Despite huge potential for faster growth, the direct selling industry grew only at 30 per cent during 2004, as it was faced with challenges from fly-by-night operators and poor infrastructure.
The industry recorded a turnover of Rs 2,400 crore including Rs 1,381-crore contribution from the members of Indian Direct Selling Association (IDSA).
The non-IDSA members accounted for Rs 1.064 crore.IDSA has 14 active members such as Amway India, Altos Enterprise, AMC Cookware, Avon Beauty Produces and Direct Educational Technologies.
Stating this at a press conference here, Mr Manoj Shirdokar, Chairman of IDSA and Country Director of Herbalife, said the association has been urging the Government to initiate steps to tackle the menace of illegitimate operators through legislation.
He said the association is willing to help the Government in formulating the stipulations to weed out illegitimate operators to ensure security to customers from being duped by such operators.