BADDI (HIMACHAL PRADESH): Amway India, the direct selling FMCG company, will investment Rs 450 crore in the next two to three years in India for its expansion, including setting up of a second manufacturing unit.
As part of the company’s major expansion plan there will be more touch points and brand experience centres. A core team is studying the appropriate place to set up the next manufacturing facility.
William S.Pinckney, managing director and CEO, Amway India told a group of journalists from Kochi that the company has already registered a 17.5 per cent growth for the first five months of 2011, registering a sales turnover of `838 crore. The company recorded a sales turnover of Rs 1,790 crore during January-December 2010.
Over the last four years the company was focusing on four key strategic pillars to drive growth in business excellence, distributor experience, customer experience and products and brands. In 2010, the company set up 14 new Amway Touch Points and five new Brand Experience Centres in the country.
Considering the growth, the sales turnover is expected to touch Rs 2,500 crore by 2012, he said .
The expansion of product basket in health and beauty segment, setting up new outlets, has added to the growth in the first five months.
The launch of e-learning, a significant step towards education, knowledge updation and productivity enhancement of business owners also helped in the business growth.
Around 90 per cent of the products sold by Amway India are now manufactured in India through seven third party contract manufacturers.
The company has recently invested Rs 55 crore at its contract manufacturing plant at Baddi for increasing production.
At present it has 130 products under its portfolio excluding seasonal offerings. The company had invested more than Rs 200 crore in India and has over 135 offices and 55 city warehouses across the country covering over 5,000 cities and towns through its home delivery network.
Commending on the scandals involving multi-level marketing companies, Pinckney said that at present there is no legal framework in India for the operations of direct selling companies. He suggested that there should be a proper legislation which was followed by various countries in the direct selling which can ban fraudulent practices.