Hindustan Unilever’s ‘direct-to-kirana’ model is purely self-serving

The FMCG major says that the new model is aimed at helping kirana stores and that it won’t affect distributors. These claims deserve a relook.

Hindustan Unilever, India’s leading fast-moving consumer goods company, reportedly announced last week that it will start following a “direct-to-kirana” distribution route in Mumbai. Additionally, it has plans to roll it out in Delhi and other metros. 

The model, initially piloted in Chennai, will let HUL deliver its products directly to kirana stores—small neighborhood retail outlets—while distributors will simply handle orders and payments from these stores. The company claims that the goal is to help kirana store owners.

In particular, HUL says the new model will help small retailers in two ways: one, by bringing down supply times from three days …