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To develop and launch a separate line of products for them

Purvita Chatterjee

Mumbai, July 3 Direct-seller Amway is planning to offer its distribution set up to MNCs who are trying to get a foothold in the Indian market. Its ready distribution network comprising nearly 5-lakh active members will be leveraged by such companies to enter new categories.

Mr P. Shanker, Director-Legal & Corporate Affairs, Amway India Enterprises, told Business Line: “We have been negotiating with some of the big MNCs who are looking at tapping into our distribution network. The purpose is t o help such companies as they do not have a ready distribution set up in the country and they can get immediate volumes through our network.”

Offering to develop and launch a separate line of products on behalf of the MNCs — who would continue to sell their products on the retail shelves — Amway intends marketing and selling their specified brands through its distributors.

Adds Mr Shanker: “We would help the MNCs enter new categories and establish their brands in the country through our ready-made distribution network.”

Amway has already been helping local manufacturers in the domestic market. “We are always open to manufacturers who are unable to sell their products through the normal retailers,” says Mr Shanker.

There are domestic companies ranging from aloe vera to bed sheet manufacturers who have already been using Amway’s distribution network.

Recently, it has also developed and packaged a premium line of Basmati rice for the Kohinoor brand. Besides, it has also been aiding smaller MNCs such as Twinings to sell its green tea through its distribution channels.

At the same time, Amway is getting ready to pit its indigenous brands against the existing big FMCG players in the market.

Having developed India-specific brands such as Persona and Attitude, it is now planning to enter the colour cosmetic range with the latter and compete against big brands.

“We intend entering the colour cosmetics market and would be competing against brands such as Lakme and our products would be competitively priced,” says Mr Shanker.

Besides, the direct marketing company is also planning to tap into the semi-urban markets by having more offices which would serve as collection centres for its products.

“In the next 3-5 years, we plan to have 500 offices across the country.

“These would be within a 200-km radius of each other,” Mr Shanker says.

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