DXN Holdings Bhd is continuing its global expansion, with the latest being its new factory in the southern Indian state Telangana that is set to be completed in 2020.
The announcement came after a recent four-day working visit by Telangana Agriculture, Co-operation, Marketing, Food & Civil Supplies and Consumer Affairs Minister Singireddy Niranjan Reddy to DXN factory in Kedah.
Through its subsidiary unit DXN Manufacturing India Pte Ltd, the ganoderma and spirulina-focused multi-level marketing group has invested US$25mil to purchase 20ha of land in Siddipet, Hyderabad, to facilitate the construction of a 25,000sqm facility compliant with Good Manufacturing Practice (GMP) standards.
The Telangana facility is for the production of coffee, beverages, household and cosmetic products, toiletries and Ayurvedic herbs for the local and international consumer markets.
The RM150mil factory, DXN’s sixth in India, will double the capacity of its 34ha ganoderma farm and factory in Kedah, which is already considered one of the largest farms of its kind in South-East Asia.
At a press conference to announce the facility, DXN founder and CEO Datuk Dr Lim Siow Jin said that it is expected to create 1,000 to 1,500 job opportunities in Telangana – the seventh-highest income Indian state with a population of 40 million.
Its capital city Hyderabad is nicknamed Genome Valley due to the widespread establishment of the pharmaceutical and biotechnology industry in the city.
“The factory in Telangana will have double the capacity (of DXN’s facility) in Malaysia,” said Lim.
“The main difference between DXN and other companies is that we make a positive social impact and set an example for other industries when we use 100% local workers.”
Reddy noted that DXN has made a positive impact on Kedah’s socio-economic development and hopes that the new facility in Telangana can replicate its success.
“DXN will ultimately bring and enable entrepreneurship opportunities for the people of Telangana, especially those in agriculture who make up 61.8% of the population there,” he said.
An internationally-renowned direct selling group focused on producing and marketing health food supplements, DXN has eight million globally registered distributors across 189 countries and 70 branches.
In India, DXN has been operating since 2001, with over 1.5 million registered distributors. Its current five factories in operation in India contribute almost RM200mil monthly to the group’s turnover.
The group also has factories in China, Indonesia, Mexico and India producing a wide range of products.
DXN was ranked 22nd in the global MLM rankings by the Direct Selling News Global (DSN) and has more than 100 products, but about 50% of its sales come from its range of coffee.
In addition, DXN is already in talks with the Indian government to acquire a further 20ha of land to boost its spirulina production, owing to the optimum environment. The second phase will see the group setting up more factories there to manufacture fruit juice, household products as well as skin care and cosmetics.
DXN is also looking to launch and export new products, including spirulina noodles, cereals, composite rice and other food items.
“In the future, we’re working on introducing everyday food products that incorporate ganoderma and spirulina,” he said.
Lim has ambitious plans for the group’s future, beyond its key strategic markets of India and Indonesia, to expand into other countries including the Philippines and the United States, made possible as DXN’s One Dragon Concept sees the group controlling its entire supply and distribution chain to maintain its quality control.
It will also leverage its One World One Market philosophy, where any DXN member can register, recruit and buy products worldwide and receive bonuses in their local country.