HUL downplays rift over margins, says distributors stand to gain

Hindustan Unilever (HUL), the largest consumer goods firm in India, has introduced a new margin structure for its distributors, providing them with an opportunity to earn 70 basis points more margins with a higher return on investment. The new model, implemented three months ago, emphasizes a "pay for performance" principle, rewarding distributors for prioritizing the quality of service to stores, servicing larger networks, offering a wider range of products, and ensuring next-day delivery.