The ongoing instability in Nepal continues, with instances of violence affecting various regions, including Kathmandu. The army has taken control nationwide, leading to some improvements. However, the turmoil is significantly affecting trade. Major FMCG companies like Dabur and Britannia are facing production challenges.
Britannia has stopped production, prioritizing the safety of its employees. Dabur’s output has also been partially affected. The companies have paused operations to ensure the well-being of their workforce. The presence of FMCG companies in Nepal suggests that the unrest could also influence demand.
Britannia Industries has halted its production in Nepal due to the ongoing violence. The company, which operates a plant in the Bara district, is prioritizing the safety of its employees. The company emphasized that its primary concern is the security of its workforce and made the decision in response to the current circumstances.
The company, which owns brands such as Good Day, Marie Gold, and Tiger, also expressed gratitude to the local army for their intervention, which increased the employees’ sense of security.
Dabur India’s plant in Birgunj, Nepal, has stopped production. The company stated that many employees are unable to reach the plant due to the violence, which has severely impacted its operations. Nepal accounts for about 3% of Dabur’s overall sales.
The company is closely monitoring the evolving situation in Nepal. All Kathmandu-based employees have been instructed to work from home, and sales teams have been advised to prioritize safety and adhere to local curfew instructions.
The violence in Nepal has caused chaos, with protesters targeting the homes and government buildings of leaders, and setting fire to the parliament. Several fatalities have been reported. The army assumed security control on Tuesday night, which has brought a degree of stability. The army is now deployed across the country.
A year prior, Indian FMCG companies faced similar challenges in Bangladesh, where student unrest caused the fall of the Sheikh Hasina government. Companies like Emami reported impacts on their business. Indian FMCG companies such as Dabur, Britannia, Marico, Patanjali, ITC, and Reliance Consumer have a presence in Nepal, typically operating through local distributors or partnerships.