Indian salesman threatens to disrupt supply to protest Reliance

FILE PHOTO: A consumer goods store owner displays Reliance's JioMart point of sale machine he uses to place orders for his store in Sangli
FILE PHOTO: A consumer goods store owner displays Reliance’s JioMart point of sale machine he uses to place orders for his store in Sangli, western Maharashtra state, India, October 21, 2015. 2021. Photo taken October 21, 2021. REUTERS / Abhirup Roy / File photo

December 5, 2021

By Aditya Kalra and Abhirup Roy

NEW DELHI (Reuters) – India’s home appliance salespeople have threatened to disrupt supplies to retail stores if consumer companies supply products at lower prices to Reliance Industries. according to a letter reported by Reuters.

Reuters reported last month that Indian salespeople representing companies such as Reckitt Benckiser, Unilever and Colgate-Palmolive said their sales had fallen 20-25% last year as stores sold out. Retailers are increasingly partnering with Indian billionaire Mukesh Ambani’s Reliance company.

Ambani’s deep discount offers have prompted many stores to order digitally from his JioMart Partner app, posing an existential threat to the company’s more than 450,000 salespeople, who are within for decades has served every nook and cranny of the vast nation by going to the store to take orders.

Citing a Reuters story, the All India Confederation of Consumer Products Distributors – which has 400,000 members – wrote to consumer companies demanding a level playing field, saying they must obtain products at the same price as the distributors of other large companies such as Reliance.

In the letter, the group said that if demand for comparable prices is not met, its sales staff will stop distributing products to retail stores and will also not offer new consumables. eyes if such a partnership continues after January 1.

“We have built a good reputation and goodwill among our retailers by providing them with good service over the years… We have decided to call the movement ‘Non-cooperation’,” the letter reads. know.

The group’s chairman, Dhairyashil Patil, said the letter was sent to Reckitt, Hindustan Unilever, Colgate and 20 other consumer goods companies.

None of the three consumer companies, nor Reliance, responded to requests for comment.

Grocery stores and retailers, or “kiranas,” account for 80 percent of India’s nearly $900 billion retail market. Some 300,000 such stores in 150 cities order from Reliance, which aims to reach 10 million partner stores by 2024.

Traditional distributors told Reuters they were forced to cut fleets and staff as their businesses were struggling because they could not match Reliance’s prices.

Jefferies in March estimated kirana would be “steadily increasing its share of procurement” from Reliance “at the expense of traditional distributors”. Jefferies estimates such sales of Reliance could grow to $10.4 billion in 2025 from $200 million in 2021-22, Jefferies estimates.

(Reporting by Aditya Kalra in New Delhi and Abhirup Roy in Mumbai. Editing by Gerry Doyle) Indian salesman threatens to disrupt supply to protest Reliance

Bobby Allyn

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