The All-India Consumer Products Distributors Federation (AICPDF) has raised serious concerns regarding Tata Consumer Products Ltd.’s (TCPL) treatment of distributors following its acquisition of Capital Foods Ltd.
In a statement, the AICPDF expressed “deep concerns” about the recent disruptions caused by TCPL’s acquisition of Capital Foods Ltd, renowned for its popular Ching’s Chinese brand. The federation claims the acquisition has led to the abrupt termination of Capital Foods’ extensive network of over 1,600 distributors nationwide.
The statement alleges that TCPL’s decision to transfer all business to its existing distributors—primarily focused on Tata Salt—has severely impacted the former Capital Foods distributors. Many of these distributors, who had previously managed both Tata Tea and Tata Sampann (masala) products, were already struggling with increased volumes and operational challenges.
The AICPDF reported that one-third of the distributors faced difficulties handling the bulky salt business. Following the takeover, they were reportedly left with unsold stock and pending market credit, resulting in substantial claims for damages and expired goods.
Dhairyashil Patil, National President of AICPDF, urged the government and appropriate authorities to take urgent action to defend these distributors’ interests and guarantee that their claims be addressed quickly. Patil criticised the scenario as an example of a disturbing trend in India’s capital sector, where wealth accumulation is taking precedence above ethical procedures and many people’s lives.