Despite being a relatively small and agricultural country, Nepal has managed to house numerous industries and companies. Although Nepal has a high potential for growing local products, most of the goods are imported and the citizens rarely opt for growing the raw materials in their land. Also with the added downside of Nepal being a landlocked country, many private companies have managed to thrive and get recognition worldwide and many more have the same potential. The industrial potential of the country is very high and growing at a rapid rate.
In Nepal, both government-owned as well as private companies have set an example for the industrial potential of the country.
When a company is owned by the government, it falls under the public sector. The profits cannot be claimed by an individual or a group. The company will be managed by the government and no individual has any right over the company itself. These companies may acquire their finances with the support of other countries, the World Bank, or the government manages the sources. The prime motive of these companies is not meant to be profit earning of an individual but rather holistic and country-oriented.
Key Features:
The company is owned by the government.
The majority of the board of directors, as well as the Chief Executive Officer, are appointed by the government.
The main motive is the betterment of people rather than being profit-oriented.
The management runs following the Companies Act (2006)
The industries are considered a separate legal entity that is not affected by any form of political instability.
Government companies are based on heavy and key industries that aid in the development of the country.
The revenue and profits earned go towards the development and betterment of the country in a general and balanced manner.
At least 51% of the total share capital is held by the government.
At least 7 shareholders are required for a public limited company.
The names of these companies end with Ltd.
The publishing of the company's annual financial statement is mandatory.
There is an invitation to share ownership with the public.
Himal Cement Industry
National Trading Limited
Nepal Airlines
Nepal Bank Limited
Nepal Food Corporation
Nepal Oil Corporation
Nepal Telecom
Rashtriya Banijya Bank
Udayapur Cement Industry
When a company is owned by an individual or a group of companies, it falls under the private sector. The management, not the profits are controlled or exercised by the government. The main motive of private companies is to generate profit. The sources of finance, as well as the ownership of a private company, are individualistic rather than being owned by the public.
Key Features:
Owned by one individual or a group of people.
The board of directors is elected by the shareholders.
Private companies are established with the motive to earn a profit.
The company can be affected by political instability.
The name of the company will end with Pvt. Ltd.
The publishing of the company’s annual financial statement is not mandatory.
Private companies look for benefits rather than the development of the company.
Private companies are not permanent; can collapse anytime.
The transfer of shares of a private company is more restrictive.
No minimum capital is required for a startup.
There is no invitation to the public regarding ownership and shares.
Chaudhary Group
The Chaudhary Group that we know of today as one of the most prominent business corporations in Nepal started in the 1930s when the founder, Mr. Bhuramull Chaudhary was given a shop during the Rana regime after the earthquake in 1934. The shop was located in today known as Bishal Bazar, New road and dealt with the textiles imported from India. He was one of the few businessmen who would take items to the palace and present his items for an open shop for the queen and king.
After his demise, his son, Lunkaran Das Chaudhary took the company to a whole another level by exporting jute from Biratnagar to Europe and the USA and imported various fabrics and materials from Korea and Japan as well under the name of Bhuramuli Lumkaran and Arun Impex.
Today, with the son of Lunkaram Das Chaudhary; Mr. Binod Chaudhary works as the president and the chairman of Chaudhary group which has more than 100 companies and has an investment outlay of more than $1 billion. Chaudhary Group is also Nepal’s first organization to have such a big and diverse distribution of the network.
In 2013, Mr. Binod Chaudhary was recognized as the wealthiest man in Nepal with an estimated net worth of $1 billion and the number continues to rise to this date.
Divisions of the Chaudhary Group
CG|Foods
CG|Finco
CG|Hotels & Resorts
CG|Education
CG|Electronics
CG|Infra
CG|Realty
CG|Telecom
CG|Brewery
CG|Beverage
CG|Tobacco
CG|Packaging
Chaudhry Foundation
Khetan Group
Founded by the late Purma Mal Bihari Lal Khetan, the groundwork of the company began when Kishun Ram Khetan, his father, supplied rice and salt to the Nepali shoulders during the Nepal-Tibet war (1855/1856). The Khetan family then started importing garment products in 1910. When Purna Mal Bihari Lal Khetan established the Khetan group, it was amongst the first 32 registered companies in the whole country.
This company has also been one of the first business corporations of Nepal that helped the blossoming of the Bank Financial Intermediary in Nepal. Today, Khetan Group is led by Rajendra Khetan, who acts as a chairman for Laxmi Bank and Primelife Insurance, and as a president for Nepal Britain Chamber of Commerce and Industries, and Everest Insurance as well. He is one of the wealthiest men in Nepal with an estimated net worth of over $500 million.
Companies managed by Khetan Group:
Gorkha Brewery Pvt. Ltd.
Himalayan Snacks and Noodles
Bottlers Nepal
Laxmi Bank
Himalayan Bank
Laxmi Microfinance
Everest Insurance Company
Prime Life Insurance
Mutual Trading Company
Himalayan Agriculture Pvt. Ltd.
Laxmi Corp
Vaidya’s Organization of Industries and Trading Houses (VOITH)
Vijaya Gajananda Vaidya, the founder of VOITH started his business journey in Nepal by investing all his money in the establishment of the United Traders Syndicate which then became the only distributor of Toyota Motors in Nepal. At the same time, Agni; the subsidiary company of Vaidya’s Organizations is the authorized distributor of Mahindra vehicles in Nepal.
Established in 1967, today, the company is led by Mr. Suraj Vaidya; the President of the company as well as President of the Federation of the Nepal Chamber of Commerce and Industries (FNCCI). The estimated annual turnover of VOITH is 20 billion.
List of companies managed by VOITH
United Traders Syndicate (UTS) Pvt Ltd.
Subirasa Incorporated Pvt Ltd.
Suzuki Incorporated Pvt Ltd.
Vijaya Motors Pvt Ltd. and
Agni Incorporated Pvt Ltd.
Garance Tea Estate Pvt Ltd.
Mai-Ilam Guranse Tea Industries Pvt Ltd. and
Nirvana Tea Processing and Packaging Pvt Ltd.
Agri Breeders Pvt Ltd.
Nepal Well hope Agri-Tech Pvt Ltd.
Nepal Singha Construction Pvt Ltd.
Neko Alliance
Tawache Brick and Tile Industry
Vijaya Academy of Health and Science for education.
Dugar Group
The foundation of the Dugar Group was set by Mr. Chandan Mal Dugar when he started trading fabrics at a haat bazaar in Biratnagar. His son then expanded the business by expanding it with agro products. The four sons of the next generation then took the business to another level by expanding it with jute exports, rice mills, steels and so much more. The Dugar family has helped Nepal’s agricultural sectors as they used to source rice grains from farmers locally.
Even though it initially started as one group, the 137 old Dugar business is divided into four groups each of which is handled by one of the Dugar brothers; TM Dugar, HC Dugar, KL Dugar and MV Dugar Group.
Dugar Group is the distributor of automobiles like Mahindra, Piaggio, Royal Enfield, John Deere, has a media platform, as well as extends its branches on hydropower, construction, and finance sectors. In the field of food and beverages, the Dugar Group manages Frooty, Appy, supplies of food grains, edible oil, and herbal extractions in Nepal.
Nepali brands like Dhara Oil, Meizan Swastik Oil, and Gyan rice are managed by KL. Dugar has been estimated to have an annual turnover of 20 billion.
Golchha Organization
Golchha Organization is one of the biggest business houses in Nepal. The company was founded by Ram Lal Ji Golchha in 1934. The interests of the company revolve around commercial, industrial and philanthropic sectors with huge investments in Jute, Steel, Electronics, Metal, and Food Grains-related companies as well as international trade and service sectors. The Golchha family now governs more than 100 companies.
This company is also highly credited for the establishment of Biratnagar Jute Mill in 1937, which was the first factory of Nepal.
The company has an annual turnover of 45 billion and employs more than 20,000 people.
List of companies managed by Golchha Organization:
Hulas Steel and Wire Industries
Hulas Metal Crafts
Him Electronics
Bhudeo Food and Snacks Industries
Hidesh Daal Udhyog
Dhiraj Chamal Udhyog
Sriram Sugar
Eastern Sugar
Raghupati Jute Mill
Hansraj Hulaschand and Co
GO Automobiles
Hulas Motors
Hulas Investment
Hester Bio-Sciences
Neoteric Nepal
Shangrila Spirits
Shangrila Housing
The business sector has taken a huge wave in Nepal today. Young people from their teenage years can be seen initiating their startups and companies. Women are being more empowered and women-run businesses are starting to blossom. This is the age of business and chances are that soon enough, Nepal too will be known as an industrial country and not just an agricultural country.