Direct selling FMCG major Amway India today said it will set up its first manufacturing facility in the country in Tamil Nadu at an estimated investment of Rs 550 crore.

The company had already signed an MoU with the Tamil Nadu government in this regard, company’s MD and CEO William S Pinckney said here, but did not disclose the location of the facility which would be operational by 2015.

He said that healthcare, nutritional and beauty products would be produced in the new facility. “This will help promote our business in India.”

Besides, Pinckney said that Amway would set up R&D centres, “location of which may be Mumbai, Pune, or even Kolkata” in the next few years.

Highly professional and skilled people would be employed in the new facility and R&D centres which would have state-of-the art technology, he added.

The Amway CEO said the company, being a member of Indian Direct Selling Association (IDSA), a self-regulatory body, is of the view that the government should issue a regulatory framework for the industry in India.

“This regulatory framework, if implemented, would help genuine direct selling companies to operate and prevent fraudulent schemes or companies from duping consumers,” he said.

He said a committee, having representatives from RBI, corporate affairs and consumer affairs ministries, has been formed by the government on the plea of the IDSA to examine the possibility of issuing guidelines for the direct selling industry.

“I hope the committee will come out with a concrete guideline shortly for the direct selling industry and IDSA is in talks with the government in this regard,” he added.

Pinckney said the government should provide a clear definition of direct selling, streamline the FDI policy and entry routes, enact a governing legislation for the sector and appoint a nodal ministry.

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