Amway is considering ways to expand business in India as it is exploring a range of options to best service the needs of Indian consumers at reasonable costs. This is step also taken because the Indian government has urged large domestic and global food companies to develop low-cost nutrition products.
Amway has made representations to the government to lower the goods and services tax on nutraceuticals to 12% from 28%.
“We believe Amway has the ability to fulfill India’s nutrition gap story and we are doing focused pilot projects aligned to drive down prices of high-nutrition products for consumers,”Amway India chief executive officer Anshu Budhraja said.
Nutraceuticals is a $200 billion industry worldwide and in India it is growing at 20% with revenue of $2 billion and potential to reach $6 billion by 2022. With global sales of $8.8 billion in 2016, Amway, the world’s largest direct selling firm, makes Nutrilite protein supplements and Artistry skin-care products.
Companies such as PepsiCo and Nestle are already developing low-cost, healthy products in India. PepsiCo has introduced entry-level Quaker Oats sachets and, through a joint venture, Tata GlucoPlus water, while Nestle is pushing fortified Maggi seasoning at low-unit prices.
Amway India is moving beyond its core direct selling model into other avenues including brick-and-mortar retail stores, online and mobile apps. “It’s not an either-or strategy. We need to be accessible to our consumers wherever they are,” Budhraja said.
India was Rs 8,000 crore industry in 2015, with potential to grow to Rs 64,500 crore by 2025, according to a KPMG-FICCI report. o distinguish between legitimate and fraudulent companies.