Direct selling FMCG company Amway India is looking to set up its own manufacturing facility in Tamil Nadu. The proposed project would be the company’s first production facility in the country.
“It is on the cards. We are mulling over establishing a facility either in Gujarat or Tamil Nadu. The likelihood of the facility coming up in Tamil Nadu seems greater. The estimated outlay is Rs 400 crore,’’ Mr Sundeep Sengupta, Head-Corporate Communications and Social Responsibility, Amway India, said.
With the establishment of the facility, Tamil Nadu may become a hub for us in future, he added.
He, however, declined to share more information on the proposed project, by simply stating “it is still early’’.
Despite not owning a production facility till date, Amway has successfully managed to source 97 per cent of its products sold here manufactured within the country through seven third party contract manufacturers.
The company recently tripled the production capacities at its vendor facility at Baddi in Himachal Pradesh by commissioning four new production lines, taking the total investment in Baddi to Rs 105 crore.
The company has invested more than Rs 151 crore in India, and has 135 offices and 55 city warehouses. It clocked a turnover of Rs 2,130 crore in 2011, up from Rs 1,790 crore in the previous year.
Meanwhile, Amway had opened its second office in Coimbatore on Tuesday, taking the total office network in the state to 22 and the number of warehouses to six.
“The occasion also marked the launch of specialised products from Amway’s health and beauty segment — Nutrilite Healthy Ageing range and Attitude Whitening cream,’’ Mr Sengupta said.
Coimbatore, according to Mr Siva Kumar, Area Manager, Amway India, has been among the top three markets for the company in Tamil Nadu.