Dabur International plans to expand Nepal operations

KATHMANDU, NOV 09 -

Dabur International is planning to scale up operations at its Nepal subsidiary Dabur Nepal. This was revealed by Dabur International’s Chief Executive Officer Sunil Duggal who was in Kathmandu on a business trip.

“The Dabur management feels that Nepal is now adopting industry-friendly policies, which is encouraging us to invest in Nepal,” said Duggal in an exclusive interview with the Post. “Investment is definitely going to happen.” Duggal, who was in Kathmandu to attend Dabur Nepal’s board meeting, said that investment proposals to install more equipment at its Birgunj plant were discussed during the meeting. “Discussions on some fresh investment proposals were also part of my visit,” said Duggal. He, however, did not divulge when it would be done.

According to Duggal, the new investments in Nepal will be in the healthcare, personal care and juice segments. “I think a lot of concentration has been put on juices, there will be more concentration on personal care and healthcare products from now onwards,” said Duggal. “We have a market share of more than 50 percent in juices, but in many other categories like personal care and healthcare, our market size is still quite small where we need to grow much faster.”

With Nepal being Dabur’s fourth largest market outside India, Duggal described Nepal as being very important for Dabur International. Dabur Nepal accounts for 4 percent of Dabur’s total sales.

The signing of the Bilateral Investment Promotion and Protection Agreement (BIPPA), according to Duggal, has been a big reassurance for foreign investors. “We are very encouraged by the BIPPA signing,” said Duggal. “Some of the investment proposals which we had put on hold have been put back into operation.” One of the early Indo-Nepal joint ventures, Dabur Nepal was established in 1992. The company has been manufacturing fruit juices and health care and personal care products. Dabur India increased its stake in Dabur Nepal from 80 percent to 97.5 percent in 2005.

Source: Kantipur