Amway India, one of the leading direct selling FMCG ( fast moving consumer goods) companies in the country, is looking at a possibility to export to neighbouring countries from India in the long run. The company is planning to set up a second plant in South to support its expansion plans in the country.
It currently has a plant at Baddi in Himachal Pradesh. With the second plant coming onstream, Amway can also look at exporting to the neighbouring countries like Nepal, Sri Lanka and Bangladesh among others, informed highly placed sources in the company. "We are exploring exports from India as a possibility indeed. Currently, we import certain core formulations for our wellness brand 'Nutralite' and 'Artistry', the premium cosmetics brand, from the US.", the source said. Amway India explores possibilities of export from the country
Amway India, is targeting to touch revenues worth Rs 2500 crore by 2012, from a turnover of Rs 1790 crore now. "We have been clocking a consistent 20-25 per cent growth rate per annum for the last three years, and are bullish to expand our footprint further in the country.", said Achinta Banerjie, vice-president, west region, Amway India.
Amway India, a wholly-owned subsidiary of Amway Corporation of US, registered a 27 per cent in 2010 over the previous year. The company follows a January to December fiscal.
Banerjie said, "Currently around 85 per cent of our production comes from the Baddi plant, which we expanded around two years back with an investment of around Rs 53 crore. It is a third party manufacturing plant. As for the proposed plant down south, we are yet to take a call whether it would owned and operated directly by the company or would be another third-party facility."
He added that with the second plant coming onstream, Amway's production capacity would nearly double in India. This is in line with the company's plans to launch new products across categories in the coming years. Amway would launch 8-10 new products this year and add 40,000-50,000 distributors. At present the company had 550,000 distributors.
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Also, the company would then be logistically closer to its key markets, West and South, which together contribute nearly 50 per cent of Amway's national turnover.
Amway India now offers 123 products in five categories, health care, home care, nutrition and wellness, cosmetics and gift catalogue.
According to the Ernst & Young’s 2009-2010 annual report, the market size of the direct selling industry, excluding insurance, in India was estimated at Rs 4,120 crore. Amway is eying close to 50 per cent of the net industry turnover by 2012.