ONDC, DPIIT push FMCG industry to digitise procurement for 1.4 crore kiranas

The Department for Promotion of Industry and Internal Trade (DPIIT) and Open Network for Digital Commerce (ONDC) on Friday brought together more than 40 FMCG industry leaders to push for the digitisation of procurement for India's 1.4 crore kirana stores through ONDC's DigiDukaan initiative. The high-level Bharat Commerce Chintan Shivir was chaired by Commerce and Industry Minister Piyush Goyal at Vanijya Bhawan in New Delhi. The roundtable brought together senior executives from companies including Hindustan Unilever, Coca-Cola India, ITC, P&G, Marico, CavinKare, Pidilite, Britannia, Adani Wilmar, LT Foods, Emami and Haldiram's, along with logistics providers, technology partners and ONDC network participants.

Unlike conventional kirana digitisation efforts that focus on helping retailers sell online, DigiDukaan is focused on digitising them as buyers. Through a single digital interface, retailers can discover and order products from 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. ONDC and DPIIT aim to create a common digital infrastructure through which kiranas can eventually access shared logistics, formal credit and other services.

DigiDukaan connects 21,000 retailers across three cities

DigiDukaan had connected more than 21,000 retailers with over 450 brands across Hyderabad, Jaipur and Mumbai as of September 2026, up from more than 12,000 retailers in the previous quarter.

Hyderabad accounts for more than 16,000 onboarded retailers, with monthly repeat ordering rates of 73%-78%. An initial ONDC retailer study found that 40% of surveyed retailers reported lower inventory holdings for products procured through DigiDukaan, indicating potential improvement in working capital efficiency. "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," Goyal said.

The initiative's next phase will focus on deepening brand and distributor participation in Mumbai, particularly North Mumbai, while strengthening operations across existing markets.

ONDC seeks common digital infrastructure for general trade

The roundtable identified several priorities, including creating a common digital identity for kiranas, shared logistics and micro-warehousing, formal credit linked to digital procurement and transaction activity, and simplified technology integration through plug-and-play Distributor Management System connectors and standardised catalogues.

The participants also discussed realigning commercial incentives for FMCG companies, distributors and sales teams so that digital ordering, wider retail coverage and sustained retailer adoption become commercially viable across the value chain. "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," Vibhor Jain, MD & CEO, ONDC, said.

He said DigiDukaan's objective was to digitise kiranas as buyers while strengthening the existing distributor network rather than replacing it. "Our ambition is not merely to connect kiranas to another application. It is to build a shared digital foundation that strengthens and brings network efficiency to the entire General Trade ecosystem," Jain said.

DPIIT Secretary Amardeep Singh Bhatia said open digital infrastructure could help accelerate the digitalisation of India's retail ecosystem by bringing retailers, FMCG companies and distributors onto a common network. DigiDukaan currently has participation from FMCG companies including HUL, Marico, Colgate-Palmolive, Emami and Amul through their distribution networks. ITC, Tata Consumer Products and Britannia are at various stages of integration or discussion.

On the technology side, Paytm for Business, Qwipo and Mulltiply.ai are live on the network, while Bizom, Botree, QuIDPe and ENS are progressing towards integration. Logistics and warehousing partners include ElasticRun, Shiprocket, India Post and Moeving.