Our target is to integrate different sectors to yield fruitful results

OCT 06 -

Anil Kedia is the managing director of Kedia Organisation, one of the country’s oldest business groups, which is involved in multiple business es including manufacturing, trading and service in Nepal. Established in 1909, the organisation has been practicing a synergy of family ownership and professional management. The producer of Yeti Carpet, Brij

Cement, Sitaram Gokul Milk, Sushil Vanaspati and Sundar Steel has also been operating a wide range of service business es in the finance and education sectors. The Kathmandu Post talked with Kedia about the Kedia Organisation, its future plans and the country’s business environment. Excerpts:

After the demise of Shankar Lal Kedia, how is the Kedia Organisation doing? What are the new initiatives taken by the group?

Most of the business set up was done by the honourable late Shankar Lal Kedia. In the beginning, we found it very hard to adjust to the situation, as time went by, things got tougher day by day due to growing competition in almost all types of business es. It’s the blessing of my father and forefathers that we have been able to remain intact with our performance. The only thing we have done is that we have achieved the successful to redirect the business in the competitive market.

With the CA election just around the corner, business houses like yours must have been approached by political parties for donations. How serious is this donation terror?

Now, donation drives are nothing new for most of the private sectors in the country. Almost every day, we are overwhelmed with demands for cash donations in the name of students’ conventions, the national convention of political parties and so on. In addition, the threat from sister organisations of the political parties is even more so. The upcoming CA election is only part of the issue.

How do you review the current business environment of the country? Do you think the government has done enough to make business environments conducive for the private sector?

Electricity shortages and labour problems are the common issues, out of many. There is a shortage of trust with the private sectors’ business activities. The government’s attitude towards private business organisations is not appropriate. In addition, the government’s current tax policies are not conducive to boosting the business environment of the country. The government is adopting zero tolerance policies for the private sectors in the name of regulation, which I think is not suitable for emerging business es in our underdeveloped economy.

What are the major challenges that the private sector is facing now?

As I have already mentioned, the power cuts and labour issues are the main problems. The government should adopt flexible tax policies to promote private business es. It could be addressed through implementing the multiple rate of VAT. In addition, a lack of policy consistency in government bodies also hinders the organisations that are operating for long term goals.

The FNCCI is currently lobbying for a common minimum economic agenda in all the major political parties’ election manifesto. Do you think parties must now have a common economic agenda that would give confidence to the private sector and boost economic growth?

Too many commitments do not help yield positive results. Unless the economic agendas are addressed properly, issues such as labour, political hassles and donation drives will continue. So, the main thing is that the government should keep a soft corner towards the private sectors, in order to boost up the business environment.

The Kedia Organisation is involved in the trading, manufacturing and service sector. How do you review your own group’s performance?

 All of the sectors complement one another. The same basic business principle is applied in all of the sectors. The main issue is not to do different things, but how to do the things differently. To respect human resources and to maintain honesty and the quality of our products is the key to success in almost all of our business es. Our main target is to integrate different sectors to yield fruitful results.

What are the future projects/plans for your organisation?

We have recently launched Yeti poly chem (PVC flooring). We are planning to expand the capacity of the Indu-Shankar Sugar Factory in Hariaun, Sarlahi to 5,000 tonnes daily from the existing 3,000 tonnes. In addition, we have planned to introduce new products in the flooring segment. Likewise, we will introduce new vocational courses in our education institutes.

Regarding the furnishing products (Yeti carpet), what is its market share and what opportunities do you see in the sector?

In Yeti carpet, we hold a market share of 65 percent, while in PVC flooring our product secures 90 percent of the market share. In total, our products in the segment hold good market shares amid a growing demand for the products.

Source: The Kathmandu Post