The Ministry of Economic Affairs (MoEA) had implemented distribution system for Fast Moving Consumers Goods (FMCG) in August, 2021. Similarly, the MoEA in effort to streamline the supply chain and strengthen the distribution system for hardware and construction materials, convened several rounds of consultation and sensitization with private sector and relevant stakeholders.
The reform is aimed to streamline and strengthen existing distribution system and ensure that the quality products are available at fair and competitive price in the market. Currently a majority of the products available in the domestic market are randomly sourced from open markets. Such trends limits benefits from the favorable tax regime and other benefits and privileges offered by principal companies. Towards this end, reforming distribution system will meaningfully benefit consumers and society at large.
(I). In light of above, the MoEA would like to inform the general public that, product based distribution system for 3 hardware products (Electrical Wires, Electrical Cables and Pipes) in 3 Dzongkhags will be rolled out with effect from 1st June 2022 as detailed below considering the current market scenario and distribution network of hardware sector:
|Sl.no||Dzongkhag||No. of Wholesalers||Product Line|
|1||Chhukha||2||Electrical wire, electrical cables & GI Pipes.|
|2||Paro||1||Electrical Wires & Cables.|
|3||Thimphu||14||Electrical wires, electrical cables, HDPE pipes, CPBC pipes, UPVC pipes, OPVC Pipes, PPR pipes, PVC pipes, Composite Pipes, and fittings.|
(II). The above 3 hardware products in 3 Dzongkhags will be imported by only licensed wholesalers from following 17 Principal Companies:
|Product Line||Principal Companies|
|Electrical Wires and Cables||RR Kabel Ltd., HPL Electric & Power LTD, Kusum Cables & Wire Pvt Ltd, Shree Balajee Industries, Richa Cables Private Ltd, Baba Cable Industries, Havells India Limited, Hirvijay Industries, KEI Industries LTD, and Hilite’s India Private Limited.|
|Pipes & fittings (HDPE pipes, CPBC pipes, UPVC pipes, OPVC Pipes, PPR pipes, PVC pipes, Composite Pipes)||Kitee Industries Ltd, Dura-Line India Pvt. Ltd, Ori-Plast Limited, The Supreme Industries Ltd, Savoir Faire Manufacturing Co. Pvt. Ltd, SBM Pipes Industries Pvt. Ltd., and Utkarsh Tubes & Pipes Limited|
(III). Therefore, with effect from 1st June 2022, Retailers in Chhukha, Paro and Thimphu Dzongkhags are requested to kindly source above 3 hardware products from the licensed wholesalers dealing in above products in the country.
(IV). In order to ensure smooth transition and minimal disruption to the market and supply chain, 3 months transition period will be granted for remaining 17 Dzongkhags from June 2022-August 2022 to strengthen and establish formal distribution network for hardware sector.
The list of licensed wholesalers and principal companies is open for expansion based on market scenario and distribution network for hardware sector.
Department of Trade
Ministry of Economic Affairs
9th May 2022