The Hindu Business Line : Nikken eyes India, plans centre in Maharashtra

NIKKEN International, a Japanese "wellness" company, now has its designs on India. On the radar of this California-headquartered company are plans for a manufacturing and research base in Maharashtra.

Nikken expects to bring its fitness, nutrition, relaxation and environment products into India by the end of the year, Mr Kendall Cho, President and Chief Executive Officer of Nikken International, told Business Line.

He said India would be a fully owned subsidiary of Nikken International and the necessary regulatory approvals had been taken. Mr Cho, however, declined to give details on the investment the company would make in the country, but said it would be "substantial".

India will be the 36th country that Nikken will be present in, as part of its expansion drive, said Dr A.S. Naidu, a consultant to Nikken. He said Nikken will set up a manufacturing base and a research and development centre near Pune.

With annual sales over $1.5 billion, Nikken expects to become the world's largest direct selling company by 2010. The company's Vision 2010 envisages Nikken to expand to more than 100 countries and create $5 billion in annual sales, the Nikken homepage said.

Both Mr Kendall and Dr Naidu were recently in the city. They met senior officials in the Maharashtra Government and apprised them of their plans for the State.

Nikken's decision to set up base in Maharashtra was precipitated by, among other things, the Chief Minister's recent hard sell of the State in California, said Dr Naidu. Another reason for Nikken to look at a location close to Pune is because the region is becoming popular as a biotech hub, he said. The products to be launched in India include those in the relaxation and wellness category and environment products that involve technologies to filter air and water, said Mr Cho.

Japanese companies have been increasingly looking at India. Earlier this year, Eisai Co had indicated that it was stepping up its presence here.

Eisai is the first Japanese pharmaceutical major to enter India and has a 100-per cent subsidiary in the country.

It has marketing alliances with Wockhardt and GlaxoSmithKline Pharmaceuticals in India.

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