Plans to launch 10 more products this year
Direct selling FMCG company Amway India Enterprises Pvt. Ltd is eying a turnover of Rs 2,500 crore in the year 2011. Last year, the company posted a turnover of Rs 1,790 crore with a 27 per cent growth over the previous fiscal when it recorded a topline of Rs 1,407 crore.
The company has invested more than Rs 200 crore in India, including Rs 55 crore at its contract manufacturing plant in Baddi for expanding production to fuel growth. At present, it has 123 products under its portfolio, which excludes seasonal offerings.
Amway West, which includes states like Maharashtra,Goa, Gujarat, Madhya Pradesh and Chhattisgarh, has witnessed a phenomenal growth of 25.63 per cent at Rs 348 crore compared to Rs 277 crores in the previous year.
Talking about the company's success in western region, Achinta Banerjie, vice-president, Amway India-west, said, "Amway’s focus in the past 3-4 years to improve consumer access and awareness has paid off handsomely. We have grown from Rs 1,128 to 1,407 to Rs 1,790 crore over the past three years, essentially as the quality of the Amway pick-up centres has undergone a sea change, and are more experiential for the consumer.
In 2010, we set up 14 new Amway Touch Points and 5 new Brand Experience Centres. We currently have 13 Brand Experience Centres and plan to add another 20-25 more over the next 2 years. We will also be expanding our infrastructure from the current 135 Amway Touch Points to about 250 in the next 2-3 years."
Amway's south region of India contributes highest of 32 per cent revenue followed by the western region 25 per cent, north 22 per cent and east 21 per cent. Apart from the main mother brand advertising, Amway also ventured into a new category Nutrition and Wellness under the brand name "Nutrilite". Banerjie added, "Our lead categories – Nutrition and Wellness and Cosmetics contributes over 60 per cent to our revenues, While Nutrition and Wellness is the largest category contributing Rs 903 crore to the total revenues, Cosmetics is the fastest growing category. We have been introducing around 8-10 products in the domestic market every year."
Over 85 per cent of the products sold by Amway India are now manufactured within the country through seven third-party contract manufacturers. Amway does not have its own production facility in India.
It offers over 115 products in five categories of Personal Care, Home Care, Nutrition and Wellness, Cosmetics and Gift catalogue.
