Riding on its wellness products such as Nutralite, which accounts for 60 per cent of its business, Amway India Enterprises is targeting a 22 per cent growth in 2010 over the Rs. 1,407-crore turnover it had clocked in 2009. By 2012, it hopes to touch Rs. 2,500 crore. The company at present offers 115 products and is planning additions.
William S. Pinckney, Managing Director and CEO, said that Amway India might hire consultants to examine its options on setting up a plant in India. Amway has tripled production capacities at its leading vendor facility at Baddi, Himachal Pradesh, by commissioning four new production lines.
Talking to reporters here he said that teams from Amway's global headquarters as well as from India were looking at appointing consultants to further the company's business here. He said that the options being looked at included expanding its production either through its first Indian plant or through augmenting vendor facilities. He said Amway's two Rs. 100-crore brands (Nutralite protein powder and Nutralite daily) will witness a slew of new product launches. All these initiatives would take us to the projected growth, he said.
In tune with its plans to increase production capacity, Amway is planning to increase its current ad spend of Rs. 25 crore by around 30 per cent. It has also set up nine ‘brand experience' centres which it is planning to increase to 29.
At present, south contributes around 28 per cent of its business but Mr. Pinckney is hopeful of the eastern region becoming one of the top markets.
Amway's investment in India is around Rs. 151 crore which is likely to see a substantial jump by 2012-13. Almost 85 per cent of the products now sold in India are manufactured here through seven third-party contract manufacturers.