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Eastern region highest in DS companies
Published on 5 Apr. 2010 12:19 AM IST
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Eastern region, including Nagaland shows the highest potential for future growth propelled by a rise in entrepreneurial activity in Direct Selling (DS) companies and the South India emerging as the key hub of activity for Direct Selling Companies.
Direct Selling is a method of selling products and services, in a face-to-face manner, away from a fixed location, usually through personal explanation or demonstration. More importantly, direct selling offers individuals an opportunity to own their independent business for a nominal investment.
A survey carried out in end-2009, by Ernst & Young, an independent survey of the direct selling industry in India, showed that Rs 3330 crore industry was poised to push through to 5328 crores by 2013.
The Rs 3330 crore Indian Direct Selling Market witnessed 17% growth in 2008-09 over last year (2007-08) and is predicted to grow at a Compound annual growth rate of 12.5% in next five years riding on the growing awareness of direct selling activity, growth of income level and shift in consumption patterns.
With leading multi-national direct selling companies having full-fledged operations in India and many Indian direct selling companies spreading their presence, the perceptions of this industry improves
MD & CEO of Amway India Enterprises, Bill Pinckney said “It is Rs. 3330 crore industry that has provided income opportunity to over 1.8 million people in India. Worldwide, this industry is estimated to be worth $113 billion, providing income opportunities”
A major player in the market was the Amway India, especially in nutrition and wellness category, stated the survey. Amway India Enterprises Pvt Ltd, direct selling FMCG Company registered 39% growth in Northeast in the first nine months of the fiscal year of 2009. Having touched Rs 1128 crores nationally in 2008, Amway is confident of grossing over Rs 1400 crores in 2009. The company also aims to reach 2500 crores turn over by 2012 (Amway’s fiscal year is from January to December).
“Northeast contributing a sizeable chunk of our turnover for eastern India, has witnessed 39% growth in sales during January to September, 2009 over the corresponding period last year. Amway paid taxes to the tune of Rs 6.34 crore in Northeast in 2008. To further drive the business, we are intensifying our focus on the productivity, expansion and extensive training of our distributors in Northeast including states like Assam, Manipur, Nagaland, Mizoram and Tripura.” stated Diptarag Bhattacharjee, Vice President, Eastern Region.
There are 45,000 Amway distributors in Northeast, of which Nagaland has 5300 distributors with 10 offices in Northeast and 2 offices in Nagaland namely Kohima and Dimapur. Amway paid taxes to the tune of Rs 88.81 lakhs to the state exchequer of Nagaland in 2008.
William S Pinckney, MD & CEO, Amway India commented, “Despite economic recession in 2008, we have grown from 800 crores to 1128 crores in 2008 and registered 40% growth in turnover. We are quite confident of achieving our target of 2500 crores by 2012 riding on the world class products, big ticket launches and capacity expansion. We are tripling our production capacities with Amway’s largest vendor at Baddi, Himachal Pradesh, which involves investments of around Rs 55 cores.”
Amway India is country’s leading direct selling FMCG Company which is a subsidiary of US $ 8.2 billion Amway Corporation, Ada, Michigan, and USA, one of the largest Direct Selling Companies in the world. The company has invested more than Rs 151 crores in India. Amway has over 130 offices and 55 city warehouses across the country and covers over 4000 cities and towns through its distribution and home delivery network set up with the support of independent logistics partners.
Products sold by Amway India are manufactured within the country through third-party contract manufacturers. Amway India currently offers over 110 products in five categories of Personal care, home care, nutrition and wellness, cosmetics and great value products.
Direct Selling has today achieved industry status. Larger numbers of individuals have taken up to Direct Selling on a full time basis, though the entry into the Direct Selling industry as an Independent Business Owner is through a small investment.

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