Amway plans production unit in UP

Amway India will be setting up a manufacturing facility in collaboration with Sarvottam Care in Uttar Pradesh.

William S Pinckney, managing director and chief executive officer ,said the plant will be operational by July. Amway would bring to the table technology and expertise, while the investment would be made by Sarvottam.

With the setting up of the plant, the company could also bring down prices of some of its products.

Pinckney said with the exception of the company's Artistry range, the plant could produce all other products from personal care, nutrition and beauty segments.

Amway, which posted a turnover of Rs 636 crore last year, was eyeing a 4-6 per cent growth this year.

The main driver for the growth would be Nutrilite, its health and wellness segment, which has been growing at 30 per cent over the last two years and accounts for 50 per cent of the business.

Carl S Rehnborg, president Nutrilite Health Institute said, the awareness about the products have been accelerating at a fast pace. The company plans to introduce four new products in the category over six to nine months such as weight management product, calcium build up products, omega 3 and kids' products.

However, even in the health and wellness segment, China is ahead of India. The sales in the category over the past year was in the region of $1.3 billion.

Rehnborg said if the pace at which India is growing continues then India would catch up with China in the next ten years. India was the seventh largest selling country for Amway.