Godrej Consumer Products MD Sudhir Sitapati said the company may reduce distributors in large cities so that those left can make a good return on investment. For instance, the company may cut distributors in Mumbai to 20-22 from 30. The company will also get them down to zero inventory-meaning quick stock turnaround. «Ultimately, we've got to get a 20-30% return on investment for the distributor. That's the important thing for them to be interested in the business,» Sitapati told analysts last month.

Minimising Conflict
Emami Ltd, Marico Ltd, Parle Products and Adani Wilmar Ltd are also implementing these changes to improve distributors' business, considering general trade is still about 70% of total urban sales. Ecommerce led by quick commerce and modern trade contributes the rest with online sales at 10-12%. Two years back, the ecommerce contribution was 5-6%.

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