Amway invests Rs 100 crore to fund growth plans
The very famous and well-known FMCG firm Amway India has decided to invest an additional Rs 100 crore in the next two years. They have decided this in accordance with their future growth plans in India.
The company official also reported that Amway is focussing more on boosting its supply chain and home delivery network to meet customer requirements. Since consumer behavior has been changing and online sales has been experiencing drastic growth, Amway is under pressure to meet consumer demands.
This requirement has pushed them for an additional investment of Rs 100 crore. They are planning to boost manufacturing automation and digital initiatives in the upcoming years that will play an important role in their next phase of growth.
Amway India CEO Anshu Budhraja told that Amway has witnessed a drastic shift in their online orders from 33,6 percent to 70 percent in June 2020. Amway was distributing its products with direct sellers. But, the current global health crisis has altered and made a significant shift in consumer and sellers outlook and preferences. The Pandemic has made people increasingly migrate for online shopping and hence we are bolstering on our home delivery network to meet the growing customer’s demand for online ordering.
Indian consumers being more conscious about nutrition and health, their preference for herbal and immunity supporting and improvement products has seen a surge during this pandemic. He added that, in India, the nutrition and wellness category of Amway alone contributes more than Rs 1000 crore to their total revenue in India. According to their business reports and analysis, the company foresees the wellness and nutrition category to grow faster in the next three years.
He also added that they have made a commitment with India to invest Rs 1000 crore for the well development. Under the Rs 1000 crore investment, they have allocated Rs 600 crore to set up its manufacturing facility in Nilakotai, Tamil Nadu. This has been planned to meet the increasing demand and entail both online and offline platform sales. He is happy and pleased to announce that Amway’s business has almost come back after the demand for wellness and nutrition products have been increased. With an increased focus on online sales, they are anticipating a consistent growth and recovery through the rest of the year.