Atomy to fund Rs 250 cr in India by 2025 to set up manufacturing units

11 Nov 2021 CW Team

Skincare, health supplements, and food are among the company's specialities.

Atomy Enterprise India's chief executive officer, Abraham Lee, said the company will focus on the food category to grow its manufacturing business in India. This will include supplements, which he claims are consumed more frequently and thus have higher sales.

The company aims to upgrade into an e-commerce-based direct selling platform. Its business model is such that its members or sellers can purchase its products from an online shopping mall, rather than from another distributor, globally.

The investment in India's arm will primarily be used to establish manufacturing facilities in the country, where Atomy will have a majority stake. Following that, funds will be allocated for the company's next phase of research and development.

More recently, the popularity of Squid Game has boosted K-product sales and contributed to the expansion of everything Korean in India. Since March 2020, sales of Youngdoo's brand have increased by 300% as a result of the pandemic, with over 40 to 50% month-on-month growth.

Atomy was founded in 2009 in Korea and began expanding internationally in 2010 with branch offices in the United States, Japan, Canada, Taiwan, Singapore, Cambodia, the Philippines, Malaysia, Mexico, and Thailand. Global sourcing, global sales have been the company's focus.

According to Allied Market Research, the Indian market for K-beauty products was valued at $10.2 billion in 2019. This is expected to reach $13.9 billion by 2027, with a 9.0% Compound Annual Growth Rate (CAGR) from 2021 to 2027.

In 2019, Asia-Pacific was one of the most important regions in the market, accounting for roughly 70% of the total K-beauty market share.

Image Source

Atomy Enterprise India, a subsidiary of the Korean direct-selling company Atomy, plans to invest about Rs 250 crore in the Indian market by 2025 to build three manufacturing units to supply products to the rest of the world. This investment will be made in the form of an FDI. Skincare, health supplements, and food are among the company's specialities. Atomy Enterprise India's chief executive officer, Abraham Lee, said the company will focus on the food category to grow its manufacturing business in India. This will include supplements, which he claims are consumed more frequently and thus have higher sales. The company aims to upgrade into an e-commerce-based direct selling platform. Its business model is such that its members or sellers can purchase its products from an online shopping mall, rather than from another distributor, globally. The investment in India's arm will primarily be used to establish manufacturing facilities in the country, where Atomy will have a majority stake. Following that, funds will be allocated for the company's next phase of research and development. More recently, the popularity of Squid Game has boosted K-product sales and contributed to the expansion of everything Korean in India. Since March 2020, sales of Youngdoo's brand have increased by 300% as a result of the pandemic, with over 40 to 50% month-on-month growth. Atomy was founded in 2009 in Korea and began expanding internationally in 2010 with branch offices in the United States, Japan, Canada, Taiwan, Singapore, Cambodia, the Philippines, Malaysia, Mexico, and Thailand. Global sourcing, global sales have been the company's focus. According to Allied Market Research, the Indian market for K-beauty products was valued at $10.2 billion in 2019. This is expected to reach $13.9 billion by 2027, with a 9.0% Compound Annual Growth Rate (CAGR) from 2021 to 2027. In 2019, Asia-Pacific was one of the most important regions in the market, accounting for roughly 70% of the total K-beauty market share. Image Source

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