Thursday 5 July 2018

Amway Bullish on India Market: Aims to Achieve INR 6000 Crores Revenue by 2025

By 121 News

New Delhi 05th July:- Amway India, the country's no.1 direct selling FMCG company, with ongoing celebrations of successful completion of 20 years of business operations in India, reiterated commitment to the market and announced its 2025 plans. The company is bullish about the growth story of India and aims to rank amongst top 3 markets for Amway globally with the target revenue of INR 6000 crores by 2025.

Commenting on the 20 years of success,  Anshu Budhraja -CEO - Amway India, said that 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 INR 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 which 50% constitute women[i]. We have registered a CAGR of 20 per cent over the last 20 years which is testimony to the robustness of our business model and importance of the Indian market, which ranks among the top markets for us. 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.

With the increasing demand for the Vitamins and Dietary Supplements(VDS)* which has a current market size of INR 8400 crore and 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. The company is bullish about the robust growth prospects of the nutraceutical industry. 

Buoyed by the success of recently launched Nutrilite traditional herbs range, which is expected to cross INR 100 crores mark in sales by end of the year, the company is celebrating the success of its top selling products that are in the INR 100 crores club in India including Nutrilite All Plant Protein Powder, Nutrilite Daily, Amway Queen cookware and Glister toothpaste.

Adding to its innovative and high-quality offerings in India, Amway plans to soon launch its latest innovations with the focus on herbal in the beauty and personal care category. Amway is also making a major push into consumer durables and announced the entry into air purification business category.

Amway plans to invest around INR 100 crores over the next 2-3 years in India, which includes INR 70 crores investment in R&D, INR 10 crores in manufacturing and INR 20-30 crores in digital initiatives. While the R&D investments will be focused on building research capabilities to enhance product innovation pipeline across categories, the manufacturing investments will be channelized towards digitization, automation and power optimization in the manufacturing facility. Amway India has made significant investments to enhance its digital presence through its online store and mobile app. The company will continue its focus on digital tools to enhance customer experience and benefit its strong sales force of Amway direct sellers. 

Amway has also invested INR 600 crores in a world-class manufacturing facility in Madurai, Tamil Nadu, as part of the INR 1000 crores 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 during 2018.

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