Mumbai: FMCG distributors demanding restoration of old margin structures from the leading maker HUL on Thursday said they would boycott its products in Maharashtra, starting with Taj Mahal Tea.

According to PTI, The distributor said that if the company does not pay attention to their demand, they will boycott the Kissan brand and leading detergent brand RIN along with Tata Mahal Tea brand going ahead.

Recently HUL has reduced the margin of distributors by 60 basis points and increased the variable margin by up to 100 to 130 basis points of its distributors.

HUL owns brands such as Lux, Surf Excel, RIN Pond's and Dove has reduced the fixed margin by 60 basis points and increased the variable margins by up to 100 to 130 basis points for its distributors. The Distributor demands a minimum 5 per cent margin. The All India Consumers Products Distributors Federation (AICPDF) , an umbrella body for distributors, has raised concern over the new margin structure.

AICPDF on Thursday shared a statement from the Maharashtra Consumer Distributors Federation (MSCPDF) in which they have started non-cooperation against HUL from January 11. MSCPDF plans to keep the Taj Mahal Tea brand as Inactive till January 25.

An E-mail sent to HUL remained answered till press time. The Federation also said from March 1 a nationwide movement will be organised by 1000 distributors in front of HUL head office in Mumbai.