Amway planning second facility in India

Amway India, a direct-selling fast moving consumer goods (FMCG) company, plans to set up a second manufacturing facility in the country in south India, a senior company official has said.

It would help the company boost sales and increase product range, Amway India Legal and Corporate Affairs Vice-President Yoginder Singh told journalists visiting its facility here.

The company, a 100 per cent subsidiary of US-based Amway Corporation, had been witnessing a 25 per cent year-on-year growth in its revenues, he said.

"If we continue to grow (in this rate), we will have a new facility. It may be in South India...", he said.

 

Amway Corporation through its subsidiaries has two manufacturing facilities catering to the United States market, a facility in China and the other here.

Company officials said the second facility would cater to the growing south and western markets while the present facility (at Baddi) would focus on northern and eastern markets.

For setting up the present manufacturing facility, the company has inked an agreement with Baddi-based vendor Sarvotham Care Ltd. About 85 per cent of the company's products are manufactured by Sarvotham Care Ltd, Singh said.

Noting that the company in March 2010 had made an additonal investment of Rs 55 crore in the facility here, taking the total investment since 2005 to Rs 105 crore, Singh said it had been able to tripe production at the plant, with the commissioning of four more production lines.

With this, the plant has three lines in powder categories, two lines in tablets and capsule, two lines in liquid category and two lines in creams and toothpaste, Sarvotham Care Ltd Assistant Vice-President Sajan Kiran said.

Amway India currently offers over 115 products in five categories including nutrion and wellness (29), personal care (14), home care (14), cosmetics (52) and great value products (6).