DIRECT SELLING SECTOR TO REACH Rs. 10,843 CRORES

Direct selling sector in India is expected to grow at the rate of 20 per cent year on year and reach up to Rs 10,843.6 crore in the financial year 2014-15, according to a report. As per the annual survey on the Indian direct selling sector by PHD Chamber of Commerce and Industry, undertaken in association with Indian Direct Selling Association (IDSA), the size of segment was pegged at Rs 6,385.1 crore in 2011-12.
Commenting on the growth of the sector, PHD Chamber of Commerce and Industry Chief Economist and Head of Research SP Sharma said: "The Indian direct selling industry has scaled remarkable growth over the years and has been expanding its horizons in India as a rapidly emerging alternate distribution channel."
Growth drivers have been wellness, healthcare segment followed by beauty, cosmetics and personal care segment, survey said. Products related to wellness have contributed 44 per cent to the total sales revenue at Rs 2,745.5 crore followed by beauty, cosmetics and personal care products contributing 33 per cent to the total sales for 2011-12, it added. Direct selling companies have been increasingly contributing to the nation's economy by way of direct taxes, IDSA said in a statement. "Total tax paid by IDSA member companies amount to Rs 821.2 crore in 2011-12 as compared to Rs 647 crore in 2010-11. The growth in tax collection from the direct selling firms has increased by about 26.9 per cent in 2011-12" IDSA Chairman S Subramanian said. The industry has also contributed significantly to the self-employment generation in the country. "Total distributors base of the Indian direct selling industry during 2011-12 stood at 48,53,232 lakh. It is expected to reach 80,00,000 lakh by 2014-15," Subramanian added.