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Amway India to open 25 more Xpress retail stores

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Firm targets to achieve ₹2,000 crore in sales with a CAGR of 7%.

Amway India, which has set a sales target of ₹2,000 crore for 2018, will be opening 25 more Xpress Pick and Pay (XPP) stores across India during 2018 to improve its consumer outreach, according to a top official.

“Right now, we have 140 stores in India of which 100 are XPP stores,” said Anshu Budhraja, chief executive officer, Amway India. “Further, we will be opening at least two XPP stores every month. The investment per store is ₹50 lakh.”

“Presently, the overall contribution from retail stores and online stores is 65% and 35%. Still, Indian consumers prefer to touch and feel the goods before they purchase them. Over the next two years, we hope the contribution from stores and non-stores [online] to be 50:50. In Tamil Nadu, we have 10 XPP stores and four more will be added by the year end,” he said.

Amway India, the direct selling Fast Moving Consumer Goods (FMCG) company clocked ₹1,800 crore in sales for 2017 with a compounded annual growth rate (CAGR) of 6%. This year, it had targeted to achieve ₹2,000 crore in sales with a CAGR of 7%. At present, nutrition and wellness segment accounted for 50% of sales with beauty, personal care and durables accounting for the balance.

Earlier, Mr. Budhraja rolled out Nutrilite traditional herbal tablets in the city. It comes in four portfolios — tulsi, brahmi, ashwagandha and amalaki, vibhitaki and haritaki and is priced at ₹649 for 60 tablets.

“These tablets are made at our manufacturing unit in Dindigul. Currently, Dindigul unit is operating at 50% capacity. Over the next 12-18 months, we might expand the traditional herb range with the roll out of two more multi-herbal products. Exports will be done later,” he said.

Mentioning that market size for vitamins and dietary supplements was estimated at ₹2,400 crore clocking 10% year-on-year growth, he said: “Over the next three years, we hope to triple our sales of herbal tablets from ₹50 crore in 2018 to ₹150 crore.”

According to him, Amway India was currently ranked seventh largest unit in global operations. He expected it to figure in top three by 2030.

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Printable version | Jan 26, 2020 2:11:47 AM | https://www.thehindu.com/business/amway-india-to-open-25-more-xpress-retail-stores/article22909052.ece

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