CHENNAI: The Indian direct selling industry grew by 12.2% in 2012-13 financial year to reach Rs 7,164 crore, according to a report published by the Indian Direct Selling Association in association with the PHD Chamber of Commerce and Industry.
While turnover from the northern region increased by 7% to touch 27%, in south it declined by 8% to touch 30% during period.
“Regulatory hurdles, specifically those in Kerala, resulted in south India’s share getting reduced to 30% during 2012-13 from 38% during 2011-12. But we are confident that we would continue to grow at an annual average of more than 20% for the next three years,” Chavi Hemanth, secretary general, IDSA said.
“The direct selling industry is rapidly emerging and boosting self employment opportunities, encouraging women empowerment and it holds immense importance to the overall economic system,” Saurabh Sanyal, executive director, PHD Chamber said.
The distributor base in the direct selling industry has grown by 18.9% to touch Rs 60 lakh during 2012-13. In terms of product categories, the wellness segment is the highest contributor to the sales revenue at 47%. The Indian direct selling industry is expected to reach Rs 34,000 crore by 2019-20 financial year.