The ongoing violence in Nepal is now seen to have directly affecting trade and industries. In particular, sporadic violent incidents are still going on in many parts including the capital Kathmandu. The army has tried to control the situation, but there is an atmosphere of fear. Its biggest impact is on FMCG (Fast Moving Consumer Goods) companies. India’s well-known company Britannia Industries has stopped production of its plant located in Baran district of Nepal at present. The company has clearly stated that the safety of employees is paramount. Similarly, Dabur’s plant at Birganj has also been affected, where production has come to a complete standstill. Dabur earns a revenue of about ₹ 400 crore from Nepal, which is about 3% of the total sales. Employees are not able to reach the plant due to violence. Other Indian FMCG companies such as Patanjali, ITC, Reliance Consumer, and Marico are also active in Nepal, which are mainly operated through local distributors. If the situation deteriorates, these companies may also have to suffer big losses.
FMCG sector shook of violence in Nepal: Dabur and Britania stopped production, impact on business.
