Amway mulls exports from India, to up global sourcing
- SC stays Teesta Setalvad's arrest till Friday
- Arvind Kejriwal meets PM Modi, raises issue of statehood
- We moved from politics of agitation to politics of hope, says Yogendra Yadav
- After Modi's rap, BJP workers shelve NaMo temple project in Rajkot
- Nitish parades his numbers, Bihar Governor calls Manjhi for floor test
Amway India Enterprises, better known as Amway, a direct selling FMCG company, is seriously considering exporting products to neighbouring countries and make India as a sourcing hub for herbs, concentrates to its global operations.
The company is targeting to become a $1-billion company by 2020 for which it is setting up its first manufacturing facility in India in Tamil Nadu with an estimated investment of R500 crore, said William Scott Pinckney, managing director and CEO, Amway India.
In an interview with the FE, Pinckney, who was in Chennai to announce the launch of a slew of new women healthcare supplements, said: "We are bullish on our growth prospects in India. We will definitely consider exporting range of products to countries such as Sri Lanka, Indonesia, Bangladesh, UAE and West Asia once our manufacturing plant in Tamil Nadu goes on stream by end of 2014. Since the plant is coming up at Nilakottai near Madurai, which has a port facility in the near vicinity of Tuticorin, Amway will definitely consider exporting as a potential opportunity as it would make lot of sense for us."
To a question on whether the company will do away with contract manufacturing owing to its own upcoming plant in Tamil Nadu, he said: "No. Not at all. We are expanding and we have set a target to become a $1-billion company by 2020 from calendar 2012 level of R2,288 crore. We have been growing at a CAGR of over 20%. We will continue to contract manufacture to meet our targets and for expansion. However, we have plans to move some products , currently manufactured at Baddi in Himachal Pradesh to our own plant in Tamil Nadu."
Currently, Baddi plant manufactures 85% of Amway's products and the company had invested around Rs 105 crore into this contract manufacturing, he added.