Amway plans spread in Baddi

Amway India Enterprises Private Ltd, the country's leading direct-selling FMCG company, has decided to expand its manufacturing operations at Baddi (Himachal Pradesh).

Yoginder Singh, vice-president (legal and corporate affairs), Amway, said: "We are contemplating an investment of up to Rs 50 crore at Baddi in Himachal Pradesh. Discussions are on with our manufacturing partner Sarvotam Care Ltd and the plan should ready by March 2010."

The company functions in an area of 3.5 acres with a covered area of 110,000 square feet and it will buy additional land to scale up its capacities.

The Baddi plant was set up in 2005 and now produces 80 per cent of the output of Amway. Another manufacturing unit of Amway is in Hyderabad and the company has tie-ups with small-scale producers across the country.

Amway recorded a turnover of Rs 800 crore last year and expects to clock in a turnover of Rs 1,000 crore in 2008-09.

Healthcare and wellness products contribute about 50 per cent of its revenue and this trend is likely to keep pace in future also, according to Singh.

The company has an ambitious target of achieving a turnover of Rs 2,500 crore in 2012.

Singh said India was a significant market contributing about 50 per cent of sales of the company and the Indian market would fetch better returns in a few years.

"We have invested about Rs 151 crore since our inception in India, in the past 10 years. Another dose of investment will give a further impetus and spread our footprint to the markets not accessed till now," he added.

The company has 120 offices in the country and a chain of about 450,000 distributors.

Amway offers the products under four categories (personal care, healthcare, cosmetics and nutrition and wellness). It has plans to launch an energy drink shortly, for which the company has a tie-up with a Kullu-based outfit.

Production in the country is for the Indian market only.