HUL changes distributor margin structure, increases variable components

Cuts fixed margins and increases variable margins for Bharat ke Shehar

Hindustan Unilever (HUL), the country’s largest fast-moving consumer goods (FMCG) manufacturer, has made changes to its structure of distributor margins by increasing the variable margins and reducing the fixed one.
 

While some distributors say it will not be easy to meet the conditions set, sector analysts are of the view that the move is to drive volumes and optimise distribution costs.
 

HUL has cut the fixed margin to its distributors from 3.9 per cent to 3.3 per cent (or by 60 basis points) and increased the variable one across its different sets of distributors in the range of 1-1.3 per