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Atomy to Invest Rs. 250 Crore to Set Up Manufacturing Units in India

    21 November , 2021         Fdiindia

Atomy to Invest Rs. 250 Crore to Set Up Manufacturing Units in India

Atomy Enterprise India, a subsidiary of Korean direct-selling brand Atomy, will invest close to Rs. 250 crore in India by 2025. The investment will come in the form of FDI and will be used to set up over three manufacturing units to supply its products to the world.

Primary offerings of the company include products in skincare, food and health supplements.

Abraham Lee, CEO, Atomy Enterprise India, said the company would target the food category first to drive its growth in the Indian manufacturing business. It will also include the health supplements category, which is in high demand and a significant contributor to sales.

“Right now, we have 80 different suppliers around the world because we have grown to become a $1.7 billion company. But in India, we are still young,” he added. The company started conducting business in India in 2020.

The company aspires to become a direct selling platform with the features of e-commerce. It enables its customers to purchase its products from its online ‘shopping mall’ rather than from another distributor.

The investment for the Indian arm of the firm will be mainly used for setting up manufacturing units where Atomy will be a majority stakeholder. Afterward, its next phase of research and development would attract the company’s funds.

“When we invest in any country in a manufacturing plant, we tend to invest on a 50-50 basis with a local partner. This helps us control quality,” Lee said. In India, the organization currently has 14 lakh distributors under its umbrella.

According to Seo Youngdoo, CEO and founder, Korikart, an e-retailer of Korean products, India is one of the top markets for Korean products and hence, a priority for Korean companies.

He said that the import and export between the two countries had increased by 38% in the previous year alone.

As per Allied Market Research, the market size of Korean beauty products in India was estimated at $10.2 billion in 2019. It is expected to reach $13.9 billion by 2027.



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