DXN facility in Siddipet likely to be ready in six months
Based in Malaysia, the company is known for its Ganoderma business and its product lines ranges from dietary supplements to household products
Hyderabad: Malaysia-headquartered direct selling player DXN is setting up a neutraceuticals, cosmetics, and toiletries manufacturing facility near Siddipet with an estimated investment of Rs 250-300 crore.
Based in Malaysia, the company is known for its Ganoderma business and its product lines include dietary supplements, food and beverages, personal care, skincare and cosmetics, household products, and water treatment system.
The company outsources the production of noni (Morinda citrifolia) to local farmers and buys the produce from them for use in making neutraceuticals.
“The entire facility is likely to see an investment of Rs 250-300 crore. In the first phase, the products will be made for the Indian market. We also have plans to export to Sri Lanka, Bangladesh and Nepal gradually,” KM Rafique, International Marketing Director, DXN, told ‘Telangana Today’.
The company had earlier acquired 50 acres near Siddipet, he said adding that the focus would be on quality.
“We will help farmers with the know-how of cultivating noni, which is one of the key ingredients for us. We will offer a buy-back facility to them. In the later stages, we will also ask local farmers to cultivate spirulina,” he said, adding that the full facility would be ready in about six months while the factory would be ready in a month.
“Machinery has been installed at the site,” he said, adding that the factory would employ 800 to 1,000 people locally.
Support to MSMEs
Rafique said the company would need a lot of packaging material and the same would be sourced locally. “Direct selling gives an impetus to packaging, courier, and logistics segments,” he said.
“Telangana is among the select States that have adopted the Centre’s Model Guidelines for Direct Selling Industry to protect consumer interests. We are hopeful that a few some companies will consider Telangana for setting up their manufacturing units,” Industries Principal Secretary Jayesh Ranjan said.
On the impact of Covid on direct selling, Rafique said sales of immunity-boosting and healthcare products had increased. However, the segment faced partial issues with deliveries and infra, he said.
An IDSA report said Telangana contributed 13 per cent to the total business in the southern region with a turnover of Rs 292.5 crore.
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