Indian Direct Selling Association (IDSA) estimates show that the industry, which has been growing at a steady 30-35 per cent per annum, is expected to post a 50-100 per cent growth in 1998-99.

Association sources said that the industry's growth rate has been encouraging considering that while early entrant, Oriflame, has already extended its network to cover all metros, Avon is expected to follow suit shortly.

Amway India Enterprise, a wholly-owned subsidiary of the $7-billion Amway Corporation, which kicked off operations in May this year, is said to have made a significant dent into the market.

IDSA has up its rolls 200 companies which includes Oriflame India, the only company in the fast-moving consumer goods (FMCG) segment which is expected to break-even thisyear. Swedish cosmetics and personal products major Oriflame is said to be the leader in the direct-selling segment with a market share of around 10 per cent, said industry sources.

Oriflame is followed by Avon with around 5 per cent market share. Multinational plastic houseware major, Tupperware, is said to have garnered around 2-3 per cent market share. Figures on Amway are not available as it will close its first year of operations in May 1999. Oriflame's move to introduce budget range of cosmetics for mass consumption will enable the company make further inroads into the market leading to high growth levels. Oriflame posted a turnover of Rs 34 crore in December 1997, and claims to have a distributor network of around 50,000.

Industry sources pointed out that if the direct-selling industry continues to grow at consistent levels of 50-100 per cent, it will soon become a Rs 1,000-crore industry. The number of sales people in the direct-selling market is estimated to be around 1.2 lakh.

IDSA sourcessaid that the growth in the industry is expected to get a boost with a number of multinational companies like Hindustan Lever and Daewoo closely examining the possibility of a foray. A number of new multinational companies are expected to be approach the Foreign Investment Promotion Board for investing in such multi-level marketing networks, sources said.

Amidst well-established global names are companies like LB Publishers and Lotus Learning following multi-level marketing (direct selling) in the books segment.

Multi-level marketing is a type of direct selling which promotes brand perception and penetration through demonstration in the absence of conventional advertising.

In a bid to boost its business and become a leading direct-selling company in the country, Amway India Enterprise plans to lend its network to distribute products of other companies as well. Product portfolios of these companies could range from anything like FMCG products to foods, cars.

Amway recently tied-up with Braun todistribute the German major's products through its network. Amway claims to have penetrated as many as 162 cities in the country. Globally, the size of the direct-selling industry is $79 billion.