HUL stops supplies to Vishal Megamart over non-payment of dues
Consumer goods major, Hindustan Unilever (HUL) is understood to have stopped supplies to grocery retailer Vishal Megamart for the last one month.
By Samidha Sharma, ET Bureau |
MUMBAI: Consumer goods major, Hindustan Unilever (HUL) is understood to have stopped supplies to grocery retailer Vishal Megamart for the last one month, reports Samidha Sharma. This development comes in the wake of Vishal Retail seeking alliances to infuse fresh capital in order to facilitate its expansion across the country. HUL distributors, on conditions of anonymity, attributed the move to non-payment of dues by Vishal Megamart to HUL .
HUL officials declined to comment on the development. When contacted, Vishal Megamart group president Ambeek Khemka said, ���There have been some delays in supply of products as we are re-negotiating the terms of the contacts. Also, we are in the midst of outsourcing our back-end completely to third party.���
Vishal Megamart is planning to introduce a completely outsourced logistics and supply chain management in order to cut costs and optimise margins, he said. HUL is estimated to do an average of Rs 15-20 lakh of business from each of the Vishal stores.
Earlier this year, FMCG companies across the board, including HUL, had stopped supplies to another struggling retailer Subhiksha on account of delayed payments.
HUL officials declined to comment on the development. When contacted, Vishal Megamart group president Ambeek Khemka said, ���There have been some delays in supply of products as we are re-negotiating the terms of the contacts. Also, we are in the midst of outsourcing our back-end completely to third party.���
Vishal Megamart is planning to introduce a completely outsourced logistics and supply chain management in order to cut costs and optimise margins, he said. HUL is estimated to do an average of Rs 15-20 lakh of business from each of the Vishal stores.
Earlier this year, FMCG companies across the board, including HUL, had stopped supplies to another struggling retailer Subhiksha on account of delayed payments.
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