Direct selling biz to grow 72% by FY’13

IDSA member companies include Amway,Oriflame,Tupperware and Modicare.

“An increase in consumption of consumer goods by the average Indian,coupled with the rising awareness of health and wellness among Indian households is a key growth driver …strong drivers of growth will enable the industry to reach Rs 7,100 crore by 2012-13,” it said.

The survey also noted that metros and tier II and other cities now contribute equally to the overall market.

Health remains the leading category by value with a 47 per cent share of the overall revenues of the sector emanating from it,up from 32 per cent last year,the report said,adding personal care has emerged as a popular category.

The survey said that the outlook continued to be positive with a robust growth rate for the future.

As per the report,organised direct selling accounted for Rs 3,750 crore of the total market size with IDSA member companies contributing revenues amounting to Rs 2,350 crore in 2009-2010.

The number of independent direct sales consultants stood at three million in India,an addition of nearly 1.2 million individuals in 2009-10,the report said.

According to the annual survey,IDSA member companies contributed Rs 409 crore to the government exchequer in 2009-10,an increase of 11 per cent from the previous year.