The Indian Direct Selling Association today highlighted the need for a Central Government-driven uniform policy framework to govern the functioning of the ₹7,500-crore industry, which is now passing through tough times due to different line of thinking in some States.
The industry, which closed the last financial year with business volumes of ₹7,472 crore — up from ₹7,184 crore in 2012-13 and ₹6,385 crore in 2011-12 — has potential to grow at a much faster pace provided there is consistency in regulatory norms across the country, Chavi Hemanth, Secretary-General, IDSA, said.
Hemanth said the Ministry of Consumer Affairs has constituted an inter-ministerial group on December 8 to look into regulatory issues concerning the direct selling industry. “We expect the Ministry will come out with appropriate regulations for the industry, which was affected in some States,” she said.
Outlining the sector’s issues, she said that, of the ₹7,472-crore business transacted last year, the organised sector contributed about ₹7,024 crore and the unorganised sector ₹448 crore. Amway, Herbalife, Oriflame, Tupperware and Avon are among the top direct selling brands in the country.
She said Bengaluru topped the cities in terms of overall business, followed by Delhi, Ludhiana and Mumbai.
Referring to States such as Kerala, where direct selling companies have closed down and the tough regulations Andhra Pradesh and Telangana, she said the Centre needed to take the lead in coming out with a comprehensive policy to regulate the industry, which can grow by more than 10 per cent a year over the next few years. It could grow even faster if the regulatory hurdles were sorted out, she felt.