Friday, January 6, 2012

Made in India, faked in China


Made in India, faked in China


Jan 2, 2012

New Delhi

Dirty business

Chinese manufacturers are increasingly ''faking'' popular Indian products of consumer goods giants such as Dabur and ITC, undermining the legitimacy of brands and causing losses worth as much as $5 billion annually, officials said.

"A lot of counterfeit Dabur products are made in China. We have conducted at least 20 raids in China but no proper action has been taken by the Chinese," said Ashok Jain, general manager of finance at Dabur India, the country's fourth largest FMCG firm.

He said such fake products manufactured in China with "Made-in-India" tag are supplied across the world, mostly in India and African countries.

"It causes huge damage to the brand. Those fake products are obviously not up to our standards and supplied at very low prices," Jain said.

Dabur, which has nearly $4 billion market capitalisation, operates in key consumer product categories like healthcare, skin care, hair care and oral care. The company's revenue last fiscal was $910 million.

Pradeep Dixit, a senior official of ITC, a $33 billion conglomerate, said the popular FMCG brands of the company were counterfeited by unscrupulous firms and supplied in domestic as well as foreign markets. "Our popular cigarette brand is faked and supplied widely in the states like Chhattisgarh, Bihar and Uttar Pradesh," he said.

"China is a big problem everybody is facing," said Central Board of Excise and Customs Chairman S K Goel .

Goel said the big international brands like Nokia, Adidas, Reebok and Nivea were also widely counterfeited in China and supplied in India and other parts of the world.

Chinese manufacturers are also faking drugs, endangering lives of patients. Fake drugs, carrying "Made in India" tags, supplied from China were recently detained in Nigeria and other African countries.

Delhi Deputy Commissioner of Police (Crime) K K Vyas said the police have seized and confiscated a lot of fake and counterfeited products of popular brands in the national capital recently.

Vyas emphasised on the need for enhancing punishment for unscrupulous manufacturers and importers. "Punishment needs to be enhanced. Also there is a need for the Judiciary to address these issues quickly," he said.

"Counterfeiting is a big menace. It is hurting everybody - consumers, industry and the exchequer," said Anil Rajput, chairman of the anti-smuggling and anti-counterfeiting committee of the Federation of Indian Chambers of Commerce and Industry (Ficci).

Recently, Ficci formed a panel called "Ficci-Cascade" that expands into a committee on anti-smuggling and counterfeiting activities destroying the economy. Chaired by Rajput, the committee is working closely with the government to curb this menace.

According to a report by think tank Indiaforensic Research Foundation, the total loss to the economy annually due to crimes such as counterfeiting, commercial fraud, smuggling, drug trafficking, bank fraud, tax evasion and graft is estimated at Rs 22,528 crore.

In China, Fear of Fake Eggs and 'Recycled' Buns


Published: May 7, 2011

SHANGHAI — On a bustling corner near downtown Shanghai recently, some shoppers avoided the steamed buns sold by Zhu Qinghe in a street-side cubbyhole. Instead, they bought the packaged buns in the freezer section of Hualian, a supermarket chain store in the same building.

Big mistake: Mr. Zhu's buns were soft, tasty and fresh, made every day, he said, at 3 a.m. The supermarket's, on the other hand, came from a filthy workshop where workers "recycled" buns after their sell-by date. The workers merely threw the stale buns into a vat, added water and flour, and repackaged them to be sold anew.

Melamine — China Tainted Baby Formula Scandal

Updated: March 4, 2011

Melamine is an industrial chemical used to make concrete, fertilizer and plastics. But it also can mimic protein in certain food-quality tests, and its illegal use by food manufacturers led to a series of scandals in China whose repercussions are still being felt.

Eaten in large enough quantities, melamine can cause kidney damage. In 2008, about 300,000 children in China were sickened and at least six babies died when some manufacturers added it to infant formula to make it appear more nutritious. The chemical helped cover up the fact that the milk had been diluted with water to increase the amount the milk producers were able to sell.

The scandal caused panic among Chinese parents, weakened the nation's dairy industry and provoked a global recall of Chinese-made dairy products.

The year before, pet foods contaminated with Chinese-supplied melamine killed dozens of dogs in the United States and Africa, sickened thousands of pets and forced recalls of nearly 90 brands. Melamine has also been found in chocolate and eggs from China.


A Toxic Pipeline : Counterfeit Drugs' Path Eased by Free Trade Zones


Published: December 17, 2007

DUBAI, United Arab Emirates — Along a seemingly endless row of identical gray warehouses, a lone guard stands watch over a shuttered storage area with a peeling green and yellow sign: Euro Gulf Trading.

Three months ago, when the authorities announced that they had seized a large cache of counterfeit drugs from Euro Gulf's warehouse deep inside a sprawling free trade zone here, they gave no hint of the raid's global significance.

But an examination of the case reveals its link to a complex supply chain of fake drugs that ran from China through Hong Kong, the United Arab Emirates, Britain and the Bahamas, ultimately leading to an Internet pharmacy whose American customers believed they were buying medicine from Canada, according to interviews with regulators and drug company investigators in six countries.


No comments: