The company's research and development department is working on the drink, code-named "Janata Horlicks," company sources said here on Sunday. "The drink will be affordable and targetted at the general public," the sources said.

The drink will be positioned opposite Horlicks. The company, which is yet to decide on the brandname and price for the product, has appointed a consultant to streamline the exercise. Machines for the project are being imported from Britain under the World Food Programme (WFP).

"We have an ongoing relation with WFP whereby we supply them with some energy drinks. Under the tie-up, we are importing machines which will be initially utilised for producing drinks only for the WFP. But gradually, over the next year, the machine will be also be utilised forproducing Janata Horlicks for the domestic market," the sources added.

The cost of the machine will be adjusted against supplies of the drink to WFP. "It will be a deferred payment. 10 per cent will be deducted from our every bill till the entire amount is paid," sources said.

The machine, to be installed at the company's unit at Lawrence Road, Delhi, will have an installed capacity to produce 750 tonnes of the drink per month. Besides, Modern Foods is also joining hands with Godrej Foods (GFL) for marketing the fruit drink, Rasika, in tetrapacks. The tetrapack drink will be available in the next season.

"This is part of Modern's efforts to revive the drink, which still has a lot of brand value," the sources added. Godrej Foods will be setting up the requisite plant and machinery for making tetrapacks, and the drink will continue to be marketed by Modern Foods under the Rasika brand. "The machinery for the purpose will be installed by GFL at our facility at Lawrence Road," sources said.

Thoughnegotiations are at a very primitive stage, under the proposed terms of the agreement, Modern Foods will be paying a royalty to Godrej for every packet produced.