Amway India eyeing Rs.25 bn turnover by 2012November 30th, 2008 - 5:54 pm ICT by IANS
Baddi (Himachal Pradesh), Nov 30 (IANS) Describing its business model as “recession resilient”, fast-moving consumer goods (FMCG) major Amway India Enterprises Sunday expressed confidence that its turnover would reach Rs.25 billion by 2012 from the present Rs.10 billion.”We are targeting a turnover of Rs.25 billion by 2012, for which we have to achieve a year-on-year growth of 25 percent every year,” Amway India managing director and chief executive William S. Pinckney told reporters.
The company has set a target of reaching Rs.10 billion in 2008. Till November, it has already achieved Rs.9 billion and is confident of reaching the target, Pinckney said.
Amway India is a wholly-owned subsidiary of the $7.2-billion Amway Corp of the US.
In India, Amway sells 109 products across four segments - home care, personal care, nutrition and wellness category and cosmetics category.
Almost all Amway India products are manufactured in the country through seven third-party contract manufacturers.
Asked whether the global economic downturn would impact the product selling, Pinckney said: “I don’t see it affecting our operations because even if there is a downturn, people will still need a toothpaste or a detergent.”
“We are looking at expansion and will increase our offices in India from the present 127 to 300 in the next five years,” he added.
N. Jayakumar, chief executive of Sarvodham Care, the largest contract manufacturer of Amway products in India said: “There are indications from Amway India that we might have to ramp up production by another 200 percent by 2015 for an investment of around Rs.500 million to cater to the increasing demand”.
Earlier in the month, Amway India relaunched its portal to facilitate online order placement.
Eastern India contributes around 22 percent of the total sales of the company.