Amway targets 22% growth

Amway India, one of India’s largest direct selling FMCG companies, has set a target of 22 per cent growth this year. Last year, the company reported sales of around Rs 1,400 crore.

William S Pinckney, MD and CEO, Amway India, said, “We have grown to Rs 1,407 crore essentially as the quality of Amway pick-up centres have undergone a sea change and are more experiential for the consumer. The ability to place orders on the web has also led to higher productivity from distributors and our television advertising campaigns have enhanced the brand on a national scale.”

The company launched its e-commerce platform seven years ago, which it discontinued and relaunched two years ago. Sales from e-commerce is currently Rs 14 crore per month, compared to Rs 2 crore per month that it used to make from e-commerce when it was relaunched two years ago.

Among other developments, Amway had launched energy bars and drinks earlier but discontinued as their limited shelf-life was a challenge. “We have located a few local manufacturers who can pack the energy drink in cans and we are also looking at adapting global practices in making energy bars to suit Indian tastes. The energy products should be relaunched in one year,” Pinckney added.

Amway currently has nine brand experience centres. Going forward, it plans to add another 20 over the next year and will also expand its infrastructure by setting up more Amway touch points.

Amway’s lead categories - nutrition and wellness and cosmetics - contribute 60 per cent to the company’s revenues. Nutrilite Protein Powder and Nutrilite Daily are Rs 100 crore brands.

By November this year, the company’s Nutrilite-specific advertising will go on air. Amway is spending Rs 25 crore on advertising, of which 30 per cent is allocated for the Nutrilite brand.

Amway India has invested over Rs 151 crore in India and has 130 offices and 55 city warehouses across the country covering over 4,000 cities and towns through its home delivery network. Almost 85 per cent of the products sold by Amway India are now manufactured within the country through seven third-party contract manufacturers.