The Hindu Business Line : Amway India focusing on nutraceutical biz

New Delhi, Dec. 11 Direct selling major Amway India has set its sight on the growing nutraceutical business in the country. The company is in the process of focussing on as many as 5,000 doctors and health practitioners to promote its health supplements.

“Nutraceuticals is a growing business in India. Having a health practitioner recommend our product will bring in the necessary certification to the product,” Mr P. Sanker, Director, Legal and Corporate Affairs, told Business Line.

Asked if doctors will act as distribution agents, he said, medical practitioners will only recommend it like any other health supplement. They will not be involved in the direct marketing of the products.

Noting that the nutraceutical and health supplement market is a very mature market in the US and Japan, he said these products have immense potential in India. “Globally, we are known as a health and beauty company. With our nutraceutical venture, we want to reposition our brand in the country.”

The company, which is heavily expanding its product line to cater to the new age consumer, said it introduces as many as 10 products every calendar year.

Aimed at making its distributors have intensive knowledge on the nutraceutical business, Amway India is also conducting training modules. “The training modules ranging from two hours to a week-long certificate course will equip our distributors to handle consumers’ queries more efficiently.”

Global market

Globally, the size of the nutraceutical and dietary supplements market is estimated to be $30 billion. In India, it is estimated to be anything between Rs 1,100 crore and Rs 1,500 crore with an annual growth rate of 40 per cent.

Currently, it has a reach in over 2,000 cities across the country. The direct selling company had registered a turnover of Rs 738 crore during the year ended December 2006.

Asked if the wellness products met all regulatory standards, he said the products were basically fruit and vegetable derivatives.

“All regulatory approvals are in place,” he said adding the wellness product Nutrilite is not known to cause any side-effects.

Nutrilite, the flagship health product from the Amway stable is a vitamins, minerals and dietary supplements. Besides Nutrilite, Amway has 16 healthcare products in the Indian market under the nutrition and wellness category.

Nutrilite Protein powder is the largest protein supplement brand in India and Nutrilite Glucosamine is the largest selling glucosamine preparation in India, according to the company. This apart, products for weight management and health drinks are also being marketed and promoted. Currently, Nutrilite contributes to as much as 50 per cent of the company’s total turnover.

Observing that the concept of direct selling is on the upswing in India, he said the industry will stand at a whopping Rs 3,150 crore, with close to 13 lakh sales force under its wings.

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