From ITC to Patanjali, FMCG companies go for direct reach to counter GST

Companies rapidly increasing direct reach into the hinterland by expanding sales teams

Last year, ITC brought 300,000 retail outlets under its fold. While its direct reach touched 2.5 million outlets by mid-2018, it is adding new territories with direct distribution. The fast moving consumer goods (FMCG) conglomerate, which sells everything from notebooks and deodorants to branded flour and cigarettes, now plans to double up its reach by 2023.

Ayurveda major Dabur is working on similar lines. It doubled its sales team last year by hiring 700 people to strengthen its rural distribution, which was largely dependent on wholesalers. 

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