Sumargi’s Muktishree Group unveils Rs 23.5b expansion plan

KATHMANDU, DEC 23 -

The Muktishree Group announced on Sunday that it would be investing Rs 23.5 billion in the country over the next five years. The company unveiled plans  to develop a number of projects including hydropower, telecommunication, five-star hotel, cement factory and superstores, among others, which it aims to complete by 2018.

Ajay Raj Sumargi, chairman of the Muktishree Group , said that the company had received loans worth Rs 18 billion from Europe-based Zhodar Investment and Airbell Investment to implement its schemes. “The company has received Rs 10 billion and the remaining Rs 8 billion will come as the project moves forward,” he said. “We have taken loans worth around Rs 6.5 billion from Nepali banks.” Airbell is also investment partner in its telecom company, he added.

As per the expansion plan, Nepal Satellite Telecom owned by Muktishree Group , which provides telecommunication services in the mid-western part of the country under the brand Hello Nepal, will be expanded into a national player by February 2014. The company has been extending its services in the Far Western and Western regions.  

“Telecommunication is a costly business. We have already made an investment of Rs 3 billion, and we sank another Rs 4 billion into our expansion plan in the Far Western and Western regions,” said Sumargi. He added that the company was likely to spend Rs 6 billion more to expand its service throughout the country. The Muktishree Group has borrowed US$ 65 million from international companies.

Similarly, the group has planned to invest Rs 5.50 billion in the Dhading Aankhu Khola Hydro project in Dhading. The company has already obtained a survey license for the 35 MW project. Sumargi said that they expected to finish the project within the next four years. “We aim to lay the foundation stone by January 2015. The project has been designed to be completed at a rapid pace,” said Sumargi.

The Muktishree Group has also announced plans to enter the tourism sector by investing Rs 5 billion in a luxury hotel in Kathmandu. The group will be building a 250-room, five-star hotel which is scheduled to be in operation by 2016-end. “We are looking at two possible sites in Kathmandu to construct the hotel,” said Sumargi. It will provide direct employment to 600 people, he added.

The group has established Muktishree Cement Industr-ies in Surkhet. The Rs 4-billion factory has a daily production capacity of 1,200 tonnes. According to Sumargi, the factory will be expanded to produce up to 3,000 tonnes daily. It is expected to provide direct and indirect jobs to around 5,000 people.   

The group also plans to establish a string of superstores across the country under the name of Nepal Infra. The Rs 3-billion project will start with its maiden superstore at Minbhavan, Kathmandu. “We aim to expand the chain throughout the country. Locations in Narayanghat and Hetauda have been identified as possible sites for the store,” said Sumargi. The company aims to give jobs to 3,000 people through this project.

Established in 1972 with Hetauda Lime Industry and Kalatmak Kashtha Industry, the group has interests in diverse sectors like telecommunication, mines, minerals and infrastructure development, among others.

 

Plans

Project Investment

Nepal Satellite Telecom Rs 7 billion

Dhading Aankhu Khola Hydro Rs 5.5 billion

Five-Star Hotel Rs 5 billion

Muktishree Cement Industries Rs 4 billion

Nepal Infra Rs 3 billion

Total Rs 23.5 billion

Source: The Kathmandu Post