Amway Eyes Rs 6000 Cr Revenue From India By 2025

Amway India, the Indian arm of the $8.6 billion Michigan headquartered Amway and the country’s no.1 direct selling FMCG company, with ongoing celebrations of successful completion of 20 years of business operations in India, reiterated commitment to the market and announced its 2025 plans. The company is bullish about the growth story of India and aims to rank amongst top 3 markets for Amway globally with the target revenue of Rs 6000 crores by 2025.

Commenting on the 20 years of success Anshu Budhraja - CEO - Amway India, said that they are excited with the great business opportunity ahead of us in India. Industry reports highlight the immense business potential of the direct selling FMCG industry. The industry is expected to touch Rs 65,000 crore by 2025, clocking an almost six-fold growth from its current size, while providing entrepreneurship opportunities to more than 18 million people of which 50 per cent constitute women. The company has registered a CAGR of 20 per cent over the last 20 years which is a testimony to the robustness of its business model and importance of the Indian market, which ranks among the top markets for us. We are eyeing a three-fold growth in its business by 2025, fuelled by innovations and digital penetration along with our strong direct sellers network and focus on engaging young consumers.

With the increasing demand for the Vitamins and Dietary Supplements(VDS)* which has a current market size of Rs 8400 crore and is poised to grow at 10 per cent in the next 5 years. Currently, the Indian market only comprises of 2-3 percent share of the global market which offers immense growth potential. Amway shared a clear path towards its target 2025. Nutrition and Wellness being the biggest revenue driver, Amway is aiming to double the revenue of the category by 2025. The company is bullish about the robust growth prospects of the nutraceutical industry.

Buoyed by the success of recently launched Nutrilite traditional herbs range, which is expected to cross Rs 100 crore mark in sales by end of the year, the company is celebrating the success of its top selling products that are in the Rs 100 crore club in India including Nutrilite All Plant Protein Powder, Nutrilite Daily, Amway Queen cookware and Glister toothpaste.

Adding to its innovative and high-quality offerings in India, Amway plans to soon launch its latest innovations with the focus on herbal in the beauty and personal care category. Amway is also making a major push into consumer durables and announced the entry into the air purification business category.

Amway plans to invest around Rs 100 crore over the next 2-3 years in India, which includes Rs 70 crore investment in R&D, Rs 10 crore in manufacturing and Rs 20-30 crore in digital initiatives. While the R&D investments will be focused on building research capabilities to enhance product innovation pipeline across categories, the manufacturing investments will be channelized towards digitization, automation and power optimization in the manufacturing facility. Amway India has made significant investments to enhance its digital presence through its online store and mobile app. The company will continue its focus on digital tools to enhance customer experience and benefit its strong sales force of Amway direct sellers.

Amway has also invested Rs 600 crore in a world-class manufacturing facility in Madurai, Tamil Nadu, as part of the Rs 1000 crore investment plan in India. As part of its customer outreach and engagement plan, a significant portion of the investment is committed to launching Amway XPP stores in India. The company will be adding 25 more Xpress Pick and Pay (XPP) stores across India during 2018.

Amway India has also been strategically investing on skill development and nurturing entrepreneurship in the country, by offering more than 18,000 free training sessions during an average 12-month period besides the presence of a comprehensive digital learning portal (E-learning).