# Wholesale and retail trade: Follow one offering through the chain Distributors, warehouses and stores moving finished goods from factories to households Source page: https://www.materialinsights.org/industries/wholesale_retail/story/ #### Follow one offering through the chain **4** Example story · 6 steps · India ### A bar of HUL soap reaches a kirana Follow a Hindustan Unilever soap from factory and distributor to an app order, a UPI payment and a neighbourhood shelf. 1 / 6 · Brand owners and sourcing #### Made and priced by Hindustan Unilever **₹63,763cr**HUL turnover, 2025-26 Hindustan Unilever turns palm-oil fatty acids, caustic soda, perfume and colour into soap in its own and contract factories, and markets it under 50-plus brands used in nine of ten Indian homes. It reported turnover of ₹63,763 crore in 2025-26, up 5%, with underlying volume growth of 4%, and it sets the price printed on every wrapper.^[1](https://www.hul.co.in/our-company/)^,^[2](https://www.hul.co.in/news/press-releases/2026/march-quarter-and-financial-year-2026-results/)^,^[3](https://prestasisawit.mpob.gov.my/en/palmnews/news/38701) **Constraint** India imported 7.58 million tonnes of palm oil in 2024-25, so soap costs track Indonesian and Malaysian prices and import duties. [PO Palm oil](https://www.materialinsights.org/commodities/palm_oil/)[FA Fatty acids](https://www.materialinsights.org/chemicals/fatty_acids/)[NaOH Caustic soda](https://www.materialinsights.org/chemicals/caustic_soda/)[F&F Flavours and fragrances](https://www.materialinsights.org/chemicals/flavours_fragrances/)[LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/)[Household and personal care](https://www.materialinsights.org/industries/household_care/)[Paper and packaging](https://www.materialinsights.org/industries/paper_packaging/) 2 / 6 · Wholesale and distribution #### Distributors on weekly beats **9 mn+**outlets HUL reaches Cartons go to distributors who hold local stock, give shops credit and send salesmen and vans round fixed weekly beats. HUL said in 2023 that it worked with over 3,500 distributors covering about 21 lakh outlets directly; counting shops served through wholesalers, it now says it reaches more than 9 million outlets, each distributor earning a thin margin on high volume.^[5](https://www.hul.co.in/files/e016ebed-2e71-4620-bc36-94173b462890/how-hul-scaled-the-shikhar-app-in-2022.pdf)^,^[4](https://nsearchives.nseindia.com/corporate/HINDUNILVR_09092026181504_SEIntimationInvestorPresentation09092026Signed.pdf) **Constraint** Distributors fund stock and shop credit from their own working capital, which caps how far and fast reach can grow. [ICV Combustion road vehicles](https://www.materialinsights.org/energy/e_road_ice/)[LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/)[Bld Energy in buildings](https://www.materialinsights.org/energy/e_buildings/)[Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/) 3 / 6 · Wholesale and distribution #### Kiranas order on an app **1 mn+**stores on Shikhar, end-2022 More shopkeepers now order through HUL's Shikhar app instead of waiting for the salesman. By the end of 2022, HUL says, over a million stores had joined, about 60% of them ordered each month, and the app brought in more than 25% of HUL's traditional-trade revenue. B2B platforms such as Udaan and cash-and-carry depots compete for the same kirana orders.^[5](https://www.hul.co.in/files/e016ebed-2e71-4620-bc36-94173b462890/how-hul-scaled-the-shikhar-app-in-2022.pdf) **Constraint** App orders still need a distributor to deliver, and in 2022 they were serviced 10 to 15 percentage points less reliably than salesman orders. [DC Data centres](https://www.materialinsights.org/energy/e_data_centres/)[Bld Energy in buildings](https://www.materialinsights.org/energy/e_buildings/)[Software and IT services](https://www.materialinsights.org/industries/software_it/)[Real estate](https://www.materialinsights.org/industries/real_estate/) 4 / 6 · Warehousing, cold chain and transport #### Warehouses and trucks in between **7.97%**India's logistics cost, share of GDP Behind each distributor sit factory warehouses and regional depots, often run by third-party logistics firms that store, pick and truck goods between states. For low-priced packs this cost matters: India's total logistics bill was about ₹24.01 lakh crore, or 7.97% of GDP, in 2023-24, in the first systematic DPIIT-NCAER estimate.^[6](https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/nov/doc20251127708001.pdf)^,^[8](https://blogs.worldbank.org/en/endpovertyinsouthasia/road-to-rail--unlocking-india-s-freight-potential-) **Constraint** Nearly 70% of Indian freight goes by road on diesel, so fuel prices and congestion set what each delivery costs. [St Steel](https://www.materialinsights.org/commodities/steel/)[Tm Timber](https://www.materialinsights.org/commodities/lumber/)[LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/)[ICV Combustion road vehicles](https://www.materialinsights.org/energy/e_road_ice/)[LFP Lithium iron phosphate batteries](https://www.materialinsights.org/energy/e_li_lfp/)[Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)[Paper and packaging](https://www.materialinsights.org/industries/paper_packaging/)[Real estate](https://www.materialinsights.org/industries/real_estate/) 5 / 6 · Store infrastructure and enablers #### Paid with a UPI scan **241.6bn**UPI transactions, 2025-26 When a customer buys the bar she often pays by scanning the shop's UPI QR code, and the kirana may pay its distributor the same way. UPI, run by NPCI, carried about 241.6 billion transactions worth ₹314 lakh crore in 2025-26, usually with no fee to the merchant, which has pulled millions of small shops into digital payments.^[7](https://www.outlookmoney.com/banking/upi-transaction-value-reaches-rs-314-lakh-crore-in-fy26-govt-says-in-lok-sabha) **Constraint** One operator runs UPI, and the zero merchant fee leaves banks and apps little revenue to fund growing volumes. [DC Data centres](https://www.materialinsights.org/energy/e_data_centres/)[Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/) 6 / 6 · Customer-facing stores #### On the kirana shelf **$1.09tn**India's retail market, 2025 The bar ends its journey on a family-run kirana shelf, sold singly to regular customers and sometimes on credit. Such shops make up much of a retail market worth about US$ 1.09 trillion in 2025, over 10% of India's GDP and employing more than 35 million people, even as supermarkets and quick-delivery apps chase the same basket.^[9](https://www.ibef.org/uploads/industry/Infrographics/large/Retail-Infographic-May-2026.pdf) **Constraint** Kiranas run on tiny floor space and thin working capital, and quick-commerce apps target their most frequent purchases. [LED Lighting and displays](https://www.materialinsights.org/energy/e_lighting/)[Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/)[Food and beverage processing](https://www.materialinsights.org/industries/food_beverage/)[Household and personal care](https://www.materialinsights.org/industries/household_care/) #### What the chain shows The chain's strength is reach, not technology: millions of small shops fed by credit-funded distributors, now digitised by apps and UPI. Sources 1. [Our company (Hindustan Unilever at a glance)](https://www.hul.co.in/our-company/) Hindustan Unilever, 2026 2. [March quarter and financial year 2026 results](https://www.hul.co.in/news/press-releases/2026/march-quarter-and-financial-year-2026-results/) Hindustan Unilever, 2026 3. [India's edible oil imports in 2024-25 (Solvent Extractors' Association data, Economic Times/PTI)](https://prestasisawit.mpob.gov.my/en/palmnews/news/38701) Malaysian Palm Oil Board (Palm News), 2025 4. [Investor presentation, 9 September 2026](https://nsearchives.nseindia.com/corporate/HINDUNILVR_09092026181504_SEIntimationInvestorPresentation09092026Signed.pdf) Hindustan Unilever via NSE, 2026 5. [How HUL scaled the Shikhar app in 2022](https://www.hul.co.in/files/e016ebed-2e71-4620-bc36-94173b462890/how-hul-scaled-the-shikhar-app-in-2022.pdf) Hindustan Unilever, 2023 6. [Assessment of Logistics Cost in India (DPIIT-NCAER), summary](https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/nov/doc20251127708001.pdf) Press Information Bureau, Government of India, 2025 7. [UPI transaction value reaches Rs 314 lakh crore in FY26, govt says in Lok Sabha](https://www.outlookmoney.com/banking/upi-transaction-value-reaches-rs-314-lakh-crore-in-fy26-govt-says-in-lok-sabha) Outlook Money, 2026 8. [Road to rail: unlocking India's freight potential](https://blogs.worldbank.org/en/endpovertyinsouthasia/road-to-rail--unlocking-india-s-freight-potential-) World Bank, 2025 9. [Retail infographic, May 2026](https://www.ibef.org/uploads/industry/Infrographics/large/Retail-Infographic-May-2026.pdf) India Brand Equity Foundation (IBEF), 2026 ## Other sections - [Overview](https://www.materialinsights.org/industries/wholesale_retail/index.md) - [Where ₹100 goes](https://www.materialinsights.org/industries/wholesale_retail/cost-mix/index.md) - [Price links with suppliers](https://www.materialinsights.org/industries/wholesale_retail/price-links/index.md) - [Linked industries](https://www.materialinsights.org/industries/wholesale_retail/linked-industries/index.md) - [Value chain](https://www.materialinsights.org/industries/wholesale_retail/value-chain/index.md) - [Materials drawn on](https://www.materialinsights.org/industries/wholesale_retail/materials/index.md) - [Chokepoints and risks](https://www.materialinsights.org/industries/wholesale_retail/risks/index.md) - [Sources](https://www.materialinsights.org/industries/wholesale_retail/sources/index.md)