Trade 04-12-2021 Hits: 2225

Indian salesmen threaten supply disruptions in protest against Reliance

Trade 04-12-2021 Hits: 2225

04 December 2021, Mumbai:

India's household goods salesmen have threatened to disrupt supplies to mom-and-pop stores if consumer companies provide products at lower prices to Reliance Industries (RELI.NS), according to a letter seen by Reuters.

Reuters reported last month Indian salesmen representing companies such as Reckitt Benckiser , Unilever (ULVR.L) and Colgate-Palmolive (CL.N) said their sales had dropped 20-25% in the last year as mom-and-pop stores were increasingly partnering with Indian billionaire Mukesh Ambani's Reliance.

Ambani's deeply discounted offerings were prompting more stores to order digitally from his JioMart Partner app, posing an existential threat to more than 450,000 company salesmen who for decades served every corner of the vast nation by going store-to-store to take orders.

Citing the Reuters story, the All India Consumer Products Distributors Federation - which has 400,000 members - has written to consumer companies demanding a level playing field, saying they must get products at same prices like other big corporate distributors such as Reliance.

If the pricing-parity demand is not met, the group said in its letter, its salesmen will stop distribution of products to mom-and-pop stores, and will also not supply newly launched consumer goods if such partnerships continue beyond Jan 1.

"We have earned reputation and goodwill amongst our retailers by giving them good service for many years ... We have decided to call it a 'Non-cooperation' movement," said the letter.

Reuters (The news article has not been edited by DFU Publications staff)

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