New Delhi | US-based direct selling major Amway will invest USD 12 million (around Rs 100 crore) in India over the next three to five years to set up stores across the country, which it expects to become among its top three global markets, its President and Global CEO Michael Nelson said on Wednesday.
The company, which has completed ten years of manufacturing in India, is looking to enhance exports from the country, Nelson, who is in his maiden visit to India since assuming the President and CEO role, told PTI Videos in an interview.
"We are committing, and I'm talking to my team this week about an additional USD 12 million investment," he said.
The fresh investment is primarily focused on "stores around the country, where our Amway business owners can bring their communities, their customers to experience products, to have training sessions and a place for them to gather as well".
Nelson was responding to a query on Amway's future investment plans in India.
The investment is aimed at enhancing Amway's business owner/distributor capabilities, strengthening and expanding its physical presence, and elevating customer experience.
In addition, he said,"We continue to invest into our research and development laboratories here in India. We have four and we've invested heavily into it, and we also have a shared services organisation here as well." Asserting that India holds 'great potential for Amway', and is a growth market for it in the future, he said,"We've invested USD 140 million into this market in our history and we have future investments we're making as well." He further said,"Our investment, in addition to that USD 12 million, continues to focus on research and development. Our products are scientifically based, and so we do extensive research, extensive quality testing on all of our products." While Amway's largest brand Nutrilite is focused on inner health, he said, "We are also focused on skin care, outer health, and surrounds you as well -- air treatment, water treatment systems and home care. We say it is 'in, on and around you that we focus'." Asked where India has reached in terms of Amway's ambition to make it among its top three markets globally, Nelson said,"Amway India is a top 10 market for Amway but we see India continuing to climb that ladder. If you just look at the population, the demographics and the entrepreneurial nature, the innovation that happens here in India, we see a very bright future for this market."
Commenting on the changes in the nature of consumers post COVID-19 pandemic, Nelson said,"I think the Indian consumer is very attuned, particularly after the pandemic, I think attuned to their personal health, and that's really what we're all about, is helping people live better lives and improving their wellbeing." When asked if the Indian market could have been much bigger for Amway had it not been for the regulatory challenges that it had faced in the country, Nelson said,"I do think that could have had an impact on us, but our focus is really in our vision, our mission for the future, and that's health and well being." Stating that the company has been working with the Indian government, he said,"(We) truly appreciate many of the reforms that have happened to make it easier to do business here for international companies." Citing the 2021 regulation related to direct selling in India, he said it really helped define and support direct selling and consumer protection.
He said the company continues to work closely with the government and "we are working through some of those regulatory challenges that have been resolved and we see just a bright future ahead and continue to partner with the government in terms of the reforms." On manufacturing in India, Nelson said,"India continues to present a key opportunity for us, from a manufacturing perspective, we've invested heavily into our facility in Madurai. We are producing the entire range of products for Amway India.
We're also exporting from that to Southeast Asia markets." Asked if there would be increased exports from India, Nelson said,"Yes, we do continue to see more exports coming from our plant here in India to our other markets." Moreover, he said,"As we continue to do research and development here and (we would) look for additional opportunities." In Amway's global operations, India is one of only three global manufacturing hubs for the company, alongside the US and China.
Asked about the impact of the India-US trade tension in the wake of President Trump's tariff war, he said locally manufacturing in India has helped in mitigating the impact here.
"We have been tracking (tariff) very closely over the last several months and all the different trade negotiations. One of the benefits of the 'Make in India' strategy from the government -- we have been (manufacturing) here in India for 10 years -- (is) that it mitigates a lot of the risk that we could have had, because we are manufacturing in the market." In addition, he said,"We have 29 certified farms in India, organic farms that produce the raw materials that go into our nutrition products as well. That has helped to mitigate any significant impacts."
However, Nelson said,"Still, we are a global supply chain. We will continue to look at ways to minimise the impacts of those tariffs." On the impact of online sales and e-commerce, Nelson said,"India is certainly a very dynamic market but direct selling, going to the customer through and with our Amway business owners, differentiates us in a very crowded marketplace." India being "an entrepreneurial market", he said Amway helps people by providing "the chance and the pride to own their own business", which is something that people aspire to.
