Tata Consumer distributors flag forced stock dumping, delayed claims in email to CEO

Distributors of Tata Consumer Products Ltd (TCPL) in Maharashtra have written an email to CEO Sunil D'Souza, outlining several grievances, alleging coercive practices, forced dumping of unsaleable products, unreasonable sales targets, a lack of coordination, and delays in processing damage settlement claims.

Storyboard18 reviewed the mail. In it, distributors stated that frequent changes in sales targets and policies have created operational challenges.

"Suddenly, the sales team increased targets for Chings. Then they did the same for Soulfull and Organic India. We don't understand how we will sell these products in our small city. Even if we manage to get them in, selling them is a huge struggle. We have tried pushing secondary sales through relationships. However, your auto-generated system keeps placing repeat orders. Our funds get stuck. Your sales officer keeps piling on the pressure," a Washim-based distributor wrote to the TCPL CEO.

Distributors further said cash flow has been impacted due to delayed settlements of purchase returns, expiry claims, and margins.

They alleged that excess stocks were dispatched without consent. This was reportedly due to "backend orders," the origin of which they claim to be unaware. They added that returning this stock and securing credit notes has been challenging. They said it requires them to "beg the depot team."

According to the email, distributors' payments are deducted while orders are auto-generated, but goods are not delivered on time. When previous stock is already available, new orders are pushed by the sales team. "This leads to unwanted orders and when we try to return them, the credit notes fail to generate," the distributor said, adding that the depot team often ignores calls and messages.

Distributors also alleged that the TCPL sales team has threatened termination of agreements when concerns are raised about pressure to offload unsaleable stock and delays in damage-claim settlements.

Separately, All India Consumer Products Distributors Federation (AICPDF) has directed all distributors of TCPL across 24 states to join agitation on 4th November if the company fails to initiate discussions. The AICPDF alleged that the company's indifferent behaviour towards distributors has forced them to take this call. “The distributors have been patient for the last 15 days and respectful in their approach, but Tata’s continued silence is unacceptable. On November 4, we will go to Mumbai under the ‘Chalo Mumbai’ call—not in confrontation, but in conviction. We will march to Bombay House to seek dialogue, fairness, and recognition for the people who made Tata Namak a household name,” said AICPDF’s National President, Dhairyashil Patil.

The distributors’ body had launched the ‘Salt Satyagraha’ on October 13 to press for these demands, but alleged that the company has remained unresponsive. Following this, at its National Governing Council meeting held on October 25--with representatives from 24 states in attendance--the AICPDF unanimously passed a resolution condemning what it called TCPL’s “arbitrary and indifferent conduct.” The Federation has now directed all Tata distributors to refrain from accepting or pursuing sales targets imposed by the company until “fair dialogue” is restored.