THE WHAT? Hindustan Unilever (HUL) has teamed up with the State Bank of India (SBI) to provide digital payment solutions for small retailers.
THE DETAILS As part of the collaboration, the bank will offer an instant paperless overdraft facility of up to Rs. 50,000 to retailers for their billings with distributors. It will also offer financing options to HUL’s distributors.
Having integrated its systems and processes with HUL, retailers will have to download SBL’s Yono app as well as HUL’s Shikhar digital ordering app.
The bank is set install SBI Point of Sale machines at multiple HUL touch points across the country as well as providing UPI based solutions to HUL retailers for safe and instant cashless payments to their dealers from HUL’s “Shikhar”.
Mr. Sanjiv Mehta, Chairman & Managing Director, HUL said, “Our partnership with SBI is a push to provide digital solutions to important constituents of our ecosystem. General trade is a very important channel for the country as it serves the needs of millions of consumers by making essential products available.”
THE WHY? With many parts of India being rural and remote, the new partnership is thought to help smaller retailers trade more efficiently, as well as being a boost for the economy in terms of job opportunities and digital developments.
Mehta continued, “This channel also plays a significant role for our economy by creating employment opportunities for a wide spectrum of people. It is our endeavour to digitise and modernise this channel; support the retailers with right assortment and enable them to access timely and affordable funding. The timing of the partnership could not have been better as this addresses one of the key needs for retailers and distributors, given the economic fallout of the pandemic.”
SBI Chairman Rajnish Kumar, said, “We are glad that SBI has got an opportunity to leverage its strong geographic presence and strategic digital solutions to simplify financial needs of HUL’s customers, retailers, dealers and employees. We are confident that our alliance with HUL will turn out to be an exemplary amalgamation of SBI’s banking prowess and HUL’s inspiring customer connect.”