Direct selling FMCG firm Amway India is contemplating on establishing a manufacturing plant in Tamil Nadu. If firmed up, this would be the first production facility in the country, according to a BL report.
Sundeep Sengupta, Head-Corporate Communications and Social Responsibility, Amway India is quoted as saying by the report: 'It is on the cards. We are contemplating on setting up a factory 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. With the establishment of the facility, Tamil Nadu may become a hub for us in future".
Sengupta, however, declined to share more information on the proposed project, by simply stating 'it is still early’, noted the report. Despite not owning a production facility till date, Amway has successfully managed to source 97 percent 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 report pointed out. Amway has invested more than Rs 151 crore in India, and has 135 offices and 55 city warehouses. What is more, the firm logged a turnover of Rs 2,130 crore in 2011, up from Rs 1,790 crore in the previous year.
Second office in Coimbatore
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,’ he said. Coimbatore, according to Siva Kumar, Area Manager, Amway India, has been among the top three markets for the company in Tamil Nadu, the report added.