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Friday, October 30, 2020

Amway India to invest additional Rs 100 cr in two years to fund growth plans: CEO

Amway has committed an investment of Rs 1,000 crore in India, which includes an investment of Rs 600 crore to set up its manufacturing facility in Nilakotai, Tamil Nadu. CEO, Anshu Budhraja said Amway India's future strategy will entail both offline and online platforms with an increased focus on online.

Direct selling FMCG firm Amway India is looking to invest an additional Rs 100 crore over the next two years to fuel its future growth plans in the country, a top company official has said. Sensing growth opportunities in online sales due to changing consumer behaviour amid the COVID-19 pandemic, the company is working on boosting its supply chain and home delivery network to meet customer requirements.

“We will be making an additional investment of Rs 100 crore to boost manufacturing automation and digital initiatives over the next two years. These will play an important role in our next phase of growth in the market,” Amway India CEO, Anshu Budhraja told.

Amway has committed an investment of Rs 1,000 crore in India, which includes an investment of Rs 600 crore to set up its manufacturing facility in Nilakotai, Tamil Nadu.

Budhraja said the current global health crisis has fundamentally altered consumer outlook and preference, with people increasingly migrating online for shopping.

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Amway India has also witnessed a significant shift in the behaviour of its direct sellers and their customers, resulting in a spike in online sales, he said.

“We have seen a significant growth in our online orders from 33.6% in February to 70% in June 2020. We expect the online sales growth to remain consistent. We are bolstering our supply chain and home delivery network to fulfil the growing demand for online ordering,” he added.

Budhraja said Indian consumers are increasingly becoming more conscious about nutrition and this has resulted in a surge in demand for its immunity, health and wellness product portfolio with preference for herbal products.

Amway India expects this category to grow to 65% in three years.

“Nutrition and wellness is the largest business category for us globally and in India, and this category contributes more than Rs 1,000 crore to Amway’s total revenue in India. We are further strengthening the category with special focus on immunity supporting products,” he said.

Going by the current trend and the rise in demand, the company foresees the nutrition category to grow faster with the current contribution of 56 to 65% to overall business in the next three years, Budhraja said.

He said that driven by growing demand for nutrition and hygiene products and owing to a significant shift in online sales, Amway’s business has almost come back to the pre-COVID-19 level.

“We further expect consistent recovery and growth in the business through the rest of the year,” he added.

Budhraja said Amway India’s future strategy will entail both offline and online platforms with an increased focus on online.

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