Amway for law to regulate direct selling companies
Baddi, Himachal Pradesh: US-based FMCG firm Amway India, which is on an expansion spree, has sought a law for regulating direct selling companies` activities to ensure fairplay.
A law and a regulatory mechanism should be in place for the rapidly growing direct selling business like those in the US, Britain, Singapore, China and Malaysia, Amway India CEO William S Pinckney told reporters here.
"Such a law will provide a comprehensive safety net for all players in the business as well as consumers. There should be a regulatory regime to distinguish between good and bad direct selling companies," he said.
The Indian Direct Selling Association has already submitted a proposal to the government after analyzing laws governing direct selling companies in different countries, he said.
Claiming that Amway India is the country`s largest direct selling FMCG company, Pinckney said it has posted 26 percent growth for the second quarter of this fiscal compared to the same period last year. In the past three years the company`s turnover has grown from Rs 799 crore to Rs 1407 crore.
The company, he said, has invested more than Rs 151 crore in the country and has 130 offices and 55 city warehouses covering over 4,000 locations through its home delivery network.
It has carried out major expansions recently and has increased the production capacity 3 times at its facilities here by commissioning 4 new production lines at an investment of Rs 55 crore.
Almost 85 percent of the products sold by the company are now manufactured within the country through 7 third-party contract manufacturers, he said, adding it currently offers over 115 products in five categories of personal care, home care, nutrition and wellness, cosmetics and gifts, Pinckney said.
Amway India launches about ten new products every year, he said. "Our leading categories nutrition, wellness and cosmetics contribute about 60 percent to our revenues. Two brands in nutrition and wellness category are Rs 100 crore each."
The company, a wholly owned subsidiary of the 8.4 billion dollar Amway Corporation of USA, currently has 9 brand experience centres and plans to add another 20 over the next year besides expanding infrastructure by setting up more Amway Touch Points.
Established in 1995, Amway India commenced commercial operations in 1998.
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