Amway aims to touch Rs 1,000 cr mark by 2008

A leading direct selling FMCG company, Amway India, intends to up its turnover from Rs 738 crore in 2006 to Rs 1,000 crore by early 2008.

The company plans to launch 6-8 of the company's products and around 20 catalogue products. Catalogue products are products manufactured by other companies and marketed by Amway under its own brand.

As a part of supply chain strategy Amway intends to enhance its reach and be present every 200 km across the country. The company plans to open Amway offices in over 100 more locations in next 12 months. Presently, the company has 110 offices across the country, including seven distribution centres in Gujarat.

On its product expansion plans, Sanker Parmeswaran, Director, Legal and Corporate Affairs, said, "We have had an over seven-fold increase in the eight years we have been in the Indian market. We attribute this growth to the top-class quality of Amway products and the consumer's confidence in brand Amway. We had clocked a turnover of Rs 738 crore in 2006, which was a 16 per cent growth over last year. With close to 80 products being sold across the country by Amway distributors, we intend to do a business of Rs 1,000 crore at least by early 2008, given the new products that will be launched."

Unlike its competitors like RCM, the company doesn't believe in retailing but focusses on direct selling.

Parmeswaran added that the company would keep focussing on direct selling through its 450,000-strong distributors and distribution centres.

In Gujarat, Amway India has seven distribution centres each at Ahmedabad, Vadodara, Surat, Rajkot, Bhavnagar, Jamnagar and Bharuch, and will open another one at Bhuj by mid-May.

"Gujarat is a strong market for us and we made a sales of Rs 75 crore from this state itself," informed Parmeswaran.

While products are offered in four categories including nutrition and wellness, cosmetics, home care, and personal care products, the company earns nearly 60 per cent of the turnover from 30 cosmetic and 16 nutrition products.

Amway India is a wholly-owned subsidiary of Alticor Inc, Michigan, USA, a $6.4 billion worth direct selling company with a global direct selling market of $102 billion.