Oriflame India, a fully-owned subsidiary of Swedish direct-selling company Oriflame, would double the production capacity at its Noida plant and add 209 new products to its existing portfolio of 650 during the 2012 calendar year.
“We will be doubling our current production capacity of 22 million units per year in our Noida unit to support both domestic demand and exports. Along with it, we will also expand our 300 SKUs (stock-keeping units) from the current 160 from its 650-product portfolio,” Pradnya Deshpande, director (sales), Oriflame India, said.
The company is targeting to appoint 125,000 sales consultants to take the figure to 300,000 by the end of this year, and have 500 service points from the current 350 during the same period.
Sharmili Rajput, marketing director, Oriflame India, said, “We have charted out major expansion plans as India is emerging one of the top 10 leading markets for Oriflame globally. So far, we have not tapped most of the cities and potential customers in India. In the next 3-4 years, our major focus will be expanding our distribution network and reach.”
Oriflame India operates across 1,300 cities, mainly metros and Tier II cities. The company, which has been growing at 40 per cent since the last five year, expects to maintain the same growth rate in the coming years.
The organised direct-selling market in India is growing tremendously, and the market is expected to touch Rs 7,200 by the end of 2013, from Rs 4,100 crore last year.
Meanwhile, the company is planning to focus more on the south Indian markets. “e have been growing at 200 per cent in the last three years in the four southern states of Tamil Nadu, Kerala, Karnataka and Andhra Pradesh. South is a major market for us and we plan to add 100 service points from the 73 now and add 30,000 consultants in south India his year,” Rajput said.