Kirana Grocery
Shops Linked to Suppliers thru Digital Links
·
Meeting:
Union Commerce and Industry Minister Piyush Goyal chaired a CEO roundtable
organised by DPIIT and ONDC on 30 October 2026 in New Delhi, with participation
from over 40 FMCG industry leaders.
·
DigiDukaan
Expansion: ONDC's DigiDukaan has connected over
21,000 kirana retailers with 450+ brands across
Hyderabad, Jaipur and Mumbai as of September 2026.
·
Digital
Procurement: The platform enables kirana retailers to
procure products through a single digital interface, compare prices, access
trade schemes and check product availability across brands, distributors and
wholesalers.
·
Key
Objectives: Digitise the General Trade ecosystem, simplify procurement, improve
supply-chain efficiency, reduce inventory costs and strengthen the competitiveness
of small retailers.
·
Five
Key Focus Areas:
1.
Common
digital identity for kirana retailers to connect with
multiple brands and distributors.
2.
Shared
logistics and micro-warehousing infrastructure for faster, next-day
replenishment.
3.
Access
to formal credit through digital procurement and transaction records.
4.
Simplified
technology integration through standardised catalogues and Distributor
Management System (DMS) connectors.
5.
Commercial
incentives for FMCG companies, distributors and retailers to encourage digital
ordering.
·
Retailer
Performance: Hyderabad has onboarded over 16,000 retailers, with monthly repeat
ordering rates of 73–78%. Around 40% of surveyed retailers reported lower
inventory holdings for products procured through DigiDukaan.
·
Industry
Participation: Major FMCG companies, including HUL, Coca-Cola India, ITC,
P&G, Marico, Britannia, Emami and Adani Wilmar, participated in the
discussions.
·
Supporting
Partners: Paytm for Business, Qwipo and Mulltiply.ai
are live technology partners, while logistics partners include ElasticRun, Shiprocket, India
Post and Moeving.
·
Next
Phase: ONDC will deepen brand and distributor participation, particularly in
North Mumbai, while expanding operations in existing markets.
·
Significance:
The initiative aims to strengthen India's traditional retail network by
bringing small retailers into the digital economy without replacing existing distributor
relationships, while improving working capital efficiency and access to formal
financial services.
[ABS News Service/31.10.2026]
Union Minister of Commerce and Industry Piyush Goyal
chaired the Bharat Commerce Chintan Shivir, a
high-level CEO Roundtable convened by the Department for Promotion of Industry
and Internal Trade (DPIIT) and the Open Network for Digital Commerce (ONDC) at Vanijya Bhawan, New Delhi. The roundtable brought together over
40 leaders from leading Fast-Moving Consumer Goods (FMCG) companies to
deliberate on a shared roadmap for strengthening and digitising India's General
Trade ecosystem through ONDC DigiDukaan.
Speaking at the roundtable, Union Minister of Commerce and
Industry Piyush Goyal said, “ONDC’s DigiDukaan shows
that when open digital infrastructure is built around the needs of the small
retailer, adoption follows. Let this become another case study where the world can
learn from India. By making procurement simpler and more transparent while
strengthening our distributors, we can help kiranas
free up working capital and grow. I invite the FMCG industry to work together
and take this to every corner of Bharat.”
Amardeep Singh Bhatia, Secretary, Department for Promotion
of Industry and Internal Trade (DPIIT) said, “Open digital infrastructure has a
critical role to play in accelerating the digitalisation of India’s retail
ecosystem, particularly its vast network of kirana
stores. ONDC’s DigiDukaan is an important step in
this direction, demonstrating how an open, interoperable network can enable
neighbourhood retailers to access digital procurement opportunities and
participate more effectively in the evolving digital economy. By bringing
together retailers, FMCG companies and distributors on a common network, DPIIT
along with ONDC is helping build a more connected and efficient General Trade
ecosystem, creating a pathway for digitalisation to reach kiranas
at scale.”
The discussions focused on strengthening and re-empowering
the General Trade ecosystem, which remains central to India's retail economy
and supports the livelihoods of millions of neighbourhood retailers.
Participants emphasised the need for greater institutional commitment from FMCG
companies, distributors and industry stakeholders to accelerate digital
procurement, improve supply-chain efficiency and enhance the competitiveness of
kirana stores. The initiative seeks to bring industry
stakeholders together through common digital infrastructure, shared services
and commercially sustainable models.
Senior representatives from Hindustan Unilever (HUL),
Coca-Cola India, ITC, P&G, Marico, CavinKare, Pidilite, Britannia, Adani Wilmar, LT Foods, Anmol
Industries, Haldiram's, Emami, Veeba and Nilon's
participated in the roundtable, along with representatives from logistics
providers, technology partners and ONDC network participants.
ONDC DigiDukaan addresses
procurement by digitising kiranas as buyers. Through
a single digital interface, retailers can discover and order products across
multiple brands, distributors and wholesalers, with greater visibility into
pricing, trade schemes and product availability. The initiative is designed to
strengthen existing distribution relationships rather than replace them, while
creating a common digital foundation through which retailers can eventually
access shared logistics, formal credit and other services. This approach seeks to
reduce the complexity and cost of participation across the General Trade value
chain.
The roundtable deliberated on five key areas for
strengthening the General Trade ecosystem. These included developing a common
digital identity for kirana retailers to enable
seamless engagement with multiple brands, distributors and service providers;
creating shared logistics and micro-warehousing infrastructure to improve
distributor reach and facilitate reliable next-day replenishment, including in areas
beyond existing delivery routes; and expanding access to formal credit through
financing solutions linked to digital procurement and transaction activity to
improve access to working capital and reduce dependence on informal distributor
credit.
Discussions also focused on simplifying technology
integration through plug-and-play Distributor Management System (DMS)
connectors, standardised catalogues and common digital interfaces to reduce onboarding
complexity and encourage wider industry participation. Participants further
deliberated on realigning commercial incentives for FMCG companies, sales
teams, distributors and channel partners to make digital ordering, wider retail
coverage and sustained retailer adoption commercially beneficial across the
value chain.
DigiDukaan has connected over 21,000 retailers
with more than 450 brands across Hyderabad, Jaipur and Mumbai as of September 2026,
compared with over 12,000 retailers in the previous quarter. In Hyderabad, more
than 16,000 retailers have been onboarded, with monthly repeat ordering rates
of 73–78%. An initial ONDC retailer study also found that 40% of surveyed
retailers reported lower inventory holdings for products procured through DigiDukaan, indicating the potential for improved working
capital efficiency.
The National Traders' Welfare Board (NTWB), under the chairmanship
of Sunil J. Singhi, has been working closely with ONDC to accelerate the
adoption of DigiDukaan among kirana
retailers. The collaboration focuses on mobilising local trade associations,
strengthening retailer participation and enabling small businesses to benefit
from digital procurement and more efficient distribution networks.
Managing Director and Chief Executive Officer, ONDC, Vibhor
Jain, said, “Digital adoption for the distributor fraternity has been developing
- billing, printing, order placement are largely online. But retailers, most of
which are mom-and-pop shops, still run on pen, paper and memory. DigiDukaan is ONDC's effort to build digital infrastructure
for India's General Trade ecosystem in retail. We are digitising kiranas as buyers, while strengthening the existing
distributor network rather than replacing it.”
DigiDukaan is building an expanding network of
FMCG brands, technology providers and logistics partners. Leading FMCG companies,
including HUL, Marico, Colgate-Palmolive, Emami and Amul, are participating
through their distribution networks, while ITC, Tata Consumer Products and
Britannia are at various stages of integration or discussion. On the technology
front, Paytm for Business, Qwipo and Mulltiply.ai are
live on the network, while DMS and technology providers, including Bizom, Botree, QuIDPe and ENS, are progressing towards integration.
Logistics and warehousing partners, including ElasticRun,
Shiprocket, India Post and Moeving,
are also part of the expanding ecosystem, supporting seamless procurement,
wider distributor reach and faster replenishment for kirana
retailers.
As part of its next phase, ONDC is focusing on deepening
brand and distributor participation in Mumbai, particularly North Mumbai, while
strengthening operations across existing markets.
The Open Network for Digital Commerce (ONDC) is building
open digital commerce infrastructure in India through a network model aimed at reducing
entry barriers and improving access for businesses. The network has enabled
over 500 million transactions to date, with retail as its core focus area. It
seeks to create digital networks that improve efficiency, lower costs and
unlock opportunities for businesses, gig workers, small retailers and
consumers.
ONDC-enabled retail initiatives include DigiDukaan,
which has onboarded over 21,000 retailers for business-to-business (B2B) procurement
digitisation, and Amazing India, which focuses on enabling products from
kisans, karigars, cooperatives and other
micro-producers to become e-commerce-ready and reach wider markets.
Other initiatives include public transport services,
facilitating over 5 lakh metro and bus journeys daily through more than 40
consumer applications; logistics infrastructure used by over 80,000 merchants
and 30+ small and micro fleet operators; and more than 1,000 tourism experiences,
including 170 Archaeological Survey of India (ASI) monuments and 29 museums,
available on the network. ONDC has also enabled low-ticket investment and
credit solutions aimed at expanding financial access, with a majority of
investors coming from Tier-2 cities and beyond.