Financial Daily from THE HINDU group of publications
Saturday, Nov 22, 2003

News
Features
Stocks
Port Info
Archives

Group Sites

Marketing - Direct Marketing


Amway to focus on nutrition, cosmetic areas to drive growth

Our Bureau

Chennai , Nov. 21

AMWAY India, one of the largest direct-selling companies in the country, plans to launch 11 new products. It will also start local manufacturing of most of products in the nutrition and wellness categories between now and August next year.

Mr William S. Pinckney, Managing Director & CEO, Amway India, said that the company had identified the nutrition, wellness and cosmetic categories to drive growth. The new products are Nutrilite Vitamin C, Nutrilite Vitamin E and Nutrilite Cal Mag. The cosmetic brand, Artistry will be coming out with cuticle and nail conditioner, foundations, and loose powders.

Nutrilite, a $1.7-billion global brand, has become a Rs 176-crore brand in India in two years and the company expects it to become Rs 200-crore brand during the current fiscal. He said that Nutrilite is the world's largest manufacturer of multi-vitamins and multi-mineral dietary supplements in capsule and tablet form.

During the recent festival season, the company entered the catalogue gift category. Mr Pinckney said that the catalogue offered wide choices to the consumers on one hand and helped Amway distributors earn more. The initial response to the catalogue has been good, he said. The company plans to keep the excitement going by replacing existing products with new ones.

The company had tied up with the Chennai-based Sai Mirra Innopharm Pvt Ltd to manufacture some of the nutrition and wellness products. Local manufacturing provides the company flexibility to offer the products in multiple pack sizes at more convenient price points. Almost 85 per cent of the products sold by Amway India are now manufactured within the country through five third party contract manufacturers.

Today, Mr Pinckney launched Nutrilite Kids Berry Blast positioned as a balanced nutritional drink. The drink with its natural berry flavour comes in 500 g pack size and is priced at Rs 799. Sarvotham Care Ltd, Hyderabad, manufactures this product in India. With this launch, the number of Nutrilite products in the Indian market has gone up to eight.

Amway India is the wholly owned subsidiary of the $5-billion Amway Corporation of the US. The company has invested around Rs 150 crore in India and has 48 offices and 97 city warehouses across country. It markets its products through a network of distributors who sell directly to the customers. Since its launch in May 1998, Amway India has over 3.7 lakh active distributors.

New cosmetics range soon

APART from strengthening its nutraceuticals portfolio, Amway India is also planning to launch its second line of cosmetic products, targeted at the Indian market.

Speaking at the launch of Nutrilite Kids Berry-Blast, a nutritional drink for children, Mr William S. Pinckney, Managing Director & CEO, Amway India, said that the new cosmetic range, which would essentially consist of skincare products, would be available under a different brand name. "These products will be priced at least 50 per cent lesser than our super-premium Artistry brand," he said.

This range of cosmetics would be manufactured locally. Amway also plans to get into the coloured cosmetics segment, added Mr Pinckney. Also on cards is the expansion of the Persona range of personal products, which again would also be targeted at the Indian market and will be manufactured locally. "Manufacturing locally helps us to sell at lower price-points, even though we end up paying huge duties as we import most of the raw materials," he said. The personal products under the Persona range would include deodorants and hair oil. The company is also planning to launch men's grooming products as well as a range of footcare products.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Marico offers skincare for brides, grooms


`Media owners must create new engaging business models'
`Right branding can take Indian films global'
BA unveils discount offer on Kolkata route
Goodlass consumer contest
AirTel launches `Sachin' offer
Hutch direct sales campaign pays off
Amway to focus on nutrition, cosmetic areas to drive growth
DD News makes private channels sit up, rejig ad revenue plans
Reliance Info offers global SMS at Rs 2


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line