The move is aimed at cutting the distribution cost of the company. The plan involves a three-tiered distribution network comprising: the company's field officers, guarantor agents and retailers.

However, S Kumars Synfabs Ltd managing director Mr Nitin Kasliwal says: "This does not mean we will totally do away with the wholesaler concept.

Some wholesalers will remain with us and others will turn guarantors for retailers."

Says Mr Kasliwal: "Under the direct-to-retail system, the wholesalers will guarantee sale to the retailer for a fee." The field officers will be part of the company, and the change will be restricted to only a third of the company's retailers.

According to Mr Kasliwal, "this whole system will give the company a much better feel of the market as well as the ability to provide a wider range to the consumer. The retailer can choose from our entire range."

With the system in place, the company hopes to increase its savings as the combined commissions for agents and salespersons will be less than what was being earned by the wholesalers and semi-wholesalers. The exact value in number terms is not available at this point, he added.

Besides the existing network of retailers and wholesalers, the company plans to set up 300 franchise showrooms across 100 cities.