Colgate in talks with sales reps who have threatened to stop

Colgate-Palmolive India said it is in talks with its sales representatives.

New Delhi: Colgate-Palmolive India on Tuesday said it is in talks with its sales representatives in the country after they threatened to disrupt supplies in one of India’s most populous states, alleging that their over pricing being treated unfairly.

Reuters reported in November that Indian sales agents of companies including Reckitt Benckiser, Unilever and Colgate have seen their sales drop 20%-25% in a year as mom-and-pop stores traded lower prices with Mukesh Ambani’s Reliance. partnered to protect

Following the story, sales representatives threatened to supply mom-and-pop stores, known as kiranas in India, unless they were offered the same price deals as large corporate distributors such as Reliance.

Last week, a group of distributors said they would discontinue some Colgate products from January 1 in Maharashtra, one of the richest and most populous in India.

In a statement to the stock exchanges, Colgate-Palmolive India said, “It is directly engaging with its distributors to address their challenges,” without elaborating.

“The company will ensure that the supply of its products in the state remains uninterrupted,” the statement said.

Distributors had told Reuters that Ambani’s discount was prompting more stores to order digitally from his JioMart partner app, posing a potential threat to the more than 450,000 sales representatives who had been ordering for decades. Went store-to-store to pick up.

A Reuters review of purchase deals on the JioMart partner app in November showed that a Mumbai-based retailer could buy a two-tube pack of Colgate MaxFresh toothpaste for around Rs 115 ($1.55), while a traditional Colgate sales agent bought it for Rs 154. was introduced at Rs., almost a third higher.

In a statement last week, the All India Consumer Products Distributors Federation said its members would stop supplying the MaxFresh brand in Maharashtra from January 1, and subsequently disrupt other product supplies. The group estimates that Maharashtra accounts for about 40% of consumer goods sales in India.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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