Kochi, Jun 25: Tata Consumer Products Limited (TCPL) has sought to rework its existing distribution network in Kerala.
This is followed by the integration of the Tata Chemicals Foods business and the Tata Global Beverages into the Tata Consumer Products Limited (TCPL), a release said here on Friday.
These changes commenced in September 2020 and have now been completed across the country, except in Kerala which is currently underway.
The changes proposed are in line with the way most FMCG companies operate and will have the benefit of a stronger reach and distribution as well as the creation of more job opportunities overall in Kerala.
TCPL has had detailed discussions with almost all of the distributors in the state over the past several months.
Senior managers of the Company had multiple meetings with them to understand their concerns and agree on a resolution.
These revised terms were well appreciated by most of the distributors and include providing a larger business through the integrated TCPL portfolio, support for improving infrastructure, support for digitisation of systems, faster settlement of claims, 100% settlement of pending claims as well as the provision of incentives based on performance.
These terms or trade have been accepted and successfully implemented by over 5,000 channel partners across the country including in Kerala, where a majority of distributors have been operating under these new terms of trade over the last several months.
However, a minority of distributors have been trying to create a false picture that TCPL has been unfair and has resorted to reduction in business terms without consultation.
They have insisted that they would continue to operate as before, in a manner that was not tenable as terms of trade need to be mutually acceptable for parties to engage in business.
TCPL respects relationships with channel partners and has also communicated extensively with all old distributors who had been given a first right of refusal to continue as distributors for TCPL. Only those minority of distributors who were unwilling to agree to the revised terms were served termination notices, and alternatives appointed, the release added. (UNI)
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