Global firms will enter India when there is a regulation clarity: Amway India CEO Anshu Budhraja
In an interview with TNIE, Budhraja says the company is set to grow at a CAGR of 20 per cent this year.
Published: 04th August 2019 07:48 AM | Last Updated: 04th August 2019 07:48 AM | A+A A-
NEW DELHI: With increasing awareness on health and wellness, US-based direct selling company Amway plans to expand its presence in India. Notwithstanding regulatory challenges, Amway India CEO Anshu Budhraja, in an interview, says the company is set to grow at a CAGR of 20 per cent this year. Excerpts:
How big is the Indian market for Amway?
India is a priority market for Amway. With a sizeable youth market, it has emerged as the seventh largest market for Amway with a CAGR of 20 per cent over the last 20 years. We plan to grow our revenue to Rs 6,000 crore by 2025, registering a consistent CAGR of 15-20 per cent over next seven years, fuelled by product innovation, customer-centric initiatives and digital penetration, alongside our strong direct seller network. We are bullish about our growth in India, which we aim as one of the top three global markets for us in next 10 years.
Your plans for India over the next few years... How much investment is lined up for India operations?
Evolving consumer needs and market evolution have led us to drive innovations across products and processes. For example, we started in 1998 with just six products from our global portfolio and today we offer more than 140 distinctive quality products across categories like nutrition, beauty, personal care, home care and consumer durables.
Some of our products have already made it to the Rs 100 crore club, including Nutrilite All Plant Protein Powder, Nutrilite Daily and Glister. Amway has invested `1,000 crore in India, which includes `650 crore towards a new manufacturing facility at Nilakottai, Tamil Nadu. It has one of the largest solar rooftops in the state and targets to conserve up to 50,000 cubic metres of rainwater every year. We plan to invest an extra `100 crore to boost R&D, manufacturing and digital initiatives here over next 2-3 years.
Do you think Indian market is well regulated for direct selling companies?
The direct selling industry received a shot in the arm when the consumer affairs ministry notified the Direct Selling Guidelines in 2016, which provides definitional clarity to the consumer, regulator and industry. A definite step-up would, however, be when the Consumer Protection Bill 2019, is passed by Parliament.
We have been given to understand that the consumer affairs ministry would consider enacting rules for direct selling. Once there is absolute regulatory clarity, a lot of global direct sellers who also waiting in the wings may enter India, thereby creating more jobs.
Genuine direct selling companies are going through a rough patch as e-commerce firms continue to sell products at discounted rates without your consent. How big is the problem? How has it impacted your sales?
Products sold through unauthorised channels create an unnecessary risk for the consumers as tampered products compromise quality. It also put the brand’s reputation and the consumers’ well-being at risk.All the major e-commerce platforms have been informed regarding the directives of the Direct Selling Guidelines issued by the Government of India, wherein it is specifically mentioned that anyone selling the products of a Direct Selling entity through e-commerce platforms needs written authorization from the Direct Selling entity. The recent ruling by the Delhi High Court, barring few e-commerce platforms from selling our products, is a significant victory for the entire direct selling industry.