On the back of healthy sales growth seen in Tamil Nadu, direct-selling FMCG company Amway India is in process of strengthening its operations in the state. The company expects to open three more offices in the state by the end of December.
“During 2007, average monthly sales in Tamil Nadu increased 28 per cent to Rs 7.4 crore from Rs 5.8 crore per month in 2006, making it one of the fastest growing markets for the company in the country,” said Shankar Narayanan, vice-president – South, Amway India.
The growth in Tamil Nadu was driven by a combination of factors. The company opened seven new offices, taking the total number of offices to 12 in the state. The state currently ranks with Maharashtra, Delhi, Karnataka and Andhra Pradesh as one of the fastest growing markets in India.
The year also witnessed several product launches including the Spring Catalogue Range in March and the festive gift catalogue range last month. “We also launched our first television commercial, which further augmented our growth,” Narayanan said.
Narayanan informed that several leading brands like Lee, Puma, Cookie Man and the Trident Group (supplier to Wal-Mart) had associated themselves with Amway this year.
Amway, which sells healthcare and beauty products, expects to introduce colour cosmetic products under the brand ‘Attitude’ by the end of this year or early next year.
The healthcare segment is the biggest growth engine for Amway in Tamil Nadu, while beauty products sell the highest in Karnataka, which along with Andhra Pradesh garner average monthly sales of Rs 3.5-4 crore.
Amway India clocked net sales of Rs 738 crore in the calendar year 2006 and expects to end 2007 with a top-line of around Rs 850 crore.