GlaxoSmithKline looks to set up Rs 1,000-crore health drink units in Andhra Pradesh.

GlaxoSmithKline Consumer Healthcare Ltd., the maker of Horlicks and Boost health food drinks, is looking at setting up a large manufacturing facility close to the east coast in southern Andhra Pradesh, a senior bureaucrat said. The GSK Consumer team has shortlisted one location each in Nellore and Chittoor for the plant, which will produce Horlicks and Boost branded products with an investment of up to Rs. 1,000 crore, he said. The company is waiting for clarity on tax incentives before taking a decision. Rival Mondelez India Foods Ltd., formerly known as Cadbury India, has said it is setting up its largest facility in the continent at the Sri City special economic zone Chittoor district, investing about Rs. 1,000 crore. GSK is scouting for about 100 acres of land at the two locations, apart from connectivity to the natural gas grid, and has conveyed plans to produce Foodles, which is its instant noodles product, biscuits and oats under the Horlicks brand, apart from health food drinks, the bureaucrat said. "GSK is also looking at using a part of the production capacities at the proposed greenfield facility to cater to export markets." Refusing to provide details on the company's expansion plans, a GSK spokesperson said, "We do not comment on rumours and market speculation."