GSK makes £580m investment in India

British pharmaceutical firm GSK is to raise its investment in India by buying $940m (£586m) of shares in its local venture – thanks to the success of Horlicks.

The decision is a vote of confidence in the enormous emerging market and signifies a move away from GSK's traditional prescription drugs market.

The company said it plans to increase its stake in GlaxoSmithKline Consumer Healthcare from 43.2 per cent to 75 per cent, the maximum allowed before the local firm has to be delisted.

Financial growth at the Indian business is mainly driven by its ownership of the Horlicks brand. The malted hot drink was introduced to the subcontinent in the days of the British Raj but has remained popular, spawning a range of Horlicks-branded consumer goods.