on doctors as well
as patients has drastically changed the present medical system. Along with this there is a
drastic change in the level of consumer awareness and education because of which they feel
comfortable and confident in making the right choice. Thus for common ailments like cold
and cough etc, or other nutrition related healthcare needs, self-selection has become very
popular. Consumers, because of the rise of internet possess ample information and knowledge
to make these choices.

Along with these factors another important factor is that people are becoming health
conscious day by day which has lead to a rise in consumption of general healthcare products.

The companies in this industry look at consumer-centric and solution-driven products.

The Indian consumer healthcare industry is the fastest growing industry, growing at a CAGR
of 10 to 11 percent year-on-year. The size of the consumer healthcare market is about
Rs.27,000 crores and it is expected to reach Rs.50,000 crores in the next 7-8 years.

2
Products & Services
GSK Consumer Healthcare Ltd produces a wide variety of products. The name of these
products differ and their indication of use may vary in different countries. Following are the
products produced for the Indian Market.
1. Boost
It is India's leading malt-based food drink. It was launched in 1975-76 and currently is third
biggest health food drink with a market share of 11.5. It has been endorsed by India's most
successful cricket stars like Kapil Dev, Sachin Tendulkar, M S Dhoni etc. They have
introduced various flavors like "Chocoeclair" and "Choconut".
2. Horlicks
Horlicks has been an essential part of an Indian household for the past 3 generations. The
company has come up with the best possible combination of wheat malt milk and barley with
a blend of vitamins and minerals to provide consumers with essential nourishment.
3. Crocin
Crocin is India's leading pain-killer brand in non-prescription over-the -counter category 1. It
comes in a wide range of variants in solid and liquid formats.
4. Eno
Eno is the No.1 antacid brand in India. It has a global presence of 100 years, and now it is
marketed in about 40 countries. To cater to Indian consumers the company has come p with
various Indian flavors like ajawain eno etc.
5. Viva
"Start to a bright and healthy day!"
Viva from Horlicks is another food-based drink. It is a combination of 9 essential vitamins. It
is based on the belief that a good start ensures that the rest of the day will also go well.
6. Sensodyne
Sensodyne is a sensitive toothpaste brand. It is formulated to care for and relieve tooth
sensitivity and provide lasting daily protection.
7. Otrivin
Otrivin is a nasal decongestant. It provides lasting relief from blocked nose. It is widely
distributed in the Indian market.

3
Market
The table below gives information about a few of GSK Consumer Healthcare ltd. 's
competitors
Name Market Sales Net Profit Total
Cap. Turnover Assets
(In Rs. Cr)
Nestle 143,037.05 11,292.27 1606.93 3708.88
Britannia 78,159.92 10,482.45 1,122.20 4039.71
Glaxo 37,655.06 4,782.01 982.80 4,094.72
Smith Con.
Jubilant 17,942.51 3,530.67 322.80 1,323.72
Food
Hatsun 10,104.93 4,760.30 114.85 1541.29
Agro
Zydus 9,997.23 254.6 96.30 4891.74
Wellness

Technology & Innovation

The company is dealing with the changing trends and technology by introducing innovative
ideas and concepts like putting vending machines of boost and horlicks in schools and
hospitals etc.

4
Organizational information

GlaxoSmithKline Consumer Healthcare Limited (GSK) is an associate of GlaxoSmithKline

plc. of UK, one of world's largest healthcare company. GSK plc. UK is a science led global
healthcare company born out of the merger of two leading international organizations:
GlaxoWellcome and Smith Kline Beecham. The mission of the company is to help people do
more, feel better, and live longer.
GSKCH ltd. India is a 60-year-old company with its headquarters in Gurugram, Punjab. The
company's business is focused on five key areas: Skin Healthcare, Oral Healthcare,
Nutrition/Gastro intestinal Healthcare, Pain Relief, and Respiratory. The company also
markets and distributes a wide variety of everyday healthcare products like: Eno, Crocin,
Sensodyne, Iodex etc. In India they are leaders in the health food drink industry with horlicks
leading the market and boost following after it.
The goal of the company is to build a global, growing business dedicated to everyday
healthcare with a genuine consumer understanding that the modern world expects.

History
GSK Consumer Healthcare's journey in Indian market started with Horlicks. Earlier, Horlicks
was manufactured by Horlicks Limited, Slough, England and was imported, bottled and sold
in India. In 1955, due to change in the import policy, import of Horlicks was stopped. This
opportunity was grabbed by GSK. In 1956-57, with the support of the then Maharaja Pratap
Singh of Nabha, Punjab ‘Hindustan Milk Food Manufacturers Pvt. Ltd.,’ was incorporated on
October 30, 1958, promoted by Horlicks Ltd.

In 1969, Beecham plc. acquired Horlicks Limited and became the majority shareholder in
Hindustan Milk Food Manufacturers Limited. Then in 1979, Beecham India (Pvt) Ltd.
merged with Hindustan Milk Food Manufacturers Limited. Also, company name was changed
to HMM Limited, in 1991.

5
In 1989 Beecham plc, UK and SmithKline, USA combined to shape SmithKline Beecham plc
(UK). HMM Limited hence became a part of one of the 3 sectors of SmithKline Beecham and
its name became modified to SmithKline Beecham Consumer Brands Limited. In 2000, the
two global giants, SmithKline Beecham and Glaxo Wellcome merged to shape
GlaxoSmithKline (GSK). Then further growth and strategies were applied to
GlaxoSmithKline Consumer Healthcare.

6
 Management team (India)
Navneet Saluja
Area General Manager, ISC & MD, GlaxoSmithKline Consumer Healthcare Limited.
Vikram Bahl
Area Marketing Lead - Nutrition and Digestive Health
Anup Dhingra
Director Operations
Vivek Anand
Director Finance & CFO
Devdas Baliga
Executive Vice President, Legal - ISC CH
Arun Mishra
EVP and Head Regulatory Affairs - ISC
Deepa Dey
Head Communications – ISC
Sunil Mehra
General Manager Sri Lanka
Shanu Saksena
Area Ethics & Compliance officer, ISC
Ritu Taneja
R&D India Lead

Achievements and Awards

2019

• GlaxoSmithKline Consumer Healthcare declared as the Winner of ‘Golden Peacock

Environment Management Award’ at IOD India's "21st World Congress on Environment
Management And Climate Change"
• GSK Consumer Healthcare awarded at the FE CFO Awards 2019 under the large enterprise
manufacturing category

7
 2018

• Horlicks Swasthya Abhiyan won Gold at two major awards – WOW Awards Asia and Flame
Awards 2018.
• GSKCH’s Horlicks Growth Plus wins the ‘Most Promising Pediatric Health drink’ and
Horlicks Protein Plus wins the ‘Best Launch in Adult Health Food Drink’ at the ‘Nutrition
and Wellness 2018’ awards.
• ‘Making of Developed India (MODI)’ award for ‘Best use of Mobile in Trade Marketing’
category for PharmaC (Pharmacy Connect)
• Horlicks’ Fearless Kota, a campaign focusing on the exam stress, has won at the 4th edition of
the IndIAA Awards (2018), in the ‘FOOD & BEVERAGES’ category

https://india-consumer.gsk.com/en-in/about-gsk-consumer-healthcare/awards/

8
Alliance
GlaxoSmithKline plc has reached agreement with Pfizer Inc to mix their consumer
corporations into a brand new world Joint Venture, with combined sales of about $12.7
billion. GSK could have a majority controlling equity of 68% and Pfizer could have a good
interest of 32% within the Joint Venture.

The proposed all-equity transaction represents a compelling possibility to build on the recent
buyout of Novartis’ stake in GSK Consumer Healthcare, to create a new international-main
patron healthcare commercial enterprise and to deliver further giant shareholder value. The
proposed transaction additionally supports GSK’s key precedence of strengthening its
pharmaceuticals business over the next few years by increasing cash flows and imparting a
powerful pathway through the separation of GSK Consumer Healthcare to construct also
support for funding in its R&D pipeline.

9
Environmental Analysis

Competitors
Nestle and Britannia are GSK’s biggest competitors in terms of the market they have
captured. Complan, Horlicks, Bournvita, Boost and Pediasure are all direct competitors.
Horlicks is holding half the market share in powder based caffeinated drinks classification,
trailed by Bournvita (16% market share) and Complan (12% market share).

COMPETITORS Complan Horlicks Bournvita Boost Pediasure

COMPANY Heinz GSK-CH Mondelez GSK-CH Abbott

NUTRIENTS High Medium Medium Medium Very High

MARKET
12% 50% 16% 5% 1%
SHARE
Stronger Taller, Physical Complete
Energizer for
POD muscles Stronger, Energy and Nutrition
daily sports
and bones Sharper endurance (with fiber)

BASE Malt Malt Cocoa Cocoa Soy

PRICE (per
240 210 200 200 600
400/500g SKU)

10
While coming to biscuit sector, 70% of India’s population consume Parle G, overlapping
with Britannia’s share of 55%. Tiger and Mc Vittle’s digestive biscuits are also competing
with GSK.

PRODUCT Nutri choice Mc Vittle’s digestive ParleG Tiger

PARENT Britannia United Biscuits Parle Agro Britannia

COMPANY

FLAVORS Digestive, 5 Natural, chocolate & NA Butterscotch,

grain dark chocolate strawberry &
pineapple

PRICE 50,25,15 22(75 kg) 5 6

SEGMENT

SKU 250g,100g,75 75,100,230,500g 75g 75g

g

MARKET 55% 20% 70% 17%

SHARE

11
Economic Environment

Fast moving consumer goods (FMCG) is the 4th Biggest sector of Indian economy. There are
three main Sectors of FMCG.

Sectors of FMCG
Food and
Beverages
19%

Personal Care
50%

Healthcare
Sector
31%

Food and Beverages Healthcare Sector Personal Care

Several initiatives taken by the government like GST & demonetization have made a negative
impact on the company while make in India, skill India, rural development and financial
development increased sales of GSK indirectly.

Demonetization had led to reduction in peoples purchasing power because of the demonetized
500- and 1000-Rupee notes in the cash dominated Indian economy.

Also due to increased taxes (GST), there was also low consumption of food &beverages and
personal care sector which reduced GSK’s sales. So due to limited cash, Indians started to
prioritize goods which were more essential for them and compromise on other products which
also affected GSK.
So, GSK decided to adopt cash less transactions and supported e-commerce means.

12
Performance analysis

Financial Information
For the information stated below please refer the annexures
Net sales increased by 19.811% from March'17. Major portion of revenue is obtained from
sales of finished goods.
Total income is the summation of revenue from operations and other income. There is a
23.96% increase in net sales from March'17 to March'19. Majority portion of other income is
due to deposits with bank and others; and provision/liabilities written back to the extent no
longer required.
Major share of total expenses was incurred from material consumed which mainly constituted
raw material and packaging material. Other major expense as observed from balance sheet is
other expenses. Other expenses include rent, power and fuel, insurance, repairs and
maintenance etc. The total expenses dropped by 2.58% in March'18 and the increased by
3.99% in the next year.
The reported net profit of the company increased by 49.66% in two years.
The graph below gives information related to companies’ sales, revenue, and profit. The
figures are in Rs. Cr.

6,000.00

5,000.00
5,280.57
4,782.01

4,549.61
4,316.51

4,000.00
4,259.60
3,991.28

3,702.31

3,654.55
3,560.10

March'19
3,000.00
March'18

2,000.00 March'17

1,000.00
656.68
982.8
700.1

0.00
Net Sales Total Income Total Expenses Reported Net
Profit

13
Performance Analysis & Inferences
Expansion
GSK consumer healthcare Ltd. is earning decent profits and expanding. Company sales are
growing at a reasonable rate of around 19.811% over the last 3 years. The profit of the
company for FY-19 has increased by approximately by 40% as compared to previous year.
So, it can be inferred that company is doing exceptional and moreover, consumers are
satisfied with the products of the company as the sales of the company is also increasing.
Company has also paid dividend in FY-19 which shows the position of the company is stable.
Also, company has set up a new plant in Karnataka to meet the demand of the consumers and
to expand its operations. Company is trying to become the market leader and to create a
strong footprint in the market.

Corporate Social Responsibility Expenditure

GSK consumer healthcare Ltd. has always been sensitive towards society. Company has been
engaged in many CSR activities over the years for the betterment of the society. As company
is leading towards strong financial growth and overall performance, it is becoming more
responsible towards the society. Company has increased around 30% of its expenditure for
contribution to healthcare, education and other community development projects. With the
increase in profit, expenditure on CSR activities by the company is also increasing. Company
not just aim to increase its profits but also care about the community in which it is currently
operating. These activities can help company improving its brand image and sales.

Advancing towards International Market

GSK consumer healthcare Ltd. is progressing towards international markets. Company’s
export incentives have increased by 83% as compared to last year. Company is not just
expanding in domestic market but it is also trying to create a strong foothold in International
market. A strong international presence will help company to improve its sales, profits and
brand image.
Company has also setup the new plant in 2018 to cater the needs of the growing market.

14
HUL- GSK Merger
In a recent deal, GSK consumer healthcare Ltd. will merge with HUL. It is one of the biggest
deal in consumer goods sector. HUL is the market leader in FMCG sector and merging with
GSK will help in diversifying its portfolio. , GSK consumer healthcare Ltd. is the market
leader in Health Food Drinks category. This merger will help both the companies, as GSK’s
premium brand products will enjoy the advantage of huge distribution channel of HUL. It will
also help GSK’s brands to create a strong presence in the market, as HUL owns 7 million
outlets in India.

15
Annexures

16
17
18
19
20
References
https://india-consumer.gsk.com/
https://india-consumer.gsk.com/media/916673/gsk_annual_report_2019.pdf
https://www.moneycontrol.com/india/stockpricequote/food-
processing/glaxosmithklineconsumerhealthcare/GSC04
https://www.screener.in/company/GSKCONS/#ratios
https://economictimes.indiatimes.com/industry/cons-products/fmcg/hul-expects-merger-with-
gsk-consumer-healthcare-to-complete-in-next-6-9-
months/articleshow/67577481.cms?from=mdr

21