The Hindu Business Line : Direct selling industry hopes to touch Rs 6,200-cr turnover in 5 years

Chennai, June 11 The Indian Direct Selling Association (IDSA) expects the industry turnover to double in the next five years to touch Rs 6,200 crore. The industry is currently growing at over 10 per cent.

During 2006-07, IDSA companies paid over Rs 120 crore of direct taxes and Rs 170 crore of indirect taxes to the Union Government.

India, with its unique strength of trained and enterprising manpower, offers enormous space for the growth of direct selling, which has been proved time and again by the consistent growth in the industry, said Mr David Stanley, Chairman, Indian Direct Selling Association and CEO, AMC Cookware.

“However, to achieve this comfortably, we require recognition from the Government, that will not only instill confidence among the distributors, but also attract more direct selling multi-national companies to India,” he said.

The association has been seeking Government legislation for the fast growing industry for quite some time now.

According to Mr Stanley, though the body has a self-imposed code of ethics, a well drawn legislation would streamline the industry better and would bring in more transparency.

Currently, IDSA is following the guidelines of the World Federation of Direct Selling Association. It ensures that its member companies are following the guidelines that are designed to protect both the seller and the consumer. All the 15-members of the association are authorised to use the ‘IDSA Authorised Company’ seal in their literatures and promotional materials, he said.

In India, there are over 14 lakh people engaged in the business of direct selling, and categories of products spanning from cosmetics and skincare to education and fabrics. Most companies are sourcing products from within the country and some neighbouring countries are also being served from here.

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