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Traders join hands with IHHL in legal war against LG Care

25-May-2005
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Traders join hands with IHHL in legal war against LG Care

The Tamil Nadu Consumer Products Stockists Association (TNCPSA), and Tamil Nadu Vanigar Peravai (trader's association), have voiced their support to IHHL in its ongoing legal battle against LG Care, the Korean FMCG major. And the voices are going to get louder, with the Andhra Pradesh, Jharkhand, Kolkata and Maharashtra wings of the association also expressing their support to IHHL.

To condemn the actions of the Korean conglomerate in its dealings with the Indian partner on issues including use of the LG logo, around 200 distributors and retail traders yesterday participated in a protest. The consumer products stockists association of Tamil Nadu has around 25,000 members from South India.

General Secretary of the Tamil Nadu Traders Association, K Mohan, said, "If LG Care does not resolve the issue by May 30, the association will launch a much bigger protest and massive boycott against LG." The issue could snowball further if the association, which has over 5,00,000 members, carries out its threat.

In a statement issued to the media, Ganeshram, President, TNCPSA, said, "Korea and LG H&H Korea have indulged in unfair and unethical trade practices exposing the investment of nearly Rs 150 crore in stocks of LG care products and other infrastructure created exclusively for LG care products distribution by Indian retail traders, distributors and entrepreneurs to complete risk."

The association is issuing pamphlets appealing that all Indians should withdraw their patronage to LG brand consumer durables. Similar protest activities are being planned in Andhra Pradesh, West Bengal, Maharashtra and New Delhi in the first phase, which is to go on till June 15, 2005. A Federation of All India Distributors' Association Meeting is being planned before this date to spread the protest activities across the country.

The association also appealed to the Prime Minister to reintroduce Press Note 18, which alone, it said, could save the Indian entrepreneurs from such 'exploitations'. "This issue is a preface and a classical example of what many MNCs could indulge in our country in future," it said. The statement ended with a note of caution to the government on allowing foreign direct investment into the retail sector, which it said, 'could displace the present self employment opportunity for millions of our countrymen'.

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Madras HC asks LG Care to stick to contract with Indian licensee

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