Advertisement

HindustanTimes Sat,30 Aug 2014

Willing to tweak biz model, says Amway

Vivek Sinha , Hindustan Times  New Delhi, June 07, 2014
First Published: 00:15 IST(7/6/2014) | Last Updated: 00:28 IST(7/6/2014)

Global direct selling firm Amway can "tweak" its business model if the finance ministry guidelines demand so, Samir Behl, regional president for the company in Europe, Africa and India, said.

Advertisement

Behl is in the country after chief executive of Amway India William S Pinckney was arrested on May 26 by the Andhra Pradesh police under the contentious Prize Chits and Money Circulation Schemes (Banning) Act, over allegations of improper money circulation. Pinckney is still under custody.

"It appears some misconceptions exist about Amway running some kind of a chit fund or a ponzi scheme... if finance ministry officials feel we need to tweak our business model we will be happy to do so," Behl said.

The company will retain its direct selling character and its products will not be available in grocery stores. "If any of our business practice creates confusion for law makers then we are happy to change that," he said.

Amway’s business model is based on a direct retailing system where each member is required to add new members apart from directly selling company’s products, with  new members adding to the revenue stream of older members.


Advertisement
more from Business

Sun-Ranbaxy deal: CCI raises concerns about molecules mkt

The Competition Commission, which has put the multi-billion dollar Sun-Ranbaxy deal for public scrutiny, said on Friday the major issue is whether the combination would result in high market concentration of certain molecules.

markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved