USIBC Seminar at the Global Investor Meet, Chennai

September 2015

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“the marketing of products and services directly to consumers generally away from permanent retail

locations”. Source: World Federation of Direct Selling Associations (WFDSA)

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Traditional FMCG & Direct SellingTr

aditi

onal

FM

CG

DepotC&F

Super Stockist

Modern Retail

Stockist

Rural Trade

Sub Stockist

Wholesaler

Super Stockist

Sho

pper

s &

Cus

tom

ers

Sho

pper

s &

Cus

tom

ers

Retail Trade

Direct Sellers

Dire

ct S

ellin

g

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A Global Industry, Empowering Millions

Source: WFDSA

Global Sales in the DS Industry in 2014 stood at US $ 182 billionProviding self-employment to 99.7 million

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Direct Selling Industry in India – current status

Data source: IDSA and PHD Chamber of Commerce

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Direct Selling Industry in India – the potential

Source: KPMG-FICCI report, 2014

Self-employment opportunities 18 millions Indian and the potential to economicallyempower ~11 million women

Indian direct selling has the potential to be a Rs 64,500 crore industry by 2025

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Socio-Economic Benefits – potential – by 2025Contribute Rs 9000 Crore (90 billion) to the exchequer

CSR contribution of Rs 50 Crore

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DIRECT SELLING IN TAMIL NADUINDUSTRY INFORMATION….

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Direct Selling in Tamil Nadu – KPMG projections

• Key product categories contributing to direct selling are projected to clock double digit growth over the next 5 years nationally

CAGR~ 15.8% • Per Capita Income in Tamil Nadu has registered a CAGR ~16% in the past decade

CAGR~ 20-2

1%

Key Growth Drivers

Increase in per capita income

Growth in demand for consumer products

Direct Selling Market in Tamil Nadu

The direct selling industry in Tamil Nadu is expected to grow at 20% CAGR to reach about INR 7,800 Crore by FY2025

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Socio-Economic Impact – KPMG projections

CAGR~ 10-11%

40%

60%

9-10

20-22

40%

60%

100%

Gender-wise Employment Creation in Tamil Nadu

Self- employment in Tamil Nadu

• Current self employment to around 9.3 lakh people in Tamil Nadu

• This is likely to go up to 22 lakh people by 2025

• Currently 5.5 lakh women self-employed in Tamil Nadu.

• This figure is likely to go up to 13 lakhs self-employed women in 2025

Key Observations

Key Observations

The direct selling industry contributes significantly towards self-employment, especially for women who account for 60% of the total direct sellers in Tamil Nadu

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ABOUT AMWAY

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Amway Global…

We have presence in all countries highlighted in yellow

Based in MichiganThe No1 DS Company in the World with global sales of USD$11.8 bn in 2014

Operates in more than a 100 countries

Amway India

INR 2000 Crs with 130+products – all which come with a 100% Money Back Guarantee

150 Offices, 65 Warehouses Delivering to 10,000 Zip Codes

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CSR• CSR Commenced in 1996, two years prior to commercial launch of Amway.• This work carried out by the Amway Opportunity Foundation (AOF)

• AOF works with over 30 NGO partners across the country.

• Focus areas of AOF• National Project for Visually challenged -

To facilitate quality education• Project Sunrise: Facilitates education,

health & hygiene for children• Plant CSR: Initiatives in and around

areas adjoining our plant to help build community relations.

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Amway in TNAmway is setting up a state-of-the-art manufacturing plant in Nillakottai, near Madurai, with an investment of more than Rs. 550 crores. 

The plant will have one of the biggest roof-top solar plants in Tamil Nadu

Conserve 30-50,000 cubic meters of rain water every year

Will be amongst the few LEED GOLD Standard manufacturing plants in the country, and will be a Zero Discharge Waste Facility – no solid wastes, no effluents

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…a short film on this plant…