Hindustan Lever is restructuring its distribution network in the wake of Lakme's merger with the fast moving consumer goods (FMCG) major last year.

When contacted, the HLL spokesman said, "It may have happened in some cases with the company reviewing the distribution network".

Those who have not been integrated have been informed that they will be considered for new business opportunities, as and when they arise, in any operation of the company.

Though the reasons behind HLL's move are not clear, it is likely that some Lakme brands may have been competing with Lever's in the personal care segment. The erstwhile Lakme distribution network has been integrated with that of HLL.

"The distributors so integrated not only include those who used to be involved in colour cosmetics exclusively but also other personal care products. They will now be distributors of the combined Hindustan Lever personal products business," the spokesman said.

The selection of distributors was done after objectively evaluating each distributor's scale and area of service, he said.

Analysts have pointed out that such a move may lead to some brands being wiped out of the market. The spokesman, however, said the distribution was done keeping in mind the fact that a particular product may not be important (in terms of a market) for a specific area.

HLL had announced its plans to take control of the 50:50 joint venture company with Lakme -- Lakme Lever Ltd, in February last year. The merger is effective from January this year.

It is understood that the distributors who have been dropped from the network are contemplating action against the FMCG. The Maharashtra Consumer Products Distributors Federation has reportedly objected to the company move of integrating the distribution network of Lakme Lever with its own distribution fold.

It is understood that the federation is planning to approach the Monopolies and Restrictive Trade Practices Commission. The Lakme stockists were assured at the time of the merger that there would be no change in the distribution pattern and the existing distributors would not be disturbed.