Direct-selling FMCG firm Amway’s first manufacturing facility in the country, which has been set up at an investment of Rs. 550 crore, formally goes operational with its inauguration today by Tamil Nadu Chief Minister J. Jayalalithaa.
Amway India, the subsidiary of the U.S.-based Amway Corporation, has set up the factory at SIPCOT Industrial Park in Nilakottai, Dindigul district, on 50 acres. “With an investment of Rs. 550 crore, the facility would create 500 direct and 1,000 indirect jobs, ” Amway India said in an official release.
Through a video-conference facility from Secretaria, Jayalalithaa formally inaugurated the factory. With the setting up of the factory, 5.50 lakh independent Amway business owners stand to benefit,” the release added.
“It is a privilege for us that the Chief Minister inaugurated our plant today. We take pride that we have completed this plant in 26 months. It speaks volumes of industry-friendly climate in Tamil Nadu,” Amway India CEO Anshu Budhraja said.
“We have invested Rs 550 crore and 500 employees directly and 1,000 people indirectly. We have units in the United States and China,” he added.
The manufacturing facility can handle a turnover of Rs 6,500 crore to meet the needs of Indian consumer. A state-of-the-art research and development laboratory is being explored for the facility, raising the site’s importance,” the statement said.
The factory, to be the third plant outside the US for Amway, also has the LEED Gold certification for environmental and design efficiency.
According to a recent joint study by industry body Federation of Indian Chambers of Commerce and Industry (Ficci) and consulting firm KPMG, the direct selling industry in India, which was currently valued at Rs 7500 crore in fiscal 2013-14, has the potential to reach Rs.64,500 crore in revenue by 2025,
The study estimated the revenue of the industry at Rs.7,500 crore in 2013-14 with companies like Amway, Tupperware and Oriflame selling to consumers through a non-store retail format. Direct selling in India accounts for just about 0.4% of all retail sales.
Amway’s manufacturing facility further testifies the potential and growth prospect of this Industry.
With this facility, all the products sold by Amway India will be Made in India from now onwards.
The company is also looking to expand the product base and has a pipeline of more than 10 new products in 2016. Its “high-quality cookware” to be launched in days to come will be manufactured from the Tamil Nadu facility, the statement said.