Amway India’s Himachal Production Facility To Tripple Capacity By End Of 2009

Sh3-4Shimla: Beating the slowdown by recording a 27 percent growth in Jan-July period, Amway India, the country’s largest direct selling FMCG company has set out a target of Rs 2500 crore sales by 2012, more than double of what it recorded in 2008.

Speaking after inaugurating a larger office here, William S Pinckney, MD & CEO of Amway India said that the vendor plant at Baddi was working to capacity, to meet growing demands for our products an additional Rs 55 crore was being spend to add 4 new production lines at the plant which would boost the production three fold.

After the additional investment a total of Rs 105 would have been made at the Baddi plant operated by Sarvotham Care, where Amway contract manufactures about 85 % of its products sold in Indian markets.

“Our new office in Shimla is almost three-times the size of the earlier office – our growing business warrants a larger facility in Himachal Pradesh,” said Pinckney.

Amway has two offices in HP – the other being at Dharamshala – and home-delivers products to 45 towns in the state. There are 15,300 Amway distributors in the state doing business worth Rs 68 lakhs per month in ’09 (as compared to Rs 53 lakhs per month in ’08, and Rs 44 lakhs per month in 2007. Taxes paid by Amway to the state exchequer exceed Rs 2 crores over the past three years.

Pinckney that in 2008 the company had recorded sales of Rs 1128 crores and handed out Rs 338 crores as direct commissions to over 5 lakh Amway business owners across the country.

Last year the company had shown a growth of 40 percent and surpassed the Rs 1000 Cr sale mark for the first time, he said. Against a sale of Rs 616 crore in 2008, we have has sales of Rs 780 crore in the January-July period, this year.

Launch of a new e-commerce portal had increases sales from Rs 1 crore per month to Rs 12, said Pinckney.

Over 50% of Amway’s business comes from the sale of dietary supplements and the Vitamin & dietary supplement market is poised to grow by 33% in India by 2013.

Amway India is country’s leading direct selling FMCG Company which is a subsidiary of US $ 8.2 billion Amway Corporation, Ada, Michigan, and USA.

The company has invested more than Rs 151 crores in India and has 130 offices and 55 city warehouses across the country that covers over 4000 cities and towns through its distribution and home delivery network set up with the support of independent logistics partners.

Editor at Hill Post, Ravinder Makhaik in a two decade career in active journalism has worked for India’s leading newspapers and television channels. He brings with him not only vast experience but also his deep understanding of the world we live in, to guide the team here to perform better and stay positive in challenging times.

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