Qnet is set to consolidate all its manufacturing in India. Based in Hong Kong, the online marketing company has manufacturing bases spread across several countries in the world. According to QNET’s Director, Corporate Affairs Zaheer Merchant, the company is already setting up manufacturing facilities in India. This is despite the fact that they have been facing some challenges in the country. Indeed, some of the company’s products were already been manufactured in India. This includes watches and the energy drink Nutriplus.
QNET produces 30 different brands of products. The products, belonging to 9 different categories, aim at enhancing lives and promoting a healthy lifestyle for the customers. The company also offers services like online courses and vacation packages. Some years back, QNET changed its production strategy. The new adopted strategy aims at producing products that add value to the lives of the customers. This shift has enabled the company to produce products in education, water filtration, weight management and air purification.
Since its inception, the company has grown immensely, and now has presence in more than 100 countries. From South East Asia, the company has expanded to North Africa, East and West Africa, Central Asia, the Middle East and, just recently, to Russia and Europe.
According to Merchant, the investment climate in India has its own fair share of challenges. While many other multinational companies would like to set up base in the country, they are cautious. The problem, of course, lies in the country’s regulatory policy. Direct selling is an emerging industry, and there needs to be clear policies to regulate such industries. If this changes, the environment will be much safer and friendly to foreign companies.
Merchant is convinced that the solution to the problem lies in developing proper legislation. The company already has a legal structure in place, is complying with all the regulations set by the Indian Government and has been paying the duties and taxes required. However, QNET is still been subjected to unnecessary legal hurdles that are brought about by baseless claims. If a clear legislation was already in place, the authorities would be able to see that QNET operates legally and transparently.
Moving all the production bases to India is a smart move. It will give QNET an 8% to 12% cost benefit. The company also has something for Indians. Any Indian with something unique to offer to the market will be given a sale platform for their product.