New Delhi: FMCG distributors are dissatisfied with HUL’s decision to expand its distribution network in Madhya Pradesh and have demanded a mass resignation, but the top manufacturer has insisted that it won’t be doing so and that it values its ties with its distributors.
If new distributors are selected, the current HUL distributors worry that they would lose half of their retail trade assets, according to a statement released on Sunday by their umbrella organisation, AICPDF.
On Sunday, HUL posted advertisements in all of Madhya Pradesh’s major cities seeking new distributors for its brands. The company, which is in charge of such brands as Lux, Lifebuoy, Surf surf, Rin, Pond’s, and Dove, has issued an invitation to anyone wanting to put up to Rs. 1 to 3 crore into it and set up a godown with the necessary facilities.
The All India Consumer Products Distributors Federation (AICPDF) claims that the abovementioned campaign has caused “sudden terror” among HUL’s current dealers and is perceived as “immature and treacherous.”
1- There is any loss if new distributors are appointed?
Ans – Yes ,there will be loss of 50% f their investments
2- What did HUL Said about removing the current distributors?
Ans – HUL issued a statement in which it clarified that “the advertisement relates to increasing our engagement with General Trade distributors and is not about replacing our current distributors.”
3- How much does the company with brand like surf Excel, lifebouly,etc are willing to invest in ?
Ans – up to Rs.1-3 crore