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 told IANS.
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.
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.
K.K.
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.
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