HUL distributors in MP protest against recruitment of new distributors

29 Aug 2022 , 08:02 AM

FMCG distributors have demanded widespread resignations in response to HUL’s development of the distribution network in Madhya Pradesh, but the top manufacturer has insisted that it will not oust any of its present distributors because it values its relationships with them.

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 organization, 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, Rin, Pond’s, and Dove, has issued an invitation to anyone wanting to put up to Rs1 to 3 crores 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.”

In contrast, 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.”

“We think the region’s general trade business prospects are promising, and we want to work with distributors to take advantage of any openings. We operate ethically and openly, and we have bilateral relationships with our distributors. We respect these connections and will keep communicating with them personally “a business representative told ET.

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