Distributor unrest brews at Tata Consumer; Over 1,000 flag mismanagement, poor communication

Distributors at Tata Consumer Products Ltd (TCPL) have expressed mounting dissatisfaction over mismanagement and a widening disconnect with company leadership, amid continuing leadership tensions at the Tata Group.

In the latest development, Dhairyashil Patil, National President of All India Consumer Products Distributors Federation (AICPDF), told Storyboard18 that distributors across several states, including Madhya Pradesh, Karnataka, Tamil Nadu, Gujarat, Delhi, Haryana, Himachal Pradesh, Assam, and West Bengal, have raised concerns over "unethical practices" and the widening communication gap between management and trade partners.

According to Patil, around 1,000 distributors have expressed their dissatisfaction with the Tata Group company.

Tata Consumer Products distributors allege mismanagement, call for non-cooperation movement

"It is becoming increasingly difficult to understand what the management is thinking or aiming for, as they continue to remain reluctant to engage in any meaningful or positive dialogue with their long-standing distributors," Patil told Storyboard18.

AICPDF has flagged irregularities and possible system manipulations that have reportedly led to reduced margins and misrepresented profitability.

The body also claimed that damaged products have remained in the market and in distributor godowns for over a year without proper audit -- posing potential risk to consumer safety.

Additionally, distributors have complained about the blocked investments for over two months, unreasonable sales targets, lack of coordination, and delays in damage settlement claims--some allegedly delayed for more than 15 months.

Distributors in Maharashtra have agreed to start a non-cooperation movement if management does not engage, highlighting a collective call for open dialogue. Distributors from other states may also join.

The federation stated that all new purchases from the company will be suspended from October 13, 2025, and warned that all secondary sales will be halted from October 20, 2025.

AICPDF urges Tata Consumer Products Ltd’s senior leadership to intervene now, restore communication with channel partners, and take swift action to rebuild distributor confidence nationwide.

Storyboard18 has reached out to Tata Consumer Products Ltd for comment. The story will be updated once the response is received.