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| Amway plans Rs 400 cr investment in India by 2014 |
| BS Reporter / Kolkata Feb 14, 2012, 00:30 IST |
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Amway India, the Indian arm of Amway Corporation, will invest Rs 400 crore in India in the next two years on a manufacturing facility and for its headquarters in Delhi.
“We are planning to come up with a greenfield manufacturing facility in the country at an estimated investment of about Rs 300 crore. Another Rs 100 crore would be invested for our upcoming headquarters in Delhi. The new unit will be commissioned by 2014. However, we have not zeroed in on the location,” said William S Pinckney, managing director and chief executive officer of Amway India.
In 2011, the firm has posted a 19 per cent rise in turnover to Rs 2,130 crore, as against Rs 1,790 crore last year. “Amway’s turnover is expected to touch Rs 2500-crore mark this year. We are the seventh largest market in the world as far as Amway’s global operations are concerned. This year we may become the sixth largest market for Amway,” Pinckney said.
The firm is also focussing on the beauty segment. Currently, health and wellness contribute above 55 per cent of the firm’s turnover, while beauty products contribute about 10 per cent.
“We are focusing on this sector. Last year only, it has grown above 40 per cent,” he added.
Meanwhile, he said that Amway’s e-commerce portal has grown considerably since it was launched four years ago.
“India and China are only places where we are not involved in e-commerce platform aggressively. Now, it customers are showing more interest on e-commerce platform. Monthly we are seeing sales worth Rs 25 crore in the platform,” he said.
The country’s direct selling market is around Rs 6,000 crore in size and Pinckney said it may grow to Rs 7,500 crore by the end of 2012.
The firm is also planninag a 3 per cent rise in prices this year. “There was no price rise from 2006 to 2009. In 2010 and 2011 we saw a 3 per cent rise in prices due to inflationary pressure and 2012 may also see a similar hike.”
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