New Delhi, Nov 7: In its second coming, Sunrider India, the 100-per cent subsidiary of $800 million Sunrider International, the world's third largest direct selling company, is playing safe. "We want the government to regulate the direct selling industry. We don't want to start on a wrong note," the global chairman of Sunrider Dr Tei Fu Chen told The Financial Express.Dr Chen was here on a day's visit to scout for a strategic site for its proposed manufacturing base and explore the opportunities of expanding its business operations in the country.
As a strategic decision, the company has firmed up its plans to invest $10 million in its first manufacturing facility here.
The investment will be made in a phased manner. Initially, Sunrider will infuse about $3-4 million funds for assembling of herbal-based products, the rest would follow during the year.
The company has shortlisted two to three sites for the proposed manufacturing unit around Delhi and Haryana. Sunrider International claims to have invested $40 million in China, $20 million in Taiwan and $20 million in Singapore operations.
Currently, the company imports its entire range of products from the US. Targeted at the premium end, Sunrider products currently attract customs duties of about 85 per cent. Local assembling, hopes the company, would help reduce costs.
The network marketing company's first foray into the Indian market was cut short in 1998 after FIPB cancelled its application since the government then was assessing the validity of the concept of multilevel marketing as a legitimate business.
Sunrider finally got the FIPB clearance to set up its office and a manufacturing base here last year and to infuse FDI worth $27 million in India.
The bureaucratic delay in setting up its office here has left the company way behind its competitors such as Amway, Herbalife and Avon who came in much early and have begun to establish themselves.
Sunrider is a US-headquartered multi-level marketing company and grows its own herbs required for the manufacture of herbal beverages, foods, concentrates and dietary supplements. It also dabbles in skin-care and personal-care products.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.