Amway is in plans to makeIndiaas an export hub to cater to its operations in South Asia andMiddle East. Notably, the firm’s business growth in the country has slowed down owing to the lack of clarity on applicable regulations. The firm has also mentioned that there is an immediate need for comprehensive regulations to differentiate between genuine direct sellers and sham players in order to come up with a sense of legitimacy to the industry.
Regarding this, Amway’s Managing Director and CEO, Willian S Pinckney added that the firm needs more clarity in the regulations to ensure that the growth level is up. He noted that Amway has a very strong double digit growth few years ago and the need to understand the legitimate direct seller has slowed down the growth.
Amway is setting up a unit located at Nilakottai in Tamil Nadu worth Rs 600 crore and is also planning to expand its presence with additional plants as the firm is all set to make the subcontinent a hub for its operations in Middle East and South Asian countries including Bangladesh, Sri Lanka and more.
He further added that Amway is looking for markets outsideIndiaas it believes thatIndiacan be an export hub to those regions. This will let them look for more investments quickly to support the manufacturing push.
Amway is aiming to achieve a business of Rs 6,000 crore by the year 2020 and the Tamil Nadu unit will be operational by the end of March 2015 with its prime focus on health and beauty products.
Pinckney stressed that to identity the sham firms that run pyramid schemes under the disguise of direct selling is a tough challenge, but to lay down a strong growth path, Amway has to legitimize it by identifying the genuine ones from the sham players. He further added that the lack of this clarity is holding the investments sector and they are waiting for appropriate legislation in the industry.
