HAPPY SIP

Calcutta, Oct. 2: Amway India is planning to launch a green tea brand.

“We are exploring options to launch a green tea brand in India since nutrition and wellness has been our fastest growing segment for the last five years. We are open to forming a joint venture with an existing player in the market. The other option will be to launch our own brand, provided we get a good supplier,” said William S. Pinckney, managing director and CEO of Amway India Enterprises.

The direct-selling company notched up revenues worth Rs 738 crore last year, reporting the highest growth in the wellness and nutrition segment.

It expects to clock revenues of Rs 1,500 crore in the next three to five years.

Amway India is a wholly owned subsidiary of the $6.2-billion Amway Corporation.

Green tea is popular in Asia-Pacific countries such as China and Japan.

Russia and Morocco are also keen to try out the variety.

In Japan, the tea accounts for 74 per cent of the total market. It enjoys a majority share in the Chinese market as well.

In 2005, it was reported that around 250,000kg of Chinese green tea had entered the Indian market through private channels. It became popular because of its anti-oxidant properties.

In May, Tata Tea had signed a joint venture agreement with Zhejiang Tea Import & Export in east China’s Zhejiang province to enter the Chinese market.

The joint venture plans to manufacture and market green tea polyphenols, green tea extracts, cold and hot water soluble instant tea, liquid tea concentrates and other value-added beverages.

Global brands such as AriZona sell over a billion units in the US.

The tea has got a good response in the UK as well.

About 85 per cent of Amway’s products are manufactured in India, while the high-end cosmetics range is imported.

China, which accounts for business worth about Rs 5,000 crore for the company, has a research and product development centre in Shanghai.

Pinckney did not rule out the possibility of such a centre in India with the growth in business.

Direct selling is a $100-billion industry globally.

In India, it is a Rs 3,100-crore market.