Trade circles told The Financial Express that stockists had stopped picking up the product from the last fortnight of August to press their demand for a higher commission following the brand's transfer to the recently-formed joint venture Reckitt Piramal India.

"The stockists wanted a higher discount as the product no longer belonged to Reckitt & Colman. Although, initially, company officials resisted offering a higher discount, later they conceded to the stockists' demand," sources said.

A drug is available to a retailer after deducting the excise duty from the maximum retail price (MRP) and a 16 per cent discount. This is called price to the retailer. Stockists get discounts on the price to the retailer.

Under a 1984 industry agreement, stockists get an 8 per cent discount on the price to the retailer, on products launched after1984. On products launched before 1984, the discount is 6.5 per cent.

Stockists demanded that since Dettol--along with analgesics Dispirin and Saridon--no longer belonged to Reckitt & Colman, they were entitled for an 8 per cent discount. Company officials, however, maintained that the new rates were applicable only new launches and not on existing brands.

"The brands may be old but the company has changed. Eight per cent discount on the price to retailer is simultaneously applicable to new brands and new companies. And Reckitt Piramal is a new company," a stockist said.

Reckitt had sold three over-the-counter (OTC) brands to the new joint venture company, formed last year. The three brands used to account for 35 per cent of Reckitt & Colman's domestic sales.

Dettol stockists in Bengal said their counterparts from other parts of the country were about to join the protest. Timely intervention by the All India Organisation of Chemists & Druggists (AIOCD), however, saved the day.

Reckitt Piramalofficials yielded to the stockists' demand at a meeting with AIOCD's general secretary Kamal Kumar Mukim in Calcutta on September 1.

"The company agreed to an 8 per cent discount on the price to the retailer on all purchases from October 1. We have started stocking Dettol and other brands, and soon it will be available in the market," said a stockist.

Reckitt & Colman general manager (Calcutta) D Sen said that the stockists had demanded a higher discount but said he was not aware of the company reaching an understanding with them.

Reckitt & Colman's sales fell by 17 per cent during the 26-week period ending on July 4 this year, following the transfer of Saridon, Dispirin and Dettol to the new company.

The company is now focussing on the surface-cleaning segment with its Lizol brand and pest-control Mortein range of mats, coils and aerosols. However, its whitener brand, Robin Blue, has maintained its market share despite strong competition from Jyothi Laboratories' Ujjala.