New Delhi, India (PressExposure) November 14, 2009 -- Indian direct-selling industry could achieve a turnover of Rs 5,000 crore by 2012 if it gets the âindustryâ status from the government, feels IDSA chairman and AMC Cookware CEO, David Stanley.
Stanley was in Kolkata last week for the annual IDSA meeting. IDSA has released a survey which says the direct-selling industry in India is growing at 13% rate yearon-year.
The sector comprising 16 players has posted a turnover of Rs 2,851 crore in 2007-08. This includes 13 foreign players like Amway, A1, Tupperware, Oriflame, AMC Cookware and domestic players like Mode Care. âThere is great potential for direct-selling industry in India provided the government comes out with a proper regulation,â he said.
According to him, IDSA has already submitted a draft regulation to department of industrial policy and promotion (DIPP). âIn US and UK, there is a separate regulation for direct-selling enterprises. Even countries like Singapore, Malaysia have regulatory framework for direct selling,â he said.
IDSA chairman claimed that it has got queries from 26 leading direct-selling companies across the world in 2007-08 for entering Indian market. These are from USA, Europe, Japan and even Brazil. âBut they are all looking for a regulatory framework. Given a conducive environment, even in a struggling economy like Russia direct-selling sector has been able to do $1.8 billion business annually. The figure is $7 billion in Brazil. We have urged the government to take all possible measure to ensure unhindered growth of directselling business,â he said.
Stanley added IDSA members paid over Rs 111 crore as direct tax and indirect tax of Rs 168 crore during 2007-08.
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