GlaxoSmithKline to invest US$ 941 million in Indian subsidiary
The British drug firm plans to increase its stake to 75 per cent with this investment.
Mumbai, November 27, 2012: GlaxoSmithKline (GSK) has announced that the company will be investing around Rs 5,215 crore (US$ 941 million) in its Indian consumer healthcare subsidiary, taking its total stake in the company to 75 per cent through a voluntary open offer.
It is worth noting there that the investment is among the largest MNC buybacks in the recent past and clearly shows the commitment of the company towards the Indian market.
"GSK Consumer Healthcare is a well-established business in India and its leading product, Horlicks, is an iconic household brand. This transaction represents a further step in GSK's strategy to invest in the world's fastest growing markets and, we believe, offers a liquidity opportunity at an attractive premium for existing shareholders," said Mr David Redfern, Chief Strategy Officer, GSK.
It is important to note here that GSK’s consumer healthcare business in India has generated revenue worth Rs 2,800 crore growing at a compounded annual growth rate (CAGR) of 19 per cent over the past five years.