HC stays Unilever’s distribution network restructure

Bangla Press Desk:  The High Court (HC) has stayed a proposed restructuring of the distribution network of Unilever Bangladesh Limited, allowing the existing distributors to continue their operations until the dispute is resolved.

The court also issued a rule asking the respondents to explain why the 29 January order of a Dhaka court in this regard should not be quashed. Several officials of Unilever Bangladesh, including its Managing Director Md Naharul Islam Molla and Finance Director Zinia Huq, were asked to respond to the rule within four weeks.The HC bench of Justice Md Nazrul Islam Talukder and Justice Mahmud Hasan gave the order on 9 March following an application filed by Agrani Trading Corporation Limited and Masud & Brothers. Barrister Omar Sadat, lawyer of the two distribution business entities, confirmed the matter on Wednesday (18 March).  

The High Court in its order also stayed operation of the proposed distribution arrangement between Unilever Bangladesh and Vector Enterprise for one year. The order effectively suspends the appointment of Vector Enterprise as a distributor.

Barrister Omar Sadat said that the HC bench in its order allowed the two long-standing distributors in the country's fast-moving consumer goods sector -- Agrani Trading and Masud & Brothers -- to continue their distributorship businesses with Unilever as per their agreement.

The HC order comes amid a series of legal developments involving Unilever Bangladesh and its officials.

Earlier this year, a Dhaka court issued summons against the company and certain officials in connection with arbitration proceedings initiated by Agrani Trading Corporation Limited and Masud & Brothers.

In a separate case, a Dhaka court issued arrest warrants against five senior officials of Unilever Bangladesh in a fraud case filed by Masud & Brothers, after the Criminal Investigation Department (CID) found prima facie evidence.

The High Court had also issued a contempt rule against some officials for failing to comply with a previous court order.

Barrister Omar Sadat said that the latest order ensures continuity of operations of Agrani Trading and Masud & Brothers as Unilever product distributors and protects existing commercial arrangements.

The lawyer also said the two business firms are committed to safeguarding lawful business agreements, maintaining stability in the fast-moving consumer goods sector, and pursuing resolution through the judicial process.

It is widely known that Agrani Trading Corporation and Masud & Brothers have been marketing and distributing Unilever products for almost two decades. In July 2025, Unilever unilaterally gave a notice to terminate the contract through a letter.

Aggrieved by this, the two companies sent arbitration notice to appoint an arbitrator as per the terms of the contract. When Unilever refused to go into arbitration, the two companies moved the court.

Source: daily Sun

BP/SP