Amway India, the wholly-owned subsidiary of Amway Global, the world’s largest direct selling company, is aiming to more than triple its revenue by 2025, backed by growing demand for nutraceuticals and through introduction of new categories from its global portfolio, a top executive said.
“We have completed 20 years in India and have grown our operations significantly… growing at 20% CAGR,” Anshu Budhraja, CEO, Amway India said.
“We started with 6 products in 1998 and now we are offering 140 products in the nutrition, beauty, home care, personal care and consumer durables categories. We target a turnover of Rs. 6,000 crore by 2025.”
“We are bullish about the growth story in India and aim to rank among the top 3 markets of Amway globally by 2025,” he said.
Currently India is the seventh-largest market for Amway, the top markets being China, Japan, Korea and Thailand.
To cater to demand in the Indian market, the company had earlier set up a modern manufacturing facility at Nilakottai in the Dindigul district of Tamil Nadu, with an investment of Rs. 610 crore. This is part of the company’s Rs. 1,000 crore investment plan for India. The plant is Amway’s third-biggest factory outside the U.S.
Investment over 3 years
On Wednesday, the company announced an investment plan of Rs. 100 crore to be made in R&D, manufacturing and digital initiatives in three years to support its growth plans.
Currently, the factory has capacity utilisation of 30- 35% and depending on demand, it may double the capacity in a few years, company officials said.
The company is also planning to get into new categories of durables, air purifiers and water purifiers in India. Besides, it is gearing up to introduce a slew of products in the beauty and consumer durables space. It is planning to introduce herbal beauty and personal care products, officials said.
Amway India also has plans to export to markets in southeast Asia, Europe and Africa in three years, Mr. Budhraja said.
As part of its consumer outreach plans, the company runs 140 retail outlets, out of which 50 are called Amway Xpress Pick & Pay stores, from where a walk-in consumer can buy Amway products. The company said it would add 25 more such stores this calendar.
Officials said they believed that the direct selling FMCG industry would grow exponentially in the coming years with the formalisation of Direct Selling Code guidelines and that the seller would benefit substantially with its basket of products.
(The writer was in Madurai at the invitation of Amway India)
Source: Read Full Article