Canteen Stores Department (CSD), which runs canteens for the armed forces, is planning its first open house discussion with the consumer goods companies, MSMEs and startups under its new chief, multiple sources told CNBC-TV18.

The companies that are likely to attend the meeting include players like Hindustan Unilever Ltd (HUL), P&G, Nestle as well as startups and MSMEs that are supplying to CSD, said the above mentioned sources.

The development comes after Major General Raj Sinha replaced Air Vice Marshal M Baladitya as general manager of CSD in January this year.

CSD or Army Canteen, the single largest client for India's consumer goods companies and also the country’s biggest retailer, has close to 600 business partners in the FMCG space.

While independent reviews are conducted periodically with each of these companies, this is the first time that CSD will be conducting a large-scale open house discussion, said the sources, while adding that the open-house discussion is likely to be held next month.

The discussion will largely revolve around issues such as payments, delivery control, pricing, orders as well as quality and based on the feedback from companies, CSD is likely to offer a resolution.

With respect to new product launches, CSD is working with consumer goods companies to reduce lead time as well as maintain the demand-supply dynamics, said the sources.

In response to CNBC-TV18's query, CSD confirmed that "the management will interact with business partners shortly. The interactions will take place with a view to meet aspirations of end users or CSD beneficiaries."

CSD, which contributes 5-7 percent to FMCG industry sales, clocked about Rs 9,500 crore in revenues in the first half of FY19 and expects to close the year with revenues exceeding Rs 18,000 crore.

The not-for-profit organisation currently owns more than 34 depots across India and sells about 5,000 stock keeping units of goods.

First Published:Mar 13, 2019 1:07 PM IST