For new companies—Indian or multinational—entering the FMCG sector, building a distribution network in the country has been the most difficult task. It has taken FMCG companies decades to scale their reach while generating the right throughput for an efficient cost-to-serve framework. Mergers and acquisitions, joint ventures and alliances have been orchestrated to acquire the right distribution network. It has been a competitive moat for large companies but the biggest challenge in scaling up for small companies.
Waiting For Maturity In The Market
The sheer depth of India’s retail market will allow for the coexistence of traditional distributors and the new-age B2B distribution model