Amway India aims to be a billion dollar company by 2025 (Eds: Correcting fiscal year t0 '2017' in para 6)
Dindigul (Tamil Nadu), Jul 4 (PTI) Amway India is expecting to touch nearly one billion dollar sales (Rs 6,000 crore) by growing over three fold by 2025, driven by new launches and expansion of sales network including e-commerce, the top company official said.
The company expects India to be among top three markets for Amway by 2025 as it looks to enter new categories such as consumer durables and launch products in the beauty segment.
The direct selling firm has invested Rs 600 crore in a manufacturing facility in Tamil Nadu as part of the Rs 1,000 crore investment plan in India. The company plans to cater to the European and African markets from the facility.
"The company is bullish about the growth story of India and aims to rank it among top 3 markets for Amway globally with the target revenue of Rs 6,000 crore by 2025," Amway India CEO Anshu Budhraja said.
Presently, India is the seventh largest market for Amway and is growing with a CAGR of 20 per cent.
In 2017, Amway India, which follows January-December fiscal, had sales of Rs 1,800 crore and expects to touch Rs 2,000 crore in 2018-19, Budhraja said.
In this, nutrition contributes around 55 per cent share followed by around 12-15 per cent by beauty segment, 20 per cent from home care and 10 per cent from personal care and rest from others.
The company also plans to launch its consumer durable products by entering air purifier and water purifier segments soon.
Amway, as part of its growth strategy, is also giving an online push to sales and is opening more physical stores in coming years.
"Presently, we get around 35 per cent of sales from e-commerce (from its own portal) and rest 65 per cent from offline channels. We expect this to be 50:50 in coming years," he said.
Amway operates 140 Xpress Pick and Pay (XPP) stores here and plans to add 25 more pan India this financial year.
"The company aims to open 500 XPP stores by 2025," said Budhraja.
In the product segment too, Amway is expanding is offering. It is quite upbeat over the success of recently launched Nutrilite traditional herbs range, which is expected to cross Rs 100 crore sales by end of the year.
"We are targeting to double the contribution of nutrition category by 2025 on the back of successful growth trajectory," he said.
According to him, the demand for Vitamins and Dietary Supplements, which has a market size of Rs 8,400 crore, is poised to grow at 10 per cent in the next five years.
Presently, Amway has five Rs 100 crore brands in its portfolio which include Nutrilite All Plant Protein Powder, Nutrilite Daily, Amway Queen cookware and Glister toothpaste.
Besides, Amway plans to launch its latest herbal range in the beauty and personal care category to cash on the growing awareness on such products.
About investments, Budhraja said Amway plans to invest around Rs 100 crore in next 2-3 years here, which includes Rs 70 crore investment in R&D, Rs 10 crore in manufacturing and Rs 20-30 crore in digital initiatives to promote e-commerce.
Amway India is a wholly-owned subsidiary of Michigan, US-based Amway, which has the world's largest direct selling business.
Disclaimer: This story has not been edited by Outlook Staff and is auto-generated from news agency feeds. Source: PTI
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