Amway India Aims To Clock Rs. 6K Crore Topline By 2025
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Amway, a leading American firm which specializes in direct selling of health, beauty, and home care products, is looking to earn Rs. 6000 crore from its Indian operations by 2025. Having completed its 20 years of presence here, the direct selling FMCG Company is also envisioning India to be among the top 3 markets globally. Currently, India is the seventh largest market for Amway growing at a CAGR of 20%. Amway India is also planning to invest around Rs. 100 crore over the next two-three years, which includes Rs. 70 crore investment in R&D, Rs. 10 crore in manufacturing and Rs. 20-30 crore in digital initiatives.
Speaking on the occasion, Anshu Budhraja, CEO, Amway India, said, “We are excited with the great business opportunity ahead of us in India. Industry reports highlight the immense business potential of the direct selling FMCG industry. The industry is expected to touch Rs. 65,000 Cr by 2025, clocking an almost six-fold growth from its current size, while providing entrepreneurship opportunities to more than 18 million people of whom 50% constitute women. We are eyeing a three-fold growth in our business by 2025, fueled by innovations and digital penetration along with our strong direct sellers’ network and focus on engaging young consumers.”
He further added, “For us, if you look at the investments that we are making in manufacturing, some of these fundamental things will be able to help us achieve those objectives, which is available more at price points, which is obviously if the consumer’s offtake happens at those price points, the company will also happen at those price points. But we are already playing that game. This has been a transformative change. And it is not about having premium products only but it is being in a country, getting the complexities of the country right, getting the business model right, and then getting your product pricing right at different categories.”
In 2017-18, Amway India had sales of Rs 1,800 crore and expects to touch Rs 2,000 crore in FY 2018-19. Buoyed by the success of recently launched Nutrilite traditional herbs range, which is expected to cross Rs. 100 crore-sales mark by end of the year, the company is celebrating the success of its top-selling products that are in the Rs. 100 crore club in India including Nutrilite All Plant Protein Powder, Nutrilite Daily, Amway Queen cookware and Glister toothpaste. Adding to its product offerings in India, Amway plans to introduce herbal beauty and personal care products that will take on Patanjali and Himalaya. The company is also making a major push into consumer durables and announced the entry into the air purification business category.
With the increasing demand for the Vitamins and Dietary Supplements (VDS), which has a current market size of Rs. 8,400 crore, is poised to grow at 10% in the next 5 years. Currently, the Indian market only comprises of 2-3% share of the global market which offers immense growth potential. Amway shared a clear path towards its target 2025. Nutrition and Wellness being the biggest revenue driver, Amway is aiming to double the revenue of the category by 2025.
It is to be mentioned that Ada, Michigan, United States-headquartered company has already pumped in Rs 600 crore for establishing a Greenfield facility in Madurai, Tamil Nadu, as part of the Rs. 1000 crore investment plan in India. As part of its customer outreach and engagement plan, a significant portion of the investment is committed to launching Amway XPP stores in India. The company will be adding 25 more Xpress Pick and Pay (XPP) stores across India in 2018.
