Concerned over revised distributor margins, the Maharashtra Consumer Products Distributors Federation (MSCPDF) has decided to start a non-cooperation movement against Hindustan Unilever Ltd (HUL). 

Starting from January 11 until February, the body has threatened to turn multiple brands of the company inactive in the State, resulting in no bookings and billings of products. 

The distributors’ body has asked the FMCG company to set a minimum of 5 per cent distributors’ margin, remove non-existent outlets/retailers from the system database, enhancements in the central database, and implement a provision in the software system to prevent billing to outlets without valid FSSAI licences.

Asking HUL not to interfere in the distributor’s margin in incentive parameters, the federation has threatened to organise non-cooperation movements in other States from March 1, and a protest will be held outside the HUL headquarters. 

“Activities by all distributors will be conducted in every district by visiting the retail /wholesale market and informing the retailers about the company’s dual policies — modern trade and e-commerce companies are given double the margin than retail shopkeepers. If fees for the software installed at distributor points are not reconsidered and reduced by March 31, distributors will collectively cease billing through the software from April 1. This movement will start from Maharashtra and spread to different parts of the country week after week,” said Dhairyashil Patil, National President of All India Consumer Products Distributors Federation (AICPDF).

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