Direct selling FMCG company, Amway India, plans to add new products to further strengthen its cosmetics and nutrition & wellness portfolios to maintain dominance in the direct selling FMCG market. The company, with an annual turnover of around Rs 1800 crore, enjoys over 40% market share in direct selling. Companies like Oriflame, Avon and Tupperware are the other prominent players in this business space.
Amway vice president (north) Bhuvan Kapur told ET that the company would add 8 more products in these product categories in this fiscal year. "Our core competency lies in beauty in health segment which contribute 50% in the total turnover. We will be launching four new products each in cosmetics and nutrition and wellness segments in 2011-12. With this reinforcement, we expect these two segments to contribute 65-70% in the total targeted revenue of Rs 2500 crore in this fiscal," he said. The company currently offers 127 products with 29 products in nutrition and wellness segment and 41 products in cosmetics segment.
The company is also planning to set up a new manufacturing facility in the country. It already has seven third-party contract manufacturers in the country. "Our existing facilities will not be able to cater to the growing demand and our projected targets for coming years. This time we may go for a company owned facility as we already have spent 13 years in the country with a robust top line growth of over 30%. However, final decision will be taken after the feasibility study which is under process," he said. India is the seventh biggest market for Amway with China leading the table. It contributes $ 0.4 billion of the global revenue of $ 9.2 billion.
"We expect to enter the top 5 bracket in next two years. We are growing in India at 35% per annum as against the market growth rate of 22%," Kapur said. The company has invested more than Rs 151 crore in India with 135 offices and 55 city warehouses across the country.
Source: June 8, 2011, The Economic Times