Following the blockade of key trade points by Madhesis at the Nepal-India border, the revenue of Indian MNCs have dropped in Nepal. Ever since the new Nepali constitution was formed, the Indian-origin Madhesis have been protesting.
Companies such as Dabur, Unilever and ITC India have reported depleting stocks and struggles to export their products, DNA reported.
It is believed that industries in the southern plains like the Bara-Parsa and Morang-Sunsari have been affected by the protests, the report stated. For Dabur company, Nepal is very important source for its juice business. The subsidiary company Dabur Nepal reported 10-15% loses in sales due to disruption of supplies, according to the report.
"The situation in our company is no different from that of all other industries," said Abhay Gorkhali, marketing head of Dabur Nepal.
Dabur Nepal, which manufactures 30 different varieties of Real juice, is facing hardships due to unavailability of raw materials and high cost of shipping products, DNA report stated.
"We are yet to assess the impact of the ongoing turmoil. There is a remote possibility of achieving the target set for this year," Gorkhali further added.
"The company's profit has gone down 22% compared to the same quarter last fiscal year. There will be negative growth if this situation continues," said Ravi Bhakta Shrestha, who is the director of Unilever Nepal that manufactures and markets home care and personal care products.
A subsidiary of ITC India company called Surya Nepal reported operating on 30% of its installed capacity. A top official of Surya Nepal said, "We have a policy of maintaining stocks of finished products that can meet the demand for 60 days and stocks of raw materials enough to run the factory for 60 days. Till Tihar, there was no big impact. Now, we are experiencing some difficulties," as reported by DNA.
Post-economic liberalisation in the early 1990s, Dabur, ITC India and Unilever were among the first companies to set up plants in the Himalayan nation.
