Herbalife faces challenge from homegrown Modiway in weight-loss mkt

Los Angeles-headquartered Herbalife, which rules as India’s largest direct-selling company powered by its weight-loss and weight-management products, with revenues touching $800 million in 2023, is all set to face a challenge from a homegrown player.

 

Leveraging his direct-selling company Modicare, which already has over 60 lakh consultants selling a range of consumer products, Samir Modi, who is its managing director, has launched Modiway that offers a weight-loss solution to Indians. Modiway claims to offer it at a much lower cost than weight-loss clinics around the country.

 

To put into perspective, the weight-loss market is big and, according to industry estimates, it hit $25 billion in 2024, and is expected to expand to $55 billion by 2033.

 

Samir Modi, who was recently involved in a bitter battle with his mother, which led to his ouster as director from cigarette company Godfrey Phillips, says: “Weight-loss solutions and products is a huge market, which includes Herbalife, weight-loss clinics, and health supplement companies. We are looking at revenues of around ₹2,400 crore in the first year, out of which 50 per cent will come from weight-loss and other health-related products.”

 

Modi’s offering comes through a one-month kit (and also a 90-day kit), which includes fat-burner tea, plant-based protein shakes, and fat-burner capsules with garcinia cambogia, green coffee bean, and green tea extract for a price of ₹8,800. Claims Modi: “What we expect is a loss of weight between 4.5 kg and 6 kg in a month provided you also follow the other instructions. It is far cheaper than going to a weight-loss clinic where the average cost is ₹12,000 for reducing 1 kg of weight.”

 

To support the weight-loss efforts, Modiway has already set up 45 outlets knowns as Mfit where consumers can go to take advice from nutritionists, participate in exercise classes, and test their products. On the anvil is also offering a vegetable powder drink, which will combine 40 fruits and vegetables.

 

The products are all manufactured in India through third-party companies, though the base ingredients in some cases are imported, like proteins from DuPont, and the formulation is made in-house.

 

Modi is also planning to take the “stay fit” concept beyond weight loss. So, for instance, through Soul Chef, Modiway will be offering smart storage solutions for the kitchen top to optimise space and keep things fresh and healthy. It is also launching Forest Nectar, a range of products to nourish skin and hair.

 

Of course, it is a very competitive market where players like Amway and Oriflame, and startups like Healthkraft are present with their range of fitness and wellbeing products. And there are a 1,000-odd weight-loss clinics like VLCC, Talwalkars, and hospital-run ones.

 

For Herbalife, India is already their largest market, bigger than both the US and China. The company’s global revenues stood at $5.06 billion in 2023.