The Maharashtra State Consumer Products Distributors Federation (MSCPDF) initiated the discord with a boycott of HUL’s Taj Mahal Tea, demanding a fixed minimum margin of 5%. The MSCPDF warned that the boycott might include Kissan products from January 25 and Rin detergent from February 10 if their margin demands were not met. The possibility of continued non-cooperation with HUL extends to these brands as of February 25.
HUL’s revised margin policy, which reduces fixed margins while increasing variable ones, has not been well received by the distributor community. The AICPDF, representing a large network of distributors, has echoed MSCPDF’s concerns. The dispute over the margin structure includes calls for better incentive parameters and is the latest in a series of disagreements between the AICPDF and HUL.
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