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Amway hopes to double turnover to Rs 500 cr

Richa Mishra

NEW DELHI, July 20

PROVING the critics of direct selling wrong, Amway India Enterprises is expecting to close the current year with a turnover of Rs 500 crore, nearly a two-fold increase from the figures of last year (Rs 250 crore).

Speaking to Business Line, the Managing Director & CEO of Amway India Enterprises, Mr William S. Pinckney, said that ``We follow the policy of underclaim but overdeliver.''

Emphasising on the success story of direct selling, he said that Amway promotes individual entrepreneurship through its direct selling approach of consumer products. It has over 220 full-time employees, and has generated indirect employment for 700 perso ns at all of the contract manufacturers location and providing an opportunity for self-employment to more than 200,000 active Amway distributors, who are independent business owners.

Amway India (a company with unlimited liability) is a wholly-owned subsidiary of Amway Corporation, Ada, Michigan, US. Established in 1995. Amway India commenced commercial operations on May 5, 1998 and has invested around Rs 151 crore in India. Of this, Rs 26 crore is in the form of foreign direct investment, he said.

``In the three years of commercial operation, Amway has established a nationwide presence with 32 offices,'' Mr Pinckney said adding that ``its distribution and delivery network, set up with the support of independent total logistics partners, is spread across 352 locations.''

On whether Amway sources all its products from SSI sectors he said that ``almost all Amway India products are manufactured in the country through four third party, contract manufacturers. To bring the identified contract manufacturers' production facilit ies and skills to international standard, Amway has invested about Rs 17 crore.''

With the exception of the nutrition and wellness range - Nutrilite, and the cosmetics range - Artistry, all Amway India products and bottles are manufactured through the four third party contract manufacturers, Mr Pinckney said.

The Artistry range currently comprises of Advanced Daily Eye Cream and Alpha Hydroxy Serum Plus. An aggressive product launch plan is in the pipeline with Amway proposing to expand its product portfolio through the launch of several new coreline products .

Further whitening essence, time defiance - nighttime renewal creme and time defiance - nighttime renewable lotion is also been test marketed, he said. An agricultural product APSA - 80 all-purpose spray adjuvante concentrate has also recently been launch ed, he said.

On the focus of the existing print advertisement of the company on concept of ``family'', Mr Pinckney said that, initially it was necessary to let people know about the brand. However, the advertisement to be released next year will talk about the produc ts, Mr Pinckney said.

Picture: The Managing Director and CEO of Amway India Enterprises, Mr William S. Pinckney.

Picture by Ramesh Sharma