ABF Plans to Reintroduce its Ovaltine Brand in Indian Market

Associated British Foods (ABF), UK's well-known Food Company, is ready to re-introduce its Ovaltine brand of malted drink in India.

With the passage of time, the brand vanished from stores in India but now the food company is eager to make a spectacular comeback in US$ 5,680 Million (Rs 25,000 crore) worth of Indian food and drink sector, according to news reported by Business Standard.

Besides Ovaltine, the food giant is also enthusiastic about unveiling a variety of baked items and branded basic commodities. The company's Twinings tea brand is already there on the stores' shelves in India.

The malted beverage sector in India is controlled by brands like Cadbury's Bournvita and GSK's Horlicks. ABF is the biggest manufacturer of malted beverages in Europe, China and Thailand.

Malted beverages containing 70% nutritional qualities dominate the market, with energy drinks (brown beverages) comprising the remainder.

Increasing urbanization, changing demographics and lifestyles have brought about a rapid growth phase in the Indian food and drinks sector. Improved female literacy, a gradually growing number of employed women and the steady reduction in extended family system and development of nuclear family system have contributed to a growing convenience food demand.

Besides, baked goods, like biscuits, are extensively consumed in both rural and urban India, especially city residents favor cakes and breads. Market analysts believe that demand for superior type of baked items is expected to rise in the future, with majority of the big companies contending the most.

Now that the Indian Government is offering inducements and a hasslefree working environ for overseas investors, both the Indian business concerns and multinational corporations (MNCs) have joined the food and drinks industry.

According to a research analyst at RNCOS, debut of the multinationals into the food and beverages segment, and shifting customer preferences combined with the governments' interest in the development of the food processing industry will play a major role in the continued development of this industry. The sale of food processing ingredients like cheese powder, malted beverages, seasoning ingredients, and baking materials is likely to rise as affluent customers concentrate more on easy availability and quality with variation.

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