Horlicks' first brand extension came in 1990 when the company forayed into the solids segment with the launch of Horlicks Biscuits. ``Horlicks biscuits have been a very successful brand extension,'' claims Sundar, who however, refuses to divulge market share figures. His contention: ``We're not competing with the biscuits industry but the idea is to add equity to the brand. The rub-off, both ways, is very positive.''

The company is also planning to introduce new flavoured variants of Horlicks, apart from the currently available plain, chocolate and elaichi flavours. The new flavours, says Sundar, will bestrongly associated with something that's `natural' since it connotes health. ``We are looking at other flavour options. But we are quite careful about assessing the incremental potential of any flavour before launching it in the marketplace,'' says Sundar.

The moves are clearly an attempt to use segmentation to grow the Rs 800-crore health food drink (HFD) market, which lately has not seen a very healthy growth. Compared to double digit growth rates during 1996-97, the HFD market is currently growing at an annual rate of four per cent.

As a result, SBCH has brought down the rate of growth for its flagship brand Horlicks from the projected eight per cent in the year 1998 to six per cent in the current financial year. Blaming it on on the dismal market situation, Sundar says: ``The general slowdown of the economy has affected the health food drinks market too. As a result, consumers are becoming more probing and we have to justify the price.''pNotwithstanding the bleak market situation, the companymaintains that Horlicks ``has still held out''. ``We are gaining market share. The half-yearly results are pretty good and Horlicks is the biggest driver of the numbers,'' Sundar adds.

Relaunched in 1988 as `New Horlicks with Smart Nutrients', the brand currently claims a market share of 55 per cent of the Rs 800 crore HFD market, according to the company. However, as per ORG-Marg's June 1999 figures, the category has grown by just two per cent over the last year with Horlicks managing a market share of 46 per cent, followed by Bournvita with 13 per cent market share, Complan 10 per cent, Boost 10 per cent and Milo 2.5 per cent.

The company is also present in the brown powder segment through its brand Boost which was relaunched last month in the South. Boost currently has a brand share of 10 per cent in the health food drink market. The company has targeted a turnover of over Rs 100 crore and a growth rate of 23 per cent in 1999.

Meanwhile, the company refutes market reports that it has withdrawn theElaichi flavour of its mother brand Horlicks from the market following slow offtake of the flavour from retail outlets. The elaichi flavour, insist Delhi retailers, has not been available for the last six months.

According to the company the product has been missing from the retailers shelves because SBCH is still in the process of rolling out its relaunched version-New Horlicks with Smart variants-of the elaichi flavoured variant. ``We'd rather let the pipeline run out and then come out with the Smart Nutrients packaging,'' says Sundar.

The elaichi flavour is priced at Rs 94, for a 500-gm bottle. Horlicks is also available in plain and chocolate flavours, priced at Rs 94 for a 500-gm bottle, Rs 176 for a 1 kg bottle and Rs 320 for a two-kg bottle.