The All India Consumer Products Distributors Federation (AICPDF) on Monday raised concerns regarding “substantial volumes of unsold inventory” and “delays in replacement of damaged, unsold and expired stocks” of Honasa Consumer, the parent company of Mamaearth. The beauty and personal care company has, however, refuted the statement made by the distributors’ industry body. It added that it is committed to fostering long-term relationships with its distributors.
In a statement, AICPDF alleged that over 2000 distributors are facing challenges of “unmanageable stock accumulation” and “substantial volumes of unsold inventory“ of the company among other issues. It also said there is high risk of stock expiry at distributor warehouses and retail outlets.
“The All India Consumer Products Distributors Federation (AICPDF) announces its renewed intervention in response to ongoing unethical practices by Honasa Consumer, the parent company of Mamaearth. Despite previous engagements, the company persists in unfair practices, causing significant distress among distributors,” it said.
False claims
“The company executives are projecting false claims and sales reports, with piling-up of unsold stocks lying at the Distribution channel being falsely claimed as sold. This deceptive practice is compounded by the fact that the company has an average of three months’ worth of stock lying at distributor points, while claiming superficial growth,” AICPDF alleged in its statement.
The FMCG distributors’ industry body urged Honasa Consumer to take “remedial action” to rectify these issues and uphold fair trade practices. “ AICPDF is actively considering non-cooperation measures, including engagement with governmental bodies, to address the company’s persistent negligence,” it added.
When contacted by businessline, Honasa Consumer said it “ refutes the statement made by AICPDF” and asserted that the statement “contains multiple errors and discrepancies.”
Tech solutions for tracking inventory
“Honasa Consumer Ltd is dedicated to building distribution as a core strength for its business. We aim to achieve this by establishing enduring relationships with the right distribution partners, built on trust and mutual benefit. We highly value and cherish our one-to-one relationships with each distributor,” it added.
The company said it has been leveraging technology solutions for tracking inventory, sales and promotions to ensure transparent and efficient processes across the value chain. “We are committed to fostering strong, long-term partnerships with all our distributors and will keep working on addressing any concerns which come in the way,” the company’s statement added.