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Honasa clarifies quantum of unsold inventory in response to claims by distributors body

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Honasa Consumer, the parent company of Mamaearth, has revealed that its distribution value chain holds an inventory of Rs 40.69 crore, contradicting the All India Consumer Products Distributors Federation's claim of near-expiry inventory valued at Rs 300 crore. The company stated that it has received returns worth Rs 41.21 crore and is in the process of collecting the remaining Rs 21.32 crore from relevant distributors. Honasa successfully transitioned to a direct distribution model, removing super-stockists and sub-distributors, and reduced accounts receivables from Rs 46 crore to Rs 25 crore. The company's shares have been adversely affected by a loss of Rs 18.71 crore in Q2 2024 and a 7% decline in revenue.