Beverley Schlachet

To know about the Hindustan Unilever Distributorship Cost in India, an overview of the distributorship application procedures, and the background of this consumer goods behemoth, continue reading.

India is among the 190 countries globally where Unilever products are sold. Historically, the company entered India via the export route in 1888. The first shipment of Sunlight soap bars landed at the Calcutta port in 1888. LEVER Brothers England dispatched the consignment. Soon after, Lifebuoy followed in 1895, marking the beginning of branded FMCG retail.

The first Indian subsidiary (Lever Brothers) came up in 1931(Hindustan Manufacturing Company), and Lever Brothers India Ltd was incorporated in 1933. All the branded items of lever Brothers met with immediate customer acceptance.

Liberalisation (of the Indian economy) saw the removal of several regulatory measures enabling the company to embark on massive growth. In addition, alliances, acquisitions and mergers ensured fast expansion. In 2007, the management incorporated the present form of the company.

Today the company has 29 factories producing over 50 + brands, impacting the everyday life of millions across India. The three principal business groups- beauty and Personal Care Products, Home Care, Food and Refreshments generated an annual turnover of Rs.45311 crores (2020-21). HUL follows a focussed sustainability agenda and constantly aims at reducing environmental footprint and creating positive social impact.

HUL constantly monitors the demand and supply scenario for its products at all places of operation. Once they (the company) identify a potential gap in the distribution network, the process of a new distributorship appointment is triggered.

Usually, newspaper ads are released by the company inviting applications for that particular city or location. Simultaneously, a review is done of the direct applications for distributorship received for that location (if any).

The process of checking, short-listing and final appointment of a distributor happens in three phases:

The company presently does not have an online application or verification process for appointing distributors.

There are no fees, charges, or deposits to be paid as part of Hindustan Unilever Distributorship Cost.  All the applicable terms and conditions are explicitly defined in the agreement with the company.

A word of caution: A distributorship of HUL is a lucrative business opportunity. Unfortunately, several fake agents/consultants promise help and assistance and fake distributorship in exchange for money. The HUL website has specific information on such malpractices. They have also advised applicants to check whether communications are originating from company sources.

HUL does not publish the details of eligibility parameters for becoming a distributor of the company. However, market sources indicate the following criteria for distributorship. Specific details are only available in real-time when you clear the initial round of selection.

The minimum Hindustan Unilever Distributorship Cost for urban areas is Rs.50 Lakhs and Rs.25 Lakhs for Rural areas.

The Hindustan Unilever Distributorship Cost mentioned above is a ballpark figure and will vary with location, infrastructure created, product mix and inventory levels.

As per the 2011 census, an urban area is defined as a place with a population of more than 5000. Furthermore, the place should have a density (of the population) of 400 persons per square kilometre or higher. Additionally, more than 75% of the adult male population should be employed in non-agricultural activities.

A company like HUL with an array of mega-brands is indeed a sought after business option. Business people, particularly in FMCG, wait for an opportunity even without considering the Hindustan Unilever Distributorship Cost. Besides business, there is the additional attraction of association with a company that cares for the environment and society.

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Ans. Most companies have a policy of deposit from their trade partners. HUL also has a similar practice, but you will get to know only when you are selected as a distributor.

Ans. HUL products are well accepted and preferred by consumers. There is minimal possibility of failure as a distributor of HUL unless your business is mismanaged. The average returns offered by HUL is low (compared to many other FMCG companies) because the items sell fast.

Ans. Investment is location, opportunity and time-specific. It may increase with requirements.

Ans. Steps to apply for HUL distributorship in my town are:

1. Apply against a specific requirement of the company.

2. Contact the company for a discussion for future opportunities (Details in the article)

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