HindustanTimes Fri,26 Dec 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.


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.

more from Business

Teetering SpiceJet to submit revival plan to govt today

SpiceJet is likely to submit a revival plan to the aviation ministry on Friday based on the proposed investment by a consortium of investors led by the airline’s co-founder Ajay Singh.
Most Popular
Copyright © 2014 HT Media Limited. All Rights Reserved