 "Why India could force Amway to change business model"){kind=logo}
Faced with more protracted legal tussles in India, Amway has done the most predictable thing. It has warned that the arrests of its senior executives will deter other foreign investors.
According to a report in the Economic Times, Amway Corp President Doug Devos has warned that the incident will not help attract foreign companies into the country.
In an email interview to the newspaper, Devos has reiterated that the company has fully cooperated with the probe and also said that it did not receive any summons or request for information from the authorities here before the arrests took place.
[caption id=“attachment_824325” align=“alignleft” width=“380”] The government should realise the country’s strength and force companies like Amway to fall in line. Reuters[/caption]
He has said the regulatory environment for direct selling in India is the most significant challenge the company is facing in the country.
And despite all these, the company is committed to invest further here. “In spite of the challenges we face - that many businesses face - we are committed to India. Indeed, Amway is investing further in India,” Devos has been quoted as saying in the report.
Devos’ reaction is typical of any MNC that is doing business in India.
They all say almost the same thing, whenever they face some kind of a legal or policy headwind in India. They threaten that India story will weaken and that others of their ilk will not come to India. And interestingly, they also realise they just cannot avoid India given the country’s growing middle class. Especially so with a consumer goods company like Amway.
Impact Shorts
More ShortsAnd here lies the opportunity for India. The government should realise the country’s strength and force companies like Amway to fall in line.
After all, if China could bring about a change in the way Amway does business there, why can’t India?
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