"Aviance" is a major skincare brand that will be launched through this route in Mumbai shortly, said sources. While the company is tightlipped about the development, sources told The Financial Express that "Aviance" and similar brands will be launched in the next fortnight.

While initially the multi-level marketing activity would be undertaken by HLL, the company is planning to set up a separate outfit or a subsidiary, like Indexport, to take on this business at a later stage, sources said.

The company will unfold over a hundred product ranges through the multi-level marketing network within two months, sources added. The initial launch phase will be in Mumbai and would eventually be taken in other metro citiesas well.

The FMCG giant, which manages a chain of 3,000 distributors, will bypass its entire much-vaunted distribution force, and sell its new product range through a "multi-level marketing distribution network".

A multi-level marketing network, which HLL has been working on since last year to beat emerging competition in this area, is a network which operates through the consumer being the distributor who further appoints a line of consumer/distributor working on commission basis.

It is basically a type of direct selling which promotes brand perception and penetration through demonstration in the absence of conventional advertising. Major international players in multi-level marketing which have marked their presence in India and which are potential threats to Levers and directly affect HLL in terms of product similarity are Amway, Avon and Oriflame. The products include skin care and colour cosmetic products besides fabric care products. The setting up of the multi-level marketing network to introducea range of mid-priced products to the Indian consumer will be typical of HLL to break away from the Unilever way of functioning.

HLL to launch maiden direct marketing ventureÎEven though Unilever does not practise multi-level marketing internationally in any part of the world, HLL will be doing so to avoid shedding market share to companies like Amway, Avon and Oriflame in India.

The threat to Levers comes from these companies slowly spreading their wings to cover the entire nation with its products, which means losing consumers to other companies.

To initiate the operations, HLL has recruited a number of women in Mumbai to directly sell the products to women consumers. The company would also be looking at setting up special salons for women which will advice consumers on various aspects of cosmetics. The products are understood to be manufactured by HLL at its factories.

HLL chairman KB Dadiseth had earlier mentioned that considering the huge potential of the direct marketing business in India, HLLwas evaluating plans to set up a similar kind of network.

The Indian direct selling industry has grown to become a Rs 340 crore market in India within a span of three years since big names like Oriflame made an arrival. The industry is expected to double the turnover by the turn of the century.

Indian Direct Selling Association (IDSA) estimates show that the direct selling industry which has been recording a steady 30-35 per cent growth per annum, is expected to post a 50-100 per cent growth in 1998-99.

Industry analysts point out that if the direct selling industry continues to grow at these consistent levels of 50-100 per cent, it will soon become a Rs 1,000 crore industry. The number of sales people in the direct selling market is currently estimated to be around 1.2 lakh.

Amway India Enterprise is a wholly-owned subsidiary of the $7 billion Amway Corporation. The company kicked off operations in May last year and is said to have made a significant dent into the market.

However, Swedish cosmeticsand personal products major, Oriflame, is said to be the leader in the direct selling market with a market share of around 10 per cent, said industry sources.

Oriflame is followed by Avon with a share of around 5 per cent. Oriflame's move to introduce budget range of cosmetics for mass consumption will enable the company to make further in-roads into the market leading to high growth levels, industry analysts, when asked to comment, said.

Amway is said to have penetrated over 162 cities in the country.Globally, the size of the direct selling industry is $79 billion, in which Amway Corporation is the leader.