Wellness Franchise Opportunities

PlanningDec, 08 2014

Amway is eyeing India to make export hub for its operations

Direct selling major Amway plans to make India an export hub for its operations in Middle East and South Asian countries, even though its business growth has slowed down in the country.

By Agencies

Known for using multi-level marketing techniques, Amway primarily deals in the health, beauty and home care market and have plans to make India as its export hub for all the operations in Middle East and South Asian market.


Though, the business growth of the brand has slowed down in India due to lack of clarity for applicable regulations, still, the direct selling major sees India as the potential hub for its dealings.


According to a leading daily, TOI report, the company said there is an urgent need for detailed regulations to distinguish genuine direct sellers and to give a sense of legitimacy to the industry.


William S Pinckney, Managing Director & CEO, Amway said, "We need more clarity in the regulations so that the growth level is up. Few years ago, it had a very strong double digit growth which has slowed down and there is a need for a better understanding of legitimate direct selling company."


Amway, which is building a unit for Rs 600 crore at Nilakottai in Tamil Nadu is also looking for further expansion along with additional plants in India to capture Middle East and neighbouring countries as Sri Lanka, Bangladesh etc.


Confirming the news, Pinckney said, "We are looking outside Indian markets, like Sri Lanka, Bangladesh, UAE, Middle East. We think and believe that India can be an export hub to those markets. That could cause us more investments to support that manufacturing push. We do think that more investments are coming in."


Denied to disclose the amount to be invested, Pinckney further said, "It would be driven by demand. We have not yet moved to any market as Sri Lanka, UAE or Bangladesh. Its only matter of time, I say 3 to 5 years, once that happens and with the growth in India, we think that we would get to a point where we would not have any capacity and have to invest. We could expand the current facility or would consider another facility at another part of India.”


Amway, which is aiming a business of Rs 6,000 crore by 2020 said that its Tamil Nadu unit would be operational by end of March next year and it would focus on health and beauty products.

Related: We will soon constitute a task force & plan the road map: Shripad Yasso Naik

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