Amway eyes Rs 2,500 cr turnover by 2012

Direct selling firm, Amway India Enterprises, today said it is targeting Rs 2,500 crore turnover by 2012 to achieve an annual growth of 25 per cent in the next two years.

The company also reported Rs 1,407 crore sales for the financial year ended on December 31, 2009, up 25 per cent against Rs 1,128 crore recorded in 2008, Amway India Enterprises Chief Executive Officer and Managing Director William S Pickney told reporters here.

"Seeing the huge potential of Indian economy and better outcome, the company is aiming at achieving a turnover of Rs 2,500 crore by 2012," Pickney said.

The company has recently invested Rs 55 crore on expanding capacity to fuel growth. It has trippled production at Baddi vendor facility in Himachal Pradesh.

At present, it has 115 products under its portfolio excluding seasonal offerings.

"We have been introducing around 8-10 products in the domestic market over the last few years and going forward, we will keep doing that," Pinckney said.

Pinckney said, around 50 per cent of the company's turnover in India comes from nutritional business while beauty products segment has emerged as the fastest growing among others.

"Amway's focus in the past 2-3 years to improve consumer access and awareness which had paid off handsomely," he said adding that the company would soon launch a new TV commercial exclusively for nutritional products.

When asked about the advertising spend he said, "Amway has invested around Rs 15 crore on promotions last year and this it will invest around Rs 25 crore on promotions this year."

Amway India is a wholly-owned subsidiary of $8.2 billion Amway Corporation.