Di­rect sell­ing in­dus­try in Gu­jarat can reach ` 48-50 bn. by 2025

FICCI Business Digest - - In The States -

The di­rect sell­ing in­dus­try in In­dia is cur­rently reck­oned at INR 75 bil­lion, one of the fastest grow­ing non-store re­tail for­mats, record­ing dou­ble digit growth of more than 16 per cent over the past four years. It has at­tracted a large num­ber of In­dian and for­eign di­rect sell­ing com­pa­nies. The FICCI-KPMG In­dia re­port, ti­tled, 'Di­rect Sell­ing: Gu­jarat' launched in Ahmed­abad on May 5, 2016, es­ti­mates that this in­dus­try in Gu­jarat has the po­ten­tial to reach a size of INR 4850 bil­lion by 2025, driven by the swelling share of mid­dle in­come house­holds, growth in con­sumer mar­kets and an in­crease in the pen­e­tra­tion of di­rect sell­ing to glob­ally com­pa­ra­ble lev­els. The re­port also sug­gests that re­al­is­ing this po­ten­tial is con­tin­gent on cre­at­ing an en­abling en­vi­ron­ment for the in­dus­try and mit­i­gat­ing some of the chal­lenges it faces to­day.

Ra­jiv Vas­tu­pal, Chair­man, FICCI Gu­jarat State Coun­cil, said, “The in­dus­try is known to fa­cil­i­tate self-em­ploy­ment op­por­tu­ni­ties and pro­mote women em­pow­er­ment. Women con­sti­tute about 60 per cent of the to­tal di­rect seller's work­force of the state. It has been ob­served that with the ris­ing costs of liv­ing, the di­rect sell­ing busi­ness is gain­ing pop­u­lar­ity among men too who are look­ing at it as a sup­ple­men­tary earn­ing op­por­tu­nity. The share of men in the work­force has in­creased from 38 per cent in FY12 to about 42 per cent in FY14.”

Ra­jat Ban­erji, Chair – FICCI Di­rect Sell­ing Task Force, said, “We find in Gu­jarat an en­hanced en­tre­pre­neur­ial spirit and keen­ness to pur­sue avail­able busi­ness op­por­tu­ni­ties. This has led to a steady growth of this in­dus­try in the state. We be­lieve that fur­ther im­pe­tus will come from clear reg­u­la­tion at the statelevel as that would give eth­i­cal di­rect sell­ers the con­fi­dence to ex­pand their oper­a­tions in Gu­jarat.”

Chetan Kakariya, Di­rec­tor, Tax & Reg­u­la­tory Ser­vices, KPMG in In­dia, said, “The in­dus­try's func­tions heav­ily rely on in­di­vid­u­als to ac­com­plish sales which give rise to a num­ber of fraud­u­lent busi­nesses em­u­lat­ing the form. This is one of the big­gest chal­lenges the in­dus­try faces to its growth to­day. The need of the hour is to re­visit the ex­ist­ing laws and bring about clar­ity in the reg­u­la­tory en­vi­ron­ment, re­build­ing trust and sen­si­tiv­ity.”

The FICCI-KPMG In­dia re­port es­ti­mates that the state has wit­nessed a con­tin­u­ous growth in the num­ber of di­rect sell­ers with a growth rate of 23 per cent be­tween FY10 and FY14. The num­ber of di­rect sell­ers has in­creased from 0.12-0.14 mil­lion in FY10 to 0.29-0.31 mil­lion in FY14. The re­port out­lines sev­eral so­cioe­co­nomic benefits that the in­dus­try ex­tends.

de­vel­op­ment. The need of the hour is to make the work en­vi­ron­ment, em­ploy­ment poli­cies and in­te­gra­tion at work place ac­ces­si­ble, thus en­abling the in­dus­try to ex­plore an un­tapped pool of valu­able hu­man re­source. To take for­ward the agenda of the Ac­ces­si­ble In­dia Cam­paign (Sugamya Bharat Ab­hiyan) to the states, the De­part­ment of Em­pow­er­ment of Per­sons with Dis­abil­i­ties, Min­istry of So­cial Jus­tice and Em­pow­er­ment, Gov­ern­ment of In­dia in col­lab­o­ra­tion with FICCI, con­ducted an Aware­ness Work­shop on Ac­ces­si­ble In­dia Cam­paign in Ahmed­abad on May 21, 2016.

The work­shop was held in the pres­ence of Anandiben Pa­tel, Chief Min­is­ter of Gu­jarat, along with Thaawarc­hand Gehlot, Min­is­ter of So­cial Jus­tice & Em­pow­er­ment, Gu­jarat; Kr­is­han Pal Gur­jar, Min­is­ter of State, So­cial Jus­tice and Em­pow­er­ment, Gu­jarat and Ra­man­lal Vora, Min­is­ter of So­cial Jus­tice and Em­pow­er­ment, Gu­jarat.

The work­shop aimed at mak­ing gov­ern­ment of­fi­cials, in­dus­try rep­re­sen­ta­tives, civil so­ci­ety or­ga­ni­za­tions and ed­u­ca­tion in­sti­tu­tions aware of the vi­sion of the cam­paign and the op­por­tu­ni­ties of fur­ther­ing the same by work­ing to­gether. Fur­ther­ing the vi­sion with the in­dus­try, the In­clu­sive­ness and Ac­ces­si­bil­ity In­dex de­vel­oped by the De­part­ment of Em­pow­er­ment of Per­sons with Dis­abil­i­ties, Min­istry of So­cial Jus­tice and Em­pow­er­ment in col­lab­o­ra­tion with FICCI was pre­sented to prompt the in­dus­try rep­re­sen­ta­tives to un­der­stand and adopt a strat­egy of mak­ing the work­place ac­ces­si­ble and in­clu­sive.

The In­clu­sive­ness and Ac­ces­si­bil­ity In­dex is a ser­vice be­ing ex­tended to the in­dus­try to par­tic­i­pate in the cam­paign by vol­un­tar­ily eval­u­at­ing their readi­ness for mak­ing the work­place ac­ces­si­ble for Per­sons with Dis­abil­ity. The In­dex is a set of bench­marks that has been struc­tured in a four-level ma­tu­rity model. The Tool­kit based on the model as­sists com­pa­nies, ir­re­spec­tive of size and scale, in iden­ti­fy­ing their level of pre­pared­ness and gives an ac­tion plan for build­ing their ac­ces­si­bil­ity.

The In­clu­sive­ness and Ac­ces­si­bil­ity In­dex will ben­e­fit the in­dus­try by en­abling them to achieve bench­marks and fol­low best prac­tices, ac­cess to a di­verse tal­ent pool, cre­ates a ho­moge­nous work en­vi­ron­ment and in­creases em­ployee loy­alty as well as re­duce em­ployee at­tri­tion. The In­dex works with the com­pany to achieve re­al­is­tic and sus­tain­able goals and can be cus­tom­ized to the com­pany's re­quire­ment. Above all, the In­clu­sive­ness and Ac­ces­si­bil­ity In­dex shall pro­mote hu­man dig­nity and so­cial co­he­sion where all cit­i­zens of the so­ci­ety have ac­cess to equal op­por­tu­ni­ties to fully re­al­ize their po­ten­tial.

L to R: Surabhi Pant, Se­nior As­sis­tant Di­rec­tor, FICCI; Ra­jiv Vas­tu­pal Chair­man, FICCI – Gu­jarat State Coun­cil; Ra­jat Ban­erji, Chair­man - Di­rect Sell­ing Task Force, FICCI; Anukul Agar­wal, Co- Chair, Di­rect Sell­ing Task Force, FICCI; Be­jon Mishra, Founder, Con­sumer On­line Foun­da­tion and Con­sumer Pro­tec­tion Poli­cies, Ex­pert and Param Shah, Head – Gu­jarat State Coun­cil , FICCI.

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