Hindustan Unilever (HUL) has sued Subhiksha for non-payment of dues. The company has filed a petition regarding objections to the proposed scheme of merger and winding up of Subhiksha, for non-payment of outstanding payments, before the High Court of Madras.
Modern trade retail financial record will count for 5-6% of the overall sales revenues of FMCG companies.
It has been reported in the past that FMCG players like Godrej Consumer Products and Dabur had taken a tough stand against defaulting modern trade retailers and had stopped supplying to them or supplying only in return for cash payment, a deviation from the practice of supplying against credit.
H K Press, president and executive director, Godrej Consumer Products, said, "We had stopped supplying to Subhiksha early in September 2008 as it failed to meet with the agreed terms and conditions. These kinds of problems dont happen overnight and we made sure our credit exposure was limited to defaulting retailers."
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