Interview

“Private security business needs to be governed by separate law”

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G4S Security Services Nepal is the largest private security solutions firm in Nepal with a presence spanning over two…

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NEPSE

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			'title' => '“Private security business needs to be governed by separate law”',
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			'summary' => 'G4S Security Services Nepal is the largest private security solutions firm in Nepal with a presence spanning over two decades.',
			'content' => '<p style="text-align:justify"><span style="font-size:18px">G4S Security Services Nepal is the largest private security solutions firm in Nepal with a presence spanning over two decades. The United Kingdom based multinational security services provider started operating in Nepal in 1996 through its subsidiary company. Established in 1901, G4S operates in 124 countries of the world. Since its inception, G4S Nepal has been providing various types of security services to its clients including diplomatic missions, government institutions, BFIs, hospitals, five-star hotels, commercial complexes, educational institutions, private residences, telecom service providers, hydropower plants and industrial facilities. The company also provides security for personal protection of VVIPs and premises protection during special events. In an interview with New Business Age, Mahesh Shrestha, Managing Director of G4S Security Services Nepal talks about the current security business situation, challenges and opportunities in the sector, future plans of the company, among other issues. Excerpts:</span></p>

<p style="text-align:justify"><span style="font-size:16px"><strong>The presence of G4S in the country has spanned over two decades. What has the journey been like for your company in terms of growth and services?</strong></span><br />
It has been a wonderful experience for us. We faced different challenges and came across many opportunities over the years. Being a MNC, G4S is committed to the quality and effectiveness of its security services.&nbsp;</p>

<p style="text-align:justify">We have an annual turnover of Rs 850 million and our target is to achieve the Rs 900 million mark this year. G4S has held the position of the largest security service company in Nepal in the last 20 years. We command 85 percent of the market share in the high-end, around 40 percent in the mid-end and around 25 percent in the low-end segments.&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br />
&nbsp; &nbsp;<br />
<span style="font-size:16px"><strong>Being the only security services solutions MNC in Nepal, how do you take your opportunities?</strong></span><br />
G4S is an opportunity itself for the people seeking international standards in security services.&nbsp; We assure complete security solutions to our clients in complying with global standards. G4S is highly committed in terms of assuring and guaranteeing quality security services along with top level customer care, management response and operational arrangements for its clients.&nbsp;</p>

<p style="text-align:justify">We have a very strong workforce comprising of 5,000 personnel which itself is an opportunity for many Nepalis from an employment perspective. We have 10 branch networks in major cities across the country. The branches are being operated in a full-fledged manner which includes providing training to new recruits. Similarly, we are also paying millions of rupees in revenue to the government.&nbsp;</p>

<p style="text-align:justify">Gorkhalis are renowned the world over for their courage, honesty and trust in security services. In this regard, it is a matter of pride for G4S to be present in Nepal.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How does G4S Security Services Nepal ensure top-end security to its clients?</strong></span><br />
We have a holistic approach in providing security services to our clients. We provide security services according to the needs of our clients. G4S Nepal has been offering integrated security solutions including manned security, cash security services, modern electronic safety systems and technology. Similarly, we have the secured support service where newly trained personnel are engaged in housekeeping works that include security of confidential documents in their first phase of duties. Meanwhile, we also provide security services for events, travel alongside transit and storage of valuable goods.&nbsp;</p>

<p style="text-align:justify">We study the possible risks and prepare ourselves for future challenges. We also assess the risk management factors to minimise future losses. While providing services, we prepare rules for specific tasks first. After agreeing with clients, we prepare standard operating plans (SOPs) for the designated services. Different types of SOPs are developed for different clients and we retrain security personnel before deploying them on their respective duties.&nbsp;&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is G4S moving ahead in terms of using new technology?</strong></span><br />
G4S believes in moving ahead adopting new technologies in order to provide versatile and efficient security services to its clients. We update ourselves with the new technology as soon as they are introduced in the market. We have created a separate department for the purpose. Modernising security systems is a global requirement and G4S is investing more in this aspect as well. Utilisation of new technologies is also important for a company like G4S to control unnecessary expenses.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>The time now is all about electronic surveillance and security solutions.&nbsp; What will be the future of manned security in this regard?&nbsp;</strong></span><br />
Electronic security solutions are efficient in many ways. For instance, use of such systems is cost effective and surveillance and monitoring works can be done with ease. However, neither manned nor electronic security systems can replace each other.&nbsp; Both types of security solutions complement each other. They have their own importance, benefits and limitations. The services that manned security provides are not fulfilled by electronic security and vice versa.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is the relationship between G4S Security Services Nepal and its parent company?</strong></span><br />
The global organisation has been helping us in a range of areas including training, capacity enhancement of security personnel and using new technology in security, among other things. We need to contact the parent company on a daily basis to submit management, finance, quality reports etc. The head office appoints the country director. We need to report on a daily, weekly and monthly basis and submit it to the global system. G4S from 124 countries around the globe keep data on it. The data we maintain on the global system can affect the share price of G4S in the London Stock Exchange. All branches are controlled by the head company. It is completely a group company.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is G4S Nepal different from other companies in employee management?</strong></span><br />
We have been providing various benefits and perks to staff and security personnel. All employees are paid salaries in a timely manner and on the same date. They are entitled for provident fund and annual grades. People who leave the company are subjected to gratuity as well. The labour law has clearly mandated employers to provide benefits to the workers including a minimum salary and employment guarantee. We have been providing all these as required by the law. We are very aware in terms of following the law and maintaining the quality of our services. It clearly demonstrates our concern regarding the international brand and image of G4S.</p>

<p style="text-align:justify">G4S is a company of confidence for all its staffers and service seekers. According to the new Labour Act, employees are entitled for 45 days of paid leave annually.&nbsp; We were providing an annual leave of 40 days to employees for many years even before the new law came into force a few months ago. Likewise, staff at G4S Nepal get festival leave of 16 days. Every staff working is entitled to insurance worth Rs 200,000.&nbsp;</p>

<p style="text-align:justify">Many staff have stayed here for many years because of the excellent work environment and benefits. Over the years, many employees who started their career in the company as security personnel have been promoted to managerial level posts.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How do you view the new Labour Act?&nbsp;&nbsp;</strong></span><br />
The new Labour Act is a positive step for the security service business. The Act has guaranteed social security and other benefits to employees from the day they join the companies. The government has clearly mentioned the facilities and services to employees this time. I think effective implementation of the law will help to spur on healthy competition in the domestic security services market. There are many compliance related issues in this sector at present and security service companies who do not maintain good quality of service are likely to come under pressure from the provisions of the Act.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How can Nepali security service providers engage in healthy competition?&nbsp;&nbsp;</strong></span><br />
Healthy competition will start and flourish when factors such as quality, ethics and professionalism become key parameters of competition among the players in the market. Unfortunately, many security companies in Nepal do not bother about these factors. If someone is engaged in unethical business practices, then how can there be fair competition? We are always guided by value-based practices in business.&nbsp;&nbsp;</p>

<p style="text-align:justify">We do not consider any other company as our competitors. Many are not even providing a minimum salary as required by the law. So we do not even compare ourselves with them.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>What challenges do you see in the security services business?</strong></span><br />
&nbsp;The scarce human resource is the major challenge here. Manpower is both raw and finished goods in the security business. Similarly, we don&rsquo;t have a law to govern private security businesses.&nbsp; Security service providers at present are simply guided by the Companies Act. Also, the awareness of security among the people is also relatively low.&nbsp;</p>

<p style="text-align:justify">Lack of standardisation is another issue. Neighbouring India and countries like Dubai have standardised private security businesses. The government needs to conduct a rating of the companies that are working in the sector. It can be an important step in terms of standardisation of the security business as the companies can levy service charges from the clients according to the ratings.&nbsp;</p>

<p style="text-align:justify">Similarly, government bodies in many countries provide proper training to the people who look to join the private security workforce. We don&rsquo;t have such facilities here. Many companies in Nepal deploy untrained people as guards increasing the security risks to their clients and themselves as well.&nbsp; &nbsp; &nbsp; &nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How do you ensure that the best security personnel join the workforce of G4S?&nbsp; &nbsp;</strong></span><br />
Anyone looking to join our company as security personnel needs to possess a clean background. They are required to be physically and mentally and fit. The candidates should have a basic school education and also be capable of speaking English. We conduct written and oral tests. Those selected are sent for training which is of 80 credit hours. Only those who are able to pass the training are recruited. Similarly, we conduct refresher training courses every three months for new recruits. In the meantime, we also provide counsel and retrain the employees on a daily basis. We have set the retirement age of the security personnel at 55. G4S assures the quality of service in this way.&nbsp;</p>

<p style="text-align:justify">We follow the international standards set by the global company while providing services and recruiting people. From training to supervision and service areas, we follow rules set by our parent organisation.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is G4S planning to expand its services and enter new areas in the security business in the future?</strong></span><br />
We are conducting an in-depth study to expand our areas of work and increase investments. We are looking to provide high-end security services to BFIs such as alternative solutions and ideas for cash security. G4S globally has been providing these types of services for a long time. We have been constantly discussing with BFIs and the central bank to identify their needs and requirements in security.&nbsp;</p>

<p style="text-align:justify">We seek to contextualise the services according to the local needs. The services we provide are not only a matter of business for G4S.&nbsp; It is also a matter of contributing towards nation building directly or indirectly while doing business.&nbsp; For instance, enhancing the skills of the workforce and quality of service is a top priority in G4S&rsquo;s plans. It will add efficiency to our work and is also likely to have a national level impact. Nepal receives hundreds of billions of rupees in remittance yearly from the migrant workers many of who go abroad to work as security guards and it is necessary for us to focus on this aspect. By enhancing the skills of migrant workers and quality of service, Nepal can earn more money in remittance as the demand for Nepali workers will go up.</p>

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<div>
	<span style="font-size: 16px;">Anil Malik is the general manager of Radisson Hotel Kathmandu since August 2013. He has wide experience in the hospitality sector and this is his third tenure with the Carlson Group. Earlier he has worked with the Grand Hyatt, Centara Hotels and Resorts and the O Hotel. He spoke to the New Business Age about his experience in Nepal and the tourism possibilities of the country.&nbsp;</span><strong style="font-size: 16px;">Excerpts:&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Tell us about your career and corporate journey?</strong></span></div>
<div>
	Right from my childhood I have seen my mother hosting guests at home. I did Bachelor of Science with geology as major. However after graduation I got interested in hospitality. I appeared in the all India entrance examination, I was qualified and with great hard work I jumped into the hospitality industry.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Why hotels and hospitality? What points of attraction and challenges mark work in hotel sector?&nbsp;</strong></span></div>
<div>
	I personally feel that hospitality is the only sector where you meet so many unique people, learn new culture and learn new food habits. That&rsquo;s why I personally feel that hospitality is the right industry for a person like me who loves food and meet new people.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Carlson Group is the only group, which is expanding, in large capacity. In India we in 2014 we are expecting to have 50 new properties. We are expanding in China, and Hong Kong. In Nepal there are possibilities of expansion and my company is seriously looking to it. Because the country has lots of potential and I have also visited some of the places such as Chitawan and Pokhara, which hold high possibilities. A feasibility report for these possibilities is underway and which I look forward to present at the Carlson office. Carlson has got various brands under its umbrella. We have got budget segments therefore possibilities can be worked out according to the demand. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What major practices have you introduced in Radisson in the last quarter?</strong></span></div>
<div>
	When I joined I found training opportunities lacking here. There are many hotel management colleges in the country but the biggest challenge is that most of the graduate go aboard to work thereby creating scarcity of skilled manpower. Since my initial days here I have always tried to engage with the staff and to make them more management friendly. There are a number of union issues in Nepal and here also there were some issues in the past. I have been trying to resolve this issue in a professional way by engaging with the employees and interacting with them through open communication channels. As part of this strategy, we started organizing Friday town hall meeting where the general manager interacts about the budget and other management issues with the staff. This is one of the initiations that I took. Apart from that we have started participating in various corporate social responsibility programmes and as a part of it we have made some donation to the Red Cross Nepal and on February 15 we organized Radathon in association with the Nepal Tourism Board.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What contribution have you made specifically in making the hotel more hospitable?&nbsp;</strong></span></div>
<div>
	Last year we added around hundred rooms to existing 160 rooms capacity of hotel Radisson. The additional hundred rooms are very modern compared to other hotels. And now my task is to see that the corporate people target these hundred rooms. To achieve this objective we are building close ties with the corporate sector. Besides this we are going to open the doors of our new Indian cuisine restaurant to our guest and adding to that a Japanese restaurant opening in the pipeline.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What are the major challenges of hotel industry in Nepal? How do you think they can be addressed?&nbsp;</strong></span></div>
<div>
	Recently Trip Advisor rated Nepal as the hottest destination. The only challenge I personally feel here is that the tour operators who are getting this groups in the country they are somehow trying to undersell Nepal as a major tourist destination. The occupancy must have grown but not the revenue and let&rsquo;s not forget that tourism plays a very important role in the development of the country&rsquo;s economy. Therefore we should try not to undersell Nepal. Costly airfare is another problem. It costs around Rs 50,000 to fly back and forth to Delhi. Such a high fare, I think, is bringing down the number of Indian tourist visiting Nepal. At the same time the rooms are expensive as we have 18 hours power cuts and we cannot compromise with our services for our guests. That is revenue is less and expenses are more.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Tourism potentials are very high in Nepal but the income is still around $ 5 billion and 11 per cent of the nation&rsquo;s GDP. Where is &nbsp;the disconnect? What can be done in this context by the private sector and the government?</strong></span></div>
<div>
	In Nepal there are many areas, which can be explored. Tourist visit Nepal mostly to see Kathmandu. The government of Nepal along with the Nepal Tourism Board should brand it as &lsquo;Explore Nepal&rsquo; and they should come out with new destinations that are still to be explored. I personally feel that the government should identify new values and new areas to attract much more tourist.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is the situation of skilled manpower in the hospitality industry?</strong></span></div>
<div>
	There are eight five-star hotels since a very long time. Though the government has itself not taken any measures to expand it, very soon three hotels are coming to Nepal. Along with that the government has also signed agreements with around ten other five-star properties. Opening of these hotels will open new job opportunities. What I have found is staff appointment in Nepal is very low. Job openings are available only if a person retires from the position or moves abroad. So how do you expect to have new talent when there are no new hotels and no new vacancies?</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What are your suggestions to the major hotel and tourism management colleges? What inputs should they make to develop talent here?</strong></span></div>
<div>
	They have to be more professional, the corporate culture has to be taught and exposure has to be given to them. And the same time they should have a tie up with some groups of hotel where some concrete steps can be taken. At the moment my hotel has around 80 trainees but what about the other students as there are only eight five-star hotels. &nbsp;Definitely the remaining students will move abroad.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is your personal management philosophy with regards to hotel management and its efficient leadership?</strong></span></div>
<div>
	Speaking on a personal note there has to be a leadership quality and attitude has to be very positive. Along with it one should have an urge to teach the juniors, should believe in teamwork as it&rsquo;s not possible to achieve the objectives without team work. At the same time one should try to impart maximum knowledge to juniors to make the team competent. The country should also have a corporate culture, which I hope will definitely grow.&nbsp;</div>
<div>
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			'description' => 'Anil Malik is the general manager of Radisson Hotel Kathmandu since August 2013. He has wide experience in the hospitality sector and this is his third tenure with the Carlson Group. Earlier he has worked with the Grand Hyatt, Centara Hotels and Resorts and the O Hotel. He spoke to the New Business Age about his experience in Nepal and the tourism possibilities of the country. Excerpts:',
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	&nbsp;</div>
<div>
	<span style="font-size:16px;">Government-run Nepal Telecom topped the list of largest taxpayers, in terms of both income and value added taxes, in the fiscal year 2011-12. The partially privatized and Nepse-listed telecom service provider contributed some Rs 9 billion to the government coffer that year. The government recently picked <strong>Anoop Ranjan Bhattarai</strong>, who was previously serving as Director at the company&rsquo;s Wireless Telephone Directorate, to lead the company. Bhattarai is regarded as one of the few smart techies in Nepal with considerable knowledge of technological aspect of the telecom industry. Soon after he assumed the new position, he spoke to <strong>Siromani Dhungana</strong> of New Business Age about his plans for leading the company.<strong> Excerpt:&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What does your appointment as MD of NTC promises to its consumers and stakeholders?&nbsp;</strong></span></div>
<div>
	My appointment as the Managing Director is a breakthrough to a 3-month-long deadlock in finalizing the organizational leadership. This appointment is the change for betterment; betterment for the organization, betterment for the staffs working here, and most importantly betterment for all our stakeholders. My tenure as MD of the organization will concentrate in providing world class advanced and consumer friendly telecom services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Some officials and even trade union representatives often talk about making reforms in the company. What areas are you planning to reform?&nbsp;</strong></span></div>
<div>
	My key areas for reform will center on improving company&rsquo;s work culture, increasing its efficiency, ensuring timely execution of projects and improving service delivery. If we pay appropriate attention to these sectors, our performance will improve and thereby enable use to remain competent in the free market economy.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Quality of service has often been controversial when we talk about Nepal Telecom. Even the regulator blames NT for flouting quality indicators. You are perceived as a person with guts to reform the company. How is your appointment going to change anything that Nepali consumers can feel the benefit?</strong></span></div>
<div>
	Of course, the quality of service in urban areas is going to be improved and these changes can be perceived within one month. After upgrading networks in urban areas, we will focus on improving quality of services in the rural areas. I assure our customers across the country that in a few months time there will be visible improvements in the quality of our services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Do you think you will be able to overcome political hurdles that might be obstructing the performance of Nepal Telecom?</strong></span></div>
<div>
	As a government owned company, all stakeholders including the political system, definitely wants to see it growing and increasing its contribution to national development. &nbsp;I do not think there will be any political hurdles that will obstruct growth of the company. All we have to do is ensure that all initiatives are conducted in transparent and reliable manner.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>How do you tackle problems created by Public Procurement Act?</strong></span></div>
<div>
	At present, NT has to follow Public Procurement Act. Consultation process is going on with the Public Procurement Monitoring Office (PPMO) so as to refine or redefine the directive. I am confident that the ongoing as well as additional consultation processes will help NT move forward more efficiently.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>News reports during last year claimed that NT provides unnecessary perks and facilities to officials at the Ministry of Information and Communication. What will you do to this end?</strong></span></div>
<div>
	I am not aware of such services being offered to the ministry or its officials. And the ministry has also not requested for the same from the company.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Successive leadership at NT has been failing to materialize the plan of bringing strategic partner to increase competency of the company. Can we expect anything tangible from you?</strong></span></div>
<div>
	The process for introducing strategic partner is gaining momentum. Within few weeks, NT will initiate the process. I am hopeful fresh initiatives will be successful in bringing strategic partner in the company.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>How do you see the challenges from private operators at the moment? Will you bring specific plans to cope with those challenges?</strong></span></div>
<div>
	We offer diverse service and have a dominant presence throughout the nation. Our competitors are lagging far behind compared to us, in general. However, we have experienced competition in certain business aspects of telecommunication services. This has opened up new opportunities for NT to grow from within. We should accept challenges and take it as an opportunity to do even better in the future.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What new services can we expect from you?</strong></span></div>
<div>
	We have seen a huge demand for reliable and affordable data service in coming days. So we are mainly focusing on the same. In this fiscal year we will launch WiFi and FTTH (Fiber to the Home) services. Our expert team is also exploring the areas of service expansion. Naturally all our existing as well as prospective consumers demand reliable, diversified and advanced services from Nepal Telecom and as a service provider we are all working and focusing more on the same to make tangible improvement in the options and quality we offer. We also have plan to introduce new services like WiFi, countrywide 3G services through GSM and CDMA technologies and also have plans to provide our own Social Networking Service very soon.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What do you think the major challenges for the company are?</strong></span></div>
<div>
	Our major challenges, as of now, are:</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Bridge the digital divide</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Modernizing customer service&nbsp;</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Proceedings to introduce an international strategic partner</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Boost employees&rsquo; morale and improve work culture</div>
<div>
	These are some major challenges. The list may go even longer. We have to come out with appropriate solution for all challenges. I will put my effort to overcome these challenges during my tenure.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Till the mid-80s, Nepal was considered as a country having the best telecom services in the region. What happened since then?</strong></span></div>
<div>
	NT has already launched 4G WIMAX service. We were the first to launch 3G services in the SAARC region. So technically speaking, we are still in leading position within the region and we will not let our achievements to go down.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>You have also expertise in modern technology. Please share your experience and plan to expand new technology including LTE?</strong></span></div>
<div>
	We have applied for frequency spectrum for LTE and once we get it, we will start deploying LTE in all major cities. Within 2015, we aim to provide LTE services throughout the nation.</div>',
			'published' => true,
			'created' => '2014-02-13',
			'modified' => '2014-02-18',
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			'description' => 'Government-run Nepal Telecom topped the list of largest taxpayers, in terms of both income and value added taxes, in the fiscal year 2011-12. The partially privatized and Nepse-listed telecom service provider contributed some Rs 9 billion to the government coffer that year.',
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	(int) 3 => array(
		'Article' => array(
			'id' => '2492',
			'article_category_id' => '46',
			'title' => '“Situation Is Difficult In Nepal For The Manufacturing Sector To Prosper”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;">Kedia Organisation, the oldest and one of the most talked about business conglomerates of the country, has been practicing a synergistic combination of family ownership and professional management since 1909 A.D. Named after their fathers, Late Sundarmal Kedia and Late Ram Kumar Kedia, it was surely a turning point for the Kedias when the first foundation stone of their present day multimillion conglomerate was laid in the form of a small cloth trading business. The group envisions reaching the zenith and being a premium conglomerate through outstanding service performance and clear business vision. Manoj Kedia, Executive Director of Kedia International and Vice president of the Confederation of Nepalese Industries (CNI), talks with New Business Age&rsquo;s Homnath Gaire and Upashana Neupane on the group&rsquo;s journey in Nepal so far, role of the private sector in nation&rsquo;s development and the group&rsquo;s future plans. Excerpts:</span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>How is the history of Kedia Group different from the general history of Nepal&rsquo;s private sector?</strong></span></div>
<div>
	Trading business in Nepal started along with the Kedia Family. Initially, Kedia family started its business as a cloth merchant with stores in Birgunj and Kathmandu that sold clothes imported from India. With initiation of Late Brij Lal Kedia we gradually expanded our business to food grains trading. It started small but as time progressed it expanded across Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	He used to collect food grains from every corner of the country and supply them to even remote areas that lacked transportation facilities. For the first time in Nepal, he fixed prices of food grains and at a certain point, even the Khadya Sansthan (government owned Nepal Food Corporation) fixed food grain prices by consulting him. Later he established rice mills, dal mills and many more food grain factories. He established Nepal&rsquo;s first modern rice mill, Bhagwati Rice Mill.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Later Shankar Lal Kedia expanded foothold in the manufacturing sector. He established factories related to steel furniture, stainless steel utensils, textile, umbrella, socks, wheat flour, corrugated steel, copper utensil etc. During that time the steel, textile, and corrugated sheet industries were pioneers in their respective fields in Nepal and they are the backbones of the present day Kedia Organisation.</div>
<div>
	&nbsp;</div>
<div>
	At the same time we also entered in general merchandising sector by importing goods from third countries and bulk-traded them in local market. Our imports included cloth, electronics, food items, medical equipment, household products, hardware, cement, sugar, and edible oil among others. We also exported rice to Tibet and pulses and lentils to Sri Lanka, Bangladesh and to some European countries.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We established Caltex Company, a petrol pump agent in Nepal, and this is still in operation as Kedia Auto in Birgunj.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Kedia Group also is one of the first industrial houses to advertise its products. We sponsored the &ldquo;Sundar Sushil Sangeet&rdquo;, a popular song-on-request programme aired on Radio Nepal, to promote our products.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Amid this long list of successful ventures, we also had some disappointing projects. Though we had bagged the license to launch Coca Cola in Nepal, we had to drop the project in the last minute due to some partnership problems. In 2015 B.S. we had to give up the launch of an iron steel factory project, even though necessary equipment and machinery were imported, after King Mahendra dissolved the democratic government and assumed power. Similarly in 2036-2037 B.S. we had to pull back from establishing the Kedia Paper Industry</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is the present status of Kedia Group and how is it different from the overall situation of the private sector?</strong></span></div>
<div>
	Despiteour engagement in diverse sectors, manufacturing sector is our major area. We have established ourselves in the cement, carpet, and the sugar industry. Recently we have started manufacturing PVC carpet and are upgrading production capacity of Indusankhar Sugar Mill, Nepal&rsquo;s one of the oldest and leading sugar industries.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In the past we invested in the banking and financial sector. We had invested in Siddhartha Insurance, Siddhartha Capital and Siddhartha Bank.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Kedia Group has made some significant investment in the service sector and presently we run several schools and hospitals in the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Along with bulk trading, Kedia Group has once invested in housing projects. And as part of its plan to expand its foothold, the group has made small investments in other sectors like hydropower for getting acquainted with them.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>How is this conglomerate with interests in so diverse fields being managed and controlled?</strong></span></div>
<div>
	We have a joint family and we have divided our tasks within our family members for various sectors. We work in our respective sectors. Our father&rsquo;s generation is also actively involved in managing the business.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In the recent years, Nepal&rsquo;s private sector is diverting investments to service and trade sector from the manufacturing sector. What is the reason?</div>
<div>
	Nepal is a market of its own kind. Situation is difficult here for the manufacturing sector to prosper. Power shortage, a major problem faced by this sector, has been one of the major causes for such decrease in investment in such sectors. Open import is another hindering factor. Nepali market is crowded with cheap products from China and India and it is very hard for domestic products to compete with imported products in the market, especially in terms of cost. As such, only ethnic Nepali products can sustain in the local market.</div>
<div>
	&nbsp;</div>
<div>
	Lack of skilled and productive manpower, unfriendly labour environment and decrease in agricultural production that has triggered increased imports of agro products, are other factors that are affecting the growth of the manufacturing industries in Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong><img alt="Manoj Kedia" src="/userfiles/images/inter1%20(Copy)(1).jpg" style="float: left; margin: 0px 10px 0px 0px;width: 300px; height: 321px;" />You are a vice-president of Confederation of Nepalese Industries (CNI) that specializes in the promotion of industries rather than trading. Why is not CNI doing something to put a stopper on the deindustrialization of Nepali economy?</strong></span></div>
<div>
	This accusation is wrong. CNI has unwavering vision and mission to achieve. It was established to address private sector&rsquo;s problems by promoting liberal policies.The organization believes that the country can achieve prosperity via private sector&rsquo;s involvement in development activities. It has always focused on facilitating the activities of private sector.</div>
<div>
	&nbsp;</div>
<div>
	In reality, many of the genuine issues and demands raised by CNI for promoting private sector remain unaddressed due to concerned authorities&rsquo; reluctance. I am pretty confident that the private sector can make tangible impact if issues and demands raised by CNI are endorsed by the parliament.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>You said Kedia Group is also entering the power generation sector. Would you please elaborate on this?</strong></span></div>
<div>
	The entire industrial sector has been suffering from power deficit. Industrial sector incurs billions of losses due to it. It is a national problem and it is obvious that major business houses want to engage in the power generation business.</div>
<div>
	&nbsp;</div>
<div>
	Presently power/energy costs have increased steeply. Simultaneously, demand for power has also increased. Hydropower has high market potential. As we are aware, due to our inability to use our energy resources, we are purchasing energy from neighbouring countries in various forms like petrol, diesel and oil. Most of our financial resources, which we could have invested in productive sectors, are spent in purchasing energy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Hydropower projects need lots of investment. We need laws and policies friendly enough to attract FDI in that sector. So far, Kedia organisation has not made substantial investment in this sector. We have invested as shareholder in this sector to study the sectoral behaviour.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Why is the Kedia Group not generating power through cogeneration from its sugar mill and supplying it to the national grid?</strong></span></div>
<div>
	We can produce 10 Mega Watt of electricity from cogeneration, that too when the country faces maximum power shortage. To produce power, we need huge investment for developing infrastructure. If such infrastructures are developed in all industries across the nation, 30 to 40 Mega Watt of electricity can be produced. It is far less costly than thermal power plants and other alternative means and takes less time to establish also.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, huge investment is required to develop necessary infrastructure for such a project. As policy keeps changing, it entails huge investment risks. Such risk can be only taken if the state formulates conducive policy and provides special incentives. Otherwise, as an entrepreneur, I would not risk my investment.</div>
<div>
	&nbsp;</div>
<div>
	Presently, waste from the paper mill remains unexploited. If government supports in setting up power plants, such wastes can be used to generate multifuel whenever the nation needs.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Despite being a major player in agro-processing industry why is the Kedia Group not building backward linkages with the farmers?</strong></span></div>
<div>
	We have been coordinating with farmers. We regularly provide them with various skill-based trainings and loans too. We have set up Sugar Mill in Sarlahi district, the major sugarcane growing centre of the country, and it is an instance that reflects how we work in coordination with farmers. In addition to that, we have been actively engaged with farmers in the dairy business as well.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Now that the Constituent Assembly elections are over, how do you visualize the business scenario in the days ahead?</strong></span></div>
<div>
	Democracy has to be institutionalised. Political issues have been settled and that marked the crossing of transitional politics. The rhetoric of transition politics should not be repeated and we should be optimistic of economic growth in the days ahead. Kedia Group is very hopeful of contributing to the overall development of the country.</div>
<div>
	&nbsp;</div>
<div>
	During the last half-decade, there have been many positive changes in the political regime. With the successful completion of second Constituent Assembly election, it&rsquo;s time to focus on institutionalising the achievements.</div>
<div>
	&nbsp;</div>
<div>
	Now, political parties should prioritize national interests by brushing aside their partisan and personal interests and focus on formulating collective goals to achieve national economic growth.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It&rsquo;s an achievement for the private sector that almost all major political parties consider it as the backbone of the national economy. Unity in diversity is our speciality and Nepali leaders should translate this mantra into reality. They should prioritize economic prosperity in their political agenda. Nepali business won&rsquo;t get good reputation in international market unless our economy is strong and self-reliant. It is possible and all we need is sincere commitment from our politicians.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What agenda would you like the upcoming government to focus on for the progress of business-economic field?&nbsp;</strong></span></div>
<div>
	The government should show readiness to address some pending economic agenda. It should create environment whereby industries can be set up in every district. Local bodies should be given authority for deciding utilization of local resources. The central government should act as intermediary to mitigate problems faced by the private sector at the local level.</div>
<div>
	&nbsp;</div>
<div>
	Above all, state should ensure political stability and strong governance and ensure their commitment made in the last election to the general public of drafting and promulgating the new constitution within the promised time frame. Economic growth of the nation can sustain and progress only if the state and political actors act as strong catalyst and continue propelling it.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>The manufacturing index for the last fiscal year and the trade statistics for the first four months of the current fiscal year show some positive indications of improvement over the previous year. How do you interpret this information?</strong></span></div>
<div>
	It is too early to comment on this. &nbsp;We do not see any drastic changes in the manufacturing sector over the last fiscal year. There are several reasons for the said improvement of manufacturing index. Firstly there was comparatively better supply of electricity, and secondly political realm remained stable during the last fiscal year. Dollar revaluation also contributed much for the better performance in the exports trade. We had less volume of imports, that is the domestic market imported fewer consignments in the last fiscal year, and this helped show improvement in the growth rate of the trade deficit. But we should remember that the trade deficit is still increasing though in slower rate.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Where do you see Kedia Group of Industries in five years of time?</strong></span></div>
<div>
	In five years, we envision our involvement in diverse business. We will be engaging in the infrastructure, tourism, power and in the manufacturing sector. All we need is a strong and stable government, business-friendly policies and fair competition between private sector players. &nbsp;The domestic market has huge potentials and Kedia Group looks forward to tap and invest in them to create more jobs in the domestic market itself.</div>',
			'published' => true,
			'created' => '2014-01-24',
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			'description' => 'Kedia Organisation, the oldest and one of the most talked about business conglomerates of the country, has been practicing a synergistic combination of family ownership and professional management since 1909 A.D. Named after their fathers, Late Sundarmal Kedia and Late Ram Kumar Kedia, it was surely a turning point for the Kedias when the first foundation stone of their present day multimillion conglomerate was laid in the form of a small cloth trading business.',
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		'Article' => array(
			'id' => '2312',
			'article_category_id' => '46',
			'title' => '“Nepal-India-China Trilateral Mechanism Needed For Nepal’s Power Development”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;">Chilime Hydropower Company Limited (Chilime), incorporated in 1995, is promoted by Nepal Electricity Authority and owned by the local community also. &nbsp;Its model has been considered as one of the best way to generate wealth for the local people &nbsp;and assists in sustainable development.&nbsp;<strong>Kul Man Ghising</strong>, Managing Director of this public company, recently spoke to&nbsp;<strong>Siromani Dhungana</strong>&nbsp;of New Business Age on issues related to Nepal&rsquo;s hydropower sector.&nbsp;<strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is the progress of power projects being developed by your company?&nbsp;</strong></span></div>
<div>
	We have four projects under Chilime Hydropower Company, namely Sanjen, Mid-Bhotekoshi, Rasuwagadhi and Bemdang. We have been developing all these projects through our subsidiary companies -- Sanjen Jalavidhyut Company, Madhya Bhotekohi Jalavidhyut Company, Rasuwagadhi Hydropower Company and Bemdang Khola. Mid-Bhotekoshi with an installed capacity of 102 MW in Sindhupalchowk district is being developed through Madhya Bhotekoshi. Sanjen is &nbsp;developing two projects&ndash;Sanjen of 42.5 MW and Upper Sanjen &nbsp;of 14.8 MW capacity in Rasuwa district. Rasuwagadhi Hydropower is developing a new project - 111 MW Rasuwagadhi Project in Rasuwa district. We have almost completed all pre-construction tasks including procurement process and taking EIA certificate and other clearances. All these projects will start construction by the end of the current fiscal year. Among these four projects, the progress of Sanjen is rapid. We have planned to complete all works of Sanjen project by 2016 and other projects by 2017.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>The first project developed by your company is often cited as an ideal model for Nepal&rsquo;s power projects. And more examples of such successful model were expected from your company. But none of the projects in the pipeline viz. Sanjen, Madhya Bhote Koshi and Rasuwagadhi are complete so far. Why this delay?&nbsp;</strong></span></div>
<div>
	I do not think there is delay in the progress of projects. We have been working on all projects according to the project timeframe developed by the company. In Nepal, pre-construction works take almost 60 per cent of time required to develop hydropower projects. We have lengthy procedural formalities to complete before starting the actual construction. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We have already completed works that include getting approval from various ministries and government agencies, tunnel testing, infrastructure development at the site among others. Given the usual standard in Nepal, it should be considered as a great achievement for any hydro company to start construction work within three years of acquiring licence. Within three years, we have prepared Detailed Project Report (DPR) and other ground works necessary to start the construction of the project.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	No project can be undertaken without financing. It was challenging to identify proper financing channels. We managed to arrange equity participation from our partners including Nepal Electricity Authority (NEA), Chilime and the public. But debt financing was really important and it is our achievement to have convinced Employees Provident Fund (EPF) to invest in our projects within a year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Financing is not possible without reaching Power Purchase Agreement (PPA) with NEA and DPR is essential for entering into PPA. These are time-consuming processes. Hydropower companies have to go through many hurdles to enter into PPA in Nepal. Companies have been chasing NEA for years to get PPA approved. Process of getting environmental impact assessment (EIA) certificate is unnecessarily lengthy in Nepal. Government agencies compel hydro companies to wait for 2/3 years to acquire EIA certificate. That&rsquo;s not all. Ministry of Forestry takes another 2/3 years to provide consent for chopping trees in project sites. &nbsp;It takes five years just to complete the process at the Ministry of Environment and Ministry of Forestry. These all pre-construction processes are unnecessarily lengthy in Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Adding to it, as a public company we have to follow lengthy procurement process that takes around one to two years to complete. Despite all these hurdles, we have been working aggressively to complete all projects in the stipulated time.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;In Nepal, no project has been completed in less than 10 years of its initiation. Administrative hassles have been causing the delay in completing pre-construction works. Sometimes, I feel these are unnecessary hurdles. The government should focus on easing off these hassles, if it wants to propel hydropower development.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong><img alt="Kul Man Ghising, Managing Director, Chilime Hydropower Company Limited" src="/userfiles/images/intr2%20(Copy).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 250px; height: 368px;" />Some private sector power developers have also pointed out that Chilime is specially favoured by the government and the Nepal Electricity Authority in various respects, such as PPA rate and the choice of projects. What is your assessment?</strong></span></div>
<div>
	As a public company, we have to face dozens of hurdles to develop a hydropower project. First, we have to face problem in public dealings during land acquisition. We follow transparent methods in public dealing and do not pick up influential persons to get them on our side andstart work. Even at the ministry, our projects are processed by taking more time than other private sector companies. The allegations that Chilime has got special privileges are completely baseless. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Developers often complain about the increasing demands of the locals in the project site. How is the situation in projects being developed by Chilime?&nbsp;</strong></span></div>
<div>
	We should not always blame locals for friction in the development of hydro projects. Local people do not always put irrelevant and irrational demands. Power developers should take care of their logical demands. They should maintain transparency in their deals. For a project to be sustainable, deprived people should also get project benefits. This is what we do in our projects. Providing benefits only to a handful of local people always creates trouble.. The activities which are not transparent and are aimed at appeasing a handful of locals are major reasons behind problems at the local level. Power developers should ensure that the project benefits locals through employment opportunities, infrastructure development among others. We have been doing all these activities at the local level and maintained transparency in our dealings. We have decided to float shares to locals on equal basis to create sense of ownership on the project among them.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>One major problem cited in the development of hydropower in Nepal is the lack of capital. To address this problem, legal provisions have been reviewed and the developers have been allowed to raise money from the general public by issuing shares them even before the project construction starts. Why don&rsquo;t the developers use this facility to raise fund?&nbsp;</strong></span></div>
<div>
	There is a great possibility of rasing the capital through issuing shares to the general people. But, Security Board of Nepal&rsquo;s (SEBON) regulation does not allows to issue shares to the general people without solving equity issue among the promoters. Private sector is not very &nbsp;much eager to submit equity details of all the promoters. Due to equity issue, it is not easy to float shares to the public from the private sector power developers. Majority of power developers do not want to issue shares to the public.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In the recent days, people&rsquo;s attraction in buying shares clearly hints that we can generate capital by floating shares to the public. Even generating equity is not a big problem in Nepal. We have enough fund but our problem is how to manage fund. Trust on developers is also equally important before floating shares. All developers can not be as trustworthy as Chilime. If developers fail to make profit, people will not invest in shares of hydro companies in the future. This part also should be considered.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Some analysts suggest that developing hydropower projects in Nepal with an aim to export power to India will benefit Nepal because of the seasonal variation in the water flow and peak demand of electricity in Nepal and India. What is your opinion on this?&nbsp;</strong></span></div>
<div>
	Due to seasonal hydrology, energy management is indeed a challenging task in Nepal. Currently, NEA is responsible to manage energy in the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Development of transmission line for interconnection is a must. Optimum utilization of hydro energy is not possible in the country without interconnection. All power generators should be connected in the national power grid to utilize hydro potential to its full capacity. Interconnection with India means getting connected with the entire South Asian region. It would be really good if we can develop cross-border or regional transmission line.</div>
<div>
	&nbsp;</div>
<div>
	But first, we have to put optimum efforts to develop more power projects so that we can reach the level of a power surplus country. The demand of power will automatically go up in the domestic market too if we generate enough power. More factories &nbsp;will come up here if we can ensure sufficient power supply to them.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What other &nbsp;legal and administrative hurdles are there in developing a hydro project? &nbsp;</strong></span></div>
<div>
	The government has failed to expedite procedure in hydro projects development especially the administrative procedures. It should remove all administrative hassles if it really wants rapid growth in the hydro power sector. We have already talked about the year-long procedural hurdles that exist in various government agencies.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There are some unnecessary and irrational taxes levied on hydropower projects in Nepal. Besides the royalty that the projects have to pay the government, &nbsp;Ministry of Forestry charges one per cent tax on power developers which does not match with government&rsquo;s commitment of facilitating hydropower sector.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Power trading company is necessary to manage energy market in Nepal. We don&rsquo;t have a reliable entity to manage electricity market. NEA is the entity which is signing PPA in Nepal. And this PPA &nbsp;is not based on scientific approach. PPA rates should be decided on the basis of several factors including condition of the project site. . It should be transparent and scientific if Nepal has to be a power surplus nation.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the government should form a scientific pricing mechanism. The price of electricity should not be the same during peak &nbsp;and normal hours. It should focus its effort on all these aspects.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	PPA in terms of dollar has been raised and the government should address this issue along with making the PPA bankable.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The balance sheet of NEA is not convincing to foreign power developers. Foreign investors cannot be assured of the safety oftheir investment when they have to sign agreement with a company that is in such huge loss. If the government cannot provide sovereign guarantee, it should provide payment guarantee. Additionally, in order to attract Foreign Direct Investment (FDI), the government should ensure security mechanism to boost confidence of foreign developers.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What challenges and opportunities do you see in Nepal&rsquo;s hydro power sector?</strong></span></div>
<div>
	Our nearest power market is India and there are potential investors in China. We can bring investors from China and use Indian power market. We can make a trilateral mechanism and develop trilateral business since we have resources, India has market and China has capital to invest.Investment in joint venture among these three countries will be mutually beneficial and can create unique opportunities for all. Chilime model is sufficient to generate power if domestic market is the only target. But, if we want prosperity from hydropower sector, we have to attract foreign power developers and for that we have to open avenues in foreign markets.&nbsp;</div>',
			'published' => true,
			'created' => '2013-12-22',
			'modified' => '2013-12-30',
			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'Chilime Hydropower Company Limited (Chilime), incorporated in 1995, is promoted by Nepal Electricity Authority and owned by the local community also.  Its model has been considered as one of the best way to generate wealth for the local people  and assists in sustainable development. Kul Man Ghising, Managing Director of this public company, recently spoke to Siromani Dhungana of New Business Age on issues related to Nepal’s hydropower sector. Excerpts:',
			'sortorder' => '2202',
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	(int) 5 => array(
		'Article' => array(
			'id' => '2179',
			'article_category_id' => '46',
			'title' => '“There Are Obvious Reasons Why We Decided To Invest In Hotel Business”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Shesh Ghale</strong>&nbsp;is a Mebourne, Australia based non-resident Nepali businessman. He has been listed as the 180th richest man in Australia (together with his wife Jamuna Gurung) by BRW News Australia with a fortune of $225 million. Recently, Ghale has been elected as the president of the Non-Resident Nepali Association (NRNA). Ghale, founder and chief executive officer of Melbourne Institute of Technology, under the MIT Group Holdings Nepal, has signed a management contract with Starwood Hotels and Resort Worldwide, Inc. to build a five-star property named&mdash;the Sheraton Kathmandu. He has also come up with some other investment plans in Nepal. Soon after being elected as the president of NRNA, he has pledged to promote entrepreneurship in Nepal. He spoke to&nbsp;<strong>Siromani Dhungana</strong>&nbsp;of New Business Age about his and NRNA&rsquo;s future investment plans in Nepal.&nbsp;<strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>As the new president of NRNA, what&rsquo;re your priorities in Nepal?</strong></span></div>
<div>
	First meeting of the newly elected committee of NRNA has decided to focus on employment generation and sustainable development of Nepal. To achieve these goals we will implement various projects. These projects include establishing a five-star hotel in Kathmandu that will assist in creating employment opportunities and thereby also contribute in economic growth. &nbsp;We will immediately start the feasibility study for constructing this five-star hotel. Along with that we are planning to bring other projects to help us in gaining our objectives.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What other projects that NRNA will push forward during your tenure?</strong></span></div>
<div>
	We will put emphasis on mutual investment projects. I think NRNA should promote culture of entrepreneurship. During my tenure, we will be doing various activities that promote entrepreneurship in Nepal. These activities will be aimed at translating our slogan &lsquo;Connecting Nepali for Prosperous Nepal&rsquo; into actuality.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>NRNA is often blamed for ignoring blue-colour employees working in the gulf region in spite of their huge contribution to the national economy. What&rsquo;s your say?</strong></span></div>
<div>
	No. Their contribution to the country will be recognized during my tenure. We have decided to create a &lsquo;Relief Fund&rsquo; for migrant workers who have been suffering in foreign land. The fund will be utilized in welfare activities especially for those who die, who get injured and who are shelter less in foreign land. I have pledged to provide Rs 10 million for the fund and I am hopeful that other friends will contribute to the cause. The funds will be ultiized once detailed working procedure is finalized.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong><img alt="Shesh Ghale" src="/userfiles/images/sg%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 321px;" />Getting back to NRNA&rsquo;s decision to invest in hotel sector, why did you choose this business sector to invest in?&nbsp;</strong></span></div>
<div>
	We have good links with foreign star hotel chain brands for investing in hotels. I think we can introduce their expertise here in Nepal. Another reason is the existence of good business prospects for hotels. Non Resident Nepalis can make good profit by investing small amount in this sector. We will encourage new friends to invest in this sector so that the country will get new set of entrepreneurs.</div>
<div>
	&nbsp;</div>
<div>
	But there is strong belief that NRNs should invest in infrastructure rather than hotel sector.</div>
<div>
	&nbsp;</div>
<div>
	There are several obvious reasons why we decided to invest in hotel business. First, the hotel business can generate more employment in small investment. We can generate four hundred jobs if we establish a 200-bed hotel. Second, we can produce skilled manpower by operating hotels with international standard in Nepal. Human resources who work in standard Nepali five-star hotels, can easily get job abroad. Third, hotel business will have a multiplier impact in development. If we establish a hotel in a community, the entire community starts to get benefit from that.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Another reason is the investment in hotel business is easily transferable. &nbsp;Hotel business is one which helps generate foreign exchange reserve.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	NRNA will not, however, undermine infrastructure projects. We will continue all infrastructure projects, including hydropower projects, during my tenure as well. Hydropower has been our priority and it will remain so in the years to come.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Are you also targeting middle-income NRNs during your tenure?</strong></span></div>
<div>
	Yes, indeed. NRNA has planned to start a commercial agriculture project targeting NRNs of middle-east and Korea. NRNs are enthusiastic to invest but do not have much money can benefit from our plan of initiating commercial agro project. On the other hand, commercialization of agriculture sector is Nepal&rsquo;s need of the hour. Nepal should tap potentials in agricultural sector since majority of the people&rsquo;s lives in the country relies heavily on it. Commercializing agriculture sector will also help Nepal in reducing import of agro product.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>You often emphasize on entrepreneurship for the prosperity of the country. Do you have specific plan to promote entrepreneurship in Nepal?</strong></span></div>
<div>
	I am planning to join hands with young Nepali entrepreneurs to promote entrepreneurship in the country. I will create a forum for young entrepreneurs so that they can exchange experience with entrepreneurs from other countries. Also, NRNA has planned to provide a mentor for aspiring entrepreneurs. &nbsp;The concept of mentorship is introduced to synergize the expertise of the older generation with the energy of younger generation.</div>
<div>
	&nbsp;</div>
<div>
	Entrepreneurship development is a time-intensive project rather than capital-intensive. The mentor has to spend time with younger generation entrepreneurs to share experience and to inspire them to do something worthwhile. We are confident that we can produce some good entrepreneurs by materializing this concept.</div>
<div>
	&nbsp;</div>
<div>
	It is said that Nepali products are yet to get foothold in international market. How can we expand country&rsquo;s recognition in international business realm?</div>
<div>
	We NRNs, who have already entered in international business sector, should act as bridge to link Nepal with other international markets. &nbsp;Collective efforts of government bodies and private sector can earn a good reputation for the country. The country needs to pay attention on creating brand name of some products in the international market. Some promotional activities will be also needed to this end. Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has been putting effort to promote Nepali products in the international market. It has a separate Nepali Products Promotion Committee which has been extensively working to promote Nepali products. We will work in close collaboration with FNCCI and young entrepreneurs.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Do you have other specific plan for promoting Nepali brands in international market?</strong></span></div>
<div>
	It is worthwhile mentioning here that we will be promoting Nepali products through &lsquo;Made in Nepal&rsquo; exhibition in various countries. We have planned to organize such exhibitions in five countries in the first phase. Similarly, we will construct &lsquo;Nepal House&rsquo; in various countries which will be helpful to inform foreigners about Nepal and Nepali culture. We have planned to construct such houses in Mexico, Belgium, UK, USA and Australia. We will gradually expand this concept to other nations and cities too.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>How do you take recent accusations of involvement of political parties in NRNA&rsquo;s recent convention ?</strong></span></div>
<div>
	I want to clear it out that politics is our least priority in Nepal. We are all focused on bringing cultural change regarding entrepreneurship in Nepal. We have to increase productivity for the prosperity of the country and we will be involved in such activities but not in politics directly.</div>',
			'published' => true,
			'created' => '2013-11-28',
			'modified' => '2013-12-08',
			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'Shesh Ghale is a Mebourne, Australia based non-resident Nepali businessman. He has been listed as the 180th richest man in Australia (together with his wife Jamuna Gurung) by BRW News Australia with a fortune of $225 million. Recently, Ghale has been elected as the president of the Non-Resident Nepali Association (NRNA).',
			'sortorder' => '2067',
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	(int) 6 => array(
		'Article' => array(
			'id' => '2067',
			'article_category_id' => '46',
			'title' => '“Private Sector  Is Publicity-Oriented”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<div>
		<span style="font-size: 16px;">Though a businessman, he is well known in political circles. Entering the business world at the age of 14, Ajay Raj Sumargi, Chairman of Mukti Shree Pvt Ltd, has many successes under his belt. Shifting between political and business circles, and from one business sector to the next, Sumargi makes an interesting business personality in Nepal. His favourite sector at the moment is hydropower which, according to him, is the one that can change the economy of the country for the better. He does not try to hide his interest in politics and ways he interacts with political forces in order to develop a common minimum understanding among political leaders. &ldquo;Yes, leaders come to me and request to play the role of mediator when there are disputes and differences among them,&rdquo; he reveals. Sumargi talks to New Business Age&rsquo;s Siromani Dhungana about his journey and perspective on business in Nepal.&nbsp;<strong>Excerpts:&nbsp;</strong></span></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Can you please share with us your journey from being a local businessman outside of the valley to a renowned and one of the richest ones in the country?</strong></span></div>
	<div>
		I was 14 when my father passed away. Our family was already renowned for business at that time. We were involved in various businesses such as transportation, mines and wood works. My mother was always worried about my studies owing to my involvement in business from a very young age. I was responsible toward my younger brothers and we were liable to huge bank loans at that time.</div>
	<div>
		&nbsp;</div>
	<div>
		In 1978, I was liable for a bank loan worth Rs 1.1 million because I had taken over all responsibilities of my father&rsquo;s business. I must confess that I am not a first generation businessman - all I did was continued the businesses initiated by my father. I cleared all my banks loans by 1986 and was able to own a car at that time. All my success today is due to my hard work in those days.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>You entered the business world at a very young age. How did you cope with challenges in business?</strong></span></div>
	<div>
		I was born in a very prosperous and educated family that had great influence at the local level. I cannot forget the contribution of my predecessors for my progress. Similarly, I got many opportunities, warmth and cooperation from society due to my father&rsquo;s fame.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Another reason for my success is my readiness to take risks in business. For instance, I bought a loader worth $60,000 around 1993. At that time most people suggested that I buy a truck instead because the profit attained from trucks was more secure compared to loaders. However, my decision of purchasing a loader paid back and proved to be a right within six years as I was able to reap profit and invest it further in other projects. As a businessman, I always took risks and my readiness to bear risks has benefitted me thus far.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Generally, I change my sector every 11-12 years. In the initial 10 years, I was involved in the business of wood mills; after that, I moved on to the business of mines; later, I got involved in the telecom business and have been in it for the last 10 years.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>So, which sector do you anticipate engaging in the next 10 years?</strong></span></div>
	<div>
		It is obviously the hydropower sector I want to concentrate in the coming decade. I have planned to invest in a 35MW hydropower project in Dhading district. I will also put my energies to bring foreign investment in the hydropower sector.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		I had planned to construct a large capacity hydropower project in Karnali when Pushpa Kamal Dahal was Prime Minister. But it could not start due to hassles at the political level. I have put hydropower in my priority list and I think my presence will have a positive impact just as in the telecom sector. My contribution to make the telecom sector competitive and cheap has proved that I can create positive impact in business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Private sector investment in hydropower has been a much hyped issue. In your opinion, what are some major problems impeding the big hydro hope?</strong></span></div>
	<div>
		There are many problems in the hydropower sector. First, we have entrusted the responsibility of production, transmission and distribution work to the same agency - the Nepal Electricity Authority (NEA). In my opinion, a single government agency cannot carry out all these responsibilities. The government&rsquo;s role should be limited to the monitoring of the entire sector whereas work of production, transmission and distribution should be given to the private sector. But the government should provide some sort of subsidy to develop this sector. Another major problem is in transmission. The existing transmission line is not sufficient to supply electricity to households connected to the grid. The line cannot supply power even if sufficient power is produced. Lack of an effective system in NEA and lack of appropriate policies and laws have also affected the development of the hydropower sector.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>The private sector is also blamed for malpractices in the hydropower sector. What is your say?</strong></span></div>
	<div>
		It seems the private sector has been publicity-oriented to some extent. Hoarding of hydropower licenses is a serious malpractice on the part of the private sector. Such trends tarnish the reputation of the private sector. The government should revoke the licenses of those firms that are squatting on the licenses just for pocketing them.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Genuine businessmen have been suffering due to the license hoarding trend. The government cannot issue licenses to genuine businessmen like me since all rivers are already occupied. The government should end this and the private sector should support the government in doing so.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Let&rsquo;s change the topic. In your opinion, what should the government do to create an environment conducive to entrepreneurship?</strong></span></div>
	<div>
		Instead of the government acting for that purpose, I think the private sector should be sincere. Activities of the private sector should promote and strengthen it. The government alone cannot create an environment conducive for &nbsp;entrepreneurship and a blame game is not enough. &nbsp;Yet, the government has many responsibilities. The government should facilitate business activities by investing in infrastructure. Three sectors including information technology, hydropower and road connectivity are especially important for positive environment in business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>In spite of your attempt to stay away from controversy, you are always amidst it due to your political connections. Why is this so?</strong></span></div>
	<div>
		I never want controversy pertaining to my personal life. But people always try to drag me into it which is not good. I don&rsquo;t think it is my fault. People often see things from a single perspective and fail to evaluate things from multiple sides. I think a one-sided assessment of any person will victimise the concerned person.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>There are rumours that you and Prachanda have joint investment in some commercial organizations. Is this true?</strong></span></div>
	<div>
		I was equally close to late Girija Prasad Koirala. Once, I did not speak with him for three months and later he himself came to my house. This does not mean that I want to show off my connection with leaders. But I have good relations with all leaders regardless of their political ideology. I do not have any special connection with Prachanda. I frequently meet Sushil Koirala, Madhav Kumar Nepal and Ram Chandra Paudel. People do not care when I meet other leaders but I don&rsquo;t understand why they hype my meeting with Prachanda. Instead, I claim that I have played a role among political leaders to mitigate the differences among them. They also ask me to play the role of mediator when there are disputes and differences among them.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>It is also said that you constructed &lsquo;Mukti Tower&rsquo; in Baneshwar, naming it after Prachanda&rsquo;s father?</strong></span></div>
	<div>
		Yes, it is correct that I have constructed Mukti Tower. Its full name is &lsquo;Mukti Shree Tower&rsquo; and I named it after Lord Muktinath. I want to inform that I have kept more than 90 per cent of names of my companies after Lord Muktinath. It is false information that the name of the tower was after Prachanda&rsquo;s father. I don&rsquo;t have special relations with Prachanda. Rather, I have known Dr Baburam Bhattarai for long. What I want as a businessman is very clear - that our leaders should have common minimum agenda for the economic development of the country, and I want to contribute to develop such agenda.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Despite being a businessman, you are equally familiar with the political situation of the country. How do you see the relation between politics and business?</strong></span></div>
	<div>
		Political stability is very important to foster good business environment. Politicians need to assure that it is safe to invest. Similarly, right to property is also very important to create an environment conducive to entrepreneurship. All business people should be convinced that there is level playing field in the business sector. No one will be ready to take risks in an environment of political instability. We want a constitution that will ensure right to property and a free market economy. I want the election to be held in the stipulated time which will be crucial for stability in the country. There may be a group that does not want elections to take place for their own benefit. Prolonged transition in politics will lead us to the worst situation in terms of business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Political parties still seem to be less worried about economic agenda during election. How do you view this?</strong></span></div>
	<div>
		Recently, Nepali Congress organized a meeting with the business community and entrepreneurs to hold a discussion about economic agendas. I was very happy to be participating in the meeting. I want other parties to hold similar discussions. In my opinion, economic agendas should be forwarded in a professional manner, leaving political advantages and disadvantages aside. &nbsp;Political parties should include the issues of economic reform in their manifestos. Political commitments in manifestos help citizens make parties accountable. In spite of having potential for economic prosperity, we have been failing to tap it, forcing our human resource to go abroad for job opportunities.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>So you are worried about the trend of Nepalis seeking jobs abroad?</strong></span></div>
	<div>
		Yes, indeed I am. Our country has been supplying unskilled labour abroad. My wish is to create more and more jobs in this country so that people will not be compelled to seek jobs in a foreign land. If we cannot create enough jobs, the government should at least train the manpower going abroad to prevent trouble there. We need to provide training for basic skills and knowledge for job seekers. Similarly, the country needs to provide basic language training so that employees will be able to converse in a foreign land. Manpower agencies should also be made accountable to their clients.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>What are the three most important qualities to be a successful entrepreneur?</strong></span></div>
	<div>
		Integrity, duty, and patience are essential to be a successful entrepreneur. One should be straightforward and clear in conversation. Anyone should have the courage to say &lsquo;No&rsquo; for what is wrong or impossible and &lsquo;Yes&rsquo; for what is right and possible. Sincerity in business dealings goes a long way. I think, we should respect all and should have patience for everything as well.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Are you satisfied with what you have achieved so far?&nbsp;</strong></span></div>
	<div>
		Yes, indeed, I am satisfied with my work thus far - I am an optimistic person by nature. Rather, I worry about whom to pay for the heat we get from the sun or the air we breathe. I have been interested in contributing to society through various philanthropic deeds. And thus far I have been involved in road and public taps construction, and canal and bridge construction. I get pleasure from social work as I feel I am obligated towards society. Social work has been a satisfactory experience and I request fellow businessmen to realize the same. &nbsp;</div>
</div>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-10-29',
			'modified' => '2013-11-10',
			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'Though a businessman, he is well known in political circles. Entering the business world at the age of 14, Ajay Raj Sumargi, Chairman of Mukti Shree Pvt Ltd, has many successes under his belt. Shifting between political and business circles, and from one business sector to the next, Sumargi makes an interesting business personality in Nepal. His favourite sector at the moment is hydropower which, according to him, is the one that can change the economy of the country for the better. He does not try to hide his interest in politics and ways he interacts with political forces in order to develop a common minimum understanding among political leaders.',
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	(int) 7 => array(
		'Article' => array(
			'id' => '1967',
			'article_category_id' => '46',
			'title' => 'Etihad Airways’ Global Network Contributes To The Success Of Kathmandu Route',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size: 14px;">In less than six years of its operation in Nepal, Etihad Airways has already established its brand image among Nepali consumers. Since the commencement of flights in 2007, the United Arab Emirates-based airline has carried more than 500,000 passengers. In addition to connectivity in between Abu Dhabi and Nepal, Etihad Airways offers its service to more than 87 destinations across the globe. New Business Age asked&nbsp;<strong>Pawana Shrestha</strong>, Etihad Airways&rsquo; Country Manager in Nepal about airline&rsquo;s plan.<strong>&nbsp;Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>Etihad Airways recently celebrated its fifth year of operation in Nepal? How has the journey been?</strong></div>
<div>
	Our services to Kathmandu have been a great success. Since the launch of the route in 2007 we have carried more than 570,000 passengers. In addition to carrying passengers between Abu Dhabi and Nepal, Etihad Airways offers seamless connections to more than 94 destinations around the world. Etihad Airways&rsquo; global network has been a major contributor to the success of the Kathmandu route.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are the future plans of Etihad Airways in Nepal?</strong></div>
<div>
	We will continue to work closely with our travel partners to promote tourism to this beautiful country and carry more passengers to cities across our global network.</div>
<div>
	&nbsp;</div>
<div>
	Our close partnerships with the trade and travel industry in Nepal, has been instrumental in our success in Nepal, with the consistently high load factor across all cabins. We are very pleased to be making meaningful contribution to the Nepali economy.</div>
<div>
	&nbsp;</div>
<div>
	<strong>The United Arab Emirates (UAE) is a lucrative destination for many Nepali migrant workers. What is the percentage of migrant workers that Etihad cater to ?</strong></div>
<div>
	We cater to a fairly large number of Nepali workers. However; we carry even more leisure passengers. In 2012 Nepalese workers made up around 30 per cent of our customer base, leisure passengers made up 50 per cent. The remaining were business and corporate travelers.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Numerous other airlines are operating in Nepal. How tough is the market competition for Etihad?</strong></div>
<div>
	Nepal is a very competitive market and there are around 28 airlines currently operating services to Kathmandu. The Abu Dhabi- Kathmandu route, however, has been very successful. This success is due to our commitment to providing our guests with a remarkable travel experience across their entire journey and our focus on delivering award winning product and services.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is your Marketing Strategy in Nepal?</strong></div>
<div>
	Our Marketing strategy focuses on raising the profile of Etihad Airways in the Nepali market and increasing awareness of Abu Dhabi as a leisure destination. The core of our strategy, however, is providing an unbeatable product.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Our marketing strategy involves working closely with our partners, travel agents, industry magazines and trade associations as well as by deploying various promotions, competitions and discount programmes throughout the year. &nbsp;These include tactical campaigns like regular breaking deals, online deals and highly discounted last-minute offers to encourage repeat visitors.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are your CSR programmes in Nepal?</strong></div>
<div>
	Etihad Airways is committed to active participation in causes that support people and strengthen communities across its global network.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;In Nepal, our corporate social responsibility policy centers on projects that assist communities in need and, in the longer term, drive development and empowerment. Therefore, we support orphanages and education projects and homes for the elderly and through medical partners, support critical surgery and health services training.</div>
<div>
	&nbsp;</div>
<div>
	Recently we donated a large amount of waste paper to support a recycling initiative led by Shanti Sewa Griha, a non-governmental &nbsp;organisation providing shelter for the less privileged and fighting discrimination against leprosy patients in Nepal.</div>
<div>
	&nbsp;</div>
<div>
	In 2012 we donated care parcels, made up of packed lunches and blankets, to two social welfare organizations in Kathmandu to keep the less privileged safe from the piercing cold of Nepal.</div>',
			'published' => true,
			'created' => '2013-10-09',
			'modified' => '2013-10-28',
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			'description' => 'In less than six years of its operation in Nepal, Etihad Airways has already established its brand image among Nepali consumers. Since the commencement of flights in 2007, the United Arab Emirates-based airline has carried more than 500,000 passengers.',
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	(int) 8 => array(
		'Article' => array(
			'id' => '1678',
			'article_category_id' => '46',
			'title' => '‘Banks Contribute By Dispensing Credit And Absorbing The Additional Income Of People’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;">The Everest Bank Pvt. Ltd. (EBL) appointed&nbsp;</span><strong style="font-size: 14px;">AK Ahluwalia</strong><span style="font-size: 14px;">&nbsp;as its new chief executive officer effective from July 1. Founded in 1994, the bank has been one of the leading banks of the country catering to various segments of society. Ahluwalia, who has 32 years of experience in the banking sector, was deputy general manager of the Punjab National Bank, India. He has key expertise in credit and recovery in the banking system and now leads the Everest Bank which has 50 branches, 25 collection counters and 67 ATMs. In this interview with&nbsp;</span><strong style="font-size: 14px;">Siromani Dhungana</strong><span style="font-size: 14px;">&nbsp;of New Business Age, shares his experiences in banking sector and his plans in Nepal to lead Everest Bank into the next level.&nbsp;</span><strong style="font-size: 14px;">Excerpts:</strong></div>
<div>
	<div>
		&nbsp;</div>
	<div>
		<strong>You worked with the Punjab National Bank for 32 years. How do you see the banking sector in the South Asian region?&nbsp;</strong></div>
	<div>
		In my view, there is one thing common to the entire region which is the general slowdown of the economy. The inflationary trend also affects the cost of goods produced, thus making them uncompetitive in the international market. As a result, exports slow down. There is also a general tendency on the part of entrepreneurs to procrastinate in expanding their existing units or setting up new industries due to the slow economy.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>So you think the manufacturing sector and the banking sector will go well together?&nbsp;</strong></div>
	<div>
		I believe so. When the manufacturing sector is on an upswing, more capacity is created and utilized, more jobs are created and the standard of living of employees improve. People&#39;s purchasing power improves, in turn increasing demand. This is a cycle which continues and contributes in a big way to boost the economy. Banks contribute in their own way by dispensing credit and also by absorbing the additional income of people as deposits, and investing the same.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>You were with the Punjab National Bank in Delhi before coming Everest Bank Limited. What inspired you to be here?&nbsp;</strong></div>
	<div>
		I have worked for 32 years in the Punjab National Bank, having joined as Management Trainee. During my time there, I worked in all types of branches as branch manager and also at the corporate office as well as the circle office. Now I have a chance to work as CEO at Everest Bank Ltd, which is a prominent commercial bank in Nepal. It is my privilege to be a part of this institution and it would be my endeavour to carry it forward and try and make the bank stronger within the framework of regulatory guidelines.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>What are your future plans here onward?&nbsp;</strong></div>
	<div>
		Everest Bank has been doing exceeding well. It has created a unique brand image for itself. Over a period of time, it has become one of the leading commercial banks of Nepal. I believe when you have raised expectations of your stake holders, whether customers, staff, shareholders or promoters, you have to live up to them. It takes a lot to create the brand image and it would be my priority to add further value to it. I have a great team of people working with me who are fully devoted to take the bank to the next level.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Will you bring unique products/services to push the bank to the next level?&nbsp;</strong></div>
	<div>
		I have been CEO of the bank only for a fortnight and it is too early to comment. However, my priority would be to increase the customer base of the bank, both in deposits as well as credit. The existing products are, and also in future would be, in keeping with the customers&rsquo; needs and expectations.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Let&rsquo;s talk about your career and what your banking experience has taught you.&nbsp;</strong></div>
	<div>
		My banking experience has taught me one very simple thing - that if I want my customers to be loyal to me, I have to be loyal to them. When we give correct advice to our customers and deliver exactly what we promise, their loyalty automatically grows.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Your key expertise is in credit and recovery. Can you bring some innovative ideas in these areas?&nbsp;</strong></div>
	<div>
		Credit is basically a function of delivery. For a credit customer, delivery has to be very fast. As far as recovery is concerned, it is basically about being vigilant. If we are vigilant about our accounts, and if the monitoring is good, then recovery is not an issue. Primarily, if we are able to catch signal of an account going sticky at the right time, then corrective measures can be taken immediately.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Any plans for the rural sector?&nbsp;</strong></div>
	<div>
		Prior to my joining EBL, the bank already had plans for agriculture financing, having set up a branch at Rajbiraj, Krishi Udhyam Bikash Sakha. We are also encouraging some corporate clients to boost finances in rural areas.</div>
</div>
<div>
	&nbsp;</div>',
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			'description' => 'The Everest Bank Pvt. Ltd. (EBL) appointed AK Ahluwalia as its new chief executive officer',
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	(int) 9 => array(
		'Article' => array(
			'id' => '1442',
			'article_category_id' => '46',
			'title' => 'Development And Growth Should Go Together',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size: 12px;"><span style="font-size:14px;">Radhesh Pant has experience of working nearly a decade in United States in the financial sector. After acquiring good experience of banking sector from the world&rsquo;s number one economy, he returned to Nepal in 1999 and engaged in banking sector. He was also the president of the Nepal Bankers&#39; Association (NBA). He was appointed to head of Nepal Investment Board in 2011. The Investment Board is envisioned to give a one-window solution to potential investors in big projects of over Rs 25 billion with the chairmanship of the Prime Minister of Nepal. Siromani Dhungana and Sujan Dhungnaa of New Business Age spoke to him about prospects of alternative development paradigm in Nepal and his view regarding development versus growth. He says development and growth should go together for the effective development initiative in the country.</span><strong> <span style="font-size:14px;">Excerpt:</span></strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>The ongoing controversy in Nepal regarding growth versus development (more specifically inclusive development) is said to be affecting the functioning of the Nepali economy. How do you view this controversy?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Inclusive development induces economic growth that is sustainable and will result in better livelihood for all the people. Inclusive development will also minimize the gap between the rich and the poor that will culminate in fair distribution of wealth and ample opportunities for all. However, economic growth alone could actually increase the gap between the haves and have nots thereby ensuing inequality, ill-governance, agitation and corruption amongst others which is not sustainable and will result in restlessness, chaos and ultimately civil unrest. This is the risk we are facing in the country right now. We need to focus on inclusive growth and we need to do that fast.&nbsp;</div>
<div>
	For Nepal, with the abundant resources of all kinds, we ought to focus on inclusive development. We need to get our act together. First off, our politicians need to place consistent and consensual priority on inclusive development. Projects that have enormous impact on inclusive growth need to be defined and prioritized. Then we need stable policies such that government changes do not impact these projects and there is continuity. Finally, we need to build our capacity within and outside government to ensure transparency, good governance, accountability and technical ability to monitor and regulate large scale projects. Moreover, we need to be competitive compared to other countries in the region in terms of providing good and timely services, incentives and project formulations.&nbsp;</div>
<div>
	I believe the Investment Board has been established about a year and a half ago for the single purpose of executing large scale projects that assures fair share to Nepal. We are currently focused on large projects that have enormous impact on the economy and would definitely foster inclusive development of Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The Investment board is entrusted to promote economic development of the country and to create employment opportunities. How compatible is this stated mandate with the actual functioning of the Board?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	I think it is absolutely compatible. We have great resources in hydropower, agriculture, tourism amongst others, but we have not been able to capitalize on them. Development of these resources, coupled with the infrastructure development needs in the country to physically connect every nook and corner of the country is the priority. It provides trade of goods, people and services within the country and also abroad. This would create lots of jobs, domestic sustenance, increased exports and will ultimately lead to economic transformation.&nbsp;</div>
<div>
	Investment Board is mandated to do exactly that. Its objective is to provide a fast track approval process and a single window mechanism for prospective investors, both domestic and international. So, essentially by implementing the large scale projects, the Investment Board is the transformation agent that will create ample employment opportunities and inclusive development of Nepal.&nbsp;</div>
<div>
	But having said that, there need to be competitive and coherent policies in place in order to achieve this. Moreover, the Investment Board needs to be at an arm&rsquo;s length from the government and needs to be run professionally, transparently, competitively and with accountability. This is what we have been focused for a year or so. The Investment Board needs to capture the interest of Nepal in all the projects that it executes rather than on vested interests of certain factions. And that is exactly why the Project Development Agreement based on the nine principles that protects Nepal&rsquo;s interest has been formulated.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>So, what are the nine principles? Could you illustrate on that?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Well, currently, we have a Project Development Agreement that is focused on the Hydropower Development. However, this agreement will be emulated for other large projects in other sectors as well. The basic nine principles are that the Project:&nbsp;</div>
<div>
	1. Meet Nepal&rsquo;s electricity needs first.&nbsp;</div>
<div>
	2. Captures for Nepal her fair share of economic benefits.&nbsp;</div>
<div>
	3. Ensures best use of river basin.&nbsp;</div>
<div>
	4. Returns hydro asset to Nepal in good operating condition.&nbsp;</div>
<div>
	5. Transfers project risk to party best able to manage risk.&nbsp;</div>
<div>
	6. It is balanced. The developer is able to receive a fair market based return as compensation for investment, project development and management skills and risk.&nbsp;</div>
<div>
	7. Ensures high environmental sustainability and high safety standards.&nbsp;</div>
<div>
	8. Industrial and Employment Benefits. A good deal is structured so that the demand for goods and services from the tens of billions of dollars of expenditure stimulate many new prosperous business and thousands of skilled and semiskilled jobs for Nepalis.&nbsp;</div>
<div>
	9. Model community benefits includes a package that brings about long term benefits such as training, skill development, employment, business development, community infrastructure - clean water, health services, electrification, housing, etc. It will ensure that local people will become proponents rather than opponents of new hydro projects.&nbsp;</div>
<div>
	With these principles in place, I am confident that Nepal&rsquo;s interest will be protected and that Nepal will be able to maximize its fair share from the project.&nbsp;</div>
<div>
	The government has set an economic growth target of 7 per cent by 2015. Do you think that the government is biting more than it can chew?&nbsp;</div>
<div>
	In my mind, reaching a 7 percent economic growth is not that much of a deal. We need to get our act together. First of all, economic agenda has to be a top priority for all the parties. Consensus amongst the political parties on priority projects is a pre-requisite. Then, elections need to happen in November. We need to send out signals to the investors, both domestic and international that Nepal is ready for business. Stable investment policies that are attractive to investors need to be in place. In the current fiscal year, we are expected to grow at 4.5 percent growth and last year we grew at around 5 percent. If the above preconditions are achieved, adding two more percent is not that difficult. The ball is on our (Nepal&rsquo;s) court.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>In your opinion, what type of policies should the government adopt to promote inclusive development?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Policies need to be clear, simple, sustainable and stable. With every government change, its priorities and policies cannot change. Secondly, inclusive development will not happen overnight. We need to have a long term strategy that is supported by all the stakeholders of development. This includes the political parties, government, private sector and Nepali people in general. The policies and laws need to complement the project execution rather than hindering it. If we are able to execute projects that harness our resources (which are spread across the country), inclusive development will become a reality.</div>
<div>
	&nbsp;</div>',
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			'created' => '2013-07-19',
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			'description' => 'Radhesh Pant has experience of working nearly a decade in United States in the financial sector. After acquiring good experience of banking sector from the world’s number one economy, he returned to Nepal in 1999 and engaged in banking sector. He was also the president of the Nepal Bankers' Association (NBA). He was appointed to head of Nepal Investment Board in 2011.',
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		'Article' => array(
			'id' => '1059',
			'article_category_id' => '46',
			'title' => 'Coca-Cola Strives Be Relevant To New Generations',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Coca-Cola’s India unit and South West Asia business operations comprise key markets – India, Nepal, Bhutan, Bangladesh, Sri Lanka and Maldives. Nepal is one of the key markets for Coca-Cola and the business unit’s role is critical to the company to maintain its market share and brand name. Recently, Neeraj Garg, vice president at Coca-cola India and South West Asia Business Unit visited Nepal. New Business Age Editor-in-chief Madan Lamsal talked with him regarding business prospects of Coca-Cola in Nepali market during his visit.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>Kindly talk about your career growth and your role in the Coca Cola business today.</strong></p>
<p>
	I have spent most of my working life with Coca-Cola, having been with the company for almost two decades now. I joined in 1994 and worked in a variety of roles mostly involving Operations and Commercial beverages. I had an eight year stint with Coca-Cola China where I worked on a variety of roles from Business Development to Shanghai Region Manager and also managed The Coca-Cola Company’s Global Partnership for the 2010 World Expo in Shanghai. I moved back to India in early 2011 as VP-Operations providing leadership support to the company owned bottling operations (CBO) and franchise bottling operations (FBO’s) in India. In October 2012, I took over the role of VP-South West Asia Operations and as the Head of our Juice business for the India and South West Asia Business Unit.</p>
<p>
	Coca-Cola is a great company and a great brand to work for. I’ve had some extremely challenging yet fantastic experiences in my years with Coke. I have had the pleasure of working with some of the most engaged and inspiring people as a part of the Coca-Cola family and I hope I can continue to do so in the future as well.&nbsp;</p>
<p>
	<strong>Till a few years ago Coke in Nepal enjoyed close to 80 percent of market share. That is now reduced about 64 percent only, somewhat due to aggressive marketing from the competitor. What is being planned in order for Coke to regain the same past glory? Where have you reached in your expansion plan for Coca-Cola in Nepal?</strong></p>
<p>
	The Coca-Cola Company is one of the largest beverages companies and our products are available in more than 200 countries. In Nepal as well, our brands enjoy consumer preference and share of throat, as we like to call it.&nbsp;</p>
<p>
	After 126 years in the beverage business, we are still innovating, evolving and striving to be relevant to new generations. &nbsp;We constantly strive to stay relevant to our consumers by focusing on their needs and consumption patterns and connecting with them through our products. For example, Trademark Coca-Cola has partnered with the All Nepal Football Association for the Coca-Cola Cup to connect with young footballers across Nepal and promote healthy active lifestyles. Brand Fanta has partnered with the Miss Nepal pageant to stay relevant to teenagers and add some ‘play’ in their lives. So we are constantly trying to find touch points that connect our brands with our consumers across the country.&nbsp;</p>
<p>
	We face aggressive competition in any country that we operate in, but this is good since it not only helps the category to grow, but also provides consumers with a choice of high quality beverages. &nbsp;</p>
<p>
	Providing consumers with choice and value continues to be the cornerstone of our business strategy.We are focused on offering a range of products in different packs at varying price points, which is in keeping with our OBPPC (occasion, brand, price, pack, and channel) architecture. To ensure this, we are investing in our distribution, innovation and marketing investments to continue to drive recruitment for the beverage category. Further improvement in the company’s route-to-market and organizational capabilities are also areas we need to focus on. We have solid plans for Nepal this year and if we can do the right things every day, business growth is a given.</p>
<p>
	<strong style="font-size: 12px;">Coca-Cola in Nepal does not have a wide range of products that the company’s consumers enjoy elsewhere. What are you doing in this regard? Is any products line expansion in the offing in Nepal?</strong></p>
<p>
	The Coca-Cola Company is one of the largest beverages companies in the world today. We are available in more than 200 countries across the world and have more than 3500 product offerings, including more than 800 low and no calorie products, for our consumers to choose from.</p>
<p>
	Our efforts in Nepal need to be directed at being the beverage of choice all day, every day. We need to continue to do the right things each day and at all times.We want to provide our consumers across Nepal with a wide variety of products. We currently offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes across channels. We are focused on leveraging the growth opportunity that a market like Nepal provides and we are constantly researching and evaluating need states to grow our business and expand our portfolio of products.</p>
<p>
	We have been researching and innovating and have a number of plans for Nepal this year in terms of our beverage choices and packaging varieties. You will have to watch out for those in the coming months!</p>
<p>
	<strong>What is the contribution of Coca-Cola’s pure juice and juice products to its total annual revenue collection from Nepal?&nbsp;</strong></p>
<p>
	We currently offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes including in RGB 250ml, Cans 330 ml, PET 500ml, 1.5 Liters and 2.25 Liters. Our current portfolio does not include juices and juice products. As I said before, we are focusing on our distribution, route-to-market and organizational capabilities to drive recruitment for the beverage category, grow our business and expand our portfolio of products, in line with consumer choice and preference.</p>
<p>
	<strong>Coca-Cola’s fruit juice and juice products like the Minute-Maid and Simply Orange apparently do not have any significant market share in the Nepali market. What are the plans to promote these juice products of the company in Nepal?</strong></p>
<p>
	As I mentioned earlier, we currently do not manufacture any juice in Nepal.We offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes. Packaged beverage consumption is on the rise in Nepal and we are constantly evaluating opportunities to provide our consumers with a variety of still and sparkling beverages.We need to continue to do the right things each day and at all times, to further grow the packaged ready to drink beverage business in the country. We will of course continue to innovate and evolve our portfolio of products to cater to consumers’ tastes in the Nepalese market.</p>
<p>
	<strong>There is one controversy in Nepal. People say that the Coke they get to drink here in Nepal or this part of the world is not the same as what the people in the US or Europe get to drink. Is the perception right? If there is perceptive difference, why so and do you find reasons enough to alter this perception? How?</strong></p>
<p>
	Our beverages across the world provide consumers with the same great taste and quality. We strive toprovide the same high quality, safe and tasty products in all 200+ countries in which we operate. Our quality testing parameters and taste standards apply to all our manufacturing facilities worldwide. We aim to provide our consumers the same refreshing and flavourful beverages across the world.</p>
<p>
	<strong>Coke is no doubt the most popular carbonated drinks in Nepal as well as in the South Asian region. But perhaps the same is not true for Coke’s juices. How far is Coca-Cola from realizing the optimum potential of its juice business in the South Asianregion?&nbsp;</strong></p>
<p>
	Nepal’s beverage industry is growing. Consumers now have a lot of choice in terms of choosing what type of beverage they want, at what pack and what occasion.</p>
<p>
	That being said, the industry still has a lot of potential to grow. This is a country which has a relatively low per capita consumption levels for packaged beverages and we see steady and robust growth in both sparkling and still beverage categories in the future. The per capita consumption of our products is only 9.2. Contrast this to a global average of 92, 38 in China and 728 in Mexico. In Nepal our portfolio includes Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda. In India we have products like Thums Up and Limca and the Minute Maid Brand of juices.&nbsp;</p>
<p>
	Minute Maid Pulpy Orange is the number one orange juice drink and Maaza, our mango juice drink has been the leader in the mango juice category for years now. In Sri Lanka as well, we have our Minute Maid range of juices, including Orange, Mango, Apple and Mixed Fruit flavours which are doing exceptionally well in that market. We are currently the market leaders in Sri Lanka. So we are seeing a rise in the consumption of juice and juice drinks in all our markets in this region. Our outlook towards juices and juice based beverages in this region is very positive. With disposable incomes rising, consumers are focusing on hygiene and quality of packaged beverages which will lead to growth in consumption of our juice drinks as well.</p>
<p>
	<strong>The company’s other beverages such asLimca, ThumsUp, Maaza etc.are quite popular in India but not that much in Nepal. Is the company going to adopt any new marketing strategy in order to promote these brands in Nepal?</strong></p>
<p>
	Our efforts in Nepal need to be directed at being the beverage of choice all day, every day.We want to provide our consumers across Nepal with a wide variety of products and we have been investing behind our brands and brand positioning to drive recruitment for the sparkling beverage category. We currently offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes. We are focused on leveraging the growth opportunity that a market like Nepal provides. We have some solid marketing plans for Nepal this year and we will continue to innovate and evolve our portfolio of products to cater to consumers’ taste preferences in Nepal.</p>
<p>
	<strong>Is the company planning to promote its juice brands in a major way globally as it seems the consumers, of not only Coke but also other carbonated drinks as well, seem to gradually believe that soda is not very god for human health and hence are shifting to juices which are healthier alternatives? &nbsp; &nbsp;&nbsp;</strong></p>
<p>
	All over the world, consumers are telling us they care about their well-being, and we care too. &nbsp;We recognize the health of our business is interwoven with the well-being of our consumers, our employees and the communities in which we operate. &nbsp;That is why we offer consumers a wide range of choices in products, sizes and with and without calories. Bringing real choice to consumers everywhere, and educating them on the role their choices play in achieving sensible, balanced diets and active, healthy lifestyles, is part of our commitment to responsible marketing and consumer education around our products.</p>
<p>
	As I said before, we have more than 3500 product offerings, which include more than 800 low and no calorie products, for our consumers to choose from. We have demonstrated that both the Sparkling and Still segments have tremendous upside. We want to be a total beverage company and keeping this in mind have launched several products in the recent past to ensure we are able to cater to the varying needs of the consumer. Juices and juice drinks play a key role in our portfolio and have been showing robust growth over the past few years. All our products, not just juice drinks, can be enjoyed as part of an active healthy lifestyle.</p>
<p>
	<strong><img alt="Neeraj Garg, vice president at Coca-cola India and South West Asia Business Unit" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_june2013_neeraj_garg(2).jpg" style="float:right; margin:0 0 0 10px;" />In recent years, Coke in Nepal is increasing its spend on CSR activities. What new activities are being planned?</strong></p>
<p>
	We operate in world which is constantly innovating and evolving to become more and more sustainable in the long term. Consumers across the world are conscious to companies that are investing in CSR and are seen doing something for the betterment of the community.&nbsp;</p>
<p>
	Sustainability is a crucial component of The Coca-Cola Company’s global business strategy and Vision 2020 statement. We strongly believe that in order for us to do well, we need our communities to succeed and give us the social license to operate. As our Chairman Muhtar Kent puts it- ‘Sustainable business thrives only amongst sustainable communities.’ We have developed a global framework for all our sustainability initiatives across the world and have an entire vertical dedicated to CSR and sustainability.&nbsp;</p>
<p>
	In Nepal, we have designed various programs under this global sustainability framework of ‘Me We World’, with an emphasis on Water and Sanitation, Climate Protection and promoting Healthy Active Living.</p>
<p>
	We have recently launched two of our flagship CSR initiatives the Support My School Program and the 5BY20 Parivartan Training Program in Nepal.&nbsp;</p>
<p>
	We have launched the ‘Support My School’ Campaign in partnership with UN HABITAT, ENPHO, CEN and some municipal corporations. This is grassroots level campaign that aims to create awareness and address issues in schools which lead to absenteeism or children dropping out of school. We are focusing on improving water and sanitation facilities and developing the overall infrastructure of schools across Nepal.&nbsp;</p>
<p>
	The 5BY20 Parivartan Program is a women’s retailer training program, part of our global &nbsp;initiative that aims to economically empower 5 million women across our value chain by the year 2020. Through this program we are training Nepali women retailers on business skills, such as Shop, Stock, Customer and Financial Management. We launched this initiative with 30 women retailers on 8th March- International Women’s Day and we plan to conduct more trainings across Nepal this year.</p>
<p>
	One of our associates recently went to Antarctica as part of an international team with Sir Robert Swan- a renowned polar explorer and environmentalist. Swan visited Nepal last year to support our efforts towards water and environmental protection. We hope that through this international exposure our associates can create awareness and make a difference towards climate change.&nbsp;</p>
<p>
	Coca-Cola Nepal also has partnerships with UNHABITAT and the Government of Nepal for The Partnership for Safe Water Project to reduce the risk posed by untreated water. The Project provides improved access to drinking water by promoting Household Water Treatment (HWT) options in local communities and spreading awareness on ‘Safe drinking water’ in urban centres of Nepal.</p>
<p>
	We have also partnered with the All Nepal Football Association (ANFA) for the Coca-Cola Cup, national grassroots football tournament since 2006. This initiative is a part of our global commitment to create a sporting culture in the country by promoting a healthy and active lifestyle. This tournament involves 10, 000 boys and girls from over 500 schools across 6 regions of the country.</p>
<p>
	We also organize a number of initiatives to create awareness on World Water Day and World Environment Day,as well as conduct the Everest Marathon and International Olympic Day Run.&nbsp;</p>
<p>
	<strong>How has the ongoing financial or economic crisis in Nepal affected the soft drinks market? &nbsp;And how is Coke facing it?&nbsp;</strong></p>
<p>
	Economic and political stability is important for the country and of course for businesses as well. As a business, we hope that there is ample predictability in policies and regulations. As a business entity, we expect governmentsto have a long term outlook and a world view to spur growth in any market that we operate in. We believe that Governments should work collectively with industry and policy bodies to implement effective policies that spur economic growth. The Coca-Cola strategy for solving some of the world’s most pressing issues is what we call the ‘Golden Triangle’ -- the coming together of civil society, business and government to develop collaborative partnerships and create a model for growth. We have been constantly working towards such partnerships worldwide and we are seeing a positive difference in these communities.&nbsp;</p>
<p>
	<strong>What are your views on the trends in the Nepali economy over the next one or two years, and impact for soft drinks business in general, and the Coca Cola group of drinks in particular?</strong></p>
<p>
	As I mentioned, creating stable and predictable policies and a business-friendly environment is something that all business entities look for to invest in countries in the long term. As businesses we hope that Governments will work collectively with industry and policy bodies to implement effective regulationsto spur economic growth. As I mentioned, our philosophy is driving effective collaborations and partnerships between government, business and civil society.&nbsp;</p>
<p>
	With regards to the beverage industry in Nepal, I think the packaged beverage consumption is on the rise and the non-alcoholic ready to drink (NARTD) category continues to evolve to varying consumer demands. Coca-Cola has a strong focus on innovation and we will continue to provide our consumers with beverage choices for all occasions and cater to the advancements of the Nepali beverage market.</p>',
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		'Article' => array(
			'id' => '1058',
			'article_category_id' => '46',
			'title' => 'IFC Has Been A Pioneer In Promoting And Developing Local Capital Market',
			'sub_title' => '',
			'summary' => null,
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	 </p>
<p>
	<img alt="Jingdong Hua" height="245" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_june2013_jingdong_hua_ifc(1).jpg" style="float:left; margin:0 10px 0 0;" width="200" />The World Bank Group (WBG) says Nepal is a priority country for it. &nbsp;Internaional Finance Corporation (IFC), is a member of WBG and through it the WBG is enhancing its engagement in Nepal by way of both Investment Services and Advisory Services. To facilitate private sector growth in Nepal, IFC works to promote private investment in infrastructure, tourism, financial markets, transportation, and trade finance. Through advisory services, IFC contributes to increasing access to finance for businesses, making it easier to do business, facilitating public-private dialogue for policy reforms, and promoting regional trades.&nbsp;</p>
<p>
	Recently, Jingdong Hua, Vice President, Treasury and Syndications of IFC had visited Nepal. He talked with Siromani Dhungana of New Business Age about role of IFC to strengthen Nepal’s Private sector.&nbsp;</p>
<p>
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	<strong>The main objective of your mission is to sensitise the Nepali policymakers and opinion makers on the importance of developing local capital markets as the foundation for sustainable growth. What prompted the IFC to pursue this particular objective?&nbsp;</strong></p>
<p>
	&nbsp;IFC has been a pioneer in promoting and developing local capital market. As a matter of fact, in the last 10 years, IFC has provided over $10 billion in 60 different local currencies. The reason is very simple. We help private sector entrepreneur. In case of most of our private entrepreneurs, their business generates revenue in local currencies and generates many local friends. We want entrepreneurs to focus to grow their business instead of worrying about foreign exchange facilities. At a micro level that is the motivation. And at the macro level, the motivation is the foundation for the growth of the capital market. You need a vibrantly liquid capital market support from where the private entrepreneurs can efficiently finance their operation depending on the risk of the capital.</p>
<p>
	Over the past several years, our team in Nepal has been working tirelessly in terms of supporting the power sector in the country with hydropower being the most common sector. That truly is the bottom line. We need to unlock the country to political advantage of its economic potential and some of the hydropower projects do generate local currency revenue. We have been engaging with the government for several years in terms of starting the dialogue, presenting the rationale and explaining the mechanical process. We are happy that we are getting encouraging support from the government. We are waiting for a green signal from the government about regulatory approval. We are very optimistic that the government will be supporting us.</p>
<p>
	<strong>What can the media do to help in this matter?&nbsp;</strong></p>
<p>
	Media plays an important role to sensitise the citizen on the experience of other emerging countries who have benefitted from open and vibrant capital market. It can also highlight the IFC project about how critically they are helping to resolve the infrastructural performance so as to unlock economic opportunity in different sectors.</p>
<p>
	<strong>IFC has been planning to issue local currency bond in Nepal. Could you please highlight the logic behind this?&nbsp;</strong></p>
<p>
	Our projects require local currency financing. To issue these bonds in the Nepali market, there needs to be a regulatory approval from the government for which there is a process. And we are engaging with the government. We are hopeful that in the near future, we will be able to obtain that approval.</p>
<p>
	<strong>What impediments do you see in successful implementation of this idea?&nbsp;</strong></p>
<p>
	We are very optimistic that it will be very successful. As a matter of fact, we have opened three other new markets elsewhere in the world during the last four months. For instance, we have issued local currency bond in The Dominican Republic and in Nigeria. In both cases, those were the first ever foreign bonds issued in local currency in the two countries. While in Russia, we issued the biggest bond by foreign issuer with a very innovative feature of linking coupon rate with inflation target index. We have a lot of experience working with the local pension fund, insurance company, local bank, and local investment community to showcase the benefit from different perspectives.&nbsp;</p>
<p>
	<strong>What do you have to say to the Nepali private sector that is focusing more on the problems of getting foreign capital than on local currency funds?&nbsp;</strong></p>
<p>
	For the market to be recognised by the foreign investors to attract more foreign direct investment, there has to be an environment that enables the private sector to survive. &nbsp;Stable regulatory framework too is required to support foreign investment.Also needed are some critical early success example which demonstrate that the market is viable and ready. There are many things to be developed in terms of capital market. As it needs regulatory framework, market infrastructure and capital market player, the government should regularly facilitate and support the process. It is a long term process and IFC is committed to help Nepal in every way.</p>
<p>
	<strong>The idea of utilising the local capital market for raising capital to invest in infrastructure projects is being floated for quite some time in Nepal but nothing concrete could be achieved so far. What was lacking in those ideas generated locally?&nbsp;</strong></p>
<p>
	IFC issues local currency denominated bonds. It is not just the domestic investor who can buy; foreign investor can also buy if they feel comfortable investing in Nepali rupees. The local currency bond can also attract foreign investors. It has to ensure safety in terms of settlement and investment in the market so that other players can invest on the basis of that.</p>
<p>
	<strong>How do you see the progress of IFC’s investments in Nepal?</strong></p>
<p>
	I have visited Buddha Air and had a conversation with the owner directly and how critical our financing is. So it would be beneficial if we not only provide critical financing but also the advisory support on how to improve their management and safety.</p>',
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			'title' => 'Nepal Is Land-linked,  We Should Take Advantage Of This',
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			'content' => '<p>
	<img alt="Narayan Kazi Shrestha" height="472" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_May2013_rajesh_kazi(1).jpg" width="580" /></p>
<p>
	<strong>Rajesh Kazi Shrestha&nbsp;</strong><strong>Chairman&nbsp;</strong><strong>Nepal China Chamber of Commerce &amp; Industry (NCCCI)</strong></p>
<p>
	Rajesh Kazi Shrestha is Chairman of Nepal China Chamber of Commerce &amp; Industry (NCCCI) and International Chamber of Commerce, Nepal (ICC, Nepal). In the past, he has been in charge of various organizations, such as the Nepal Chamber of Commerce. He is also the former Assistant Minister at Ministry of Industry, Commerce and Supplies. He spoke with Siromani Dhungana of New Business Age about Nepal-China Chamber of Commerce and Industry and its involvement in promoting country’s business environment.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong style="font-size: 12px;">How do you see the current role of Nepal’s private sector?</strong></p>
<p>
	Private sector should be taken as the engine of the national economy. Even though the entire country has been facing power scarcity and political instability, Nepal’s private sector is optimistic about leading the country to economic prosperity. In fact, private sector has been playing a crucial role for the overall economic development of the country.&nbsp;</p>
<p>
	<strong>What is Nepal-China Chamber of Commerce and Industry doing to address the problem of growing deficit in Nepal’s trade with China? &nbsp;</strong></p>
<p>
	Actually, Nepal-China Chamber of Commerce and Industry is established to promote export of Nepali products to China and Chinese products to Nepal. In order to address growing trade deficit figure, we are doing our best to promote more Nepali products in China. The organization has been participating in many promotional activities such as trade fairs where we can promote Nepali products.&nbsp;</p>
<p>
	Due to our promotional activities over the past few years, we can now say that many handicraft, thangka painting and wooden crafts entrepreneurs in many districts, including Lalitpur and Bhaktapur, are benefitted. However, those handicraft entrepreneurs from Lalitpur and Bhaktapur cannot survive if there are no Chinese buyers of their products. There are more examples of other sectors like this that show how Chinese market is becoming more important for us. It is also important to mention here that Nepal and China have signed zero tariff agreement, which ensures export of more than 7,787 items at zero-tariff into chinese market. The provision helps us to expand our trade with China. Nepal should also put its effort on trade promotion between the two countries. The construction of a well-facilitated dry port and a Special Economic Zone would help us to boost trade with China and to attract more Chinese investment. Now, we are more focused on how to get more facilities for our exporters, so we have requested support from the Finance Minister in order to increase trade between both countries.&nbsp;</p>
<p>
	<strong>Nepali traders have failed to take advantage of zero tariff facility provided by China, why?</strong></p>
<p>
	I do not think so. In fact, there are some norms set by the Chinese government which Nepali side has been failing to comply with. Especially, there are some problems such as the issuance of Certificate of Origin.&nbsp;</p>
<p>
	Non tariff barriers such as strict quarantine system, certification standards and rules of origin have created many challenges to the process of trade between the two countries. It’s obvious that there is a lack of effective coordination among Nepali traders and government agencies. Also, there are some other complications on both sides.&nbsp;</p>
<p>
	We are working to sort out current problems and we are optimistic about the settling of these issues very soon. We want to see a concrete agreement to ease quarantine related complications and other non-tariff barriers.</p>
<p>
	<strong>China’s Exim Bank is likely to set up its branch in Nepal. Considerig that Nepal didn’t get the expected benefits from the other foreign banks operating in Nepal, what should Nepal do to get benefits from the presence of Chinese Bank? &nbsp;&nbsp;</strong></p>
<p>
	We have been talking about the presence of Chinese Bank in Nepal for the last three or four years. It is not only for trading but also for investment. Chinese side is very positive. The current Chinese Ambassador is optimistic about the fact that Chinese Bank will start operating in Nepal during his tenure. Not only Exim Bank but also some other banks are negotiating about starting to offer their services in Nepal. If Exim Bank comes, it will have a positive impact on investment. Chinese banks have rational interest rate and also they have capacity to invest. Their presence will definitely help to attract Chinese investors to Nepal.</p>
<p>
	<strong>Chinese investment in Nepal is increasing pretty fast in the recent years. Do you think that Chinese investment is actually helping Nepal? &nbsp;(it is also said that the interest of the Chinese in Nepal is more diplomatic than economic)</strong></p>
<p>
	Yes, the Chinese investment in Nepal is increasing at a rapid pace. Some mega projects such as Pokhara Airport, Kathmandu Ring Road or Dry Port of Sindhupalchowk will be started soon. Similarly, some Chinese investors are involved in mining and water resources projects too. Very soon, if the political situation improves, more Chinese investors will be interested in investing in Nepal. &nbsp;</p>
<p>
	Chinese investment may help the overall national development. As we represent the private sector, our main interest is to strengthen the trade and the economic relation between the two countries. We always lobby for the economic prosperity and investment with the Government of China and our other counterparts. Together, these two countries can achieve good economic prosperity.</p>
<p>
	<strong>What are the possible investment areas for China in Nepal? Would it be resource-seeking or market-seeking? Obviously, it not technology seeking, capital seeking or manpower seeking as China is better than Nepal in all these.</strong></p>
<p>
	Obviously, the first is hydropower sector. Second is tourism, third is mines and minerals and fourth is the agro sector. Nepal has enough resources and lots of business opportunities; however, it is a fact that the current investment size is extremely small. Chinese businessmen have been investing in small-scale sector such as hotels, restaurants and other small trades but we want Chinese investors to start some mega projects. The problem is that the unstable government and policies and the problem of power outage have created much hurdles to attract such investment. Despite the hurdles, there are still many chances to expedite Nepal-China business relationship. Around two or three Chinese delegations have been visiting Nepal every month to explore business opportunities. Chinese investors are very much interested but they often ask about the rules, regulations and opportunities. If the political scenario becomes stable and labour problem is solved, I hope many of them will come to Nepal.</p>
<p>
	<strong>Chinese goods have the reputation of being cheap and inferior in quality. In this context, what prospects do you see for such products in Nepal?&nbsp;</strong></p>
<p>
	It is not like that. Chinese manufactures produce goods according to the necessity of consumers. It depends on the type of goods consumers want. When you are in the USA, European countries or in most of Asian countries and seek high quality products, you will find Chinese ones. We get surprised when we see what we get here and what products are available there. It depends on the quality required and the purchasing power of the buyer. It depends on what type of goods Nepali traders want to import and that’s why I think it solely depends on the buyers’ choice and affordability.</p>
<p>
	<strong>How successful do you rate your own business link with China considering the general perception of Chinese goods being cheap and inferior?&nbsp;</strong></p>
<p>
	We don’t evaluate the Chinese products supplied as per our demands and orders. The same goods can have high or low quality based on how much one can afford. It depends on our buying capacity. It’s us who are responsible for the low quality of the products because we often order low quality goods for Nepali market. &nbsp;</p>
<p>
	It is often cited that Nepali industries are suffering from the cheap imports from China. What’s your opinion?&nbsp;</p>
<p>
	Both Nepal and China are members of World Trade Organization (WTO). According to its principle, we can’t stop importing from its member countries. If we are able to manage our market, we don’t have to worry about cheap imports from China. On the other side, cheap goods imported from China have ensured mass access to the sophisticated goods and also to the daily consumable goods.</p>
<p>
	<strong>What are the critical trade barriers between Nepal and China?</strong></p>
<p>
	There are hurdles and barriers in all sectors but it is still an open and growing market. Some remedies would be to have better policies from the &nbsp;government, a friendly investment environment, labour reforms, security… etc. There are certain issues which should be resolved. We are solving the barriers step by step, as they appear in front of us.</p>
<p>
	<strong>How are the exporters and importers overcoming the language barrier in trade between China and Nepal? How is your chamber helping in this? (it is said that, due to language problems, Nepali traders in China are always in disadvantage in their dispute with Chinese importers or exporters)</strong></p>
<p>
	Yes, it is a little difficult but now most of the Chinese exporters understand English. Nowadays, there are English speaking employees in almost every office and different chambers. And some businessmen who are already doing business can understand Chinese also. If there is any dispute we step in to solve it, we are also giving information about the queries and problems of the business person there. The exporters were very much interested in trade fair there, we are participating there regularly and we exchange our delegation also from different chamber from different aspects.</p>
<p>
	<strong>What points do you think need to be revised in Nepal-China trade-related treaties?</strong></p>
<p>
	Both governments should have frequent meetings to understand and solve the obstacles, if there are. There are some area where we are facing &nbsp;problems, such as &nbsp;quarantine or infrastructures but these issues should be solved very soon. In China, they are not accepting Nepali quarantine certificates. Nepal has three issuing authorities for different sectors and product lines, which makes the Chinese confused as they think it should be done by a single authority. Because of that, we are facing difficulties to export our food items.</p>
<p>
	<strong>The Nepali government has planned to develop Rasuwa as another hub for Nepal-China trade. What is your assessment of the progress in this?&nbsp;</strong></p>
<p>
	The road is already there and, after Sigatse, the railway will come to Rasuwa. We are trying to join railway side from China and India so that Nepal will be linked with both of these countries. We can develop environment for tourism and business also. The government of China is committed on this and we are very optimistic about completing and operating it soon.&nbsp;</p>
<p>
	<strong>It is often argued that Nepal should be developed as the transit point for China-India trade, but no concrete development seems to be taking place on this direction. What are the impediments?&nbsp;</strong></p>
<p>
	We are not a land-locked country but we are a land-linked country with two economic giants at north and south. We should take advantage of this unique geographical position. The main problem of this situation is that everyone has his or her own agenda and we have no unified and strong agenda and vision for concrete developments. A stable government, a strong linkage of these three countries and an open transit road are our most primary necessities.&nbsp;</p>',
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			'description' => 'Rajesh Kazi Shrestha is Chairman of Nepal China Chamber of Commerce & Industry (NCCCI) and International Chamber of Commerce, Nepal (ICC, Nepal). In the past, he has been in charge of various organizations, such as the Nepal Chamber of Commerce. He is also the former Assistant Minister at Ministry of Industry, Commerce and Supplies.',
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			'article_category_id' => '46',
			'title' => 'Interview : Michael Maedel',
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			'content' => '<p>
	<img alt="Michael Maedel" height="931" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_michael_maedel_april2013(1).jpg" style="margin: 0px 0px 0px 10px; float: right; text-align: justify;" width="300" /></p>
<p style="text-align: justify;">
	Michael Maedel joined JWT in 1990 as Chairman and CEO of JWT Germany, based in Frankfurt. In 1993 he also took on the role of Area Director Central and Eastern Europe before becoming President of Europe, Middle East and Africa in 1997. Michael is a member of the Board of the J. Walter Thompson Company, New York and a member of the Office of the Chief Executive. Before joining JWT, Michael worked for Young &amp; Rubicam for some 13 years.&nbsp;</p>
<p style="text-align: justify;">
	He joined Y&amp;R Frankfurt as a trainee and worked his way to Account Director before moving to Vienna, his birthplace, in 1978 as Chairman. In 1983 he returned to Y&amp;R Frankfurt as Executive Director and General Manager. In 1985 Michael was hired by Ted Bates Werbagentur, Frankfurt as Chairman where he remained before moving to JWT.</p>
<p style="text-align: justify;">
	Michael has a degree in economics from the University of Vienna. He is married with three children. He covers diverse contemporary themes of advertising in an hour-long tet-e-tet with Prof Ujjwal K Chowdhury of New Business Age.</p>
<p style="text-align: justify;">
	<strong>The Suave Charmer</strong></p>
<p style="text-align: justify;">
	You wait to meet the Asia-Pacific Chairman of JWT, global advertising major, with bated breath, and in comes an unassuming tall 6+ feet lanky European gentleman, Michael Maedel, for whom Singapore is the new home now. You expect attitude, jargons, numbers, and rushed talks. And soon you find none.</p>
<p style="text-align: justify;">
	“I feel an oldie in JWT, almost been there for all the 149 years of its history, and have seen the massive developments and changes that have happened therein,” he kicks off the hour-long chat with a charming half-smile.</p>
<p style="text-align: justify;">
	<strong>Exciting Times</strong></p>
<p style="text-align: justify;">
	Never more significant have been the changing times ever before than this moment. He is bang-on, with economic recession sweeping across Europe, budget-deficit tackling in USA becoming tougher by the day, growing polarization of the world economic order, while good spots of growth evolving in larger parts of Asia, and some parts of Africa and Latin America.&nbsp;</p>
<p style="text-align: justify;">
	He, however, sees light at the end of the tunnel with a soft landing in China, India getting their act together post the next general elections, Indonesia showing economic promise, and Myanmar opening up to greater possibilities. In all of these and a few other Asian economies, the rising middle class is leading rapid changes within the domestic economies and making the world ever more inter-connected. But the times are exciting for other reasons too.</p>
<p style="text-align: justify;">
	“The defining point of today is that the consumers interact among themselves through multiple channels seamlessly, and that is creating new brand stories. Gone are the days of brand-consumer dialogues. Consumers’ interactions among themselves, and brand’s dialogues simultaneously with consumers and the community continuously, are determining the new basis of the New Media era of digital brand communication,” explains Michael.</p>
<p style="text-align: justify;">
	In this scenario, natural outcome is real-time communication today, “akin to a news-room situation for the agency of the future, and advertising agencies will increasingly go live to stay relevant”. A fabulous challenge this is for brand owners “who have lost the hitherto considered exclusive rights of theirs over their brands!” The feelings of the community and aspirations of the consumers, coupled with their interactions, are determining the contours of the brand in today’s era.</p>
<p style="text-align: justify;">
	<strong>150 years of JWT</strong></p>
<p style="text-align: justify;">
	&nbsp;“You can only be in the business so long when you care about your clients, when you stay relevant, and even when you evolve through failures, learning new insights.”</p>
<p style="text-align: justify;">
	As JWT turns 150 years in 2014, Michael takes pride in surviving healthily in a fast-paced industry, being the first agency to have created a television ad, to have used research in advertising, first one also to use testimonials in advertising, and ever remaining “a group of permanently dissatisfied individuals.”</p>
<p style="text-align: justify;">
	And he surely intends to see a series of activities to express the JWT values and stories of 150 years, come January 2014.</p>
<p style="text-align: justify;">
	He recounts the cases of engagement ring campaign in US, Europe and China for De Beers diamond and the balloon jumping from space campaign which was planned in a day for Kit Kat as good examples of meaningful communication in line with brand positioning, long term branding, seamless transition to social media, not distracting but enhancing the brand values.</p>
<p style="text-align: justify;">
	<strong>Thompson Nepal</strong></p>
<p style="text-align: justify;">
	Michael has a thumps-up for his Team Nepal, led for long and efficiently by Joydeb Chakravorty. “Being in the top of the game for a long period, with entrepreneurial spirit, spotting opportunities and jump upon them, delivering value even under extreme constraints, the JWT team in Nepal is impressive, on a sound footing and delivering value and volumes to an impressive array of campaigns for clients like Unilever, Pepsi, Nokia”.</p>
<p style="text-align: justify;">
	And his advice to them? Take a long-term view, not just managing tomorrow for your clients, not being limited to fads and flavours of the day, managing uncertainties in the market better through consistency and honesty in cultivating the brand personality of each client in this challenging market.</p>
<p style="text-align: justify;">
	He used this latest March 2013 visit to look at some of the good work done in Nepal, like the Pepsi Drink &amp; Drive Campaign, in which the idea was based on local behavior and insight, turning it on the head appealing to people’s consciousness. He appreciated the Unilever work done in Nepal too.&nbsp;</p>
<p style="text-align: justify;">
	“With technology, a brilliant app can come from any country today, no borders for a good idea. Also, for a local campaign, the two defining criteria are: first, how does it compare with your local competitors. Our work is the best in each of its categories. Second, creativity is always a means to an end and that is better bottom-line for the client post the campaign. Ask Pepsi in Nepal and you will get the answer.</p>
<p style="text-align: justify;">
	He hopes that better audience measurement techniques will evolve in the Nepali market which will justify higher communication investments in future.</p>
<p style="text-align: justify;">
	<strong>Biggest Advertising Challenge</strong></p>
<p style="text-align: justify;">
	The single biggest challenge for the advertising industry world-over, according to Michael, is to evolve the current compensation model or system. Today compensation is based on cost-input model, where remuneration is based on inputs used in the process and value of media used with the advertising outcome. However, right rewarding and compensation should now be based on the value-output model, according to him, which looks at the outcome in terms of value to the client in qualitative and quantitative terms.</p>
<p style="text-align: justify;">
	<strong>Relevant Consumer Insight</strong></p>
<p style="text-align: justify;">
	“Days to bulldoze your success with huge budgets are gone. Then your target audiences could not escape the campaign. Today you neither have such budgets, not the plethora of media channels of all hues allows you that luxury,” he notes. Again, bang-on!&nbsp;</p>
<p style="text-align: justify;">
	These are times of relevant consumer insight that goes beyond conventional research. There is the availability of massive data, but the moot question is how do we make use of this for relevant insight, and then how do we translate this insight into an engaging idea, which is then amplified through right media selection. “And there is no short cut in this process,” he concludes.</p>
<p style="text-align: justify;">
	While he finds ambient and ambush advertising as good ideas at times, it is only a great, topical and relevant idea that can cut through the clutter. Even in spite of a huge proliferation of channels of communication, it is all the more important that your communication is rooted in a strong coherent and relevant idea: what does the brand essentially stand for.</p>
<p style="text-align: justify;">
	<strong>Digital Communication</strong></p>
<p style="text-align: justify;">
	Though it is beyond debate today that the entire communication business is becoming eventually digital, the client side investment in digital is still low and there is a wide discrepancy between the price of the digital media and the price to the agency.&nbsp;</p>
<p style="text-align: justify;">
	“Garage-run digital shops will either grow is size, or disappear, or shall be acquired,” Michael sounds prophetic looking at the scenario with digital agencies today.</p>
<p style="text-align: justify;">
	And he is right that digital was once considered an experimental medium and not seen as an integral element in building and sustaining brands. Not any more. Today, digital has gone into the heart of branding.</p>
<p style="text-align: justify;">
	<strong>Evolving Talent</strong></p>
<p style="text-align: justify;">
	And these changing times surely need new talent suitable for the digital age and real-time communication.&nbsp;</p>
<p style="text-align: justify;">
	Noting that JWT historically has been a university of training and ideas of sorts, he hopes to contribute to train and retain talent in Nepal, bring back Nepali talent from elsewhere with exciting new perspectives, and is open to partner nurturing talent with educational and media initiatives, and with support from clients.</p>
<p style="text-align: justify;">
	<strong>Brand Nepal</strong></p>
<p style="text-align: justify;">
	And, before he bids adieu, the idea mooted by Michael Maedel, Chairman, JWT Asia Pacific, is that of Brand Nepal, essence of Nepal beyond cliché images of the Himalayas and rafting-trekking-paragliding.</p>
<p style="text-align: justify;">
	“Conceptualize the brand from economic perspective, from the point of view of attracting foreign direct investment and accelerate business activities to unleash the full potential of the nation. Build the brand through responsible communication with ground-swell of support of stake-holders. Promote the Brand internally and externally through various means.”&nbsp;</p>
<p style="text-align: justify;">
	This is the Brand Doctor’s prescription for which he is ready to participate in brain-storming session with clients, media and government representatives whenever such an initiative is taken up by non-governmental economic forces.</p>',
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			'description' => '‘From dialogues to tri-logues and real-time communications, brand communication is up for unprecedented changes today, world-over’',
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			'title' => 'Investment Is Not A Big Thing These Days',
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			'content' => '<p style="text-align: justify;">
	<img align="left" alt="Binod Chaudhary" height="288" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_binod_feb2013.jpg" style="margin: 0 10px 10px 0;" width="350" />Binod Chaudhary is the President of Chaudhary Group (CG), one of the leading business houses of Nepal. He is also the Chairman Emeritus of Confederation of Nepalese Industries (CNI). A prominent industrialist, Chaudhary has recently published an autobiography, ‘Atmakatha’. This book tells the successful story of how Wai Wai noodles, initially imported from Thailand, which later took such a big market share. “Currently, 1 billion packets of Wai Wai noodles are produced annually which accounts for 1% of the total noodle production of the world”, claims Chaudhary. In an interview with New Business Age, Chaudhary talks about the CG’s successful ventures and the group’s plans among other issues.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Excerpts:</strong></p>
<p>
	<strong style="text-align: justify;">You seem to be saying and doing whatever the Industrialist Dhirubhai Ambani of India used to say and do. Are you influenced by him?</strong></p>
<p style="text-align: justify;">
	I always say that I am influenced by two people in India - J.R.D. Tata and Dhirubhai Ambani. The status given to the Tata Group by J.R.D. Tata is unmatched by any other business house in the world. But the industrial revolution in India was brought by Dhirubhai Ambani. Hence, I am his big fan.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You happen to praise the former leader of South Korea, Park Chung-Hee as well. Do you believe that the government should praise the industrialists?</strong></p>
<p style="text-align: justify;">
	Park Chung-Hee has given birth to many multi-national companies during his regime. That is why the multinational companies of South Korea are successful globally. I am a 100% supporter of that. I truly believe that in a country like Nepal, private companies cannot develop without support from the government. In countries like Japan and Korea, the government has pushed the private companies to grow. I believe that the same should apply in our case as well.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Why did you change the decade long established Chaudhary Group into CG?</strong></p>
<p style="text-align: justify;">
	This is just a branding. The word CG is easy to remember for people but Chaudhary Group is not. You have to twist your tongue a little bit. Actually, the brand “Chaudhary’s” could not be well established. There used to be a logo of Chaudhary’s in our every product. But, that could never be the talk of the town. Today, no one says Chaudhary’s. Everyone likes to say CG.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have set up several Noodle producing plants throughout India. Similarly, you have invested in luxury resorts in cooperation with Taj Hotel. How much have you invested like this within Nepal and abroad?</strong></p>
<p style="text-align: justify;">
	We also do not have an exact account of that. We have many companies that are being run by different individuals. Again the criterion to judge a company has become different these days. Today, a company is judged on basis of its brand, marketability etc. According to that, the co-investors invest. Today, the Tata family owns only 3% of the Tata Group. But, they are buying several companies of millions of dollars in the name of Tata industries and are trading worldwide. That’s why investment is not a big thing these days. I constantly repeat that a multinational company cannot be setup by just collecting money from Nepal. There is not enough capital to do that. Furthermore, there is a possibility of development within and without. If you have the capability of industrialization, capital will follow you. Today, we are producing Wai Wai in more than 3 countries. In those countries, there are several investors who are interested to invest in Wai Wai. We are working in hotels in different nations, in our own brand and in others’ brands. We have an option of choosing whom to mingle with. We have already earned that trust of the investors in the international market. That is why investment value and volume by an individual company or industrialist is not the key factor here.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The main question is when we can say with certainty that Binod Chaudhary is an internationally recognized billionaire.</strong></p>
<p style="text-align: justify;">
	Binod Chaudhary is only a face. If someday CG group comes to be recognized as Nepal’s billionaire company, it is not only my pride but yours too. And I pray that the day comes soon.&nbsp;</p>
<p style="text-align: justify;">
	<strong>For some time past, you have been concentrating more on imports, rather than on two or four flagship industries like Wai Wai.&nbsp;</strong></p>
<p style="text-align: justify;">
	During the last twenty years, the nation has faced insurgency. Today also it exists in some form or the other. The only company that developed both horizontally and vertically during this period is CG. If CG owned only 3 companies back then, today it owns 14. If 500 people worked back then, today 3000 people do. &nbsp;If CG vertically owned 6 business houses back then, today the number is 10. The cement company has also been added to them. In fact, we are building the nation’s largest cement company. We are also trying to set up hydro power plants with over 240 MW capacity each. We have entered the ayurveda sector. &nbsp;In terms of education, we have established 5 institutions where over 4000 students are studying. We are going to invest Rs. 1 billion in education. Then an additional 10000 students will have the opportunity to study annually. Service industry is also being looked at closely by us. If you look at this sector by turning the pages of Aarthik Abhiyan National Daily, you can find the answer to your question over there itself.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have recently left the chairmanship of CNI. Why was CNI unable to do anything much impactful during those years of your leadership?</strong></p>
<p style="text-align: justify;">
	I am doing well in CNI. Recently, a new leadership has arrived. We are also visiting districts. However, we are not in favour of opening branches in all the 75 districts. CNI mainly represents the industrial sector of the nation. Where there are no industries, it is not necessary to open the branches but we are frequently visiting the districts where there are industries.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Some time ago, you said that Nepal Airlines Corporation should be operated under PPP. Are you interested in investing in the corporation as well?</strong></p>
<p style="text-align: justify;">
	I have lost that interest now. I do not know if any private investor can show a positive route to Nepal Airlines Corporation. It is difficult to bring a change in such a corrupt system.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Nepalis cannot legally invest in the foreign markets. That would be great if possible. You got involved in a political party and also reached the constituent assembly. But, you could not do anything substantial in this regard.</strong></p>
<p style="text-align: justify;">
	Everybody agrees in this issue. Nepal Rastra Bank has been introducing several fiscal policies for that from time to time. But no proposal has yet been passed in the assembly. That is why it is not a law yet. Nepalis have opened restaurants and hotels in US and Japan. The important thing is that Nepalis are investing. When Nepalis could not invest and only the non residents could, Binod Chaudhary had to make Barun and Rahul Chaudhary, NRNs. Everyone should appreciate it. Please do not consider it illegal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You are such a successful industrialist. But, CG has not been able to make returns to the society accordingly. Except for some minor contributions, no significant contributions in CSR (Corporate Social Responsibility) can be seen. Why?</strong></p>
<p style="text-align: justify;">
	We believe that we have a major involvement in the social sector. Our brand line is ‘Touching life everyday’, which means we do touch lives every day. CSR also has different ways. Donation is also one of them. The other is to help the society during desperate times. You can consider Norvic hospital and educational institutes for this case. Without these initiatives people would have been deprived of quality education and health. It’s a part of CG to cooperate with the society. Some receive concessions and some receive scholarships. You take from those who can give and you give to those who can’t.&nbsp;</p>
<p style="text-align: justify;">
	Recently, we have agreed to set up a social business fund in cooperation with Noble prize winner Muhammad Yunus’s Muhammad Yunus Center. That will help the Nepalis who want to set up a business but do not have enough resources to do exactly that. We are always committed to shake hands with the society and move forward.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are your suggestions to the Nepalis who want to start up new businesses in Nepal?</strong></p>
<p style="text-align: justify;">
	New businesses will have to face a lot of difficulties. I strongly suggest not losing hope. It always takes time to see the results. And, I am very hopeful for everyone.&nbsp;</p>',
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			'title' => '“Private security business needs to be governed by separate law”',
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			'summary' => 'G4S Security Services Nepal is the largest private security solutions firm in Nepal with a presence spanning over two decades.',
			'content' => '<p style="text-align:justify"><span style="font-size:18px">G4S Security Services Nepal is the largest private security solutions firm in Nepal with a presence spanning over two decades. The United Kingdom based multinational security services provider started operating in Nepal in 1996 through its subsidiary company. Established in 1901, G4S operates in 124 countries of the world. Since its inception, G4S Nepal has been providing various types of security services to its clients including diplomatic missions, government institutions, BFIs, hospitals, five-star hotels, commercial complexes, educational institutions, private residences, telecom service providers, hydropower plants and industrial facilities. The company also provides security for personal protection of VVIPs and premises protection during special events. In an interview with New Business Age, Mahesh Shrestha, Managing Director of G4S Security Services Nepal talks about the current security business situation, challenges and opportunities in the sector, future plans of the company, among other issues. Excerpts:</span></p>

<p style="text-align:justify"><span style="font-size:16px"><strong>The presence of G4S in the country has spanned over two decades. What has the journey been like for your company in terms of growth and services?</strong></span><br />
It has been a wonderful experience for us. We faced different challenges and came across many opportunities over the years. Being a MNC, G4S is committed to the quality and effectiveness of its security services.&nbsp;</p>

<p style="text-align:justify">We have an annual turnover of Rs 850 million and our target is to achieve the Rs 900 million mark this year. G4S has held the position of the largest security service company in Nepal in the last 20 years. We command 85 percent of the market share in the high-end, around 40 percent in the mid-end and around 25 percent in the low-end segments.&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br />
&nbsp; &nbsp;<br />
<span style="font-size:16px"><strong>Being the only security services solutions MNC in Nepal, how do you take your opportunities?</strong></span><br />
G4S is an opportunity itself for the people seeking international standards in security services.&nbsp; We assure complete security solutions to our clients in complying with global standards. G4S is highly committed in terms of assuring and guaranteeing quality security services along with top level customer care, management response and operational arrangements for its clients.&nbsp;</p>

<p style="text-align:justify">We have a very strong workforce comprising of 5,000 personnel which itself is an opportunity for many Nepalis from an employment perspective. We have 10 branch networks in major cities across the country. The branches are being operated in a full-fledged manner which includes providing training to new recruits. Similarly, we are also paying millions of rupees in revenue to the government.&nbsp;</p>

<p style="text-align:justify">Gorkhalis are renowned the world over for their courage, honesty and trust in security services. In this regard, it is a matter of pride for G4S to be present in Nepal.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How does G4S Security Services Nepal ensure top-end security to its clients?</strong></span><br />
We have a holistic approach in providing security services to our clients. We provide security services according to the needs of our clients. G4S Nepal has been offering integrated security solutions including manned security, cash security services, modern electronic safety systems and technology. Similarly, we have the secured support service where newly trained personnel are engaged in housekeeping works that include security of confidential documents in their first phase of duties. Meanwhile, we also provide security services for events, travel alongside transit and storage of valuable goods.&nbsp;</p>

<p style="text-align:justify">We study the possible risks and prepare ourselves for future challenges. We also assess the risk management factors to minimise future losses. While providing services, we prepare rules for specific tasks first. After agreeing with clients, we prepare standard operating plans (SOPs) for the designated services. Different types of SOPs are developed for different clients and we retrain security personnel before deploying them on their respective duties.&nbsp;&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is G4S moving ahead in terms of using new technology?</strong></span><br />
G4S believes in moving ahead adopting new technologies in order to provide versatile and efficient security services to its clients. We update ourselves with the new technology as soon as they are introduced in the market. We have created a separate department for the purpose. Modernising security systems is a global requirement and G4S is investing more in this aspect as well. Utilisation of new technologies is also important for a company like G4S to control unnecessary expenses.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>The time now is all about electronic surveillance and security solutions.&nbsp; What will be the future of manned security in this regard?&nbsp;</strong></span><br />
Electronic security solutions are efficient in many ways. For instance, use of such systems is cost effective and surveillance and monitoring works can be done with ease. However, neither manned nor electronic security systems can replace each other.&nbsp; Both types of security solutions complement each other. They have their own importance, benefits and limitations. The services that manned security provides are not fulfilled by electronic security and vice versa.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is the relationship between G4S Security Services Nepal and its parent company?</strong></span><br />
The global organisation has been helping us in a range of areas including training, capacity enhancement of security personnel and using new technology in security, among other things. We need to contact the parent company on a daily basis to submit management, finance, quality reports etc. The head office appoints the country director. We need to report on a daily, weekly and monthly basis and submit it to the global system. G4S from 124 countries around the globe keep data on it. The data we maintain on the global system can affect the share price of G4S in the London Stock Exchange. All branches are controlled by the head company. It is completely a group company.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is G4S Nepal different from other companies in employee management?</strong></span><br />
We have been providing various benefits and perks to staff and security personnel. All employees are paid salaries in a timely manner and on the same date. They are entitled for provident fund and annual grades. People who leave the company are subjected to gratuity as well. The labour law has clearly mandated employers to provide benefits to the workers including a minimum salary and employment guarantee. We have been providing all these as required by the law. We are very aware in terms of following the law and maintaining the quality of our services. It clearly demonstrates our concern regarding the international brand and image of G4S.</p>

<p style="text-align:justify">G4S is a company of confidence for all its staffers and service seekers. According to the new Labour Act, employees are entitled for 45 days of paid leave annually.&nbsp; We were providing an annual leave of 40 days to employees for many years even before the new law came into force a few months ago. Likewise, staff at G4S Nepal get festival leave of 16 days. Every staff working is entitled to insurance worth Rs 200,000.&nbsp;</p>

<p style="text-align:justify">Many staff have stayed here for many years because of the excellent work environment and benefits. Over the years, many employees who started their career in the company as security personnel have been promoted to managerial level posts.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How do you view the new Labour Act?&nbsp;&nbsp;</strong></span><br />
The new Labour Act is a positive step for the security service business. The Act has guaranteed social security and other benefits to employees from the day they join the companies. The government has clearly mentioned the facilities and services to employees this time. I think effective implementation of the law will help to spur on healthy competition in the domestic security services market. There are many compliance related issues in this sector at present and security service companies who do not maintain good quality of service are likely to come under pressure from the provisions of the Act.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How can Nepali security service providers engage in healthy competition?&nbsp;&nbsp;</strong></span><br />
Healthy competition will start and flourish when factors such as quality, ethics and professionalism become key parameters of competition among the players in the market. Unfortunately, many security companies in Nepal do not bother about these factors. If someone is engaged in unethical business practices, then how can there be fair competition? We are always guided by value-based practices in business.&nbsp;&nbsp;</p>

<p style="text-align:justify">We do not consider any other company as our competitors. Many are not even providing a minimum salary as required by the law. So we do not even compare ourselves with them.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>What challenges do you see in the security services business?</strong></span><br />
&nbsp;The scarce human resource is the major challenge here. Manpower is both raw and finished goods in the security business. Similarly, we don&rsquo;t have a law to govern private security businesses.&nbsp; Security service providers at present are simply guided by the Companies Act. Also, the awareness of security among the people is also relatively low.&nbsp;</p>

<p style="text-align:justify">Lack of standardisation is another issue. Neighbouring India and countries like Dubai have standardised private security businesses. The government needs to conduct a rating of the companies that are working in the sector. It can be an important step in terms of standardisation of the security business as the companies can levy service charges from the clients according to the ratings.&nbsp;</p>

<p style="text-align:justify">Similarly, government bodies in many countries provide proper training to the people who look to join the private security workforce. We don&rsquo;t have such facilities here. Many companies in Nepal deploy untrained people as guards increasing the security risks to their clients and themselves as well.&nbsp; &nbsp; &nbsp; &nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How do you ensure that the best security personnel join the workforce of G4S?&nbsp; &nbsp;</strong></span><br />
Anyone looking to join our company as security personnel needs to possess a clean background. They are required to be physically and mentally and fit. The candidates should have a basic school education and also be capable of speaking English. We conduct written and oral tests. Those selected are sent for training which is of 80 credit hours. Only those who are able to pass the training are recruited. Similarly, we conduct refresher training courses every three months for new recruits. In the meantime, we also provide counsel and retrain the employees on a daily basis. We have set the retirement age of the security personnel at 55. G4S assures the quality of service in this way.&nbsp;</p>

<p style="text-align:justify">We follow the international standards set by the global company while providing services and recruiting people. From training to supervision and service areas, we follow rules set by our parent organisation.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is G4S planning to expand its services and enter new areas in the security business in the future?</strong></span><br />
We are conducting an in-depth study to expand our areas of work and increase investments. We are looking to provide high-end security services to BFIs such as alternative solutions and ideas for cash security. G4S globally has been providing these types of services for a long time. We have been constantly discussing with BFIs and the central bank to identify their needs and requirements in security.&nbsp;</p>

<p style="text-align:justify">We seek to contextualise the services according to the local needs. The services we provide are not only a matter of business for G4S.&nbsp; It is also a matter of contributing towards nation building directly or indirectly while doing business.&nbsp; For instance, enhancing the skills of the workforce and quality of service is a top priority in G4S&rsquo;s plans. It will add efficiency to our work and is also likely to have a national level impact. Nepal receives hundreds of billions of rupees in remittance yearly from the migrant workers many of who go abroad to work as security guards and it is necessary for us to focus on this aspect. By enhancing the skills of migrant workers and quality of service, Nepal can earn more money in remittance as the demand for Nepali workers will go up.</p>

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		'Article' => array(
			'id' => '2767',
			'article_category_id' => '46',
			'title' => '“Hospitality Is The Right Industry”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;">Anil Malik is the general manager of Radisson Hotel Kathmandu since August 2013. He has wide experience in the hospitality sector and this is his third tenure with the Carlson Group. Earlier he has worked with the Grand Hyatt, Centara Hotels and Resorts and the O Hotel. He spoke to the New Business Age about his experience in Nepal and the tourism possibilities of the country.&nbsp;</span><strong style="font-size: 16px;">Excerpts:&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Tell us about your career and corporate journey?</strong></span></div>
<div>
	Right from my childhood I have seen my mother hosting guests at home. I did Bachelor of Science with geology as major. However after graduation I got interested in hospitality. I appeared in the all India entrance examination, I was qualified and with great hard work I jumped into the hospitality industry.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Why hotels and hospitality? What points of attraction and challenges mark work in hotel sector?&nbsp;</strong></span></div>
<div>
	I personally feel that hospitality is the only sector where you meet so many unique people, learn new culture and learn new food habits. That&rsquo;s why I personally feel that hospitality is the right industry for a person like me who loves food and meet new people.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Carlson Group is the only group, which is expanding, in large capacity. In India we in 2014 we are expecting to have 50 new properties. We are expanding in China, and Hong Kong. In Nepal there are possibilities of expansion and my company is seriously looking to it. Because the country has lots of potential and I have also visited some of the places such as Chitawan and Pokhara, which hold high possibilities. A feasibility report for these possibilities is underway and which I look forward to present at the Carlson office. Carlson has got various brands under its umbrella. We have got budget segments therefore possibilities can be worked out according to the demand. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What major practices have you introduced in Radisson in the last quarter?</strong></span></div>
<div>
	When I joined I found training opportunities lacking here. There are many hotel management colleges in the country but the biggest challenge is that most of the graduate go aboard to work thereby creating scarcity of skilled manpower. Since my initial days here I have always tried to engage with the staff and to make them more management friendly. There are a number of union issues in Nepal and here also there were some issues in the past. I have been trying to resolve this issue in a professional way by engaging with the employees and interacting with them through open communication channels. As part of this strategy, we started organizing Friday town hall meeting where the general manager interacts about the budget and other management issues with the staff. This is one of the initiations that I took. Apart from that we have started participating in various corporate social responsibility programmes and as a part of it we have made some donation to the Red Cross Nepal and on February 15 we organized Radathon in association with the Nepal Tourism Board.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What contribution have you made specifically in making the hotel more hospitable?&nbsp;</strong></span></div>
<div>
	Last year we added around hundred rooms to existing 160 rooms capacity of hotel Radisson. The additional hundred rooms are very modern compared to other hotels. And now my task is to see that the corporate people target these hundred rooms. To achieve this objective we are building close ties with the corporate sector. Besides this we are going to open the doors of our new Indian cuisine restaurant to our guest and adding to that a Japanese restaurant opening in the pipeline.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What are the major challenges of hotel industry in Nepal? How do you think they can be addressed?&nbsp;</strong></span></div>
<div>
	Recently Trip Advisor rated Nepal as the hottest destination. The only challenge I personally feel here is that the tour operators who are getting this groups in the country they are somehow trying to undersell Nepal as a major tourist destination. The occupancy must have grown but not the revenue and let&rsquo;s not forget that tourism plays a very important role in the development of the country&rsquo;s economy. Therefore we should try not to undersell Nepal. Costly airfare is another problem. It costs around Rs 50,000 to fly back and forth to Delhi. Such a high fare, I think, is bringing down the number of Indian tourist visiting Nepal. At the same time the rooms are expensive as we have 18 hours power cuts and we cannot compromise with our services for our guests. That is revenue is less and expenses are more.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Tourism potentials are very high in Nepal but the income is still around $ 5 billion and 11 per cent of the nation&rsquo;s GDP. Where is &nbsp;the disconnect? What can be done in this context by the private sector and the government?</strong></span></div>
<div>
	In Nepal there are many areas, which can be explored. Tourist visit Nepal mostly to see Kathmandu. The government of Nepal along with the Nepal Tourism Board should brand it as &lsquo;Explore Nepal&rsquo; and they should come out with new destinations that are still to be explored. I personally feel that the government should identify new values and new areas to attract much more tourist.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is the situation of skilled manpower in the hospitality industry?</strong></span></div>
<div>
	There are eight five-star hotels since a very long time. Though the government has itself not taken any measures to expand it, very soon three hotels are coming to Nepal. Along with that the government has also signed agreements with around ten other five-star properties. Opening of these hotels will open new job opportunities. What I have found is staff appointment in Nepal is very low. Job openings are available only if a person retires from the position or moves abroad. So how do you expect to have new talent when there are no new hotels and no new vacancies?</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What are your suggestions to the major hotel and tourism management colleges? What inputs should they make to develop talent here?</strong></span></div>
<div>
	They have to be more professional, the corporate culture has to be taught and exposure has to be given to them. And the same time they should have a tie up with some groups of hotel where some concrete steps can be taken. At the moment my hotel has around 80 trainees but what about the other students as there are only eight five-star hotels. &nbsp;Definitely the remaining students will move abroad.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is your personal management philosophy with regards to hotel management and its efficient leadership?</strong></span></div>
<div>
	Speaking on a personal note there has to be a leadership quality and attitude has to be very positive. Along with it one should have an urge to teach the juniors, should believe in teamwork as it&rsquo;s not possible to achieve the objectives without team work. At the same time one should try to impart maximum knowledge to juniors to make the team competent. The country should also have a corporate culture, which I hope will definitely grow.&nbsp;</div>
<div>
	&nbsp;</div>',
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			'description' => 'Anil Malik is the general manager of Radisson Hotel Kathmandu since August 2013. He has wide experience in the hospitality sector and this is his third tenure with the Carlson Group. Earlier he has worked with the Grand Hyatt, Centara Hotels and Resorts and the O Hotel. He spoke to the New Business Age about his experience in Nepal and the tourism possibilities of the country. Excerpts:',
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		'Article' => array(
			'id' => '2586',
			'article_category_id' => '46',
			'title' => '“We Are On The Lead Position In SAARC Region”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;">Government-run Nepal Telecom topped the list of largest taxpayers, in terms of both income and value added taxes, in the fiscal year 2011-12. The partially privatized and Nepse-listed telecom service provider contributed some Rs 9 billion to the government coffer that year. The government recently picked <strong>Anoop Ranjan Bhattarai</strong>, who was previously serving as Director at the company&rsquo;s Wireless Telephone Directorate, to lead the company. Bhattarai is regarded as one of the few smart techies in Nepal with considerable knowledge of technological aspect of the telecom industry. Soon after he assumed the new position, he spoke to <strong>Siromani Dhungana</strong> of New Business Age about his plans for leading the company.<strong> Excerpt:&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What does your appointment as MD of NTC promises to its consumers and stakeholders?&nbsp;</strong></span></div>
<div>
	My appointment as the Managing Director is a breakthrough to a 3-month-long deadlock in finalizing the organizational leadership. This appointment is the change for betterment; betterment for the organization, betterment for the staffs working here, and most importantly betterment for all our stakeholders. My tenure as MD of the organization will concentrate in providing world class advanced and consumer friendly telecom services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Some officials and even trade union representatives often talk about making reforms in the company. What areas are you planning to reform?&nbsp;</strong></span></div>
<div>
	My key areas for reform will center on improving company&rsquo;s work culture, increasing its efficiency, ensuring timely execution of projects and improving service delivery. If we pay appropriate attention to these sectors, our performance will improve and thereby enable use to remain competent in the free market economy.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Quality of service has often been controversial when we talk about Nepal Telecom. Even the regulator blames NT for flouting quality indicators. You are perceived as a person with guts to reform the company. How is your appointment going to change anything that Nepali consumers can feel the benefit?</strong></span></div>
<div>
	Of course, the quality of service in urban areas is going to be improved and these changes can be perceived within one month. After upgrading networks in urban areas, we will focus on improving quality of services in the rural areas. I assure our customers across the country that in a few months time there will be visible improvements in the quality of our services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Do you think you will be able to overcome political hurdles that might be obstructing the performance of Nepal Telecom?</strong></span></div>
<div>
	As a government owned company, all stakeholders including the political system, definitely wants to see it growing and increasing its contribution to national development. &nbsp;I do not think there will be any political hurdles that will obstruct growth of the company. All we have to do is ensure that all initiatives are conducted in transparent and reliable manner.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>How do you tackle problems created by Public Procurement Act?</strong></span></div>
<div>
	At present, NT has to follow Public Procurement Act. Consultation process is going on with the Public Procurement Monitoring Office (PPMO) so as to refine or redefine the directive. I am confident that the ongoing as well as additional consultation processes will help NT move forward more efficiently.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>News reports during last year claimed that NT provides unnecessary perks and facilities to officials at the Ministry of Information and Communication. What will you do to this end?</strong></span></div>
<div>
	I am not aware of such services being offered to the ministry or its officials. And the ministry has also not requested for the same from the company.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Successive leadership at NT has been failing to materialize the plan of bringing strategic partner to increase competency of the company. Can we expect anything tangible from you?</strong></span></div>
<div>
	The process for introducing strategic partner is gaining momentum. Within few weeks, NT will initiate the process. I am hopeful fresh initiatives will be successful in bringing strategic partner in the company.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>How do you see the challenges from private operators at the moment? Will you bring specific plans to cope with those challenges?</strong></span></div>
<div>
	We offer diverse service and have a dominant presence throughout the nation. Our competitors are lagging far behind compared to us, in general. However, we have experienced competition in certain business aspects of telecommunication services. This has opened up new opportunities for NT to grow from within. We should accept challenges and take it as an opportunity to do even better in the future.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What new services can we expect from you?</strong></span></div>
<div>
	We have seen a huge demand for reliable and affordable data service in coming days. So we are mainly focusing on the same. In this fiscal year we will launch WiFi and FTTH (Fiber to the Home) services. Our expert team is also exploring the areas of service expansion. Naturally all our existing as well as prospective consumers demand reliable, diversified and advanced services from Nepal Telecom and as a service provider we are all working and focusing more on the same to make tangible improvement in the options and quality we offer. We also have plan to introduce new services like WiFi, countrywide 3G services through GSM and CDMA technologies and also have plans to provide our own Social Networking Service very soon.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What do you think the major challenges for the company are?</strong></span></div>
<div>
	Our major challenges, as of now, are:</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Bridge the digital divide</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Modernizing customer service&nbsp;</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Proceedings to introduce an international strategic partner</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Boost employees&rsquo; morale and improve work culture</div>
<div>
	These are some major challenges. The list may go even longer. We have to come out with appropriate solution for all challenges. I will put my effort to overcome these challenges during my tenure.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Till the mid-80s, Nepal was considered as a country having the best telecom services in the region. What happened since then?</strong></span></div>
<div>
	NT has already launched 4G WIMAX service. We were the first to launch 3G services in the SAARC region. So technically speaking, we are still in leading position within the region and we will not let our achievements to go down.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>You have also expertise in modern technology. Please share your experience and plan to expand new technology including LTE?</strong></span></div>
<div>
	We have applied for frequency spectrum for LTE and once we get it, we will start deploying LTE in all major cities. Within 2015, we aim to provide LTE services throughout the nation.</div>',
			'published' => true,
			'created' => '2014-02-13',
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			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'Government-run Nepal Telecom topped the list of largest taxpayers, in terms of both income and value added taxes, in the fiscal year 2011-12. The partially privatized and Nepse-listed telecom service provider contributed some Rs 9 billion to the government coffer that year.',
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	(int) 3 => array(
		'Article' => array(
			'id' => '2492',
			'article_category_id' => '46',
			'title' => '“Situation Is Difficult In Nepal For The Manufacturing Sector To Prosper”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;">Kedia Organisation, the oldest and one of the most talked about business conglomerates of the country, has been practicing a synergistic combination of family ownership and professional management since 1909 A.D. Named after their fathers, Late Sundarmal Kedia and Late Ram Kumar Kedia, it was surely a turning point for the Kedias when the first foundation stone of their present day multimillion conglomerate was laid in the form of a small cloth trading business. The group envisions reaching the zenith and being a premium conglomerate through outstanding service performance and clear business vision. Manoj Kedia, Executive Director of Kedia International and Vice president of the Confederation of Nepalese Industries (CNI), talks with New Business Age&rsquo;s Homnath Gaire and Upashana Neupane on the group&rsquo;s journey in Nepal so far, role of the private sector in nation&rsquo;s development and the group&rsquo;s future plans. Excerpts:</span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>How is the history of Kedia Group different from the general history of Nepal&rsquo;s private sector?</strong></span></div>
<div>
	Trading business in Nepal started along with the Kedia Family. Initially, Kedia family started its business as a cloth merchant with stores in Birgunj and Kathmandu that sold clothes imported from India. With initiation of Late Brij Lal Kedia we gradually expanded our business to food grains trading. It started small but as time progressed it expanded across Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	He used to collect food grains from every corner of the country and supply them to even remote areas that lacked transportation facilities. For the first time in Nepal, he fixed prices of food grains and at a certain point, even the Khadya Sansthan (government owned Nepal Food Corporation) fixed food grain prices by consulting him. Later he established rice mills, dal mills and many more food grain factories. He established Nepal&rsquo;s first modern rice mill, Bhagwati Rice Mill.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Later Shankar Lal Kedia expanded foothold in the manufacturing sector. He established factories related to steel furniture, stainless steel utensils, textile, umbrella, socks, wheat flour, corrugated steel, copper utensil etc. During that time the steel, textile, and corrugated sheet industries were pioneers in their respective fields in Nepal and they are the backbones of the present day Kedia Organisation.</div>
<div>
	&nbsp;</div>
<div>
	At the same time we also entered in general merchandising sector by importing goods from third countries and bulk-traded them in local market. Our imports included cloth, electronics, food items, medical equipment, household products, hardware, cement, sugar, and edible oil among others. We also exported rice to Tibet and pulses and lentils to Sri Lanka, Bangladesh and to some European countries.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We established Caltex Company, a petrol pump agent in Nepal, and this is still in operation as Kedia Auto in Birgunj.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Kedia Group also is one of the first industrial houses to advertise its products. We sponsored the &ldquo;Sundar Sushil Sangeet&rdquo;, a popular song-on-request programme aired on Radio Nepal, to promote our products.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Amid this long list of successful ventures, we also had some disappointing projects. Though we had bagged the license to launch Coca Cola in Nepal, we had to drop the project in the last minute due to some partnership problems. In 2015 B.S. we had to give up the launch of an iron steel factory project, even though necessary equipment and machinery were imported, after King Mahendra dissolved the democratic government and assumed power. Similarly in 2036-2037 B.S. we had to pull back from establishing the Kedia Paper Industry</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is the present status of Kedia Group and how is it different from the overall situation of the private sector?</strong></span></div>
<div>
	Despiteour engagement in diverse sectors, manufacturing sector is our major area. We have established ourselves in the cement, carpet, and the sugar industry. Recently we have started manufacturing PVC carpet and are upgrading production capacity of Indusankhar Sugar Mill, Nepal&rsquo;s one of the oldest and leading sugar industries.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In the past we invested in the banking and financial sector. We had invested in Siddhartha Insurance, Siddhartha Capital and Siddhartha Bank.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Kedia Group has made some significant investment in the service sector and presently we run several schools and hospitals in the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Along with bulk trading, Kedia Group has once invested in housing projects. And as part of its plan to expand its foothold, the group has made small investments in other sectors like hydropower for getting acquainted with them.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>How is this conglomerate with interests in so diverse fields being managed and controlled?</strong></span></div>
<div>
	We have a joint family and we have divided our tasks within our family members for various sectors. We work in our respective sectors. Our father&rsquo;s generation is also actively involved in managing the business.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In the recent years, Nepal&rsquo;s private sector is diverting investments to service and trade sector from the manufacturing sector. What is the reason?</div>
<div>
	Nepal is a market of its own kind. Situation is difficult here for the manufacturing sector to prosper. Power shortage, a major problem faced by this sector, has been one of the major causes for such decrease in investment in such sectors. Open import is another hindering factor. Nepali market is crowded with cheap products from China and India and it is very hard for domestic products to compete with imported products in the market, especially in terms of cost. As such, only ethnic Nepali products can sustain in the local market.</div>
<div>
	&nbsp;</div>
<div>
	Lack of skilled and productive manpower, unfriendly labour environment and decrease in agricultural production that has triggered increased imports of agro products, are other factors that are affecting the growth of the manufacturing industries in Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong><img alt="Manoj Kedia" src="/userfiles/images/inter1%20(Copy)(1).jpg" style="float: left; margin: 0px 10px 0px 0px;width: 300px; height: 321px;" />You are a vice-president of Confederation of Nepalese Industries (CNI) that specializes in the promotion of industries rather than trading. Why is not CNI doing something to put a stopper on the deindustrialization of Nepali economy?</strong></span></div>
<div>
	This accusation is wrong. CNI has unwavering vision and mission to achieve. It was established to address private sector&rsquo;s problems by promoting liberal policies.The organization believes that the country can achieve prosperity via private sector&rsquo;s involvement in development activities. It has always focused on facilitating the activities of private sector.</div>
<div>
	&nbsp;</div>
<div>
	In reality, many of the genuine issues and demands raised by CNI for promoting private sector remain unaddressed due to concerned authorities&rsquo; reluctance. I am pretty confident that the private sector can make tangible impact if issues and demands raised by CNI are endorsed by the parliament.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>You said Kedia Group is also entering the power generation sector. Would you please elaborate on this?</strong></span></div>
<div>
	The entire industrial sector has been suffering from power deficit. Industrial sector incurs billions of losses due to it. It is a national problem and it is obvious that major business houses want to engage in the power generation business.</div>
<div>
	&nbsp;</div>
<div>
	Presently power/energy costs have increased steeply. Simultaneously, demand for power has also increased. Hydropower has high market potential. As we are aware, due to our inability to use our energy resources, we are purchasing energy from neighbouring countries in various forms like petrol, diesel and oil. Most of our financial resources, which we could have invested in productive sectors, are spent in purchasing energy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Hydropower projects need lots of investment. We need laws and policies friendly enough to attract FDI in that sector. So far, Kedia organisation has not made substantial investment in this sector. We have invested as shareholder in this sector to study the sectoral behaviour.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Why is the Kedia Group not generating power through cogeneration from its sugar mill and supplying it to the national grid?</strong></span></div>
<div>
	We can produce 10 Mega Watt of electricity from cogeneration, that too when the country faces maximum power shortage. To produce power, we need huge investment for developing infrastructure. If such infrastructures are developed in all industries across the nation, 30 to 40 Mega Watt of electricity can be produced. It is far less costly than thermal power plants and other alternative means and takes less time to establish also.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, huge investment is required to develop necessary infrastructure for such a project. As policy keeps changing, it entails huge investment risks. Such risk can be only taken if the state formulates conducive policy and provides special incentives. Otherwise, as an entrepreneur, I would not risk my investment.</div>
<div>
	&nbsp;</div>
<div>
	Presently, waste from the paper mill remains unexploited. If government supports in setting up power plants, such wastes can be used to generate multifuel whenever the nation needs.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Despite being a major player in agro-processing industry why is the Kedia Group not building backward linkages with the farmers?</strong></span></div>
<div>
	We have been coordinating with farmers. We regularly provide them with various skill-based trainings and loans too. We have set up Sugar Mill in Sarlahi district, the major sugarcane growing centre of the country, and it is an instance that reflects how we work in coordination with farmers. In addition to that, we have been actively engaged with farmers in the dairy business as well.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Now that the Constituent Assembly elections are over, how do you visualize the business scenario in the days ahead?</strong></span></div>
<div>
	Democracy has to be institutionalised. Political issues have been settled and that marked the crossing of transitional politics. The rhetoric of transition politics should not be repeated and we should be optimistic of economic growth in the days ahead. Kedia Group is very hopeful of contributing to the overall development of the country.</div>
<div>
	&nbsp;</div>
<div>
	During the last half-decade, there have been many positive changes in the political regime. With the successful completion of second Constituent Assembly election, it&rsquo;s time to focus on institutionalising the achievements.</div>
<div>
	&nbsp;</div>
<div>
	Now, political parties should prioritize national interests by brushing aside their partisan and personal interests and focus on formulating collective goals to achieve national economic growth.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It&rsquo;s an achievement for the private sector that almost all major political parties consider it as the backbone of the national economy. Unity in diversity is our speciality and Nepali leaders should translate this mantra into reality. They should prioritize economic prosperity in their political agenda. Nepali business won&rsquo;t get good reputation in international market unless our economy is strong and self-reliant. It is possible and all we need is sincere commitment from our politicians.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What agenda would you like the upcoming government to focus on for the progress of business-economic field?&nbsp;</strong></span></div>
<div>
	The government should show readiness to address some pending economic agenda. It should create environment whereby industries can be set up in every district. Local bodies should be given authority for deciding utilization of local resources. The central government should act as intermediary to mitigate problems faced by the private sector at the local level.</div>
<div>
	&nbsp;</div>
<div>
	Above all, state should ensure political stability and strong governance and ensure their commitment made in the last election to the general public of drafting and promulgating the new constitution within the promised time frame. Economic growth of the nation can sustain and progress only if the state and political actors act as strong catalyst and continue propelling it.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>The manufacturing index for the last fiscal year and the trade statistics for the first four months of the current fiscal year show some positive indications of improvement over the previous year. How do you interpret this information?</strong></span></div>
<div>
	It is too early to comment on this. &nbsp;We do not see any drastic changes in the manufacturing sector over the last fiscal year. There are several reasons for the said improvement of manufacturing index. Firstly there was comparatively better supply of electricity, and secondly political realm remained stable during the last fiscal year. Dollar revaluation also contributed much for the better performance in the exports trade. We had less volume of imports, that is the domestic market imported fewer consignments in the last fiscal year, and this helped show improvement in the growth rate of the trade deficit. But we should remember that the trade deficit is still increasing though in slower rate.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Where do you see Kedia Group of Industries in five years of time?</strong></span></div>
<div>
	In five years, we envision our involvement in diverse business. We will be engaging in the infrastructure, tourism, power and in the manufacturing sector. All we need is a strong and stable government, business-friendly policies and fair competition between private sector players. &nbsp;The domestic market has huge potentials and Kedia Group looks forward to tap and invest in them to create more jobs in the domestic market itself.</div>',
			'published' => true,
			'created' => '2014-01-24',
			'modified' => '2014-01-24',
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			'description' => 'Kedia Organisation, the oldest and one of the most talked about business conglomerates of the country, has been practicing a synergistic combination of family ownership and professional management since 1909 A.D. Named after their fathers, Late Sundarmal Kedia and Late Ram Kumar Kedia, it was surely a turning point for the Kedias when the first foundation stone of their present day multimillion conglomerate was laid in the form of a small cloth trading business.',
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		'Article' => array(
			'id' => '2312',
			'article_category_id' => '46',
			'title' => '“Nepal-India-China Trilateral Mechanism Needed For Nepal’s Power Development”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;">Chilime Hydropower Company Limited (Chilime), incorporated in 1995, is promoted by Nepal Electricity Authority and owned by the local community also. &nbsp;Its model has been considered as one of the best way to generate wealth for the local people &nbsp;and assists in sustainable development.&nbsp;<strong>Kul Man Ghising</strong>, Managing Director of this public company, recently spoke to&nbsp;<strong>Siromani Dhungana</strong>&nbsp;of New Business Age on issues related to Nepal&rsquo;s hydropower sector.&nbsp;<strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is the progress of power projects being developed by your company?&nbsp;</strong></span></div>
<div>
	We have four projects under Chilime Hydropower Company, namely Sanjen, Mid-Bhotekoshi, Rasuwagadhi and Bemdang. We have been developing all these projects through our subsidiary companies -- Sanjen Jalavidhyut Company, Madhya Bhotekohi Jalavidhyut Company, Rasuwagadhi Hydropower Company and Bemdang Khola. Mid-Bhotekoshi with an installed capacity of 102 MW in Sindhupalchowk district is being developed through Madhya Bhotekoshi. Sanjen is &nbsp;developing two projects&ndash;Sanjen of 42.5 MW and Upper Sanjen &nbsp;of 14.8 MW capacity in Rasuwa district. Rasuwagadhi Hydropower is developing a new project - 111 MW Rasuwagadhi Project in Rasuwa district. We have almost completed all pre-construction tasks including procurement process and taking EIA certificate and other clearances. All these projects will start construction by the end of the current fiscal year. Among these four projects, the progress of Sanjen is rapid. We have planned to complete all works of Sanjen project by 2016 and other projects by 2017.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>The first project developed by your company is often cited as an ideal model for Nepal&rsquo;s power projects. And more examples of such successful model were expected from your company. But none of the projects in the pipeline viz. Sanjen, Madhya Bhote Koshi and Rasuwagadhi are complete so far. Why this delay?&nbsp;</strong></span></div>
<div>
	I do not think there is delay in the progress of projects. We have been working on all projects according to the project timeframe developed by the company. In Nepal, pre-construction works take almost 60 per cent of time required to develop hydropower projects. We have lengthy procedural formalities to complete before starting the actual construction. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We have already completed works that include getting approval from various ministries and government agencies, tunnel testing, infrastructure development at the site among others. Given the usual standard in Nepal, it should be considered as a great achievement for any hydro company to start construction work within three years of acquiring licence. Within three years, we have prepared Detailed Project Report (DPR) and other ground works necessary to start the construction of the project.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	No project can be undertaken without financing. It was challenging to identify proper financing channels. We managed to arrange equity participation from our partners including Nepal Electricity Authority (NEA), Chilime and the public. But debt financing was really important and it is our achievement to have convinced Employees Provident Fund (EPF) to invest in our projects within a year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Financing is not possible without reaching Power Purchase Agreement (PPA) with NEA and DPR is essential for entering into PPA. These are time-consuming processes. Hydropower companies have to go through many hurdles to enter into PPA in Nepal. Companies have been chasing NEA for years to get PPA approved. Process of getting environmental impact assessment (EIA) certificate is unnecessarily lengthy in Nepal. Government agencies compel hydro companies to wait for 2/3 years to acquire EIA certificate. That&rsquo;s not all. Ministry of Forestry takes another 2/3 years to provide consent for chopping trees in project sites. &nbsp;It takes five years just to complete the process at the Ministry of Environment and Ministry of Forestry. These all pre-construction processes are unnecessarily lengthy in Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Adding to it, as a public company we have to follow lengthy procurement process that takes around one to two years to complete. Despite all these hurdles, we have been working aggressively to complete all projects in the stipulated time.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;In Nepal, no project has been completed in less than 10 years of its initiation. Administrative hassles have been causing the delay in completing pre-construction works. Sometimes, I feel these are unnecessary hurdles. The government should focus on easing off these hassles, if it wants to propel hydropower development.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong><img alt="Kul Man Ghising, Managing Director, Chilime Hydropower Company Limited" src="/userfiles/images/intr2%20(Copy).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 250px; height: 368px;" />Some private sector power developers have also pointed out that Chilime is specially favoured by the government and the Nepal Electricity Authority in various respects, such as PPA rate and the choice of projects. What is your assessment?</strong></span></div>
<div>
	As a public company, we have to face dozens of hurdles to develop a hydropower project. First, we have to face problem in public dealings during land acquisition. We follow transparent methods in public dealing and do not pick up influential persons to get them on our side andstart work. Even at the ministry, our projects are processed by taking more time than other private sector companies. The allegations that Chilime has got special privileges are completely baseless. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Developers often complain about the increasing demands of the locals in the project site. How is the situation in projects being developed by Chilime?&nbsp;</strong></span></div>
<div>
	We should not always blame locals for friction in the development of hydro projects. Local people do not always put irrelevant and irrational demands. Power developers should take care of their logical demands. They should maintain transparency in their deals. For a project to be sustainable, deprived people should also get project benefits. This is what we do in our projects. Providing benefits only to a handful of local people always creates trouble.. The activities which are not transparent and are aimed at appeasing a handful of locals are major reasons behind problems at the local level. Power developers should ensure that the project benefits locals through employment opportunities, infrastructure development among others. We have been doing all these activities at the local level and maintained transparency in our dealings. We have decided to float shares to locals on equal basis to create sense of ownership on the project among them.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>One major problem cited in the development of hydropower in Nepal is the lack of capital. To address this problem, legal provisions have been reviewed and the developers have been allowed to raise money from the general public by issuing shares them even before the project construction starts. Why don&rsquo;t the developers use this facility to raise fund?&nbsp;</strong></span></div>
<div>
	There is a great possibility of rasing the capital through issuing shares to the general people. But, Security Board of Nepal&rsquo;s (SEBON) regulation does not allows to issue shares to the general people without solving equity issue among the promoters. Private sector is not very &nbsp;much eager to submit equity details of all the promoters. Due to equity issue, it is not easy to float shares to the public from the private sector power developers. Majority of power developers do not want to issue shares to the public.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In the recent days, people&rsquo;s attraction in buying shares clearly hints that we can generate capital by floating shares to the public. Even generating equity is not a big problem in Nepal. We have enough fund but our problem is how to manage fund. Trust on developers is also equally important before floating shares. All developers can not be as trustworthy as Chilime. If developers fail to make profit, people will not invest in shares of hydro companies in the future. This part also should be considered.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Some analysts suggest that developing hydropower projects in Nepal with an aim to export power to India will benefit Nepal because of the seasonal variation in the water flow and peak demand of electricity in Nepal and India. What is your opinion on this?&nbsp;</strong></span></div>
<div>
	Due to seasonal hydrology, energy management is indeed a challenging task in Nepal. Currently, NEA is responsible to manage energy in the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Development of transmission line for interconnection is a must. Optimum utilization of hydro energy is not possible in the country without interconnection. All power generators should be connected in the national power grid to utilize hydro potential to its full capacity. Interconnection with India means getting connected with the entire South Asian region. It would be really good if we can develop cross-border or regional transmission line.</div>
<div>
	&nbsp;</div>
<div>
	But first, we have to put optimum efforts to develop more power projects so that we can reach the level of a power surplus country. The demand of power will automatically go up in the domestic market too if we generate enough power. More factories &nbsp;will come up here if we can ensure sufficient power supply to them.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What other &nbsp;legal and administrative hurdles are there in developing a hydro project? &nbsp;</strong></span></div>
<div>
	The government has failed to expedite procedure in hydro projects development especially the administrative procedures. It should remove all administrative hassles if it really wants rapid growth in the hydro power sector. We have already talked about the year-long procedural hurdles that exist in various government agencies.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There are some unnecessary and irrational taxes levied on hydropower projects in Nepal. Besides the royalty that the projects have to pay the government, &nbsp;Ministry of Forestry charges one per cent tax on power developers which does not match with government&rsquo;s commitment of facilitating hydropower sector.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Power trading company is necessary to manage energy market in Nepal. We don&rsquo;t have a reliable entity to manage electricity market. NEA is the entity which is signing PPA in Nepal. And this PPA &nbsp;is not based on scientific approach. PPA rates should be decided on the basis of several factors including condition of the project site. . It should be transparent and scientific if Nepal has to be a power surplus nation.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the government should form a scientific pricing mechanism. The price of electricity should not be the same during peak &nbsp;and normal hours. It should focus its effort on all these aspects.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	PPA in terms of dollar has been raised and the government should address this issue along with making the PPA bankable.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The balance sheet of NEA is not convincing to foreign power developers. Foreign investors cannot be assured of the safety oftheir investment when they have to sign agreement with a company that is in such huge loss. If the government cannot provide sovereign guarantee, it should provide payment guarantee. Additionally, in order to attract Foreign Direct Investment (FDI), the government should ensure security mechanism to boost confidence of foreign developers.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What challenges and opportunities do you see in Nepal&rsquo;s hydro power sector?</strong></span></div>
<div>
	Our nearest power market is India and there are potential investors in China. We can bring investors from China and use Indian power market. We can make a trilateral mechanism and develop trilateral business since we have resources, India has market and China has capital to invest.Investment in joint venture among these three countries will be mutually beneficial and can create unique opportunities for all. Chilime model is sufficient to generate power if domestic market is the only target. But, if we want prosperity from hydropower sector, we have to attract foreign power developers and for that we have to open avenues in foreign markets.&nbsp;</div>',
			'published' => true,
			'created' => '2013-12-22',
			'modified' => '2013-12-30',
			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'Chilime Hydropower Company Limited (Chilime), incorporated in 1995, is promoted by Nepal Electricity Authority and owned by the local community also.  Its model has been considered as one of the best way to generate wealth for the local people  and assists in sustainable development. Kul Man Ghising, Managing Director of this public company, recently spoke to Siromani Dhungana of New Business Age on issues related to Nepal’s hydropower sector. Excerpts:',
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			'id' => '2179',
			'article_category_id' => '46',
			'title' => '“There Are Obvious Reasons Why We Decided To Invest In Hotel Business”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Shesh Ghale</strong>&nbsp;is a Mebourne, Australia based non-resident Nepali businessman. He has been listed as the 180th richest man in Australia (together with his wife Jamuna Gurung) by BRW News Australia with a fortune of $225 million. Recently, Ghale has been elected as the president of the Non-Resident Nepali Association (NRNA). Ghale, founder and chief executive officer of Melbourne Institute of Technology, under the MIT Group Holdings Nepal, has signed a management contract with Starwood Hotels and Resort Worldwide, Inc. to build a five-star property named&mdash;the Sheraton Kathmandu. He has also come up with some other investment plans in Nepal. Soon after being elected as the president of NRNA, he has pledged to promote entrepreneurship in Nepal. He spoke to&nbsp;<strong>Siromani Dhungana</strong>&nbsp;of New Business Age about his and NRNA&rsquo;s future investment plans in Nepal.&nbsp;<strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>As the new president of NRNA, what&rsquo;re your priorities in Nepal?</strong></span></div>
<div>
	First meeting of the newly elected committee of NRNA has decided to focus on employment generation and sustainable development of Nepal. To achieve these goals we will implement various projects. These projects include establishing a five-star hotel in Kathmandu that will assist in creating employment opportunities and thereby also contribute in economic growth. &nbsp;We will immediately start the feasibility study for constructing this five-star hotel. Along with that we are planning to bring other projects to help us in gaining our objectives.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What other projects that NRNA will push forward during your tenure?</strong></span></div>
<div>
	We will put emphasis on mutual investment projects. I think NRNA should promote culture of entrepreneurship. During my tenure, we will be doing various activities that promote entrepreneurship in Nepal. These activities will be aimed at translating our slogan &lsquo;Connecting Nepali for Prosperous Nepal&rsquo; into actuality.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>NRNA is often blamed for ignoring blue-colour employees working in the gulf region in spite of their huge contribution to the national economy. What&rsquo;s your say?</strong></span></div>
<div>
	No. Their contribution to the country will be recognized during my tenure. We have decided to create a &lsquo;Relief Fund&rsquo; for migrant workers who have been suffering in foreign land. The fund will be utilized in welfare activities especially for those who die, who get injured and who are shelter less in foreign land. I have pledged to provide Rs 10 million for the fund and I am hopeful that other friends will contribute to the cause. The funds will be ultiized once detailed working procedure is finalized.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong><img alt="Shesh Ghale" src="/userfiles/images/sg%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 321px;" />Getting back to NRNA&rsquo;s decision to invest in hotel sector, why did you choose this business sector to invest in?&nbsp;</strong></span></div>
<div>
	We have good links with foreign star hotel chain brands for investing in hotels. I think we can introduce their expertise here in Nepal. Another reason is the existence of good business prospects for hotels. Non Resident Nepalis can make good profit by investing small amount in this sector. We will encourage new friends to invest in this sector so that the country will get new set of entrepreneurs.</div>
<div>
	&nbsp;</div>
<div>
	But there is strong belief that NRNs should invest in infrastructure rather than hotel sector.</div>
<div>
	&nbsp;</div>
<div>
	There are several obvious reasons why we decided to invest in hotel business. First, the hotel business can generate more employment in small investment. We can generate four hundred jobs if we establish a 200-bed hotel. Second, we can produce skilled manpower by operating hotels with international standard in Nepal. Human resources who work in standard Nepali five-star hotels, can easily get job abroad. Third, hotel business will have a multiplier impact in development. If we establish a hotel in a community, the entire community starts to get benefit from that.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Another reason is the investment in hotel business is easily transferable. &nbsp;Hotel business is one which helps generate foreign exchange reserve.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	NRNA will not, however, undermine infrastructure projects. We will continue all infrastructure projects, including hydropower projects, during my tenure as well. Hydropower has been our priority and it will remain so in the years to come.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Are you also targeting middle-income NRNs during your tenure?</strong></span></div>
<div>
	Yes, indeed. NRNA has planned to start a commercial agriculture project targeting NRNs of middle-east and Korea. NRNs are enthusiastic to invest but do not have much money can benefit from our plan of initiating commercial agro project. On the other hand, commercialization of agriculture sector is Nepal&rsquo;s need of the hour. Nepal should tap potentials in agricultural sector since majority of the people&rsquo;s lives in the country relies heavily on it. Commercializing agriculture sector will also help Nepal in reducing import of agro product.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>You often emphasize on entrepreneurship for the prosperity of the country. Do you have specific plan to promote entrepreneurship in Nepal?</strong></span></div>
<div>
	I am planning to join hands with young Nepali entrepreneurs to promote entrepreneurship in the country. I will create a forum for young entrepreneurs so that they can exchange experience with entrepreneurs from other countries. Also, NRNA has planned to provide a mentor for aspiring entrepreneurs. &nbsp;The concept of mentorship is introduced to synergize the expertise of the older generation with the energy of younger generation.</div>
<div>
	&nbsp;</div>
<div>
	Entrepreneurship development is a time-intensive project rather than capital-intensive. The mentor has to spend time with younger generation entrepreneurs to share experience and to inspire them to do something worthwhile. We are confident that we can produce some good entrepreneurs by materializing this concept.</div>
<div>
	&nbsp;</div>
<div>
	It is said that Nepali products are yet to get foothold in international market. How can we expand country&rsquo;s recognition in international business realm?</div>
<div>
	We NRNs, who have already entered in international business sector, should act as bridge to link Nepal with other international markets. &nbsp;Collective efforts of government bodies and private sector can earn a good reputation for the country. The country needs to pay attention on creating brand name of some products in the international market. Some promotional activities will be also needed to this end. Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has been putting effort to promote Nepali products in the international market. It has a separate Nepali Products Promotion Committee which has been extensively working to promote Nepali products. We will work in close collaboration with FNCCI and young entrepreneurs.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Do you have other specific plan for promoting Nepali brands in international market?</strong></span></div>
<div>
	It is worthwhile mentioning here that we will be promoting Nepali products through &lsquo;Made in Nepal&rsquo; exhibition in various countries. We have planned to organize such exhibitions in five countries in the first phase. Similarly, we will construct &lsquo;Nepal House&rsquo; in various countries which will be helpful to inform foreigners about Nepal and Nepali culture. We have planned to construct such houses in Mexico, Belgium, UK, USA and Australia. We will gradually expand this concept to other nations and cities too.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>How do you take recent accusations of involvement of political parties in NRNA&rsquo;s recent convention ?</strong></span></div>
<div>
	I want to clear it out that politics is our least priority in Nepal. We are all focused on bringing cultural change regarding entrepreneurship in Nepal. We have to increase productivity for the prosperity of the country and we will be involved in such activities but not in politics directly.</div>',
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			'description' => 'Shesh Ghale is a Mebourne, Australia based non-resident Nepali businessman. He has been listed as the 180th richest man in Australia (together with his wife Jamuna Gurung) by BRW News Australia with a fortune of $225 million. Recently, Ghale has been elected as the president of the Non-Resident Nepali Association (NRNA).',
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			'article_category_id' => '46',
			'title' => '“Private Sector  Is Publicity-Oriented”',
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	&nbsp;</div>
<div>
	<div>
		<span style="font-size: 16px;">Though a businessman, he is well known in political circles. Entering the business world at the age of 14, Ajay Raj Sumargi, Chairman of Mukti Shree Pvt Ltd, has many successes under his belt. Shifting between political and business circles, and from one business sector to the next, Sumargi makes an interesting business personality in Nepal. His favourite sector at the moment is hydropower which, according to him, is the one that can change the economy of the country for the better. He does not try to hide his interest in politics and ways he interacts with political forces in order to develop a common minimum understanding among political leaders. &ldquo;Yes, leaders come to me and request to play the role of mediator when there are disputes and differences among them,&rdquo; he reveals. Sumargi talks to New Business Age&rsquo;s Siromani Dhungana about his journey and perspective on business in Nepal.&nbsp;<strong>Excerpts:&nbsp;</strong></span></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Can you please share with us your journey from being a local businessman outside of the valley to a renowned and one of the richest ones in the country?</strong></span></div>
	<div>
		I was 14 when my father passed away. Our family was already renowned for business at that time. We were involved in various businesses such as transportation, mines and wood works. My mother was always worried about my studies owing to my involvement in business from a very young age. I was responsible toward my younger brothers and we were liable to huge bank loans at that time.</div>
	<div>
		&nbsp;</div>
	<div>
		In 1978, I was liable for a bank loan worth Rs 1.1 million because I had taken over all responsibilities of my father&rsquo;s business. I must confess that I am not a first generation businessman - all I did was continued the businesses initiated by my father. I cleared all my banks loans by 1986 and was able to own a car at that time. All my success today is due to my hard work in those days.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>You entered the business world at a very young age. How did you cope with challenges in business?</strong></span></div>
	<div>
		I was born in a very prosperous and educated family that had great influence at the local level. I cannot forget the contribution of my predecessors for my progress. Similarly, I got many opportunities, warmth and cooperation from society due to my father&rsquo;s fame.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Another reason for my success is my readiness to take risks in business. For instance, I bought a loader worth $60,000 around 1993. At that time most people suggested that I buy a truck instead because the profit attained from trucks was more secure compared to loaders. However, my decision of purchasing a loader paid back and proved to be a right within six years as I was able to reap profit and invest it further in other projects. As a businessman, I always took risks and my readiness to bear risks has benefitted me thus far.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Generally, I change my sector every 11-12 years. In the initial 10 years, I was involved in the business of wood mills; after that, I moved on to the business of mines; later, I got involved in the telecom business and have been in it for the last 10 years.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>So, which sector do you anticipate engaging in the next 10 years?</strong></span></div>
	<div>
		It is obviously the hydropower sector I want to concentrate in the coming decade. I have planned to invest in a 35MW hydropower project in Dhading district. I will also put my energies to bring foreign investment in the hydropower sector.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		I had planned to construct a large capacity hydropower project in Karnali when Pushpa Kamal Dahal was Prime Minister. But it could not start due to hassles at the political level. I have put hydropower in my priority list and I think my presence will have a positive impact just as in the telecom sector. My contribution to make the telecom sector competitive and cheap has proved that I can create positive impact in business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Private sector investment in hydropower has been a much hyped issue. In your opinion, what are some major problems impeding the big hydro hope?</strong></span></div>
	<div>
		There are many problems in the hydropower sector. First, we have entrusted the responsibility of production, transmission and distribution work to the same agency - the Nepal Electricity Authority (NEA). In my opinion, a single government agency cannot carry out all these responsibilities. The government&rsquo;s role should be limited to the monitoring of the entire sector whereas work of production, transmission and distribution should be given to the private sector. But the government should provide some sort of subsidy to develop this sector. Another major problem is in transmission. The existing transmission line is not sufficient to supply electricity to households connected to the grid. The line cannot supply power even if sufficient power is produced. Lack of an effective system in NEA and lack of appropriate policies and laws have also affected the development of the hydropower sector.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>The private sector is also blamed for malpractices in the hydropower sector. What is your say?</strong></span></div>
	<div>
		It seems the private sector has been publicity-oriented to some extent. Hoarding of hydropower licenses is a serious malpractice on the part of the private sector. Such trends tarnish the reputation of the private sector. The government should revoke the licenses of those firms that are squatting on the licenses just for pocketing them.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Genuine businessmen have been suffering due to the license hoarding trend. The government cannot issue licenses to genuine businessmen like me since all rivers are already occupied. The government should end this and the private sector should support the government in doing so.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Let&rsquo;s change the topic. In your opinion, what should the government do to create an environment conducive to entrepreneurship?</strong></span></div>
	<div>
		Instead of the government acting for that purpose, I think the private sector should be sincere. Activities of the private sector should promote and strengthen it. The government alone cannot create an environment conducive for &nbsp;entrepreneurship and a blame game is not enough. &nbsp;Yet, the government has many responsibilities. The government should facilitate business activities by investing in infrastructure. Three sectors including information technology, hydropower and road connectivity are especially important for positive environment in business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>In spite of your attempt to stay away from controversy, you are always amidst it due to your political connections. Why is this so?</strong></span></div>
	<div>
		I never want controversy pertaining to my personal life. But people always try to drag me into it which is not good. I don&rsquo;t think it is my fault. People often see things from a single perspective and fail to evaluate things from multiple sides. I think a one-sided assessment of any person will victimise the concerned person.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>There are rumours that you and Prachanda have joint investment in some commercial organizations. Is this true?</strong></span></div>
	<div>
		I was equally close to late Girija Prasad Koirala. Once, I did not speak with him for three months and later he himself came to my house. This does not mean that I want to show off my connection with leaders. But I have good relations with all leaders regardless of their political ideology. I do not have any special connection with Prachanda. I frequently meet Sushil Koirala, Madhav Kumar Nepal and Ram Chandra Paudel. People do not care when I meet other leaders but I don&rsquo;t understand why they hype my meeting with Prachanda. Instead, I claim that I have played a role among political leaders to mitigate the differences among them. They also ask me to play the role of mediator when there are disputes and differences among them.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>It is also said that you constructed &lsquo;Mukti Tower&rsquo; in Baneshwar, naming it after Prachanda&rsquo;s father?</strong></span></div>
	<div>
		Yes, it is correct that I have constructed Mukti Tower. Its full name is &lsquo;Mukti Shree Tower&rsquo; and I named it after Lord Muktinath. I want to inform that I have kept more than 90 per cent of names of my companies after Lord Muktinath. It is false information that the name of the tower was after Prachanda&rsquo;s father. I don&rsquo;t have special relations with Prachanda. Rather, I have known Dr Baburam Bhattarai for long. What I want as a businessman is very clear - that our leaders should have common minimum agenda for the economic development of the country, and I want to contribute to develop such agenda.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Despite being a businessman, you are equally familiar with the political situation of the country. How do you see the relation between politics and business?</strong></span></div>
	<div>
		Political stability is very important to foster good business environment. Politicians need to assure that it is safe to invest. Similarly, right to property is also very important to create an environment conducive to entrepreneurship. All business people should be convinced that there is level playing field in the business sector. No one will be ready to take risks in an environment of political instability. We want a constitution that will ensure right to property and a free market economy. I want the election to be held in the stipulated time which will be crucial for stability in the country. There may be a group that does not want elections to take place for their own benefit. Prolonged transition in politics will lead us to the worst situation in terms of business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Political parties still seem to be less worried about economic agenda during election. How do you view this?</strong></span></div>
	<div>
		Recently, Nepali Congress organized a meeting with the business community and entrepreneurs to hold a discussion about economic agendas. I was very happy to be participating in the meeting. I want other parties to hold similar discussions. In my opinion, economic agendas should be forwarded in a professional manner, leaving political advantages and disadvantages aside. &nbsp;Political parties should include the issues of economic reform in their manifestos. Political commitments in manifestos help citizens make parties accountable. In spite of having potential for economic prosperity, we have been failing to tap it, forcing our human resource to go abroad for job opportunities.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>So you are worried about the trend of Nepalis seeking jobs abroad?</strong></span></div>
	<div>
		Yes, indeed I am. Our country has been supplying unskilled labour abroad. My wish is to create more and more jobs in this country so that people will not be compelled to seek jobs in a foreign land. If we cannot create enough jobs, the government should at least train the manpower going abroad to prevent trouble there. We need to provide training for basic skills and knowledge for job seekers. Similarly, the country needs to provide basic language training so that employees will be able to converse in a foreign land. Manpower agencies should also be made accountable to their clients.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>What are the three most important qualities to be a successful entrepreneur?</strong></span></div>
	<div>
		Integrity, duty, and patience are essential to be a successful entrepreneur. One should be straightforward and clear in conversation. Anyone should have the courage to say &lsquo;No&rsquo; for what is wrong or impossible and &lsquo;Yes&rsquo; for what is right and possible. Sincerity in business dealings goes a long way. I think, we should respect all and should have patience for everything as well.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Are you satisfied with what you have achieved so far?&nbsp;</strong></span></div>
	<div>
		Yes, indeed, I am satisfied with my work thus far - I am an optimistic person by nature. Rather, I worry about whom to pay for the heat we get from the sun or the air we breathe. I have been interested in contributing to society through various philanthropic deeds. And thus far I have been involved in road and public taps construction, and canal and bridge construction. I get pleasure from social work as I feel I am obligated towards society. Social work has been a satisfactory experience and I request fellow businessmen to realize the same. &nbsp;</div>
</div>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-10-29',
			'modified' => '2013-11-10',
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			'description' => 'Though a businessman, he is well known in political circles. Entering the business world at the age of 14, Ajay Raj Sumargi, Chairman of Mukti Shree Pvt Ltd, has many successes under his belt. Shifting between political and business circles, and from one business sector to the next, Sumargi makes an interesting business personality in Nepal. His favourite sector at the moment is hydropower which, according to him, is the one that can change the economy of the country for the better. He does not try to hide his interest in politics and ways he interacts with political forces in order to develop a common minimum understanding among political leaders.',
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	(int) 7 => array(
		'Article' => array(
			'id' => '1967',
			'article_category_id' => '46',
			'title' => 'Etihad Airways’ Global Network Contributes To The Success Of Kathmandu Route',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size: 14px;">In less than six years of its operation in Nepal, Etihad Airways has already established its brand image among Nepali consumers. Since the commencement of flights in 2007, the United Arab Emirates-based airline has carried more than 500,000 passengers. In addition to connectivity in between Abu Dhabi and Nepal, Etihad Airways offers its service to more than 87 destinations across the globe. New Business Age asked&nbsp;<strong>Pawana Shrestha</strong>, Etihad Airways&rsquo; Country Manager in Nepal about airline&rsquo;s plan.<strong>&nbsp;Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>Etihad Airways recently celebrated its fifth year of operation in Nepal? How has the journey been?</strong></div>
<div>
	Our services to Kathmandu have been a great success. Since the launch of the route in 2007 we have carried more than 570,000 passengers. In addition to carrying passengers between Abu Dhabi and Nepal, Etihad Airways offers seamless connections to more than 94 destinations around the world. Etihad Airways&rsquo; global network has been a major contributor to the success of the Kathmandu route.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are the future plans of Etihad Airways in Nepal?</strong></div>
<div>
	We will continue to work closely with our travel partners to promote tourism to this beautiful country and carry more passengers to cities across our global network.</div>
<div>
	&nbsp;</div>
<div>
	Our close partnerships with the trade and travel industry in Nepal, has been instrumental in our success in Nepal, with the consistently high load factor across all cabins. We are very pleased to be making meaningful contribution to the Nepali economy.</div>
<div>
	&nbsp;</div>
<div>
	<strong>The United Arab Emirates (UAE) is a lucrative destination for many Nepali migrant workers. What is the percentage of migrant workers that Etihad cater to ?</strong></div>
<div>
	We cater to a fairly large number of Nepali workers. However; we carry even more leisure passengers. In 2012 Nepalese workers made up around 30 per cent of our customer base, leisure passengers made up 50 per cent. The remaining were business and corporate travelers.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Numerous other airlines are operating in Nepal. How tough is the market competition for Etihad?</strong></div>
<div>
	Nepal is a very competitive market and there are around 28 airlines currently operating services to Kathmandu. The Abu Dhabi- Kathmandu route, however, has been very successful. This success is due to our commitment to providing our guests with a remarkable travel experience across their entire journey and our focus on delivering award winning product and services.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is your Marketing Strategy in Nepal?</strong></div>
<div>
	Our Marketing strategy focuses on raising the profile of Etihad Airways in the Nepali market and increasing awareness of Abu Dhabi as a leisure destination. The core of our strategy, however, is providing an unbeatable product.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Our marketing strategy involves working closely with our partners, travel agents, industry magazines and trade associations as well as by deploying various promotions, competitions and discount programmes throughout the year. &nbsp;These include tactical campaigns like regular breaking deals, online deals and highly discounted last-minute offers to encourage repeat visitors.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are your CSR programmes in Nepal?</strong></div>
<div>
	Etihad Airways is committed to active participation in causes that support people and strengthen communities across its global network.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;In Nepal, our corporate social responsibility policy centers on projects that assist communities in need and, in the longer term, drive development and empowerment. Therefore, we support orphanages and education projects and homes for the elderly and through medical partners, support critical surgery and health services training.</div>
<div>
	&nbsp;</div>
<div>
	Recently we donated a large amount of waste paper to support a recycling initiative led by Shanti Sewa Griha, a non-governmental &nbsp;organisation providing shelter for the less privileged and fighting discrimination against leprosy patients in Nepal.</div>
<div>
	&nbsp;</div>
<div>
	In 2012 we donated care parcels, made up of packed lunches and blankets, to two social welfare organizations in Kathmandu to keep the less privileged safe from the piercing cold of Nepal.</div>',
			'published' => true,
			'created' => '2013-10-09',
			'modified' => '2013-10-28',
			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'In less than six years of its operation in Nepal, Etihad Airways has already established its brand image among Nepali consumers. Since the commencement of flights in 2007, the United Arab Emirates-based airline has carried more than 500,000 passengers.',
			'sortorder' => '1830',
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	(int) 8 => array(
		'Article' => array(
			'id' => '1678',
			'article_category_id' => '46',
			'title' => '‘Banks Contribute By Dispensing Credit And Absorbing The Additional Income Of People’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;">The Everest Bank Pvt. Ltd. (EBL) appointed&nbsp;</span><strong style="font-size: 14px;">AK Ahluwalia</strong><span style="font-size: 14px;">&nbsp;as its new chief executive officer effective from July 1. Founded in 1994, the bank has been one of the leading banks of the country catering to various segments of society. Ahluwalia, who has 32 years of experience in the banking sector, was deputy general manager of the Punjab National Bank, India. He has key expertise in credit and recovery in the banking system and now leads the Everest Bank which has 50 branches, 25 collection counters and 67 ATMs. In this interview with&nbsp;</span><strong style="font-size: 14px;">Siromani Dhungana</strong><span style="font-size: 14px;">&nbsp;of New Business Age, shares his experiences in banking sector and his plans in Nepal to lead Everest Bank into the next level.&nbsp;</span><strong style="font-size: 14px;">Excerpts:</strong></div>
<div>
	<div>
		&nbsp;</div>
	<div>
		<strong>You worked with the Punjab National Bank for 32 years. How do you see the banking sector in the South Asian region?&nbsp;</strong></div>
	<div>
		In my view, there is one thing common to the entire region which is the general slowdown of the economy. The inflationary trend also affects the cost of goods produced, thus making them uncompetitive in the international market. As a result, exports slow down. There is also a general tendency on the part of entrepreneurs to procrastinate in expanding their existing units or setting up new industries due to the slow economy.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>So you think the manufacturing sector and the banking sector will go well together?&nbsp;</strong></div>
	<div>
		I believe so. When the manufacturing sector is on an upswing, more capacity is created and utilized, more jobs are created and the standard of living of employees improve. People&#39;s purchasing power improves, in turn increasing demand. This is a cycle which continues and contributes in a big way to boost the economy. Banks contribute in their own way by dispensing credit and also by absorbing the additional income of people as deposits, and investing the same.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>You were with the Punjab National Bank in Delhi before coming Everest Bank Limited. What inspired you to be here?&nbsp;</strong></div>
	<div>
		I have worked for 32 years in the Punjab National Bank, having joined as Management Trainee. During my time there, I worked in all types of branches as branch manager and also at the corporate office as well as the circle office. Now I have a chance to work as CEO at Everest Bank Ltd, which is a prominent commercial bank in Nepal. It is my privilege to be a part of this institution and it would be my endeavour to carry it forward and try and make the bank stronger within the framework of regulatory guidelines.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>What are your future plans here onward?&nbsp;</strong></div>
	<div>
		Everest Bank has been doing exceeding well. It has created a unique brand image for itself. Over a period of time, it has become one of the leading commercial banks of Nepal. I believe when you have raised expectations of your stake holders, whether customers, staff, shareholders or promoters, you have to live up to them. It takes a lot to create the brand image and it would be my priority to add further value to it. I have a great team of people working with me who are fully devoted to take the bank to the next level.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Will you bring unique products/services to push the bank to the next level?&nbsp;</strong></div>
	<div>
		I have been CEO of the bank only for a fortnight and it is too early to comment. However, my priority would be to increase the customer base of the bank, both in deposits as well as credit. The existing products are, and also in future would be, in keeping with the customers&rsquo; needs and expectations.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Let&rsquo;s talk about your career and what your banking experience has taught you.&nbsp;</strong></div>
	<div>
		My banking experience has taught me one very simple thing - that if I want my customers to be loyal to me, I have to be loyal to them. When we give correct advice to our customers and deliver exactly what we promise, their loyalty automatically grows.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Your key expertise is in credit and recovery. Can you bring some innovative ideas in these areas?&nbsp;</strong></div>
	<div>
		Credit is basically a function of delivery. For a credit customer, delivery has to be very fast. As far as recovery is concerned, it is basically about being vigilant. If we are vigilant about our accounts, and if the monitoring is good, then recovery is not an issue. Primarily, if we are able to catch signal of an account going sticky at the right time, then corrective measures can be taken immediately.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Any plans for the rural sector?&nbsp;</strong></div>
	<div>
		Prior to my joining EBL, the bank already had plans for agriculture financing, having set up a branch at Rajbiraj, Krishi Udhyam Bikash Sakha. We are also encouraging some corporate clients to boost finances in rural areas.</div>
</div>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-08-23',
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			'description' => 'The Everest Bank Pvt. Ltd. (EBL) appointed AK Ahluwalia as its new chief executive officer',
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	(int) 9 => array(
		'Article' => array(
			'id' => '1442',
			'article_category_id' => '46',
			'title' => 'Development And Growth Should Go Together',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size: 12px;"><span style="font-size:14px;">Radhesh Pant has experience of working nearly a decade in United States in the financial sector. After acquiring good experience of banking sector from the world&rsquo;s number one economy, he returned to Nepal in 1999 and engaged in banking sector. He was also the president of the Nepal Bankers&#39; Association (NBA). He was appointed to head of Nepal Investment Board in 2011. The Investment Board is envisioned to give a one-window solution to potential investors in big projects of over Rs 25 billion with the chairmanship of the Prime Minister of Nepal. Siromani Dhungana and Sujan Dhungnaa of New Business Age spoke to him about prospects of alternative development paradigm in Nepal and his view regarding development versus growth. He says development and growth should go together for the effective development initiative in the country.</span><strong> <span style="font-size:14px;">Excerpt:</span></strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>The ongoing controversy in Nepal regarding growth versus development (more specifically inclusive development) is said to be affecting the functioning of the Nepali economy. How do you view this controversy?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Inclusive development induces economic growth that is sustainable and will result in better livelihood for all the people. Inclusive development will also minimize the gap between the rich and the poor that will culminate in fair distribution of wealth and ample opportunities for all. However, economic growth alone could actually increase the gap between the haves and have nots thereby ensuing inequality, ill-governance, agitation and corruption amongst others which is not sustainable and will result in restlessness, chaos and ultimately civil unrest. This is the risk we are facing in the country right now. We need to focus on inclusive growth and we need to do that fast.&nbsp;</div>
<div>
	For Nepal, with the abundant resources of all kinds, we ought to focus on inclusive development. We need to get our act together. First off, our politicians need to place consistent and consensual priority on inclusive development. Projects that have enormous impact on inclusive growth need to be defined and prioritized. Then we need stable policies such that government changes do not impact these projects and there is continuity. Finally, we need to build our capacity within and outside government to ensure transparency, good governance, accountability and technical ability to monitor and regulate large scale projects. Moreover, we need to be competitive compared to other countries in the region in terms of providing good and timely services, incentives and project formulations.&nbsp;</div>
<div>
	I believe the Investment Board has been established about a year and a half ago for the single purpose of executing large scale projects that assures fair share to Nepal. We are currently focused on large projects that have enormous impact on the economy and would definitely foster inclusive development of Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The Investment board is entrusted to promote economic development of the country and to create employment opportunities. How compatible is this stated mandate with the actual functioning of the Board?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	I think it is absolutely compatible. We have great resources in hydropower, agriculture, tourism amongst others, but we have not been able to capitalize on them. Development of these resources, coupled with the infrastructure development needs in the country to physically connect every nook and corner of the country is the priority. It provides trade of goods, people and services within the country and also abroad. This would create lots of jobs, domestic sustenance, increased exports and will ultimately lead to economic transformation.&nbsp;</div>
<div>
	Investment Board is mandated to do exactly that. Its objective is to provide a fast track approval process and a single window mechanism for prospective investors, both domestic and international. So, essentially by implementing the large scale projects, the Investment Board is the transformation agent that will create ample employment opportunities and inclusive development of Nepal.&nbsp;</div>
<div>
	But having said that, there need to be competitive and coherent policies in place in order to achieve this. Moreover, the Investment Board needs to be at an arm&rsquo;s length from the government and needs to be run professionally, transparently, competitively and with accountability. This is what we have been focused for a year or so. The Investment Board needs to capture the interest of Nepal in all the projects that it executes rather than on vested interests of certain factions. And that is exactly why the Project Development Agreement based on the nine principles that protects Nepal&rsquo;s interest has been formulated.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>So, what are the nine principles? Could you illustrate on that?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Well, currently, we have a Project Development Agreement that is focused on the Hydropower Development. However, this agreement will be emulated for other large projects in other sectors as well. The basic nine principles are that the Project:&nbsp;</div>
<div>
	1. Meet Nepal&rsquo;s electricity needs first.&nbsp;</div>
<div>
	2. Captures for Nepal her fair share of economic benefits.&nbsp;</div>
<div>
	3. Ensures best use of river basin.&nbsp;</div>
<div>
	4. Returns hydro asset to Nepal in good operating condition.&nbsp;</div>
<div>
	5. Transfers project risk to party best able to manage risk.&nbsp;</div>
<div>
	6. It is balanced. The developer is able to receive a fair market based return as compensation for investment, project development and management skills and risk.&nbsp;</div>
<div>
	7. Ensures high environmental sustainability and high safety standards.&nbsp;</div>
<div>
	8. Industrial and Employment Benefits. A good deal is structured so that the demand for goods and services from the tens of billions of dollars of expenditure stimulate many new prosperous business and thousands of skilled and semiskilled jobs for Nepalis.&nbsp;</div>
<div>
	9. Model community benefits includes a package that brings about long term benefits such as training, skill development, employment, business development, community infrastructure - clean water, health services, electrification, housing, etc. It will ensure that local people will become proponents rather than opponents of new hydro projects.&nbsp;</div>
<div>
	With these principles in place, I am confident that Nepal&rsquo;s interest will be protected and that Nepal will be able to maximize its fair share from the project.&nbsp;</div>
<div>
	The government has set an economic growth target of 7 per cent by 2015. Do you think that the government is biting more than it can chew?&nbsp;</div>
<div>
	In my mind, reaching a 7 percent economic growth is not that much of a deal. We need to get our act together. First of all, economic agenda has to be a top priority for all the parties. Consensus amongst the political parties on priority projects is a pre-requisite. Then, elections need to happen in November. We need to send out signals to the investors, both domestic and international that Nepal is ready for business. Stable investment policies that are attractive to investors need to be in place. In the current fiscal year, we are expected to grow at 4.5 percent growth and last year we grew at around 5 percent. If the above preconditions are achieved, adding two more percent is not that difficult. The ball is on our (Nepal&rsquo;s) court.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>In your opinion, what type of policies should the government adopt to promote inclusive development?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Policies need to be clear, simple, sustainable and stable. With every government change, its priorities and policies cannot change. Secondly, inclusive development will not happen overnight. We need to have a long term strategy that is supported by all the stakeholders of development. This includes the political parties, government, private sector and Nepali people in general. The policies and laws need to complement the project execution rather than hindering it. If we are able to execute projects that harness our resources (which are spread across the country), inclusive development will become a reality.</div>
<div>
	&nbsp;</div>',
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			'description' => 'Radhesh Pant has experience of working nearly a decade in United States in the financial sector. After acquiring good experience of banking sector from the world’s number one economy, he returned to Nepal in 1999 and engaged in banking sector. He was also the president of the Nepal Bankers' Association (NBA). He was appointed to head of Nepal Investment Board in 2011.',
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			'article_category_id' => '46',
			'title' => 'Coca-Cola Strives Be Relevant To New Generations',
			'sub_title' => '',
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			'content' => '<p>
	 </p>
<p>
	Coca-Cola’s India unit and South West Asia business operations comprise key markets – India, Nepal, Bhutan, Bangladesh, Sri Lanka and Maldives. Nepal is one of the key markets for Coca-Cola and the business unit’s role is critical to the company to maintain its market share and brand name. Recently, Neeraj Garg, vice president at Coca-cola India and South West Asia Business Unit visited Nepal. New Business Age Editor-in-chief Madan Lamsal talked with him regarding business prospects of Coca-Cola in Nepali market during his visit.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>Kindly talk about your career growth and your role in the Coca Cola business today.</strong></p>
<p>
	I have spent most of my working life with Coca-Cola, having been with the company for almost two decades now. I joined in 1994 and worked in a variety of roles mostly involving Operations and Commercial beverages. I had an eight year stint with Coca-Cola China where I worked on a variety of roles from Business Development to Shanghai Region Manager and also managed The Coca-Cola Company’s Global Partnership for the 2010 World Expo in Shanghai. I moved back to India in early 2011 as VP-Operations providing leadership support to the company owned bottling operations (CBO) and franchise bottling operations (FBO’s) in India. In October 2012, I took over the role of VP-South West Asia Operations and as the Head of our Juice business for the India and South West Asia Business Unit.</p>
<p>
	Coca-Cola is a great company and a great brand to work for. I’ve had some extremely challenging yet fantastic experiences in my years with Coke. I have had the pleasure of working with some of the most engaged and inspiring people as a part of the Coca-Cola family and I hope I can continue to do so in the future as well.&nbsp;</p>
<p>
	<strong>Till a few years ago Coke in Nepal enjoyed close to 80 percent of market share. That is now reduced about 64 percent only, somewhat due to aggressive marketing from the competitor. What is being planned in order for Coke to regain the same past glory? Where have you reached in your expansion plan for Coca-Cola in Nepal?</strong></p>
<p>
	The Coca-Cola Company is one of the largest beverages companies and our products are available in more than 200 countries. In Nepal as well, our brands enjoy consumer preference and share of throat, as we like to call it.&nbsp;</p>
<p>
	After 126 years in the beverage business, we are still innovating, evolving and striving to be relevant to new generations. &nbsp;We constantly strive to stay relevant to our consumers by focusing on their needs and consumption patterns and connecting with them through our products. For example, Trademark Coca-Cola has partnered with the All Nepal Football Association for the Coca-Cola Cup to connect with young footballers across Nepal and promote healthy active lifestyles. Brand Fanta has partnered with the Miss Nepal pageant to stay relevant to teenagers and add some ‘play’ in their lives. So we are constantly trying to find touch points that connect our brands with our consumers across the country.&nbsp;</p>
<p>
	We face aggressive competition in any country that we operate in, but this is good since it not only helps the category to grow, but also provides consumers with a choice of high quality beverages. &nbsp;</p>
<p>
	Providing consumers with choice and value continues to be the cornerstone of our business strategy.We are focused on offering a range of products in different packs at varying price points, which is in keeping with our OBPPC (occasion, brand, price, pack, and channel) architecture. To ensure this, we are investing in our distribution, innovation and marketing investments to continue to drive recruitment for the beverage category. Further improvement in the company’s route-to-market and organizational capabilities are also areas we need to focus on. We have solid plans for Nepal this year and if we can do the right things every day, business growth is a given.</p>
<p>
	<strong style="font-size: 12px;">Coca-Cola in Nepal does not have a wide range of products that the company’s consumers enjoy elsewhere. What are you doing in this regard? Is any products line expansion in the offing in Nepal?</strong></p>
<p>
	The Coca-Cola Company is one of the largest beverages companies in the world today. We are available in more than 200 countries across the world and have more than 3500 product offerings, including more than 800 low and no calorie products, for our consumers to choose from.</p>
<p>
	Our efforts in Nepal need to be directed at being the beverage of choice all day, every day. We need to continue to do the right things each day and at all times.We want to provide our consumers across Nepal with a wide variety of products. We currently offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes across channels. We are focused on leveraging the growth opportunity that a market like Nepal provides and we are constantly researching and evaluating need states to grow our business and expand our portfolio of products.</p>
<p>
	We have been researching and innovating and have a number of plans for Nepal this year in terms of our beverage choices and packaging varieties. You will have to watch out for those in the coming months!</p>
<p>
	<strong>What is the contribution of Coca-Cola’s pure juice and juice products to its total annual revenue collection from Nepal?&nbsp;</strong></p>
<p>
	We currently offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes including in RGB 250ml, Cans 330 ml, PET 500ml, 1.5 Liters and 2.25 Liters. Our current portfolio does not include juices and juice products. As I said before, we are focusing on our distribution, route-to-market and organizational capabilities to drive recruitment for the beverage category, grow our business and expand our portfolio of products, in line with consumer choice and preference.</p>
<p>
	<strong>Coca-Cola’s fruit juice and juice products like the Minute-Maid and Simply Orange apparently do not have any significant market share in the Nepali market. What are the plans to promote these juice products of the company in Nepal?</strong></p>
<p>
	As I mentioned earlier, we currently do not manufacture any juice in Nepal.We offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes. Packaged beverage consumption is on the rise in Nepal and we are constantly evaluating opportunities to provide our consumers with a variety of still and sparkling beverages.We need to continue to do the right things each day and at all times, to further grow the packaged ready to drink beverage business in the country. We will of course continue to innovate and evolve our portfolio of products to cater to consumers’ tastes in the Nepalese market.</p>
<p>
	<strong>There is one controversy in Nepal. People say that the Coke they get to drink here in Nepal or this part of the world is not the same as what the people in the US or Europe get to drink. Is the perception right? If there is perceptive difference, why so and do you find reasons enough to alter this perception? How?</strong></p>
<p>
	Our beverages across the world provide consumers with the same great taste and quality. We strive toprovide the same high quality, safe and tasty products in all 200+ countries in which we operate. Our quality testing parameters and taste standards apply to all our manufacturing facilities worldwide. We aim to provide our consumers the same refreshing and flavourful beverages across the world.</p>
<p>
	<strong>Coke is no doubt the most popular carbonated drinks in Nepal as well as in the South Asian region. But perhaps the same is not true for Coke’s juices. How far is Coca-Cola from realizing the optimum potential of its juice business in the South Asianregion?&nbsp;</strong></p>
<p>
	Nepal’s beverage industry is growing. Consumers now have a lot of choice in terms of choosing what type of beverage they want, at what pack and what occasion.</p>
<p>
	That being said, the industry still has a lot of potential to grow. This is a country which has a relatively low per capita consumption levels for packaged beverages and we see steady and robust growth in both sparkling and still beverage categories in the future. The per capita consumption of our products is only 9.2. Contrast this to a global average of 92, 38 in China and 728 in Mexico. In Nepal our portfolio includes Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda. In India we have products like Thums Up and Limca and the Minute Maid Brand of juices.&nbsp;</p>
<p>
	Minute Maid Pulpy Orange is the number one orange juice drink and Maaza, our mango juice drink has been the leader in the mango juice category for years now. In Sri Lanka as well, we have our Minute Maid range of juices, including Orange, Mango, Apple and Mixed Fruit flavours which are doing exceptionally well in that market. We are currently the market leaders in Sri Lanka. So we are seeing a rise in the consumption of juice and juice drinks in all our markets in this region. Our outlook towards juices and juice based beverages in this region is very positive. With disposable incomes rising, consumers are focusing on hygiene and quality of packaged beverages which will lead to growth in consumption of our juice drinks as well.</p>
<p>
	<strong>The company’s other beverages such asLimca, ThumsUp, Maaza etc.are quite popular in India but not that much in Nepal. Is the company going to adopt any new marketing strategy in order to promote these brands in Nepal?</strong></p>
<p>
	Our efforts in Nepal need to be directed at being the beverage of choice all day, every day.We want to provide our consumers across Nepal with a wide variety of products and we have been investing behind our brands and brand positioning to drive recruitment for the sparkling beverage category. We currently offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes. We are focused on leveraging the growth opportunity that a market like Nepal provides. We have some solid marketing plans for Nepal this year and we will continue to innovate and evolve our portfolio of products to cater to consumers’ taste preferences in Nepal.</p>
<p>
	<strong>Is the company planning to promote its juice brands in a major way globally as it seems the consumers, of not only Coke but also other carbonated drinks as well, seem to gradually believe that soda is not very god for human health and hence are shifting to juices which are healthier alternatives? &nbsp; &nbsp;&nbsp;</strong></p>
<p>
	All over the world, consumers are telling us they care about their well-being, and we care too. &nbsp;We recognize the health of our business is interwoven with the well-being of our consumers, our employees and the communities in which we operate. &nbsp;That is why we offer consumers a wide range of choices in products, sizes and with and without calories. Bringing real choice to consumers everywhere, and educating them on the role their choices play in achieving sensible, balanced diets and active, healthy lifestyles, is part of our commitment to responsible marketing and consumer education around our products.</p>
<p>
	As I said before, we have more than 3500 product offerings, which include more than 800 low and no calorie products, for our consumers to choose from. We have demonstrated that both the Sparkling and Still segments have tremendous upside. We want to be a total beverage company and keeping this in mind have launched several products in the recent past to ensure we are able to cater to the varying needs of the consumer. Juices and juice drinks play a key role in our portfolio and have been showing robust growth over the past few years. All our products, not just juice drinks, can be enjoyed as part of an active healthy lifestyle.</p>
<p>
	<strong><img alt="Neeraj Garg, vice president at Coca-cola India and South West Asia Business Unit" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_june2013_neeraj_garg(2).jpg" style="float:right; margin:0 0 0 10px;" />In recent years, Coke in Nepal is increasing its spend on CSR activities. What new activities are being planned?</strong></p>
<p>
	We operate in world which is constantly innovating and evolving to become more and more sustainable in the long term. Consumers across the world are conscious to companies that are investing in CSR and are seen doing something for the betterment of the community.&nbsp;</p>
<p>
	Sustainability is a crucial component of The Coca-Cola Company’s global business strategy and Vision 2020 statement. We strongly believe that in order for us to do well, we need our communities to succeed and give us the social license to operate. As our Chairman Muhtar Kent puts it- ‘Sustainable business thrives only amongst sustainable communities.’ We have developed a global framework for all our sustainability initiatives across the world and have an entire vertical dedicated to CSR and sustainability.&nbsp;</p>
<p>
	In Nepal, we have designed various programs under this global sustainability framework of ‘Me We World’, with an emphasis on Water and Sanitation, Climate Protection and promoting Healthy Active Living.</p>
<p>
	We have recently launched two of our flagship CSR initiatives the Support My School Program and the 5BY20 Parivartan Training Program in Nepal.&nbsp;</p>
<p>
	We have launched the ‘Support My School’ Campaign in partnership with UN HABITAT, ENPHO, CEN and some municipal corporations. This is grassroots level campaign that aims to create awareness and address issues in schools which lead to absenteeism or children dropping out of school. We are focusing on improving water and sanitation facilities and developing the overall infrastructure of schools across Nepal.&nbsp;</p>
<p>
	The 5BY20 Parivartan Program is a women’s retailer training program, part of our global &nbsp;initiative that aims to economically empower 5 million women across our value chain by the year 2020. Through this program we are training Nepali women retailers on business skills, such as Shop, Stock, Customer and Financial Management. We launched this initiative with 30 women retailers on 8th March- International Women’s Day and we plan to conduct more trainings across Nepal this year.</p>
<p>
	One of our associates recently went to Antarctica as part of an international team with Sir Robert Swan- a renowned polar explorer and environmentalist. Swan visited Nepal last year to support our efforts towards water and environmental protection. We hope that through this international exposure our associates can create awareness and make a difference towards climate change.&nbsp;</p>
<p>
	Coca-Cola Nepal also has partnerships with UNHABITAT and the Government of Nepal for The Partnership for Safe Water Project to reduce the risk posed by untreated water. The Project provides improved access to drinking water by promoting Household Water Treatment (HWT) options in local communities and spreading awareness on ‘Safe drinking water’ in urban centres of Nepal.</p>
<p>
	We have also partnered with the All Nepal Football Association (ANFA) for the Coca-Cola Cup, national grassroots football tournament since 2006. This initiative is a part of our global commitment to create a sporting culture in the country by promoting a healthy and active lifestyle. This tournament involves 10, 000 boys and girls from over 500 schools across 6 regions of the country.</p>
<p>
	We also organize a number of initiatives to create awareness on World Water Day and World Environment Day,as well as conduct the Everest Marathon and International Olympic Day Run.&nbsp;</p>
<p>
	<strong>How has the ongoing financial or economic crisis in Nepal affected the soft drinks market? &nbsp;And how is Coke facing it?&nbsp;</strong></p>
<p>
	Economic and political stability is important for the country and of course for businesses as well. As a business, we hope that there is ample predictability in policies and regulations. As a business entity, we expect governmentsto have a long term outlook and a world view to spur growth in any market that we operate in. We believe that Governments should work collectively with industry and policy bodies to implement effective policies that spur economic growth. The Coca-Cola strategy for solving some of the world’s most pressing issues is what we call the ‘Golden Triangle’ -- the coming together of civil society, business and government to develop collaborative partnerships and create a model for growth. We have been constantly working towards such partnerships worldwide and we are seeing a positive difference in these communities.&nbsp;</p>
<p>
	<strong>What are your views on the trends in the Nepali economy over the next one or two years, and impact for soft drinks business in general, and the Coca Cola group of drinks in particular?</strong></p>
<p>
	As I mentioned, creating stable and predictable policies and a business-friendly environment is something that all business entities look for to invest in countries in the long term. As businesses we hope that Governments will work collectively with industry and policy bodies to implement effective regulationsto spur economic growth. As I mentioned, our philosophy is driving effective collaborations and partnerships between government, business and civil society.&nbsp;</p>
<p>
	With regards to the beverage industry in Nepal, I think the packaged beverage consumption is on the rise and the non-alcoholic ready to drink (NARTD) category continues to evolve to varying consumer demands. Coca-Cola has a strong focus on innovation and we will continue to provide our consumers with beverage choices for all occasions and cater to the advancements of the Nepali beverage market.</p>',
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	(int) 11 => array(
		'Article' => array(
			'id' => '1058',
			'article_category_id' => '46',
			'title' => 'IFC Has Been A Pioneer In Promoting And Developing Local Capital Market',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img alt="Jingdong Hua" height="245" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_june2013_jingdong_hua_ifc(1).jpg" style="float:left; margin:0 10px 0 0;" width="200" />The World Bank Group (WBG) says Nepal is a priority country for it. &nbsp;Internaional Finance Corporation (IFC), is a member of WBG and through it the WBG is enhancing its engagement in Nepal by way of both Investment Services and Advisory Services. To facilitate private sector growth in Nepal, IFC works to promote private investment in infrastructure, tourism, financial markets, transportation, and trade finance. Through advisory services, IFC contributes to increasing access to finance for businesses, making it easier to do business, facilitating public-private dialogue for policy reforms, and promoting regional trades.&nbsp;</p>
<p>
	Recently, Jingdong Hua, Vice President, Treasury and Syndications of IFC had visited Nepal. He talked with Siromani Dhungana of New Business Age about role of IFC to strengthen Nepal’s Private sector.&nbsp;</p>
<p>
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	<strong>The main objective of your mission is to sensitise the Nepali policymakers and opinion makers on the importance of developing local capital markets as the foundation for sustainable growth. What prompted the IFC to pursue this particular objective?&nbsp;</strong></p>
<p>
	&nbsp;IFC has been a pioneer in promoting and developing local capital market. As a matter of fact, in the last 10 years, IFC has provided over $10 billion in 60 different local currencies. The reason is very simple. We help private sector entrepreneur. In case of most of our private entrepreneurs, their business generates revenue in local currencies and generates many local friends. We want entrepreneurs to focus to grow their business instead of worrying about foreign exchange facilities. At a micro level that is the motivation. And at the macro level, the motivation is the foundation for the growth of the capital market. You need a vibrantly liquid capital market support from where the private entrepreneurs can efficiently finance their operation depending on the risk of the capital.</p>
<p>
	Over the past several years, our team in Nepal has been working tirelessly in terms of supporting the power sector in the country with hydropower being the most common sector. That truly is the bottom line. We need to unlock the country to political advantage of its economic potential and some of the hydropower projects do generate local currency revenue. We have been engaging with the government for several years in terms of starting the dialogue, presenting the rationale and explaining the mechanical process. We are happy that we are getting encouraging support from the government. We are waiting for a green signal from the government about regulatory approval. We are very optimistic that the government will be supporting us.</p>
<p>
	<strong>What can the media do to help in this matter?&nbsp;</strong></p>
<p>
	Media plays an important role to sensitise the citizen on the experience of other emerging countries who have benefitted from open and vibrant capital market. It can also highlight the IFC project about how critically they are helping to resolve the infrastructural performance so as to unlock economic opportunity in different sectors.</p>
<p>
	<strong>IFC has been planning to issue local currency bond in Nepal. Could you please highlight the logic behind this?&nbsp;</strong></p>
<p>
	Our projects require local currency financing. To issue these bonds in the Nepali market, there needs to be a regulatory approval from the government for which there is a process. And we are engaging with the government. We are hopeful that in the near future, we will be able to obtain that approval.</p>
<p>
	<strong>What impediments do you see in successful implementation of this idea?&nbsp;</strong></p>
<p>
	We are very optimistic that it will be very successful. As a matter of fact, we have opened three other new markets elsewhere in the world during the last four months. For instance, we have issued local currency bond in The Dominican Republic and in Nigeria. In both cases, those were the first ever foreign bonds issued in local currency in the two countries. While in Russia, we issued the biggest bond by foreign issuer with a very innovative feature of linking coupon rate with inflation target index. We have a lot of experience working with the local pension fund, insurance company, local bank, and local investment community to showcase the benefit from different perspectives.&nbsp;</p>
<p>
	<strong>What do you have to say to the Nepali private sector that is focusing more on the problems of getting foreign capital than on local currency funds?&nbsp;</strong></p>
<p>
	For the market to be recognised by the foreign investors to attract more foreign direct investment, there has to be an environment that enables the private sector to survive. &nbsp;Stable regulatory framework too is required to support foreign investment.Also needed are some critical early success example which demonstrate that the market is viable and ready. There are many things to be developed in terms of capital market. As it needs regulatory framework, market infrastructure and capital market player, the government should regularly facilitate and support the process. It is a long term process and IFC is committed to help Nepal in every way.</p>
<p>
	<strong>The idea of utilising the local capital market for raising capital to invest in infrastructure projects is being floated for quite some time in Nepal but nothing concrete could be achieved so far. What was lacking in those ideas generated locally?&nbsp;</strong></p>
<p>
	IFC issues local currency denominated bonds. It is not just the domestic investor who can buy; foreign investor can also buy if they feel comfortable investing in Nepali rupees. The local currency bond can also attract foreign investors. It has to ensure safety in terms of settlement and investment in the market so that other players can invest on the basis of that.</p>
<p>
	<strong>How do you see the progress of IFC’s investments in Nepal?</strong></p>
<p>
	I have visited Buddha Air and had a conversation with the owner directly and how critical our financing is. So it would be beneficial if we not only provide critical financing but also the advisory support on how to improve their management and safety.</p>',
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			'id' => '978',
			'article_category_id' => '46',
			'title' => 'Nepal Is Land-linked,  We Should Take Advantage Of This',
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			'content' => '<p>
	<img alt="Narayan Kazi Shrestha" height="472" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_May2013_rajesh_kazi(1).jpg" width="580" /></p>
<p>
	<strong>Rajesh Kazi Shrestha&nbsp;</strong><strong>Chairman&nbsp;</strong><strong>Nepal China Chamber of Commerce &amp; Industry (NCCCI)</strong></p>
<p>
	Rajesh Kazi Shrestha is Chairman of Nepal China Chamber of Commerce &amp; Industry (NCCCI) and International Chamber of Commerce, Nepal (ICC, Nepal). In the past, he has been in charge of various organizations, such as the Nepal Chamber of Commerce. He is also the former Assistant Minister at Ministry of Industry, Commerce and Supplies. He spoke with Siromani Dhungana of New Business Age about Nepal-China Chamber of Commerce and Industry and its involvement in promoting country’s business environment.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong style="font-size: 12px;">How do you see the current role of Nepal’s private sector?</strong></p>
<p>
	Private sector should be taken as the engine of the national economy. Even though the entire country has been facing power scarcity and political instability, Nepal’s private sector is optimistic about leading the country to economic prosperity. In fact, private sector has been playing a crucial role for the overall economic development of the country.&nbsp;</p>
<p>
	<strong>What is Nepal-China Chamber of Commerce and Industry doing to address the problem of growing deficit in Nepal’s trade with China? &nbsp;</strong></p>
<p>
	Actually, Nepal-China Chamber of Commerce and Industry is established to promote export of Nepali products to China and Chinese products to Nepal. In order to address growing trade deficit figure, we are doing our best to promote more Nepali products in China. The organization has been participating in many promotional activities such as trade fairs where we can promote Nepali products.&nbsp;</p>
<p>
	Due to our promotional activities over the past few years, we can now say that many handicraft, thangka painting and wooden crafts entrepreneurs in many districts, including Lalitpur and Bhaktapur, are benefitted. However, those handicraft entrepreneurs from Lalitpur and Bhaktapur cannot survive if there are no Chinese buyers of their products. There are more examples of other sectors like this that show how Chinese market is becoming more important for us. It is also important to mention here that Nepal and China have signed zero tariff agreement, which ensures export of more than 7,787 items at zero-tariff into chinese market. The provision helps us to expand our trade with China. Nepal should also put its effort on trade promotion between the two countries. The construction of a well-facilitated dry port and a Special Economic Zone would help us to boost trade with China and to attract more Chinese investment. Now, we are more focused on how to get more facilities for our exporters, so we have requested support from the Finance Minister in order to increase trade between both countries.&nbsp;</p>
<p>
	<strong>Nepali traders have failed to take advantage of zero tariff facility provided by China, why?</strong></p>
<p>
	I do not think so. In fact, there are some norms set by the Chinese government which Nepali side has been failing to comply with. Especially, there are some problems such as the issuance of Certificate of Origin.&nbsp;</p>
<p>
	Non tariff barriers such as strict quarantine system, certification standards and rules of origin have created many challenges to the process of trade between the two countries. It’s obvious that there is a lack of effective coordination among Nepali traders and government agencies. Also, there are some other complications on both sides.&nbsp;</p>
<p>
	We are working to sort out current problems and we are optimistic about the settling of these issues very soon. We want to see a concrete agreement to ease quarantine related complications and other non-tariff barriers.</p>
<p>
	<strong>China’s Exim Bank is likely to set up its branch in Nepal. Considerig that Nepal didn’t get the expected benefits from the other foreign banks operating in Nepal, what should Nepal do to get benefits from the presence of Chinese Bank? &nbsp;&nbsp;</strong></p>
<p>
	We have been talking about the presence of Chinese Bank in Nepal for the last three or four years. It is not only for trading but also for investment. Chinese side is very positive. The current Chinese Ambassador is optimistic about the fact that Chinese Bank will start operating in Nepal during his tenure. Not only Exim Bank but also some other banks are negotiating about starting to offer their services in Nepal. If Exim Bank comes, it will have a positive impact on investment. Chinese banks have rational interest rate and also they have capacity to invest. Their presence will definitely help to attract Chinese investors to Nepal.</p>
<p>
	<strong>Chinese investment in Nepal is increasing pretty fast in the recent years. Do you think that Chinese investment is actually helping Nepal? &nbsp;(it is also said that the interest of the Chinese in Nepal is more diplomatic than economic)</strong></p>
<p>
	Yes, the Chinese investment in Nepal is increasing at a rapid pace. Some mega projects such as Pokhara Airport, Kathmandu Ring Road or Dry Port of Sindhupalchowk will be started soon. Similarly, some Chinese investors are involved in mining and water resources projects too. Very soon, if the political situation improves, more Chinese investors will be interested in investing in Nepal. &nbsp;</p>
<p>
	Chinese investment may help the overall national development. As we represent the private sector, our main interest is to strengthen the trade and the economic relation between the two countries. We always lobby for the economic prosperity and investment with the Government of China and our other counterparts. Together, these two countries can achieve good economic prosperity.</p>
<p>
	<strong>What are the possible investment areas for China in Nepal? Would it be resource-seeking or market-seeking? Obviously, it not technology seeking, capital seeking or manpower seeking as China is better than Nepal in all these.</strong></p>
<p>
	Obviously, the first is hydropower sector. Second is tourism, third is mines and minerals and fourth is the agro sector. Nepal has enough resources and lots of business opportunities; however, it is a fact that the current investment size is extremely small. Chinese businessmen have been investing in small-scale sector such as hotels, restaurants and other small trades but we want Chinese investors to start some mega projects. The problem is that the unstable government and policies and the problem of power outage have created much hurdles to attract such investment. Despite the hurdles, there are still many chances to expedite Nepal-China business relationship. Around two or three Chinese delegations have been visiting Nepal every month to explore business opportunities. Chinese investors are very much interested but they often ask about the rules, regulations and opportunities. If the political scenario becomes stable and labour problem is solved, I hope many of them will come to Nepal.</p>
<p>
	<strong>Chinese goods have the reputation of being cheap and inferior in quality. In this context, what prospects do you see for such products in Nepal?&nbsp;</strong></p>
<p>
	It is not like that. Chinese manufactures produce goods according to the necessity of consumers. It depends on the type of goods consumers want. When you are in the USA, European countries or in most of Asian countries and seek high quality products, you will find Chinese ones. We get surprised when we see what we get here and what products are available there. It depends on the quality required and the purchasing power of the buyer. It depends on what type of goods Nepali traders want to import and that’s why I think it solely depends on the buyers’ choice and affordability.</p>
<p>
	<strong>How successful do you rate your own business link with China considering the general perception of Chinese goods being cheap and inferior?&nbsp;</strong></p>
<p>
	We don’t evaluate the Chinese products supplied as per our demands and orders. The same goods can have high or low quality based on how much one can afford. It depends on our buying capacity. It’s us who are responsible for the low quality of the products because we often order low quality goods for Nepali market. &nbsp;</p>
<p>
	It is often cited that Nepali industries are suffering from the cheap imports from China. What’s your opinion?&nbsp;</p>
<p>
	Both Nepal and China are members of World Trade Organization (WTO). According to its principle, we can’t stop importing from its member countries. If we are able to manage our market, we don’t have to worry about cheap imports from China. On the other side, cheap goods imported from China have ensured mass access to the sophisticated goods and also to the daily consumable goods.</p>
<p>
	<strong>What are the critical trade barriers between Nepal and China?</strong></p>
<p>
	There are hurdles and barriers in all sectors but it is still an open and growing market. Some remedies would be to have better policies from the &nbsp;government, a friendly investment environment, labour reforms, security… etc. There are certain issues which should be resolved. We are solving the barriers step by step, as they appear in front of us.</p>
<p>
	<strong>How are the exporters and importers overcoming the language barrier in trade between China and Nepal? How is your chamber helping in this? (it is said that, due to language problems, Nepali traders in China are always in disadvantage in their dispute with Chinese importers or exporters)</strong></p>
<p>
	Yes, it is a little difficult but now most of the Chinese exporters understand English. Nowadays, there are English speaking employees in almost every office and different chambers. And some businessmen who are already doing business can understand Chinese also. If there is any dispute we step in to solve it, we are also giving information about the queries and problems of the business person there. The exporters were very much interested in trade fair there, we are participating there regularly and we exchange our delegation also from different chamber from different aspects.</p>
<p>
	<strong>What points do you think need to be revised in Nepal-China trade-related treaties?</strong></p>
<p>
	Both governments should have frequent meetings to understand and solve the obstacles, if there are. There are some area where we are facing &nbsp;problems, such as &nbsp;quarantine or infrastructures but these issues should be solved very soon. In China, they are not accepting Nepali quarantine certificates. Nepal has three issuing authorities for different sectors and product lines, which makes the Chinese confused as they think it should be done by a single authority. Because of that, we are facing difficulties to export our food items.</p>
<p>
	<strong>The Nepali government has planned to develop Rasuwa as another hub for Nepal-China trade. What is your assessment of the progress in this?&nbsp;</strong></p>
<p>
	The road is already there and, after Sigatse, the railway will come to Rasuwa. We are trying to join railway side from China and India so that Nepal will be linked with both of these countries. We can develop environment for tourism and business also. The government of China is committed on this and we are very optimistic about completing and operating it soon.&nbsp;</p>
<p>
	<strong>It is often argued that Nepal should be developed as the transit point for China-India trade, but no concrete development seems to be taking place on this direction. What are the impediments?&nbsp;</strong></p>
<p>
	We are not a land-locked country but we are a land-linked country with two economic giants at north and south. We should take advantage of this unique geographical position. The main problem of this situation is that everyone has his or her own agenda and we have no unified and strong agenda and vision for concrete developments. A stable government, a strong linkage of these three countries and an open transit road are our most primary necessities.&nbsp;</p>',
			'published' => true,
			'created' => '2013-05-19',
			'modified' => '2013-06-06',
			'keywords' => 'Nepal is Land-linked, we should take advantage of this',
			'description' => 'Rajesh Kazi Shrestha is Chairman of Nepal China Chamber of Commerce & Industry (NCCCI) and International Chamber of Commerce, Nepal (ICC, Nepal). In the past, he has been in charge of various organizations, such as the Nepal Chamber of Commerce. He is also the former Assistant Minister at Ministry of Industry, Commerce and Supplies.',
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			'article_category_id' => '46',
			'title' => 'Interview : Michael Maedel',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Michael Maedel" height="931" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_michael_maedel_april2013(1).jpg" style="margin: 0px 0px 0px 10px; float: right; text-align: justify;" width="300" /></p>
<p style="text-align: justify;">
	Michael Maedel joined JWT in 1990 as Chairman and CEO of JWT Germany, based in Frankfurt. In 1993 he also took on the role of Area Director Central and Eastern Europe before becoming President of Europe, Middle East and Africa in 1997. Michael is a member of the Board of the J. Walter Thompson Company, New York and a member of the Office of the Chief Executive. Before joining JWT, Michael worked for Young &amp; Rubicam for some 13 years.&nbsp;</p>
<p style="text-align: justify;">
	He joined Y&amp;R Frankfurt as a trainee and worked his way to Account Director before moving to Vienna, his birthplace, in 1978 as Chairman. In 1983 he returned to Y&amp;R Frankfurt as Executive Director and General Manager. In 1985 Michael was hired by Ted Bates Werbagentur, Frankfurt as Chairman where he remained before moving to JWT.</p>
<p style="text-align: justify;">
	Michael has a degree in economics from the University of Vienna. He is married with three children. He covers diverse contemporary themes of advertising in an hour-long tet-e-tet with Prof Ujjwal K Chowdhury of New Business Age.</p>
<p style="text-align: justify;">
	<strong>The Suave Charmer</strong></p>
<p style="text-align: justify;">
	You wait to meet the Asia-Pacific Chairman of JWT, global advertising major, with bated breath, and in comes an unassuming tall 6+ feet lanky European gentleman, Michael Maedel, for whom Singapore is the new home now. You expect attitude, jargons, numbers, and rushed talks. And soon you find none.</p>
<p style="text-align: justify;">
	“I feel an oldie in JWT, almost been there for all the 149 years of its history, and have seen the massive developments and changes that have happened therein,” he kicks off the hour-long chat with a charming half-smile.</p>
<p style="text-align: justify;">
	<strong>Exciting Times</strong></p>
<p style="text-align: justify;">
	Never more significant have been the changing times ever before than this moment. He is bang-on, with economic recession sweeping across Europe, budget-deficit tackling in USA becoming tougher by the day, growing polarization of the world economic order, while good spots of growth evolving in larger parts of Asia, and some parts of Africa and Latin America.&nbsp;</p>
<p style="text-align: justify;">
	He, however, sees light at the end of the tunnel with a soft landing in China, India getting their act together post the next general elections, Indonesia showing economic promise, and Myanmar opening up to greater possibilities. In all of these and a few other Asian economies, the rising middle class is leading rapid changes within the domestic economies and making the world ever more inter-connected. But the times are exciting for other reasons too.</p>
<p style="text-align: justify;">
	“The defining point of today is that the consumers interact among themselves through multiple channels seamlessly, and that is creating new brand stories. Gone are the days of brand-consumer dialogues. Consumers’ interactions among themselves, and brand’s dialogues simultaneously with consumers and the community continuously, are determining the new basis of the New Media era of digital brand communication,” explains Michael.</p>
<p style="text-align: justify;">
	In this scenario, natural outcome is real-time communication today, “akin to a news-room situation for the agency of the future, and advertising agencies will increasingly go live to stay relevant”. A fabulous challenge this is for brand owners “who have lost the hitherto considered exclusive rights of theirs over their brands!” The feelings of the community and aspirations of the consumers, coupled with their interactions, are determining the contours of the brand in today’s era.</p>
<p style="text-align: justify;">
	<strong>150 years of JWT</strong></p>
<p style="text-align: justify;">
	&nbsp;“You can only be in the business so long when you care about your clients, when you stay relevant, and even when you evolve through failures, learning new insights.”</p>
<p style="text-align: justify;">
	As JWT turns 150 years in 2014, Michael takes pride in surviving healthily in a fast-paced industry, being the first agency to have created a television ad, to have used research in advertising, first one also to use testimonials in advertising, and ever remaining “a group of permanently dissatisfied individuals.”</p>
<p style="text-align: justify;">
	And he surely intends to see a series of activities to express the JWT values and stories of 150 years, come January 2014.</p>
<p style="text-align: justify;">
	He recounts the cases of engagement ring campaign in US, Europe and China for De Beers diamond and the balloon jumping from space campaign which was planned in a day for Kit Kat as good examples of meaningful communication in line with brand positioning, long term branding, seamless transition to social media, not distracting but enhancing the brand values.</p>
<p style="text-align: justify;">
	<strong>Thompson Nepal</strong></p>
<p style="text-align: justify;">
	Michael has a thumps-up for his Team Nepal, led for long and efficiently by Joydeb Chakravorty. “Being in the top of the game for a long period, with entrepreneurial spirit, spotting opportunities and jump upon them, delivering value even under extreme constraints, the JWT team in Nepal is impressive, on a sound footing and delivering value and volumes to an impressive array of campaigns for clients like Unilever, Pepsi, Nokia”.</p>
<p style="text-align: justify;">
	And his advice to them? Take a long-term view, not just managing tomorrow for your clients, not being limited to fads and flavours of the day, managing uncertainties in the market better through consistency and honesty in cultivating the brand personality of each client in this challenging market.</p>
<p style="text-align: justify;">
	He used this latest March 2013 visit to look at some of the good work done in Nepal, like the Pepsi Drink &amp; Drive Campaign, in which the idea was based on local behavior and insight, turning it on the head appealing to people’s consciousness. He appreciated the Unilever work done in Nepal too.&nbsp;</p>
<p style="text-align: justify;">
	“With technology, a brilliant app can come from any country today, no borders for a good idea. Also, for a local campaign, the two defining criteria are: first, how does it compare with your local competitors. Our work is the best in each of its categories. Second, creativity is always a means to an end and that is better bottom-line for the client post the campaign. Ask Pepsi in Nepal and you will get the answer.</p>
<p style="text-align: justify;">
	He hopes that better audience measurement techniques will evolve in the Nepali market which will justify higher communication investments in future.</p>
<p style="text-align: justify;">
	<strong>Biggest Advertising Challenge</strong></p>
<p style="text-align: justify;">
	The single biggest challenge for the advertising industry world-over, according to Michael, is to evolve the current compensation model or system. Today compensation is based on cost-input model, where remuneration is based on inputs used in the process and value of media used with the advertising outcome. However, right rewarding and compensation should now be based on the value-output model, according to him, which looks at the outcome in terms of value to the client in qualitative and quantitative terms.</p>
<p style="text-align: justify;">
	<strong>Relevant Consumer Insight</strong></p>
<p style="text-align: justify;">
	“Days to bulldoze your success with huge budgets are gone. Then your target audiences could not escape the campaign. Today you neither have such budgets, not the plethora of media channels of all hues allows you that luxury,” he notes. Again, bang-on!&nbsp;</p>
<p style="text-align: justify;">
	These are times of relevant consumer insight that goes beyond conventional research. There is the availability of massive data, but the moot question is how do we make use of this for relevant insight, and then how do we translate this insight into an engaging idea, which is then amplified through right media selection. “And there is no short cut in this process,” he concludes.</p>
<p style="text-align: justify;">
	While he finds ambient and ambush advertising as good ideas at times, it is only a great, topical and relevant idea that can cut through the clutter. Even in spite of a huge proliferation of channels of communication, it is all the more important that your communication is rooted in a strong coherent and relevant idea: what does the brand essentially stand for.</p>
<p style="text-align: justify;">
	<strong>Digital Communication</strong></p>
<p style="text-align: justify;">
	Though it is beyond debate today that the entire communication business is becoming eventually digital, the client side investment in digital is still low and there is a wide discrepancy between the price of the digital media and the price to the agency.&nbsp;</p>
<p style="text-align: justify;">
	“Garage-run digital shops will either grow is size, or disappear, or shall be acquired,” Michael sounds prophetic looking at the scenario with digital agencies today.</p>
<p style="text-align: justify;">
	And he is right that digital was once considered an experimental medium and not seen as an integral element in building and sustaining brands. Not any more. Today, digital has gone into the heart of branding.</p>
<p style="text-align: justify;">
	<strong>Evolving Talent</strong></p>
<p style="text-align: justify;">
	And these changing times surely need new talent suitable for the digital age and real-time communication.&nbsp;</p>
<p style="text-align: justify;">
	Noting that JWT historically has been a university of training and ideas of sorts, he hopes to contribute to train and retain talent in Nepal, bring back Nepali talent from elsewhere with exciting new perspectives, and is open to partner nurturing talent with educational and media initiatives, and with support from clients.</p>
<p style="text-align: justify;">
	<strong>Brand Nepal</strong></p>
<p style="text-align: justify;">
	And, before he bids adieu, the idea mooted by Michael Maedel, Chairman, JWT Asia Pacific, is that of Brand Nepal, essence of Nepal beyond cliché images of the Himalayas and rafting-trekking-paragliding.</p>
<p style="text-align: justify;">
	“Conceptualize the brand from economic perspective, from the point of view of attracting foreign direct investment and accelerate business activities to unleash the full potential of the nation. Build the brand through responsible communication with ground-swell of support of stake-holders. Promote the Brand internally and externally through various means.”&nbsp;</p>
<p style="text-align: justify;">
	This is the Brand Doctor’s prescription for which he is ready to participate in brain-storming session with clients, media and government representatives whenever such an initiative is taken up by non-governmental economic forces.</p>',
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			'description' => '‘From dialogues to tri-logues and real-time communications, brand communication is up for unprecedented changes today, world-over’',
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			'id' => '883',
			'article_category_id' => '46',
			'title' => 'Investment Is Not A Big Thing These Days',
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			'content' => '<p style="text-align: justify;">
	<img align="left" alt="Binod Chaudhary" height="288" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_binod_feb2013.jpg" style="margin: 0 10px 10px 0;" width="350" />Binod Chaudhary is the President of Chaudhary Group (CG), one of the leading business houses of Nepal. He is also the Chairman Emeritus of Confederation of Nepalese Industries (CNI). A prominent industrialist, Chaudhary has recently published an autobiography, ‘Atmakatha’. This book tells the successful story of how Wai Wai noodles, initially imported from Thailand, which later took such a big market share. “Currently, 1 billion packets of Wai Wai noodles are produced annually which accounts for 1% of the total noodle production of the world”, claims Chaudhary. In an interview with New Business Age, Chaudhary talks about the CG’s successful ventures and the group’s plans among other issues.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Excerpts:</strong></p>
<p>
	<strong style="text-align: justify;">You seem to be saying and doing whatever the Industrialist Dhirubhai Ambani of India used to say and do. Are you influenced by him?</strong></p>
<p style="text-align: justify;">
	I always say that I am influenced by two people in India - J.R.D. Tata and Dhirubhai Ambani. The status given to the Tata Group by J.R.D. Tata is unmatched by any other business house in the world. But the industrial revolution in India was brought by Dhirubhai Ambani. Hence, I am his big fan.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You happen to praise the former leader of South Korea, Park Chung-Hee as well. Do you believe that the government should praise the industrialists?</strong></p>
<p style="text-align: justify;">
	Park Chung-Hee has given birth to many multi-national companies during his regime. That is why the multinational companies of South Korea are successful globally. I am a 100% supporter of that. I truly believe that in a country like Nepal, private companies cannot develop without support from the government. In countries like Japan and Korea, the government has pushed the private companies to grow. I believe that the same should apply in our case as well.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Why did you change the decade long established Chaudhary Group into CG?</strong></p>
<p style="text-align: justify;">
	This is just a branding. The word CG is easy to remember for people but Chaudhary Group is not. You have to twist your tongue a little bit. Actually, the brand “Chaudhary’s” could not be well established. There used to be a logo of Chaudhary’s in our every product. But, that could never be the talk of the town. Today, no one says Chaudhary’s. Everyone likes to say CG.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have set up several Noodle producing plants throughout India. Similarly, you have invested in luxury resorts in cooperation with Taj Hotel. How much have you invested like this within Nepal and abroad?</strong></p>
<p style="text-align: justify;">
	We also do not have an exact account of that. We have many companies that are being run by different individuals. Again the criterion to judge a company has become different these days. Today, a company is judged on basis of its brand, marketability etc. According to that, the co-investors invest. Today, the Tata family owns only 3% of the Tata Group. But, they are buying several companies of millions of dollars in the name of Tata industries and are trading worldwide. That’s why investment is not a big thing these days. I constantly repeat that a multinational company cannot be setup by just collecting money from Nepal. There is not enough capital to do that. Furthermore, there is a possibility of development within and without. If you have the capability of industrialization, capital will follow you. Today, we are producing Wai Wai in more than 3 countries. In those countries, there are several investors who are interested to invest in Wai Wai. We are working in hotels in different nations, in our own brand and in others’ brands. We have an option of choosing whom to mingle with. We have already earned that trust of the investors in the international market. That is why investment value and volume by an individual company or industrialist is not the key factor here.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The main question is when we can say with certainty that Binod Chaudhary is an internationally recognized billionaire.</strong></p>
<p style="text-align: justify;">
	Binod Chaudhary is only a face. If someday CG group comes to be recognized as Nepal’s billionaire company, it is not only my pride but yours too. And I pray that the day comes soon.&nbsp;</p>
<p style="text-align: justify;">
	<strong>For some time past, you have been concentrating more on imports, rather than on two or four flagship industries like Wai Wai.&nbsp;</strong></p>
<p style="text-align: justify;">
	During the last twenty years, the nation has faced insurgency. Today also it exists in some form or the other. The only company that developed both horizontally and vertically during this period is CG. If CG owned only 3 companies back then, today it owns 14. If 500 people worked back then, today 3000 people do. &nbsp;If CG vertically owned 6 business houses back then, today the number is 10. The cement company has also been added to them. In fact, we are building the nation’s largest cement company. We are also trying to set up hydro power plants with over 240 MW capacity each. We have entered the ayurveda sector. &nbsp;In terms of education, we have established 5 institutions where over 4000 students are studying. We are going to invest Rs. 1 billion in education. Then an additional 10000 students will have the opportunity to study annually. Service industry is also being looked at closely by us. If you look at this sector by turning the pages of Aarthik Abhiyan National Daily, you can find the answer to your question over there itself.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have recently left the chairmanship of CNI. Why was CNI unable to do anything much impactful during those years of your leadership?</strong></p>
<p style="text-align: justify;">
	I am doing well in CNI. Recently, a new leadership has arrived. We are also visiting districts. However, we are not in favour of opening branches in all the 75 districts. CNI mainly represents the industrial sector of the nation. Where there are no industries, it is not necessary to open the branches but we are frequently visiting the districts where there are industries.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Some time ago, you said that Nepal Airlines Corporation should be operated under PPP. Are you interested in investing in the corporation as well?</strong></p>
<p style="text-align: justify;">
	I have lost that interest now. I do not know if any private investor can show a positive route to Nepal Airlines Corporation. It is difficult to bring a change in such a corrupt system.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Nepalis cannot legally invest in the foreign markets. That would be great if possible. You got involved in a political party and also reached the constituent assembly. But, you could not do anything substantial in this regard.</strong></p>
<p style="text-align: justify;">
	Everybody agrees in this issue. Nepal Rastra Bank has been introducing several fiscal policies for that from time to time. But no proposal has yet been passed in the assembly. That is why it is not a law yet. Nepalis have opened restaurants and hotels in US and Japan. The important thing is that Nepalis are investing. When Nepalis could not invest and only the non residents could, Binod Chaudhary had to make Barun and Rahul Chaudhary, NRNs. Everyone should appreciate it. Please do not consider it illegal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You are such a successful industrialist. But, CG has not been able to make returns to the society accordingly. Except for some minor contributions, no significant contributions in CSR (Corporate Social Responsibility) can be seen. Why?</strong></p>
<p style="text-align: justify;">
	We believe that we have a major involvement in the social sector. Our brand line is ‘Touching life everyday’, which means we do touch lives every day. CSR also has different ways. Donation is also one of them. The other is to help the society during desperate times. You can consider Norvic hospital and educational institutes for this case. Without these initiatives people would have been deprived of quality education and health. It’s a part of CG to cooperate with the society. Some receive concessions and some receive scholarships. You take from those who can give and you give to those who can’t.&nbsp;</p>
<p style="text-align: justify;">
	Recently, we have agreed to set up a social business fund in cooperation with Noble prize winner Muhammad Yunus’s Muhammad Yunus Center. That will help the Nepalis who want to set up a business but do not have enough resources to do exactly that. We are always committed to shake hands with the society and move forward.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are your suggestions to the Nepalis who want to start up new businesses in Nepal?</strong></p>
<p style="text-align: justify;">
	New businesses will have to face a lot of difficulties. I strongly suggest not losing hope. It always takes time to see the results. And, I am very hopeful for everyone.&nbsp;</p>',
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			'description' => 'When Nepalis could not invest and only the non residents could, Binod Chaudhary had to make Barun and Rahul Chaudhary, NRNs. Everyone should appreciate it.',
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			'title' => '“Private security business needs to be governed by separate law”',
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			'summary' => 'G4S Security Services Nepal is the largest private security solutions firm in Nepal with a presence spanning over two decades.',
			'content' => '<p style="text-align:justify"><span style="font-size:18px">G4S Security Services Nepal is the largest private security solutions firm in Nepal with a presence spanning over two decades. The United Kingdom based multinational security services provider started operating in Nepal in 1996 through its subsidiary company. Established in 1901, G4S operates in 124 countries of the world. Since its inception, G4S Nepal has been providing various types of security services to its clients including diplomatic missions, government institutions, BFIs, hospitals, five-star hotels, commercial complexes, educational institutions, private residences, telecom service providers, hydropower plants and industrial facilities. The company also provides security for personal protection of VVIPs and premises protection during special events. In an interview with New Business Age, Mahesh Shrestha, Managing Director of G4S Security Services Nepal talks about the current security business situation, challenges and opportunities in the sector, future plans of the company, among other issues. Excerpts:</span></p>

<p style="text-align:justify"><span style="font-size:16px"><strong>The presence of G4S in the country has spanned over two decades. What has the journey been like for your company in terms of growth and services?</strong></span><br />
It has been a wonderful experience for us. We faced different challenges and came across many opportunities over the years. Being a MNC, G4S is committed to the quality and effectiveness of its security services.&nbsp;</p>

<p style="text-align:justify">We have an annual turnover of Rs 850 million and our target is to achieve the Rs 900 million mark this year. G4S has held the position of the largest security service company in Nepal in the last 20 years. We command 85 percent of the market share in the high-end, around 40 percent in the mid-end and around 25 percent in the low-end segments.&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br />
&nbsp; &nbsp;<br />
<span style="font-size:16px"><strong>Being the only security services solutions MNC in Nepal, how do you take your opportunities?</strong></span><br />
G4S is an opportunity itself for the people seeking international standards in security services.&nbsp; We assure complete security solutions to our clients in complying with global standards. G4S is highly committed in terms of assuring and guaranteeing quality security services along with top level customer care, management response and operational arrangements for its clients.&nbsp;</p>

<p style="text-align:justify">We have a very strong workforce comprising of 5,000 personnel which itself is an opportunity for many Nepalis from an employment perspective. We have 10 branch networks in major cities across the country. The branches are being operated in a full-fledged manner which includes providing training to new recruits. Similarly, we are also paying millions of rupees in revenue to the government.&nbsp;</p>

<p style="text-align:justify">Gorkhalis are renowned the world over for their courage, honesty and trust in security services. In this regard, it is a matter of pride for G4S to be present in Nepal.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How does G4S Security Services Nepal ensure top-end security to its clients?</strong></span><br />
We have a holistic approach in providing security services to our clients. We provide security services according to the needs of our clients. G4S Nepal has been offering integrated security solutions including manned security, cash security services, modern electronic safety systems and technology. Similarly, we have the secured support service where newly trained personnel are engaged in housekeeping works that include security of confidential documents in their first phase of duties. Meanwhile, we also provide security services for events, travel alongside transit and storage of valuable goods.&nbsp;</p>

<p style="text-align:justify">We study the possible risks and prepare ourselves for future challenges. We also assess the risk management factors to minimise future losses. While providing services, we prepare rules for specific tasks first. After agreeing with clients, we prepare standard operating plans (SOPs) for the designated services. Different types of SOPs are developed for different clients and we retrain security personnel before deploying them on their respective duties.&nbsp;&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is G4S moving ahead in terms of using new technology?</strong></span><br />
G4S believes in moving ahead adopting new technologies in order to provide versatile and efficient security services to its clients. We update ourselves with the new technology as soon as they are introduced in the market. We have created a separate department for the purpose. Modernising security systems is a global requirement and G4S is investing more in this aspect as well. Utilisation of new technologies is also important for a company like G4S to control unnecessary expenses.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>The time now is all about electronic surveillance and security solutions.&nbsp; What will be the future of manned security in this regard?&nbsp;</strong></span><br />
Electronic security solutions are efficient in many ways. For instance, use of such systems is cost effective and surveillance and monitoring works can be done with ease. However, neither manned nor electronic security systems can replace each other.&nbsp; Both types of security solutions complement each other. They have their own importance, benefits and limitations. The services that manned security provides are not fulfilled by electronic security and vice versa.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is the relationship between G4S Security Services Nepal and its parent company?</strong></span><br />
The global organisation has been helping us in a range of areas including training, capacity enhancement of security personnel and using new technology in security, among other things. We need to contact the parent company on a daily basis to submit management, finance, quality reports etc. The head office appoints the country director. We need to report on a daily, weekly and monthly basis and submit it to the global system. G4S from 124 countries around the globe keep data on it. The data we maintain on the global system can affect the share price of G4S in the London Stock Exchange. All branches are controlled by the head company. It is completely a group company.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is G4S Nepal different from other companies in employee management?</strong></span><br />
We have been providing various benefits and perks to staff and security personnel. All employees are paid salaries in a timely manner and on the same date. They are entitled for provident fund and annual grades. People who leave the company are subjected to gratuity as well. The labour law has clearly mandated employers to provide benefits to the workers including a minimum salary and employment guarantee. We have been providing all these as required by the law. We are very aware in terms of following the law and maintaining the quality of our services. It clearly demonstrates our concern regarding the international brand and image of G4S.</p>

<p style="text-align:justify">G4S is a company of confidence for all its staffers and service seekers. According to the new Labour Act, employees are entitled for 45 days of paid leave annually.&nbsp; We were providing an annual leave of 40 days to employees for many years even before the new law came into force a few months ago. Likewise, staff at G4S Nepal get festival leave of 16 days. Every staff working is entitled to insurance worth Rs 200,000.&nbsp;</p>

<p style="text-align:justify">Many staff have stayed here for many years because of the excellent work environment and benefits. Over the years, many employees who started their career in the company as security personnel have been promoted to managerial level posts.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How do you view the new Labour Act?&nbsp;&nbsp;</strong></span><br />
The new Labour Act is a positive step for the security service business. The Act has guaranteed social security and other benefits to employees from the day they join the companies. The government has clearly mentioned the facilities and services to employees this time. I think effective implementation of the law will help to spur on healthy competition in the domestic security services market. There are many compliance related issues in this sector at present and security service companies who do not maintain good quality of service are likely to come under pressure from the provisions of the Act.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How can Nepali security service providers engage in healthy competition?&nbsp;&nbsp;</strong></span><br />
Healthy competition will start and flourish when factors such as quality, ethics and professionalism become key parameters of competition among the players in the market. Unfortunately, many security companies in Nepal do not bother about these factors. If someone is engaged in unethical business practices, then how can there be fair competition? We are always guided by value-based practices in business.&nbsp;&nbsp;</p>

<p style="text-align:justify">We do not consider any other company as our competitors. Many are not even providing a minimum salary as required by the law. So we do not even compare ourselves with them.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>What challenges do you see in the security services business?</strong></span><br />
&nbsp;The scarce human resource is the major challenge here. Manpower is both raw and finished goods in the security business. Similarly, we don&rsquo;t have a law to govern private security businesses.&nbsp; Security service providers at present are simply guided by the Companies Act. Also, the awareness of security among the people is also relatively low.&nbsp;</p>

<p style="text-align:justify">Lack of standardisation is another issue. Neighbouring India and countries like Dubai have standardised private security businesses. The government needs to conduct a rating of the companies that are working in the sector. It can be an important step in terms of standardisation of the security business as the companies can levy service charges from the clients according to the ratings.&nbsp;</p>

<p style="text-align:justify">Similarly, government bodies in many countries provide proper training to the people who look to join the private security workforce. We don&rsquo;t have such facilities here. Many companies in Nepal deploy untrained people as guards increasing the security risks to their clients and themselves as well.&nbsp; &nbsp; &nbsp; &nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How do you ensure that the best security personnel join the workforce of G4S?&nbsp; &nbsp;</strong></span><br />
Anyone looking to join our company as security personnel needs to possess a clean background. They are required to be physically and mentally and fit. The candidates should have a basic school education and also be capable of speaking English. We conduct written and oral tests. Those selected are sent for training which is of 80 credit hours. Only those who are able to pass the training are recruited. Similarly, we conduct refresher training courses every three months for new recruits. In the meantime, we also provide counsel and retrain the employees on a daily basis. We have set the retirement age of the security personnel at 55. G4S assures the quality of service in this way.&nbsp;</p>

<p style="text-align:justify">We follow the international standards set by the global company while providing services and recruiting people. From training to supervision and service areas, we follow rules set by our parent organisation.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is G4S planning to expand its services and enter new areas in the security business in the future?</strong></span><br />
We are conducting an in-depth study to expand our areas of work and increase investments. We are looking to provide high-end security services to BFIs such as alternative solutions and ideas for cash security. G4S globally has been providing these types of services for a long time. We have been constantly discussing with BFIs and the central bank to identify their needs and requirements in security.&nbsp;</p>

<p style="text-align:justify">We seek to contextualise the services according to the local needs. The services we provide are not only a matter of business for G4S.&nbsp; It is also a matter of contributing towards nation building directly or indirectly while doing business.&nbsp; For instance, enhancing the skills of the workforce and quality of service is a top priority in G4S&rsquo;s plans. It will add efficiency to our work and is also likely to have a national level impact. Nepal receives hundreds of billions of rupees in remittance yearly from the migrant workers many of who go abroad to work as security guards and it is necessary for us to focus on this aspect. By enhancing the skills of migrant workers and quality of service, Nepal can earn more money in remittance as the demand for Nepali workers will go up.</p>

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	&nbsp;</div>
<div>
	<span style="font-size: 16px;">Anil Malik is the general manager of Radisson Hotel Kathmandu since August 2013. He has wide experience in the hospitality sector and this is his third tenure with the Carlson Group. Earlier he has worked with the Grand Hyatt, Centara Hotels and Resorts and the O Hotel. He spoke to the New Business Age about his experience in Nepal and the tourism possibilities of the country.&nbsp;</span><strong style="font-size: 16px;">Excerpts:&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Tell us about your career and corporate journey?</strong></span></div>
<div>
	Right from my childhood I have seen my mother hosting guests at home. I did Bachelor of Science with geology as major. However after graduation I got interested in hospitality. I appeared in the all India entrance examination, I was qualified and with great hard work I jumped into the hospitality industry.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Why hotels and hospitality? What points of attraction and challenges mark work in hotel sector?&nbsp;</strong></span></div>
<div>
	I personally feel that hospitality is the only sector where you meet so many unique people, learn new culture and learn new food habits. That&rsquo;s why I personally feel that hospitality is the right industry for a person like me who loves food and meet new people.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Carlson Group is the only group, which is expanding, in large capacity. In India we in 2014 we are expecting to have 50 new properties. We are expanding in China, and Hong Kong. In Nepal there are possibilities of expansion and my company is seriously looking to it. Because the country has lots of potential and I have also visited some of the places such as Chitawan and Pokhara, which hold high possibilities. A feasibility report for these possibilities is underway and which I look forward to present at the Carlson office. Carlson has got various brands under its umbrella. We have got budget segments therefore possibilities can be worked out according to the demand. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What major practices have you introduced in Radisson in the last quarter?</strong></span></div>
<div>
	When I joined I found training opportunities lacking here. There are many hotel management colleges in the country but the biggest challenge is that most of the graduate go aboard to work thereby creating scarcity of skilled manpower. Since my initial days here I have always tried to engage with the staff and to make them more management friendly. There are a number of union issues in Nepal and here also there were some issues in the past. I have been trying to resolve this issue in a professional way by engaging with the employees and interacting with them through open communication channels. As part of this strategy, we started organizing Friday town hall meeting where the general manager interacts about the budget and other management issues with the staff. This is one of the initiations that I took. Apart from that we have started participating in various corporate social responsibility programmes and as a part of it we have made some donation to the Red Cross Nepal and on February 15 we organized Radathon in association with the Nepal Tourism Board.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What contribution have you made specifically in making the hotel more hospitable?&nbsp;</strong></span></div>
<div>
	Last year we added around hundred rooms to existing 160 rooms capacity of hotel Radisson. The additional hundred rooms are very modern compared to other hotels. And now my task is to see that the corporate people target these hundred rooms. To achieve this objective we are building close ties with the corporate sector. Besides this we are going to open the doors of our new Indian cuisine restaurant to our guest and adding to that a Japanese restaurant opening in the pipeline.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What are the major challenges of hotel industry in Nepal? How do you think they can be addressed?&nbsp;</strong></span></div>
<div>
	Recently Trip Advisor rated Nepal as the hottest destination. The only challenge I personally feel here is that the tour operators who are getting this groups in the country they are somehow trying to undersell Nepal as a major tourist destination. The occupancy must have grown but not the revenue and let&rsquo;s not forget that tourism plays a very important role in the development of the country&rsquo;s economy. Therefore we should try not to undersell Nepal. Costly airfare is another problem. It costs around Rs 50,000 to fly back and forth to Delhi. Such a high fare, I think, is bringing down the number of Indian tourist visiting Nepal. At the same time the rooms are expensive as we have 18 hours power cuts and we cannot compromise with our services for our guests. That is revenue is less and expenses are more.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Tourism potentials are very high in Nepal but the income is still around $ 5 billion and 11 per cent of the nation&rsquo;s GDP. Where is &nbsp;the disconnect? What can be done in this context by the private sector and the government?</strong></span></div>
<div>
	In Nepal there are many areas, which can be explored. Tourist visit Nepal mostly to see Kathmandu. The government of Nepal along with the Nepal Tourism Board should brand it as &lsquo;Explore Nepal&rsquo; and they should come out with new destinations that are still to be explored. I personally feel that the government should identify new values and new areas to attract much more tourist.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is the situation of skilled manpower in the hospitality industry?</strong></span></div>
<div>
	There are eight five-star hotels since a very long time. Though the government has itself not taken any measures to expand it, very soon three hotels are coming to Nepal. Along with that the government has also signed agreements with around ten other five-star properties. Opening of these hotels will open new job opportunities. What I have found is staff appointment in Nepal is very low. Job openings are available only if a person retires from the position or moves abroad. So how do you expect to have new talent when there are no new hotels and no new vacancies?</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What are your suggestions to the major hotel and tourism management colleges? What inputs should they make to develop talent here?</strong></span></div>
<div>
	They have to be more professional, the corporate culture has to be taught and exposure has to be given to them. And the same time they should have a tie up with some groups of hotel where some concrete steps can be taken. At the moment my hotel has around 80 trainees but what about the other students as there are only eight five-star hotels. &nbsp;Definitely the remaining students will move abroad.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is your personal management philosophy with regards to hotel management and its efficient leadership?</strong></span></div>
<div>
	Speaking on a personal note there has to be a leadership quality and attitude has to be very positive. Along with it one should have an urge to teach the juniors, should believe in teamwork as it&rsquo;s not possible to achieve the objectives without team work. At the same time one should try to impart maximum knowledge to juniors to make the team competent. The country should also have a corporate culture, which I hope will definitely grow.&nbsp;</div>
<div>
	&nbsp;</div>',
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			'description' => 'Anil Malik is the general manager of Radisson Hotel Kathmandu since August 2013. He has wide experience in the hospitality sector and this is his third tenure with the Carlson Group. Earlier he has worked with the Grand Hyatt, Centara Hotels and Resorts and the O Hotel. He spoke to the New Business Age about his experience in Nepal and the tourism possibilities of the country. Excerpts:',
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	&nbsp;</div>
<div>
	<span style="font-size:16px;">Government-run Nepal Telecom topped the list of largest taxpayers, in terms of both income and value added taxes, in the fiscal year 2011-12. The partially privatized and Nepse-listed telecom service provider contributed some Rs 9 billion to the government coffer that year. The government recently picked <strong>Anoop Ranjan Bhattarai</strong>, who was previously serving as Director at the company&rsquo;s Wireless Telephone Directorate, to lead the company. Bhattarai is regarded as one of the few smart techies in Nepal with considerable knowledge of technological aspect of the telecom industry. Soon after he assumed the new position, he spoke to <strong>Siromani Dhungana</strong> of New Business Age about his plans for leading the company.<strong> Excerpt:&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What does your appointment as MD of NTC promises to its consumers and stakeholders?&nbsp;</strong></span></div>
<div>
	My appointment as the Managing Director is a breakthrough to a 3-month-long deadlock in finalizing the organizational leadership. This appointment is the change for betterment; betterment for the organization, betterment for the staffs working here, and most importantly betterment for all our stakeholders. My tenure as MD of the organization will concentrate in providing world class advanced and consumer friendly telecom services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Some officials and even trade union representatives often talk about making reforms in the company. What areas are you planning to reform?&nbsp;</strong></span></div>
<div>
	My key areas for reform will center on improving company&rsquo;s work culture, increasing its efficiency, ensuring timely execution of projects and improving service delivery. If we pay appropriate attention to these sectors, our performance will improve and thereby enable use to remain competent in the free market economy.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Quality of service has often been controversial when we talk about Nepal Telecom. Even the regulator blames NT for flouting quality indicators. You are perceived as a person with guts to reform the company. How is your appointment going to change anything that Nepali consumers can feel the benefit?</strong></span></div>
<div>
	Of course, the quality of service in urban areas is going to be improved and these changes can be perceived within one month. After upgrading networks in urban areas, we will focus on improving quality of services in the rural areas. I assure our customers across the country that in a few months time there will be visible improvements in the quality of our services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Do you think you will be able to overcome political hurdles that might be obstructing the performance of Nepal Telecom?</strong></span></div>
<div>
	As a government owned company, all stakeholders including the political system, definitely wants to see it growing and increasing its contribution to national development. &nbsp;I do not think there will be any political hurdles that will obstruct growth of the company. All we have to do is ensure that all initiatives are conducted in transparent and reliable manner.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>How do you tackle problems created by Public Procurement Act?</strong></span></div>
<div>
	At present, NT has to follow Public Procurement Act. Consultation process is going on with the Public Procurement Monitoring Office (PPMO) so as to refine or redefine the directive. I am confident that the ongoing as well as additional consultation processes will help NT move forward more efficiently.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>News reports during last year claimed that NT provides unnecessary perks and facilities to officials at the Ministry of Information and Communication. What will you do to this end?</strong></span></div>
<div>
	I am not aware of such services being offered to the ministry or its officials. And the ministry has also not requested for the same from the company.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Successive leadership at NT has been failing to materialize the plan of bringing strategic partner to increase competency of the company. Can we expect anything tangible from you?</strong></span></div>
<div>
	The process for introducing strategic partner is gaining momentum. Within few weeks, NT will initiate the process. I am hopeful fresh initiatives will be successful in bringing strategic partner in the company.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>How do you see the challenges from private operators at the moment? Will you bring specific plans to cope with those challenges?</strong></span></div>
<div>
	We offer diverse service and have a dominant presence throughout the nation. Our competitors are lagging far behind compared to us, in general. However, we have experienced competition in certain business aspects of telecommunication services. This has opened up new opportunities for NT to grow from within. We should accept challenges and take it as an opportunity to do even better in the future.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What new services can we expect from you?</strong></span></div>
<div>
	We have seen a huge demand for reliable and affordable data service in coming days. So we are mainly focusing on the same. In this fiscal year we will launch WiFi and FTTH (Fiber to the Home) services. Our expert team is also exploring the areas of service expansion. Naturally all our existing as well as prospective consumers demand reliable, diversified and advanced services from Nepal Telecom and as a service provider we are all working and focusing more on the same to make tangible improvement in the options and quality we offer. We also have plan to introduce new services like WiFi, countrywide 3G services through GSM and CDMA technologies and also have plans to provide our own Social Networking Service very soon.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What do you think the major challenges for the company are?</strong></span></div>
<div>
	Our major challenges, as of now, are:</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Bridge the digital divide</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Modernizing customer service&nbsp;</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Proceedings to introduce an international strategic partner</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Boost employees&rsquo; morale and improve work culture</div>
<div>
	These are some major challenges. The list may go even longer. We have to come out with appropriate solution for all challenges. I will put my effort to overcome these challenges during my tenure.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Till the mid-80s, Nepal was considered as a country having the best telecom services in the region. What happened since then?</strong></span></div>
<div>
	NT has already launched 4G WIMAX service. We were the first to launch 3G services in the SAARC region. So technically speaking, we are still in leading position within the region and we will not let our achievements to go down.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>You have also expertise in modern technology. Please share your experience and plan to expand new technology including LTE?</strong></span></div>
<div>
	We have applied for frequency spectrum for LTE and once we get it, we will start deploying LTE in all major cities. Within 2015, we aim to provide LTE services throughout the nation.</div>',
			'published' => true,
			'created' => '2014-02-13',
			'modified' => '2014-02-18',
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			'description' => 'Government-run Nepal Telecom topped the list of largest taxpayers, in terms of both income and value added taxes, in the fiscal year 2011-12. The partially privatized and Nepse-listed telecom service provider contributed some Rs 9 billion to the government coffer that year.',
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	(int) 3 => array(
		'Article' => array(
			'id' => '2492',
			'article_category_id' => '46',
			'title' => '“Situation Is Difficult In Nepal For The Manufacturing Sector To Prosper”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;">Kedia Organisation, the oldest and one of the most talked about business conglomerates of the country, has been practicing a synergistic combination of family ownership and professional management since 1909 A.D. Named after their fathers, Late Sundarmal Kedia and Late Ram Kumar Kedia, it was surely a turning point for the Kedias when the first foundation stone of their present day multimillion conglomerate was laid in the form of a small cloth trading business. The group envisions reaching the zenith and being a premium conglomerate through outstanding service performance and clear business vision. Manoj Kedia, Executive Director of Kedia International and Vice president of the Confederation of Nepalese Industries (CNI), talks with New Business Age&rsquo;s Homnath Gaire and Upashana Neupane on the group&rsquo;s journey in Nepal so far, role of the private sector in nation&rsquo;s development and the group&rsquo;s future plans. Excerpts:</span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>How is the history of Kedia Group different from the general history of Nepal&rsquo;s private sector?</strong></span></div>
<div>
	Trading business in Nepal started along with the Kedia Family. Initially, Kedia family started its business as a cloth merchant with stores in Birgunj and Kathmandu that sold clothes imported from India. With initiation of Late Brij Lal Kedia we gradually expanded our business to food grains trading. It started small but as time progressed it expanded across Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	He used to collect food grains from every corner of the country and supply them to even remote areas that lacked transportation facilities. For the first time in Nepal, he fixed prices of food grains and at a certain point, even the Khadya Sansthan (government owned Nepal Food Corporation) fixed food grain prices by consulting him. Later he established rice mills, dal mills and many more food grain factories. He established Nepal&rsquo;s first modern rice mill, Bhagwati Rice Mill.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Later Shankar Lal Kedia expanded foothold in the manufacturing sector. He established factories related to steel furniture, stainless steel utensils, textile, umbrella, socks, wheat flour, corrugated steel, copper utensil etc. During that time the steel, textile, and corrugated sheet industries were pioneers in their respective fields in Nepal and they are the backbones of the present day Kedia Organisation.</div>
<div>
	&nbsp;</div>
<div>
	At the same time we also entered in general merchandising sector by importing goods from third countries and bulk-traded them in local market. Our imports included cloth, electronics, food items, medical equipment, household products, hardware, cement, sugar, and edible oil among others. We also exported rice to Tibet and pulses and lentils to Sri Lanka, Bangladesh and to some European countries.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We established Caltex Company, a petrol pump agent in Nepal, and this is still in operation as Kedia Auto in Birgunj.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Kedia Group also is one of the first industrial houses to advertise its products. We sponsored the &ldquo;Sundar Sushil Sangeet&rdquo;, a popular song-on-request programme aired on Radio Nepal, to promote our products.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Amid this long list of successful ventures, we also had some disappointing projects. Though we had bagged the license to launch Coca Cola in Nepal, we had to drop the project in the last minute due to some partnership problems. In 2015 B.S. we had to give up the launch of an iron steel factory project, even though necessary equipment and machinery were imported, after King Mahendra dissolved the democratic government and assumed power. Similarly in 2036-2037 B.S. we had to pull back from establishing the Kedia Paper Industry</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is the present status of Kedia Group and how is it different from the overall situation of the private sector?</strong></span></div>
<div>
	Despiteour engagement in diverse sectors, manufacturing sector is our major area. We have established ourselves in the cement, carpet, and the sugar industry. Recently we have started manufacturing PVC carpet and are upgrading production capacity of Indusankhar Sugar Mill, Nepal&rsquo;s one of the oldest and leading sugar industries.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In the past we invested in the banking and financial sector. We had invested in Siddhartha Insurance, Siddhartha Capital and Siddhartha Bank.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Kedia Group has made some significant investment in the service sector and presently we run several schools and hospitals in the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Along with bulk trading, Kedia Group has once invested in housing projects. And as part of its plan to expand its foothold, the group has made small investments in other sectors like hydropower for getting acquainted with them.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>How is this conglomerate with interests in so diverse fields being managed and controlled?</strong></span></div>
<div>
	We have a joint family and we have divided our tasks within our family members for various sectors. We work in our respective sectors. Our father&rsquo;s generation is also actively involved in managing the business.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In the recent years, Nepal&rsquo;s private sector is diverting investments to service and trade sector from the manufacturing sector. What is the reason?</div>
<div>
	Nepal is a market of its own kind. Situation is difficult here for the manufacturing sector to prosper. Power shortage, a major problem faced by this sector, has been one of the major causes for such decrease in investment in such sectors. Open import is another hindering factor. Nepali market is crowded with cheap products from China and India and it is very hard for domestic products to compete with imported products in the market, especially in terms of cost. As such, only ethnic Nepali products can sustain in the local market.</div>
<div>
	&nbsp;</div>
<div>
	Lack of skilled and productive manpower, unfriendly labour environment and decrease in agricultural production that has triggered increased imports of agro products, are other factors that are affecting the growth of the manufacturing industries in Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong><img alt="Manoj Kedia" src="/userfiles/images/inter1%20(Copy)(1).jpg" style="float: left; margin: 0px 10px 0px 0px;width: 300px; height: 321px;" />You are a vice-president of Confederation of Nepalese Industries (CNI) that specializes in the promotion of industries rather than trading. Why is not CNI doing something to put a stopper on the deindustrialization of Nepali economy?</strong></span></div>
<div>
	This accusation is wrong. CNI has unwavering vision and mission to achieve. It was established to address private sector&rsquo;s problems by promoting liberal policies.The organization believes that the country can achieve prosperity via private sector&rsquo;s involvement in development activities. It has always focused on facilitating the activities of private sector.</div>
<div>
	&nbsp;</div>
<div>
	In reality, many of the genuine issues and demands raised by CNI for promoting private sector remain unaddressed due to concerned authorities&rsquo; reluctance. I am pretty confident that the private sector can make tangible impact if issues and demands raised by CNI are endorsed by the parliament.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>You said Kedia Group is also entering the power generation sector. Would you please elaborate on this?</strong></span></div>
<div>
	The entire industrial sector has been suffering from power deficit. Industrial sector incurs billions of losses due to it. It is a national problem and it is obvious that major business houses want to engage in the power generation business.</div>
<div>
	&nbsp;</div>
<div>
	Presently power/energy costs have increased steeply. Simultaneously, demand for power has also increased. Hydropower has high market potential. As we are aware, due to our inability to use our energy resources, we are purchasing energy from neighbouring countries in various forms like petrol, diesel and oil. Most of our financial resources, which we could have invested in productive sectors, are spent in purchasing energy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Hydropower projects need lots of investment. We need laws and policies friendly enough to attract FDI in that sector. So far, Kedia organisation has not made substantial investment in this sector. We have invested as shareholder in this sector to study the sectoral behaviour.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Why is the Kedia Group not generating power through cogeneration from its sugar mill and supplying it to the national grid?</strong></span></div>
<div>
	We can produce 10 Mega Watt of electricity from cogeneration, that too when the country faces maximum power shortage. To produce power, we need huge investment for developing infrastructure. If such infrastructures are developed in all industries across the nation, 30 to 40 Mega Watt of electricity can be produced. It is far less costly than thermal power plants and other alternative means and takes less time to establish also.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, huge investment is required to develop necessary infrastructure for such a project. As policy keeps changing, it entails huge investment risks. Such risk can be only taken if the state formulates conducive policy and provides special incentives. Otherwise, as an entrepreneur, I would not risk my investment.</div>
<div>
	&nbsp;</div>
<div>
	Presently, waste from the paper mill remains unexploited. If government supports in setting up power plants, such wastes can be used to generate multifuel whenever the nation needs.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Despite being a major player in agro-processing industry why is the Kedia Group not building backward linkages with the farmers?</strong></span></div>
<div>
	We have been coordinating with farmers. We regularly provide them with various skill-based trainings and loans too. We have set up Sugar Mill in Sarlahi district, the major sugarcane growing centre of the country, and it is an instance that reflects how we work in coordination with farmers. In addition to that, we have been actively engaged with farmers in the dairy business as well.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Now that the Constituent Assembly elections are over, how do you visualize the business scenario in the days ahead?</strong></span></div>
<div>
	Democracy has to be institutionalised. Political issues have been settled and that marked the crossing of transitional politics. The rhetoric of transition politics should not be repeated and we should be optimistic of economic growth in the days ahead. Kedia Group is very hopeful of contributing to the overall development of the country.</div>
<div>
	&nbsp;</div>
<div>
	During the last half-decade, there have been many positive changes in the political regime. With the successful completion of second Constituent Assembly election, it&rsquo;s time to focus on institutionalising the achievements.</div>
<div>
	&nbsp;</div>
<div>
	Now, political parties should prioritize national interests by brushing aside their partisan and personal interests and focus on formulating collective goals to achieve national economic growth.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It&rsquo;s an achievement for the private sector that almost all major political parties consider it as the backbone of the national economy. Unity in diversity is our speciality and Nepali leaders should translate this mantra into reality. They should prioritize economic prosperity in their political agenda. Nepali business won&rsquo;t get good reputation in international market unless our economy is strong and self-reliant. It is possible and all we need is sincere commitment from our politicians.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What agenda would you like the upcoming government to focus on for the progress of business-economic field?&nbsp;</strong></span></div>
<div>
	The government should show readiness to address some pending economic agenda. It should create environment whereby industries can be set up in every district. Local bodies should be given authority for deciding utilization of local resources. The central government should act as intermediary to mitigate problems faced by the private sector at the local level.</div>
<div>
	&nbsp;</div>
<div>
	Above all, state should ensure political stability and strong governance and ensure their commitment made in the last election to the general public of drafting and promulgating the new constitution within the promised time frame. Economic growth of the nation can sustain and progress only if the state and political actors act as strong catalyst and continue propelling it.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>The manufacturing index for the last fiscal year and the trade statistics for the first four months of the current fiscal year show some positive indications of improvement over the previous year. How do you interpret this information?</strong></span></div>
<div>
	It is too early to comment on this. &nbsp;We do not see any drastic changes in the manufacturing sector over the last fiscal year. There are several reasons for the said improvement of manufacturing index. Firstly there was comparatively better supply of electricity, and secondly political realm remained stable during the last fiscal year. Dollar revaluation also contributed much for the better performance in the exports trade. We had less volume of imports, that is the domestic market imported fewer consignments in the last fiscal year, and this helped show improvement in the growth rate of the trade deficit. But we should remember that the trade deficit is still increasing though in slower rate.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Where do you see Kedia Group of Industries in five years of time?</strong></span></div>
<div>
	In five years, we envision our involvement in diverse business. We will be engaging in the infrastructure, tourism, power and in the manufacturing sector. All we need is a strong and stable government, business-friendly policies and fair competition between private sector players. &nbsp;The domestic market has huge potentials and Kedia Group looks forward to tap and invest in them to create more jobs in the domestic market itself.</div>',
			'published' => true,
			'created' => '2014-01-24',
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			'description' => 'Kedia Organisation, the oldest and one of the most talked about business conglomerates of the country, has been practicing a synergistic combination of family ownership and professional management since 1909 A.D. Named after their fathers, Late Sundarmal Kedia and Late Ram Kumar Kedia, it was surely a turning point for the Kedias when the first foundation stone of their present day multimillion conglomerate was laid in the form of a small cloth trading business.',
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		'Article' => array(
			'id' => '2312',
			'article_category_id' => '46',
			'title' => '“Nepal-India-China Trilateral Mechanism Needed For Nepal’s Power Development”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;">Chilime Hydropower Company Limited (Chilime), incorporated in 1995, is promoted by Nepal Electricity Authority and owned by the local community also. &nbsp;Its model has been considered as one of the best way to generate wealth for the local people &nbsp;and assists in sustainable development.&nbsp;<strong>Kul Man Ghising</strong>, Managing Director of this public company, recently spoke to&nbsp;<strong>Siromani Dhungana</strong>&nbsp;of New Business Age on issues related to Nepal&rsquo;s hydropower sector.&nbsp;<strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is the progress of power projects being developed by your company?&nbsp;</strong></span></div>
<div>
	We have four projects under Chilime Hydropower Company, namely Sanjen, Mid-Bhotekoshi, Rasuwagadhi and Bemdang. We have been developing all these projects through our subsidiary companies -- Sanjen Jalavidhyut Company, Madhya Bhotekohi Jalavidhyut Company, Rasuwagadhi Hydropower Company and Bemdang Khola. Mid-Bhotekoshi with an installed capacity of 102 MW in Sindhupalchowk district is being developed through Madhya Bhotekoshi. Sanjen is &nbsp;developing two projects&ndash;Sanjen of 42.5 MW and Upper Sanjen &nbsp;of 14.8 MW capacity in Rasuwa district. Rasuwagadhi Hydropower is developing a new project - 111 MW Rasuwagadhi Project in Rasuwa district. We have almost completed all pre-construction tasks including procurement process and taking EIA certificate and other clearances. All these projects will start construction by the end of the current fiscal year. Among these four projects, the progress of Sanjen is rapid. We have planned to complete all works of Sanjen project by 2016 and other projects by 2017.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>The first project developed by your company is often cited as an ideal model for Nepal&rsquo;s power projects. And more examples of such successful model were expected from your company. But none of the projects in the pipeline viz. Sanjen, Madhya Bhote Koshi and Rasuwagadhi are complete so far. Why this delay?&nbsp;</strong></span></div>
<div>
	I do not think there is delay in the progress of projects. We have been working on all projects according to the project timeframe developed by the company. In Nepal, pre-construction works take almost 60 per cent of time required to develop hydropower projects. We have lengthy procedural formalities to complete before starting the actual construction. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We have already completed works that include getting approval from various ministries and government agencies, tunnel testing, infrastructure development at the site among others. Given the usual standard in Nepal, it should be considered as a great achievement for any hydro company to start construction work within three years of acquiring licence. Within three years, we have prepared Detailed Project Report (DPR) and other ground works necessary to start the construction of the project.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	No project can be undertaken without financing. It was challenging to identify proper financing channels. We managed to arrange equity participation from our partners including Nepal Electricity Authority (NEA), Chilime and the public. But debt financing was really important and it is our achievement to have convinced Employees Provident Fund (EPF) to invest in our projects within a year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Financing is not possible without reaching Power Purchase Agreement (PPA) with NEA and DPR is essential for entering into PPA. These are time-consuming processes. Hydropower companies have to go through many hurdles to enter into PPA in Nepal. Companies have been chasing NEA for years to get PPA approved. Process of getting environmental impact assessment (EIA) certificate is unnecessarily lengthy in Nepal. Government agencies compel hydro companies to wait for 2/3 years to acquire EIA certificate. That&rsquo;s not all. Ministry of Forestry takes another 2/3 years to provide consent for chopping trees in project sites. &nbsp;It takes five years just to complete the process at the Ministry of Environment and Ministry of Forestry. These all pre-construction processes are unnecessarily lengthy in Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Adding to it, as a public company we have to follow lengthy procurement process that takes around one to two years to complete. Despite all these hurdles, we have been working aggressively to complete all projects in the stipulated time.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;In Nepal, no project has been completed in less than 10 years of its initiation. Administrative hassles have been causing the delay in completing pre-construction works. Sometimes, I feel these are unnecessary hurdles. The government should focus on easing off these hassles, if it wants to propel hydropower development.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong><img alt="Kul Man Ghising, Managing Director, Chilime Hydropower Company Limited" src="/userfiles/images/intr2%20(Copy).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 250px; height: 368px;" />Some private sector power developers have also pointed out that Chilime is specially favoured by the government and the Nepal Electricity Authority in various respects, such as PPA rate and the choice of projects. What is your assessment?</strong></span></div>
<div>
	As a public company, we have to face dozens of hurdles to develop a hydropower project. First, we have to face problem in public dealings during land acquisition. We follow transparent methods in public dealing and do not pick up influential persons to get them on our side andstart work. Even at the ministry, our projects are processed by taking more time than other private sector companies. The allegations that Chilime has got special privileges are completely baseless. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Developers often complain about the increasing demands of the locals in the project site. How is the situation in projects being developed by Chilime?&nbsp;</strong></span></div>
<div>
	We should not always blame locals for friction in the development of hydro projects. Local people do not always put irrelevant and irrational demands. Power developers should take care of their logical demands. They should maintain transparency in their deals. For a project to be sustainable, deprived people should also get project benefits. This is what we do in our projects. Providing benefits only to a handful of local people always creates trouble.. The activities which are not transparent and are aimed at appeasing a handful of locals are major reasons behind problems at the local level. Power developers should ensure that the project benefits locals through employment opportunities, infrastructure development among others. We have been doing all these activities at the local level and maintained transparency in our dealings. We have decided to float shares to locals on equal basis to create sense of ownership on the project among them.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>One major problem cited in the development of hydropower in Nepal is the lack of capital. To address this problem, legal provisions have been reviewed and the developers have been allowed to raise money from the general public by issuing shares them even before the project construction starts. Why don&rsquo;t the developers use this facility to raise fund?&nbsp;</strong></span></div>
<div>
	There is a great possibility of rasing the capital through issuing shares to the general people. But, Security Board of Nepal&rsquo;s (SEBON) regulation does not allows to issue shares to the general people without solving equity issue among the promoters. Private sector is not very &nbsp;much eager to submit equity details of all the promoters. Due to equity issue, it is not easy to float shares to the public from the private sector power developers. Majority of power developers do not want to issue shares to the public.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In the recent days, people&rsquo;s attraction in buying shares clearly hints that we can generate capital by floating shares to the public. Even generating equity is not a big problem in Nepal. We have enough fund but our problem is how to manage fund. Trust on developers is also equally important before floating shares. All developers can not be as trustworthy as Chilime. If developers fail to make profit, people will not invest in shares of hydro companies in the future. This part also should be considered.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Some analysts suggest that developing hydropower projects in Nepal with an aim to export power to India will benefit Nepal because of the seasonal variation in the water flow and peak demand of electricity in Nepal and India. What is your opinion on this?&nbsp;</strong></span></div>
<div>
	Due to seasonal hydrology, energy management is indeed a challenging task in Nepal. Currently, NEA is responsible to manage energy in the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Development of transmission line for interconnection is a must. Optimum utilization of hydro energy is not possible in the country without interconnection. All power generators should be connected in the national power grid to utilize hydro potential to its full capacity. Interconnection with India means getting connected with the entire South Asian region. It would be really good if we can develop cross-border or regional transmission line.</div>
<div>
	&nbsp;</div>
<div>
	But first, we have to put optimum efforts to develop more power projects so that we can reach the level of a power surplus country. The demand of power will automatically go up in the domestic market too if we generate enough power. More factories &nbsp;will come up here if we can ensure sufficient power supply to them.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What other &nbsp;legal and administrative hurdles are there in developing a hydro project? &nbsp;</strong></span></div>
<div>
	The government has failed to expedite procedure in hydro projects development especially the administrative procedures. It should remove all administrative hassles if it really wants rapid growth in the hydro power sector. We have already talked about the year-long procedural hurdles that exist in various government agencies.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There are some unnecessary and irrational taxes levied on hydropower projects in Nepal. Besides the royalty that the projects have to pay the government, &nbsp;Ministry of Forestry charges one per cent tax on power developers which does not match with government&rsquo;s commitment of facilitating hydropower sector.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Power trading company is necessary to manage energy market in Nepal. We don&rsquo;t have a reliable entity to manage electricity market. NEA is the entity which is signing PPA in Nepal. And this PPA &nbsp;is not based on scientific approach. PPA rates should be decided on the basis of several factors including condition of the project site. . It should be transparent and scientific if Nepal has to be a power surplus nation.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the government should form a scientific pricing mechanism. The price of electricity should not be the same during peak &nbsp;and normal hours. It should focus its effort on all these aspects.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	PPA in terms of dollar has been raised and the government should address this issue along with making the PPA bankable.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The balance sheet of NEA is not convincing to foreign power developers. Foreign investors cannot be assured of the safety oftheir investment when they have to sign agreement with a company that is in such huge loss. If the government cannot provide sovereign guarantee, it should provide payment guarantee. Additionally, in order to attract Foreign Direct Investment (FDI), the government should ensure security mechanism to boost confidence of foreign developers.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What challenges and opportunities do you see in Nepal&rsquo;s hydro power sector?</strong></span></div>
<div>
	Our nearest power market is India and there are potential investors in China. We can bring investors from China and use Indian power market. We can make a trilateral mechanism and develop trilateral business since we have resources, India has market and China has capital to invest.Investment in joint venture among these three countries will be mutually beneficial and can create unique opportunities for all. Chilime model is sufficient to generate power if domestic market is the only target. But, if we want prosperity from hydropower sector, we have to attract foreign power developers and for that we have to open avenues in foreign markets.&nbsp;</div>',
			'published' => true,
			'created' => '2013-12-22',
			'modified' => '2013-12-30',
			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'Chilime Hydropower Company Limited (Chilime), incorporated in 1995, is promoted by Nepal Electricity Authority and owned by the local community also.  Its model has been considered as one of the best way to generate wealth for the local people  and assists in sustainable development. Kul Man Ghising, Managing Director of this public company, recently spoke to Siromani Dhungana of New Business Age on issues related to Nepal’s hydropower sector. Excerpts:',
			'sortorder' => '2202',
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	(int) 5 => array(
		'Article' => array(
			'id' => '2179',
			'article_category_id' => '46',
			'title' => '“There Are Obvious Reasons Why We Decided To Invest In Hotel Business”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Shesh Ghale</strong>&nbsp;is a Mebourne, Australia based non-resident Nepali businessman. He has been listed as the 180th richest man in Australia (together with his wife Jamuna Gurung) by BRW News Australia with a fortune of $225 million. Recently, Ghale has been elected as the president of the Non-Resident Nepali Association (NRNA). Ghale, founder and chief executive officer of Melbourne Institute of Technology, under the MIT Group Holdings Nepal, has signed a management contract with Starwood Hotels and Resort Worldwide, Inc. to build a five-star property named&mdash;the Sheraton Kathmandu. He has also come up with some other investment plans in Nepal. Soon after being elected as the president of NRNA, he has pledged to promote entrepreneurship in Nepal. He spoke to&nbsp;<strong>Siromani Dhungana</strong>&nbsp;of New Business Age about his and NRNA&rsquo;s future investment plans in Nepal.&nbsp;<strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>As the new president of NRNA, what&rsquo;re your priorities in Nepal?</strong></span></div>
<div>
	First meeting of the newly elected committee of NRNA has decided to focus on employment generation and sustainable development of Nepal. To achieve these goals we will implement various projects. These projects include establishing a five-star hotel in Kathmandu that will assist in creating employment opportunities and thereby also contribute in economic growth. &nbsp;We will immediately start the feasibility study for constructing this five-star hotel. Along with that we are planning to bring other projects to help us in gaining our objectives.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What other projects that NRNA will push forward during your tenure?</strong></span></div>
<div>
	We will put emphasis on mutual investment projects. I think NRNA should promote culture of entrepreneurship. During my tenure, we will be doing various activities that promote entrepreneurship in Nepal. These activities will be aimed at translating our slogan &lsquo;Connecting Nepali for Prosperous Nepal&rsquo; into actuality.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>NRNA is often blamed for ignoring blue-colour employees working in the gulf region in spite of their huge contribution to the national economy. What&rsquo;s your say?</strong></span></div>
<div>
	No. Their contribution to the country will be recognized during my tenure. We have decided to create a &lsquo;Relief Fund&rsquo; for migrant workers who have been suffering in foreign land. The fund will be utilized in welfare activities especially for those who die, who get injured and who are shelter less in foreign land. I have pledged to provide Rs 10 million for the fund and I am hopeful that other friends will contribute to the cause. The funds will be ultiized once detailed working procedure is finalized.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong><img alt="Shesh Ghale" src="/userfiles/images/sg%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 321px;" />Getting back to NRNA&rsquo;s decision to invest in hotel sector, why did you choose this business sector to invest in?&nbsp;</strong></span></div>
<div>
	We have good links with foreign star hotel chain brands for investing in hotels. I think we can introduce their expertise here in Nepal. Another reason is the existence of good business prospects for hotels. Non Resident Nepalis can make good profit by investing small amount in this sector. We will encourage new friends to invest in this sector so that the country will get new set of entrepreneurs.</div>
<div>
	&nbsp;</div>
<div>
	But there is strong belief that NRNs should invest in infrastructure rather than hotel sector.</div>
<div>
	&nbsp;</div>
<div>
	There are several obvious reasons why we decided to invest in hotel business. First, the hotel business can generate more employment in small investment. We can generate four hundred jobs if we establish a 200-bed hotel. Second, we can produce skilled manpower by operating hotels with international standard in Nepal. Human resources who work in standard Nepali five-star hotels, can easily get job abroad. Third, hotel business will have a multiplier impact in development. If we establish a hotel in a community, the entire community starts to get benefit from that.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Another reason is the investment in hotel business is easily transferable. &nbsp;Hotel business is one which helps generate foreign exchange reserve.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	NRNA will not, however, undermine infrastructure projects. We will continue all infrastructure projects, including hydropower projects, during my tenure as well. Hydropower has been our priority and it will remain so in the years to come.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Are you also targeting middle-income NRNs during your tenure?</strong></span></div>
<div>
	Yes, indeed. NRNA has planned to start a commercial agriculture project targeting NRNs of middle-east and Korea. NRNs are enthusiastic to invest but do not have much money can benefit from our plan of initiating commercial agro project. On the other hand, commercialization of agriculture sector is Nepal&rsquo;s need of the hour. Nepal should tap potentials in agricultural sector since majority of the people&rsquo;s lives in the country relies heavily on it. Commercializing agriculture sector will also help Nepal in reducing import of agro product.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>You often emphasize on entrepreneurship for the prosperity of the country. Do you have specific plan to promote entrepreneurship in Nepal?</strong></span></div>
<div>
	I am planning to join hands with young Nepali entrepreneurs to promote entrepreneurship in the country. I will create a forum for young entrepreneurs so that they can exchange experience with entrepreneurs from other countries. Also, NRNA has planned to provide a mentor for aspiring entrepreneurs. &nbsp;The concept of mentorship is introduced to synergize the expertise of the older generation with the energy of younger generation.</div>
<div>
	&nbsp;</div>
<div>
	Entrepreneurship development is a time-intensive project rather than capital-intensive. The mentor has to spend time with younger generation entrepreneurs to share experience and to inspire them to do something worthwhile. We are confident that we can produce some good entrepreneurs by materializing this concept.</div>
<div>
	&nbsp;</div>
<div>
	It is said that Nepali products are yet to get foothold in international market. How can we expand country&rsquo;s recognition in international business realm?</div>
<div>
	We NRNs, who have already entered in international business sector, should act as bridge to link Nepal with other international markets. &nbsp;Collective efforts of government bodies and private sector can earn a good reputation for the country. The country needs to pay attention on creating brand name of some products in the international market. Some promotional activities will be also needed to this end. Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has been putting effort to promote Nepali products in the international market. It has a separate Nepali Products Promotion Committee which has been extensively working to promote Nepali products. We will work in close collaboration with FNCCI and young entrepreneurs.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Do you have other specific plan for promoting Nepali brands in international market?</strong></span></div>
<div>
	It is worthwhile mentioning here that we will be promoting Nepali products through &lsquo;Made in Nepal&rsquo; exhibition in various countries. We have planned to organize such exhibitions in five countries in the first phase. Similarly, we will construct &lsquo;Nepal House&rsquo; in various countries which will be helpful to inform foreigners about Nepal and Nepali culture. We have planned to construct such houses in Mexico, Belgium, UK, USA and Australia. We will gradually expand this concept to other nations and cities too.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>How do you take recent accusations of involvement of political parties in NRNA&rsquo;s recent convention ?</strong></span></div>
<div>
	I want to clear it out that politics is our least priority in Nepal. We are all focused on bringing cultural change regarding entrepreneurship in Nepal. We have to increase productivity for the prosperity of the country and we will be involved in such activities but not in politics directly.</div>',
			'published' => true,
			'created' => '2013-11-28',
			'modified' => '2013-12-08',
			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'Shesh Ghale is a Mebourne, Australia based non-resident Nepali businessman. He has been listed as the 180th richest man in Australia (together with his wife Jamuna Gurung) by BRW News Australia with a fortune of $225 million. Recently, Ghale has been elected as the president of the Non-Resident Nepali Association (NRNA).',
			'sortorder' => '2067',
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	),
	(int) 6 => array(
		'Article' => array(
			'id' => '2067',
			'article_category_id' => '46',
			'title' => '“Private Sector  Is Publicity-Oriented”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<div>
		<span style="font-size: 16px;">Though a businessman, he is well known in political circles. Entering the business world at the age of 14, Ajay Raj Sumargi, Chairman of Mukti Shree Pvt Ltd, has many successes under his belt. Shifting between political and business circles, and from one business sector to the next, Sumargi makes an interesting business personality in Nepal. His favourite sector at the moment is hydropower which, according to him, is the one that can change the economy of the country for the better. He does not try to hide his interest in politics and ways he interacts with political forces in order to develop a common minimum understanding among political leaders. &ldquo;Yes, leaders come to me and request to play the role of mediator when there are disputes and differences among them,&rdquo; he reveals. Sumargi talks to New Business Age&rsquo;s Siromani Dhungana about his journey and perspective on business in Nepal.&nbsp;<strong>Excerpts:&nbsp;</strong></span></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Can you please share with us your journey from being a local businessman outside of the valley to a renowned and one of the richest ones in the country?</strong></span></div>
	<div>
		I was 14 when my father passed away. Our family was already renowned for business at that time. We were involved in various businesses such as transportation, mines and wood works. My mother was always worried about my studies owing to my involvement in business from a very young age. I was responsible toward my younger brothers and we were liable to huge bank loans at that time.</div>
	<div>
		&nbsp;</div>
	<div>
		In 1978, I was liable for a bank loan worth Rs 1.1 million because I had taken over all responsibilities of my father&rsquo;s business. I must confess that I am not a first generation businessman - all I did was continued the businesses initiated by my father. I cleared all my banks loans by 1986 and was able to own a car at that time. All my success today is due to my hard work in those days.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>You entered the business world at a very young age. How did you cope with challenges in business?</strong></span></div>
	<div>
		I was born in a very prosperous and educated family that had great influence at the local level. I cannot forget the contribution of my predecessors for my progress. Similarly, I got many opportunities, warmth and cooperation from society due to my father&rsquo;s fame.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Another reason for my success is my readiness to take risks in business. For instance, I bought a loader worth $60,000 around 1993. At that time most people suggested that I buy a truck instead because the profit attained from trucks was more secure compared to loaders. However, my decision of purchasing a loader paid back and proved to be a right within six years as I was able to reap profit and invest it further in other projects. As a businessman, I always took risks and my readiness to bear risks has benefitted me thus far.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Generally, I change my sector every 11-12 years. In the initial 10 years, I was involved in the business of wood mills; after that, I moved on to the business of mines; later, I got involved in the telecom business and have been in it for the last 10 years.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>So, which sector do you anticipate engaging in the next 10 years?</strong></span></div>
	<div>
		It is obviously the hydropower sector I want to concentrate in the coming decade. I have planned to invest in a 35MW hydropower project in Dhading district. I will also put my energies to bring foreign investment in the hydropower sector.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		I had planned to construct a large capacity hydropower project in Karnali when Pushpa Kamal Dahal was Prime Minister. But it could not start due to hassles at the political level. I have put hydropower in my priority list and I think my presence will have a positive impact just as in the telecom sector. My contribution to make the telecom sector competitive and cheap has proved that I can create positive impact in business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Private sector investment in hydropower has been a much hyped issue. In your opinion, what are some major problems impeding the big hydro hope?</strong></span></div>
	<div>
		There are many problems in the hydropower sector. First, we have entrusted the responsibility of production, transmission and distribution work to the same agency - the Nepal Electricity Authority (NEA). In my opinion, a single government agency cannot carry out all these responsibilities. The government&rsquo;s role should be limited to the monitoring of the entire sector whereas work of production, transmission and distribution should be given to the private sector. But the government should provide some sort of subsidy to develop this sector. Another major problem is in transmission. The existing transmission line is not sufficient to supply electricity to households connected to the grid. The line cannot supply power even if sufficient power is produced. Lack of an effective system in NEA and lack of appropriate policies and laws have also affected the development of the hydropower sector.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>The private sector is also blamed for malpractices in the hydropower sector. What is your say?</strong></span></div>
	<div>
		It seems the private sector has been publicity-oriented to some extent. Hoarding of hydropower licenses is a serious malpractice on the part of the private sector. Such trends tarnish the reputation of the private sector. The government should revoke the licenses of those firms that are squatting on the licenses just for pocketing them.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Genuine businessmen have been suffering due to the license hoarding trend. The government cannot issue licenses to genuine businessmen like me since all rivers are already occupied. The government should end this and the private sector should support the government in doing so.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Let&rsquo;s change the topic. In your opinion, what should the government do to create an environment conducive to entrepreneurship?</strong></span></div>
	<div>
		Instead of the government acting for that purpose, I think the private sector should be sincere. Activities of the private sector should promote and strengthen it. The government alone cannot create an environment conducive for &nbsp;entrepreneurship and a blame game is not enough. &nbsp;Yet, the government has many responsibilities. The government should facilitate business activities by investing in infrastructure. Three sectors including information technology, hydropower and road connectivity are especially important for positive environment in business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>In spite of your attempt to stay away from controversy, you are always amidst it due to your political connections. Why is this so?</strong></span></div>
	<div>
		I never want controversy pertaining to my personal life. But people always try to drag me into it which is not good. I don&rsquo;t think it is my fault. People often see things from a single perspective and fail to evaluate things from multiple sides. I think a one-sided assessment of any person will victimise the concerned person.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>There are rumours that you and Prachanda have joint investment in some commercial organizations. Is this true?</strong></span></div>
	<div>
		I was equally close to late Girija Prasad Koirala. Once, I did not speak with him for three months and later he himself came to my house. This does not mean that I want to show off my connection with leaders. But I have good relations with all leaders regardless of their political ideology. I do not have any special connection with Prachanda. I frequently meet Sushil Koirala, Madhav Kumar Nepal and Ram Chandra Paudel. People do not care when I meet other leaders but I don&rsquo;t understand why they hype my meeting with Prachanda. Instead, I claim that I have played a role among political leaders to mitigate the differences among them. They also ask me to play the role of mediator when there are disputes and differences among them.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>It is also said that you constructed &lsquo;Mukti Tower&rsquo; in Baneshwar, naming it after Prachanda&rsquo;s father?</strong></span></div>
	<div>
		Yes, it is correct that I have constructed Mukti Tower. Its full name is &lsquo;Mukti Shree Tower&rsquo; and I named it after Lord Muktinath. I want to inform that I have kept more than 90 per cent of names of my companies after Lord Muktinath. It is false information that the name of the tower was after Prachanda&rsquo;s father. I don&rsquo;t have special relations with Prachanda. Rather, I have known Dr Baburam Bhattarai for long. What I want as a businessman is very clear - that our leaders should have common minimum agenda for the economic development of the country, and I want to contribute to develop such agenda.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Despite being a businessman, you are equally familiar with the political situation of the country. How do you see the relation between politics and business?</strong></span></div>
	<div>
		Political stability is very important to foster good business environment. Politicians need to assure that it is safe to invest. Similarly, right to property is also very important to create an environment conducive to entrepreneurship. All business people should be convinced that there is level playing field in the business sector. No one will be ready to take risks in an environment of political instability. We want a constitution that will ensure right to property and a free market economy. I want the election to be held in the stipulated time which will be crucial for stability in the country. There may be a group that does not want elections to take place for their own benefit. Prolonged transition in politics will lead us to the worst situation in terms of business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Political parties still seem to be less worried about economic agenda during election. How do you view this?</strong></span></div>
	<div>
		Recently, Nepali Congress organized a meeting with the business community and entrepreneurs to hold a discussion about economic agendas. I was very happy to be participating in the meeting. I want other parties to hold similar discussions. In my opinion, economic agendas should be forwarded in a professional manner, leaving political advantages and disadvantages aside. &nbsp;Political parties should include the issues of economic reform in their manifestos. Political commitments in manifestos help citizens make parties accountable. In spite of having potential for economic prosperity, we have been failing to tap it, forcing our human resource to go abroad for job opportunities.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>So you are worried about the trend of Nepalis seeking jobs abroad?</strong></span></div>
	<div>
		Yes, indeed I am. Our country has been supplying unskilled labour abroad. My wish is to create more and more jobs in this country so that people will not be compelled to seek jobs in a foreign land. If we cannot create enough jobs, the government should at least train the manpower going abroad to prevent trouble there. We need to provide training for basic skills and knowledge for job seekers. Similarly, the country needs to provide basic language training so that employees will be able to converse in a foreign land. Manpower agencies should also be made accountable to their clients.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>What are the three most important qualities to be a successful entrepreneur?</strong></span></div>
	<div>
		Integrity, duty, and patience are essential to be a successful entrepreneur. One should be straightforward and clear in conversation. Anyone should have the courage to say &lsquo;No&rsquo; for what is wrong or impossible and &lsquo;Yes&rsquo; for what is right and possible. Sincerity in business dealings goes a long way. I think, we should respect all and should have patience for everything as well.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Are you satisfied with what you have achieved so far?&nbsp;</strong></span></div>
	<div>
		Yes, indeed, I am satisfied with my work thus far - I am an optimistic person by nature. Rather, I worry about whom to pay for the heat we get from the sun or the air we breathe. I have been interested in contributing to society through various philanthropic deeds. And thus far I have been involved in road and public taps construction, and canal and bridge construction. I get pleasure from social work as I feel I am obligated towards society. Social work has been a satisfactory experience and I request fellow businessmen to realize the same. &nbsp;</div>
</div>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-10-29',
			'modified' => '2013-11-10',
			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'Though a businessman, he is well known in political circles. Entering the business world at the age of 14, Ajay Raj Sumargi, Chairman of Mukti Shree Pvt Ltd, has many successes under his belt. Shifting between political and business circles, and from one business sector to the next, Sumargi makes an interesting business personality in Nepal. His favourite sector at the moment is hydropower which, according to him, is the one that can change the economy of the country for the better. He does not try to hide his interest in politics and ways he interacts with political forces in order to develop a common minimum understanding among political leaders.',
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	(int) 7 => array(
		'Article' => array(
			'id' => '1967',
			'article_category_id' => '46',
			'title' => 'Etihad Airways’ Global Network Contributes To The Success Of Kathmandu Route',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size: 14px;">In less than six years of its operation in Nepal, Etihad Airways has already established its brand image among Nepali consumers. Since the commencement of flights in 2007, the United Arab Emirates-based airline has carried more than 500,000 passengers. In addition to connectivity in between Abu Dhabi and Nepal, Etihad Airways offers its service to more than 87 destinations across the globe. New Business Age asked&nbsp;<strong>Pawana Shrestha</strong>, Etihad Airways&rsquo; Country Manager in Nepal about airline&rsquo;s plan.<strong>&nbsp;Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>Etihad Airways recently celebrated its fifth year of operation in Nepal? How has the journey been?</strong></div>
<div>
	Our services to Kathmandu have been a great success. Since the launch of the route in 2007 we have carried more than 570,000 passengers. In addition to carrying passengers between Abu Dhabi and Nepal, Etihad Airways offers seamless connections to more than 94 destinations around the world. Etihad Airways&rsquo; global network has been a major contributor to the success of the Kathmandu route.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are the future plans of Etihad Airways in Nepal?</strong></div>
<div>
	We will continue to work closely with our travel partners to promote tourism to this beautiful country and carry more passengers to cities across our global network.</div>
<div>
	&nbsp;</div>
<div>
	Our close partnerships with the trade and travel industry in Nepal, has been instrumental in our success in Nepal, with the consistently high load factor across all cabins. We are very pleased to be making meaningful contribution to the Nepali economy.</div>
<div>
	&nbsp;</div>
<div>
	<strong>The United Arab Emirates (UAE) is a lucrative destination for many Nepali migrant workers. What is the percentage of migrant workers that Etihad cater to ?</strong></div>
<div>
	We cater to a fairly large number of Nepali workers. However; we carry even more leisure passengers. In 2012 Nepalese workers made up around 30 per cent of our customer base, leisure passengers made up 50 per cent. The remaining were business and corporate travelers.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Numerous other airlines are operating in Nepal. How tough is the market competition for Etihad?</strong></div>
<div>
	Nepal is a very competitive market and there are around 28 airlines currently operating services to Kathmandu. The Abu Dhabi- Kathmandu route, however, has been very successful. This success is due to our commitment to providing our guests with a remarkable travel experience across their entire journey and our focus on delivering award winning product and services.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is your Marketing Strategy in Nepal?</strong></div>
<div>
	Our Marketing strategy focuses on raising the profile of Etihad Airways in the Nepali market and increasing awareness of Abu Dhabi as a leisure destination. The core of our strategy, however, is providing an unbeatable product.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Our marketing strategy involves working closely with our partners, travel agents, industry magazines and trade associations as well as by deploying various promotions, competitions and discount programmes throughout the year. &nbsp;These include tactical campaigns like regular breaking deals, online deals and highly discounted last-minute offers to encourage repeat visitors.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are your CSR programmes in Nepal?</strong></div>
<div>
	Etihad Airways is committed to active participation in causes that support people and strengthen communities across its global network.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;In Nepal, our corporate social responsibility policy centers on projects that assist communities in need and, in the longer term, drive development and empowerment. Therefore, we support orphanages and education projects and homes for the elderly and through medical partners, support critical surgery and health services training.</div>
<div>
	&nbsp;</div>
<div>
	Recently we donated a large amount of waste paper to support a recycling initiative led by Shanti Sewa Griha, a non-governmental &nbsp;organisation providing shelter for the less privileged and fighting discrimination against leprosy patients in Nepal.</div>
<div>
	&nbsp;</div>
<div>
	In 2012 we donated care parcels, made up of packed lunches and blankets, to two social welfare organizations in Kathmandu to keep the less privileged safe from the piercing cold of Nepal.</div>',
			'published' => true,
			'created' => '2013-10-09',
			'modified' => '2013-10-28',
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			'description' => 'In less than six years of its operation in Nepal, Etihad Airways has already established its brand image among Nepali consumers. Since the commencement of flights in 2007, the United Arab Emirates-based airline has carried more than 500,000 passengers.',
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	(int) 8 => array(
		'Article' => array(
			'id' => '1678',
			'article_category_id' => '46',
			'title' => '‘Banks Contribute By Dispensing Credit And Absorbing The Additional Income Of People’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;">The Everest Bank Pvt. Ltd. (EBL) appointed&nbsp;</span><strong style="font-size: 14px;">AK Ahluwalia</strong><span style="font-size: 14px;">&nbsp;as its new chief executive officer effective from July 1. Founded in 1994, the bank has been one of the leading banks of the country catering to various segments of society. Ahluwalia, who has 32 years of experience in the banking sector, was deputy general manager of the Punjab National Bank, India. He has key expertise in credit and recovery in the banking system and now leads the Everest Bank which has 50 branches, 25 collection counters and 67 ATMs. In this interview with&nbsp;</span><strong style="font-size: 14px;">Siromani Dhungana</strong><span style="font-size: 14px;">&nbsp;of New Business Age, shares his experiences in banking sector and his plans in Nepal to lead Everest Bank into the next level.&nbsp;</span><strong style="font-size: 14px;">Excerpts:</strong></div>
<div>
	<div>
		&nbsp;</div>
	<div>
		<strong>You worked with the Punjab National Bank for 32 years. How do you see the banking sector in the South Asian region?&nbsp;</strong></div>
	<div>
		In my view, there is one thing common to the entire region which is the general slowdown of the economy. The inflationary trend also affects the cost of goods produced, thus making them uncompetitive in the international market. As a result, exports slow down. There is also a general tendency on the part of entrepreneurs to procrastinate in expanding their existing units or setting up new industries due to the slow economy.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>So you think the manufacturing sector and the banking sector will go well together?&nbsp;</strong></div>
	<div>
		I believe so. When the manufacturing sector is on an upswing, more capacity is created and utilized, more jobs are created and the standard of living of employees improve. People&#39;s purchasing power improves, in turn increasing demand. This is a cycle which continues and contributes in a big way to boost the economy. Banks contribute in their own way by dispensing credit and also by absorbing the additional income of people as deposits, and investing the same.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>You were with the Punjab National Bank in Delhi before coming Everest Bank Limited. What inspired you to be here?&nbsp;</strong></div>
	<div>
		I have worked for 32 years in the Punjab National Bank, having joined as Management Trainee. During my time there, I worked in all types of branches as branch manager and also at the corporate office as well as the circle office. Now I have a chance to work as CEO at Everest Bank Ltd, which is a prominent commercial bank in Nepal. It is my privilege to be a part of this institution and it would be my endeavour to carry it forward and try and make the bank stronger within the framework of regulatory guidelines.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>What are your future plans here onward?&nbsp;</strong></div>
	<div>
		Everest Bank has been doing exceeding well. It has created a unique brand image for itself. Over a period of time, it has become one of the leading commercial banks of Nepal. I believe when you have raised expectations of your stake holders, whether customers, staff, shareholders or promoters, you have to live up to them. It takes a lot to create the brand image and it would be my priority to add further value to it. I have a great team of people working with me who are fully devoted to take the bank to the next level.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Will you bring unique products/services to push the bank to the next level?&nbsp;</strong></div>
	<div>
		I have been CEO of the bank only for a fortnight and it is too early to comment. However, my priority would be to increase the customer base of the bank, both in deposits as well as credit. The existing products are, and also in future would be, in keeping with the customers&rsquo; needs and expectations.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Let&rsquo;s talk about your career and what your banking experience has taught you.&nbsp;</strong></div>
	<div>
		My banking experience has taught me one very simple thing - that if I want my customers to be loyal to me, I have to be loyal to them. When we give correct advice to our customers and deliver exactly what we promise, their loyalty automatically grows.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Your key expertise is in credit and recovery. Can you bring some innovative ideas in these areas?&nbsp;</strong></div>
	<div>
		Credit is basically a function of delivery. For a credit customer, delivery has to be very fast. As far as recovery is concerned, it is basically about being vigilant. If we are vigilant about our accounts, and if the monitoring is good, then recovery is not an issue. Primarily, if we are able to catch signal of an account going sticky at the right time, then corrective measures can be taken immediately.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Any plans for the rural sector?&nbsp;</strong></div>
	<div>
		Prior to my joining EBL, the bank already had plans for agriculture financing, having set up a branch at Rajbiraj, Krishi Udhyam Bikash Sakha. We are also encouraging some corporate clients to boost finances in rural areas.</div>
</div>
<div>
	&nbsp;</div>',
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			'description' => 'The Everest Bank Pvt. Ltd. (EBL) appointed AK Ahluwalia as its new chief executive officer',
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	(int) 9 => array(
		'Article' => array(
			'id' => '1442',
			'article_category_id' => '46',
			'title' => 'Development And Growth Should Go Together',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size: 12px;"><span style="font-size:14px;">Radhesh Pant has experience of working nearly a decade in United States in the financial sector. After acquiring good experience of banking sector from the world&rsquo;s number one economy, he returned to Nepal in 1999 and engaged in banking sector. He was also the president of the Nepal Bankers&#39; Association (NBA). He was appointed to head of Nepal Investment Board in 2011. The Investment Board is envisioned to give a one-window solution to potential investors in big projects of over Rs 25 billion with the chairmanship of the Prime Minister of Nepal. Siromani Dhungana and Sujan Dhungnaa of New Business Age spoke to him about prospects of alternative development paradigm in Nepal and his view regarding development versus growth. He says development and growth should go together for the effective development initiative in the country.</span><strong> <span style="font-size:14px;">Excerpt:</span></strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>The ongoing controversy in Nepal regarding growth versus development (more specifically inclusive development) is said to be affecting the functioning of the Nepali economy. How do you view this controversy?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Inclusive development induces economic growth that is sustainable and will result in better livelihood for all the people. Inclusive development will also minimize the gap between the rich and the poor that will culminate in fair distribution of wealth and ample opportunities for all. However, economic growth alone could actually increase the gap between the haves and have nots thereby ensuing inequality, ill-governance, agitation and corruption amongst others which is not sustainable and will result in restlessness, chaos and ultimately civil unrest. This is the risk we are facing in the country right now. We need to focus on inclusive growth and we need to do that fast.&nbsp;</div>
<div>
	For Nepal, with the abundant resources of all kinds, we ought to focus on inclusive development. We need to get our act together. First off, our politicians need to place consistent and consensual priority on inclusive development. Projects that have enormous impact on inclusive growth need to be defined and prioritized. Then we need stable policies such that government changes do not impact these projects and there is continuity. Finally, we need to build our capacity within and outside government to ensure transparency, good governance, accountability and technical ability to monitor and regulate large scale projects. Moreover, we need to be competitive compared to other countries in the region in terms of providing good and timely services, incentives and project formulations.&nbsp;</div>
<div>
	I believe the Investment Board has been established about a year and a half ago for the single purpose of executing large scale projects that assures fair share to Nepal. We are currently focused on large projects that have enormous impact on the economy and would definitely foster inclusive development of Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The Investment board is entrusted to promote economic development of the country and to create employment opportunities. How compatible is this stated mandate with the actual functioning of the Board?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	I think it is absolutely compatible. We have great resources in hydropower, agriculture, tourism amongst others, but we have not been able to capitalize on them. Development of these resources, coupled with the infrastructure development needs in the country to physically connect every nook and corner of the country is the priority. It provides trade of goods, people and services within the country and also abroad. This would create lots of jobs, domestic sustenance, increased exports and will ultimately lead to economic transformation.&nbsp;</div>
<div>
	Investment Board is mandated to do exactly that. Its objective is to provide a fast track approval process and a single window mechanism for prospective investors, both domestic and international. So, essentially by implementing the large scale projects, the Investment Board is the transformation agent that will create ample employment opportunities and inclusive development of Nepal.&nbsp;</div>
<div>
	But having said that, there need to be competitive and coherent policies in place in order to achieve this. Moreover, the Investment Board needs to be at an arm&rsquo;s length from the government and needs to be run professionally, transparently, competitively and with accountability. This is what we have been focused for a year or so. The Investment Board needs to capture the interest of Nepal in all the projects that it executes rather than on vested interests of certain factions. And that is exactly why the Project Development Agreement based on the nine principles that protects Nepal&rsquo;s interest has been formulated.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>So, what are the nine principles? Could you illustrate on that?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Well, currently, we have a Project Development Agreement that is focused on the Hydropower Development. However, this agreement will be emulated for other large projects in other sectors as well. The basic nine principles are that the Project:&nbsp;</div>
<div>
	1. Meet Nepal&rsquo;s electricity needs first.&nbsp;</div>
<div>
	2. Captures for Nepal her fair share of economic benefits.&nbsp;</div>
<div>
	3. Ensures best use of river basin.&nbsp;</div>
<div>
	4. Returns hydro asset to Nepal in good operating condition.&nbsp;</div>
<div>
	5. Transfers project risk to party best able to manage risk.&nbsp;</div>
<div>
	6. It is balanced. The developer is able to receive a fair market based return as compensation for investment, project development and management skills and risk.&nbsp;</div>
<div>
	7. Ensures high environmental sustainability and high safety standards.&nbsp;</div>
<div>
	8. Industrial and Employment Benefits. A good deal is structured so that the demand for goods and services from the tens of billions of dollars of expenditure stimulate many new prosperous business and thousands of skilled and semiskilled jobs for Nepalis.&nbsp;</div>
<div>
	9. Model community benefits includes a package that brings about long term benefits such as training, skill development, employment, business development, community infrastructure - clean water, health services, electrification, housing, etc. It will ensure that local people will become proponents rather than opponents of new hydro projects.&nbsp;</div>
<div>
	With these principles in place, I am confident that Nepal&rsquo;s interest will be protected and that Nepal will be able to maximize its fair share from the project.&nbsp;</div>
<div>
	The government has set an economic growth target of 7 per cent by 2015. Do you think that the government is biting more than it can chew?&nbsp;</div>
<div>
	In my mind, reaching a 7 percent economic growth is not that much of a deal. We need to get our act together. First of all, economic agenda has to be a top priority for all the parties. Consensus amongst the political parties on priority projects is a pre-requisite. Then, elections need to happen in November. We need to send out signals to the investors, both domestic and international that Nepal is ready for business. Stable investment policies that are attractive to investors need to be in place. In the current fiscal year, we are expected to grow at 4.5 percent growth and last year we grew at around 5 percent. If the above preconditions are achieved, adding two more percent is not that difficult. The ball is on our (Nepal&rsquo;s) court.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>In your opinion, what type of policies should the government adopt to promote inclusive development?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Policies need to be clear, simple, sustainable and stable. With every government change, its priorities and policies cannot change. Secondly, inclusive development will not happen overnight. We need to have a long term strategy that is supported by all the stakeholders of development. This includes the political parties, government, private sector and Nepali people in general. The policies and laws need to complement the project execution rather than hindering it. If we are able to execute projects that harness our resources (which are spread across the country), inclusive development will become a reality.</div>
<div>
	&nbsp;</div>',
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			'created' => '2013-07-19',
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			'description' => 'Radhesh Pant has experience of working nearly a decade in United States in the financial sector. After acquiring good experience of banking sector from the world’s number one economy, he returned to Nepal in 1999 and engaged in banking sector. He was also the president of the Nepal Bankers' Association (NBA). He was appointed to head of Nepal Investment Board in 2011.',
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	(int) 10 => array(
		'Article' => array(
			'id' => '1059',
			'article_category_id' => '46',
			'title' => 'Coca-Cola Strives Be Relevant To New Generations',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Coca-Cola’s India unit and South West Asia business operations comprise key markets – India, Nepal, Bhutan, Bangladesh, Sri Lanka and Maldives. Nepal is one of the key markets for Coca-Cola and the business unit’s role is critical to the company to maintain its market share and brand name. Recently, Neeraj Garg, vice president at Coca-cola India and South West Asia Business Unit visited Nepal. New Business Age Editor-in-chief Madan Lamsal talked with him regarding business prospects of Coca-Cola in Nepali market during his visit.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>Kindly talk about your career growth and your role in the Coca Cola business today.</strong></p>
<p>
	I have spent most of my working life with Coca-Cola, having been with the company for almost two decades now. I joined in 1994 and worked in a variety of roles mostly involving Operations and Commercial beverages. I had an eight year stint with Coca-Cola China where I worked on a variety of roles from Business Development to Shanghai Region Manager and also managed The Coca-Cola Company’s Global Partnership for the 2010 World Expo in Shanghai. I moved back to India in early 2011 as VP-Operations providing leadership support to the company owned bottling operations (CBO) and franchise bottling operations (FBO’s) in India. In October 2012, I took over the role of VP-South West Asia Operations and as the Head of our Juice business for the India and South West Asia Business Unit.</p>
<p>
	Coca-Cola is a great company and a great brand to work for. I’ve had some extremely challenging yet fantastic experiences in my years with Coke. I have had the pleasure of working with some of the most engaged and inspiring people as a part of the Coca-Cola family and I hope I can continue to do so in the future as well.&nbsp;</p>
<p>
	<strong>Till a few years ago Coke in Nepal enjoyed close to 80 percent of market share. That is now reduced about 64 percent only, somewhat due to aggressive marketing from the competitor. What is being planned in order for Coke to regain the same past glory? Where have you reached in your expansion plan for Coca-Cola in Nepal?</strong></p>
<p>
	The Coca-Cola Company is one of the largest beverages companies and our products are available in more than 200 countries. In Nepal as well, our brands enjoy consumer preference and share of throat, as we like to call it.&nbsp;</p>
<p>
	After 126 years in the beverage business, we are still innovating, evolving and striving to be relevant to new generations. &nbsp;We constantly strive to stay relevant to our consumers by focusing on their needs and consumption patterns and connecting with them through our products. For example, Trademark Coca-Cola has partnered with the All Nepal Football Association for the Coca-Cola Cup to connect with young footballers across Nepal and promote healthy active lifestyles. Brand Fanta has partnered with the Miss Nepal pageant to stay relevant to teenagers and add some ‘play’ in their lives. So we are constantly trying to find touch points that connect our brands with our consumers across the country.&nbsp;</p>
<p>
	We face aggressive competition in any country that we operate in, but this is good since it not only helps the category to grow, but also provides consumers with a choice of high quality beverages. &nbsp;</p>
<p>
	Providing consumers with choice and value continues to be the cornerstone of our business strategy.We are focused on offering a range of products in different packs at varying price points, which is in keeping with our OBPPC (occasion, brand, price, pack, and channel) architecture. To ensure this, we are investing in our distribution, innovation and marketing investments to continue to drive recruitment for the beverage category. Further improvement in the company’s route-to-market and organizational capabilities are also areas we need to focus on. We have solid plans for Nepal this year and if we can do the right things every day, business growth is a given.</p>
<p>
	<strong style="font-size: 12px;">Coca-Cola in Nepal does not have a wide range of products that the company’s consumers enjoy elsewhere. What are you doing in this regard? Is any products line expansion in the offing in Nepal?</strong></p>
<p>
	The Coca-Cola Company is one of the largest beverages companies in the world today. We are available in more than 200 countries across the world and have more than 3500 product offerings, including more than 800 low and no calorie products, for our consumers to choose from.</p>
<p>
	Our efforts in Nepal need to be directed at being the beverage of choice all day, every day. We need to continue to do the right things each day and at all times.We want to provide our consumers across Nepal with a wide variety of products. We currently offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes across channels. We are focused on leveraging the growth opportunity that a market like Nepal provides and we are constantly researching and evaluating need states to grow our business and expand our portfolio of products.</p>
<p>
	We have been researching and innovating and have a number of plans for Nepal this year in terms of our beverage choices and packaging varieties. You will have to watch out for those in the coming months!</p>
<p>
	<strong>What is the contribution of Coca-Cola’s pure juice and juice products to its total annual revenue collection from Nepal?&nbsp;</strong></p>
<p>
	We currently offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes including in RGB 250ml, Cans 330 ml, PET 500ml, 1.5 Liters and 2.25 Liters. Our current portfolio does not include juices and juice products. As I said before, we are focusing on our distribution, route-to-market and organizational capabilities to drive recruitment for the beverage category, grow our business and expand our portfolio of products, in line with consumer choice and preference.</p>
<p>
	<strong>Coca-Cola’s fruit juice and juice products like the Minute-Maid and Simply Orange apparently do not have any significant market share in the Nepali market. What are the plans to promote these juice products of the company in Nepal?</strong></p>
<p>
	As I mentioned earlier, we currently do not manufacture any juice in Nepal.We offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes. Packaged beverage consumption is on the rise in Nepal and we are constantly evaluating opportunities to provide our consumers with a variety of still and sparkling beverages.We need to continue to do the right things each day and at all times, to further grow the packaged ready to drink beverage business in the country. We will of course continue to innovate and evolve our portfolio of products to cater to consumers’ tastes in the Nepalese market.</p>
<p>
	<strong>There is one controversy in Nepal. People say that the Coke they get to drink here in Nepal or this part of the world is not the same as what the people in the US or Europe get to drink. Is the perception right? If there is perceptive difference, why so and do you find reasons enough to alter this perception? How?</strong></p>
<p>
	Our beverages across the world provide consumers with the same great taste and quality. We strive toprovide the same high quality, safe and tasty products in all 200+ countries in which we operate. Our quality testing parameters and taste standards apply to all our manufacturing facilities worldwide. We aim to provide our consumers the same refreshing and flavourful beverages across the world.</p>
<p>
	<strong>Coke is no doubt the most popular carbonated drinks in Nepal as well as in the South Asian region. But perhaps the same is not true for Coke’s juices. How far is Coca-Cola from realizing the optimum potential of its juice business in the South Asianregion?&nbsp;</strong></p>
<p>
	Nepal’s beverage industry is growing. Consumers now have a lot of choice in terms of choosing what type of beverage they want, at what pack and what occasion.</p>
<p>
	That being said, the industry still has a lot of potential to grow. This is a country which has a relatively low per capita consumption levels for packaged beverages and we see steady and robust growth in both sparkling and still beverage categories in the future. The per capita consumption of our products is only 9.2. Contrast this to a global average of 92, 38 in China and 728 in Mexico. In Nepal our portfolio includes Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda. In India we have products like Thums Up and Limca and the Minute Maid Brand of juices.&nbsp;</p>
<p>
	Minute Maid Pulpy Orange is the number one orange juice drink and Maaza, our mango juice drink has been the leader in the mango juice category for years now. In Sri Lanka as well, we have our Minute Maid range of juices, including Orange, Mango, Apple and Mixed Fruit flavours which are doing exceptionally well in that market. We are currently the market leaders in Sri Lanka. So we are seeing a rise in the consumption of juice and juice drinks in all our markets in this region. Our outlook towards juices and juice based beverages in this region is very positive. With disposable incomes rising, consumers are focusing on hygiene and quality of packaged beverages which will lead to growth in consumption of our juice drinks as well.</p>
<p>
	<strong>The company’s other beverages such asLimca, ThumsUp, Maaza etc.are quite popular in India but not that much in Nepal. Is the company going to adopt any new marketing strategy in order to promote these brands in Nepal?</strong></p>
<p>
	Our efforts in Nepal need to be directed at being the beverage of choice all day, every day.We want to provide our consumers across Nepal with a wide variety of products and we have been investing behind our brands and brand positioning to drive recruitment for the sparkling beverage category. We currently offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes. We are focused on leveraging the growth opportunity that a market like Nepal provides. We have some solid marketing plans for Nepal this year and we will continue to innovate and evolve our portfolio of products to cater to consumers’ taste preferences in Nepal.</p>
<p>
	<strong>Is the company planning to promote its juice brands in a major way globally as it seems the consumers, of not only Coke but also other carbonated drinks as well, seem to gradually believe that soda is not very god for human health and hence are shifting to juices which are healthier alternatives? &nbsp; &nbsp;&nbsp;</strong></p>
<p>
	All over the world, consumers are telling us they care about their well-being, and we care too. &nbsp;We recognize the health of our business is interwoven with the well-being of our consumers, our employees and the communities in which we operate. &nbsp;That is why we offer consumers a wide range of choices in products, sizes and with and without calories. Bringing real choice to consumers everywhere, and educating them on the role their choices play in achieving sensible, balanced diets and active, healthy lifestyles, is part of our commitment to responsible marketing and consumer education around our products.</p>
<p>
	As I said before, we have more than 3500 product offerings, which include more than 800 low and no calorie products, for our consumers to choose from. We have demonstrated that both the Sparkling and Still segments have tremendous upside. We want to be a total beverage company and keeping this in mind have launched several products in the recent past to ensure we are able to cater to the varying needs of the consumer. Juices and juice drinks play a key role in our portfolio and have been showing robust growth over the past few years. All our products, not just juice drinks, can be enjoyed as part of an active healthy lifestyle.</p>
<p>
	<strong><img alt="Neeraj Garg, vice president at Coca-cola India and South West Asia Business Unit" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_june2013_neeraj_garg(2).jpg" style="float:right; margin:0 0 0 10px;" />In recent years, Coke in Nepal is increasing its spend on CSR activities. What new activities are being planned?</strong></p>
<p>
	We operate in world which is constantly innovating and evolving to become more and more sustainable in the long term. Consumers across the world are conscious to companies that are investing in CSR and are seen doing something for the betterment of the community.&nbsp;</p>
<p>
	Sustainability is a crucial component of The Coca-Cola Company’s global business strategy and Vision 2020 statement. We strongly believe that in order for us to do well, we need our communities to succeed and give us the social license to operate. As our Chairman Muhtar Kent puts it- ‘Sustainable business thrives only amongst sustainable communities.’ We have developed a global framework for all our sustainability initiatives across the world and have an entire vertical dedicated to CSR and sustainability.&nbsp;</p>
<p>
	In Nepal, we have designed various programs under this global sustainability framework of ‘Me We World’, with an emphasis on Water and Sanitation, Climate Protection and promoting Healthy Active Living.</p>
<p>
	We have recently launched two of our flagship CSR initiatives the Support My School Program and the 5BY20 Parivartan Training Program in Nepal.&nbsp;</p>
<p>
	We have launched the ‘Support My School’ Campaign in partnership with UN HABITAT, ENPHO, CEN and some municipal corporations. This is grassroots level campaign that aims to create awareness and address issues in schools which lead to absenteeism or children dropping out of school. We are focusing on improving water and sanitation facilities and developing the overall infrastructure of schools across Nepal.&nbsp;</p>
<p>
	The 5BY20 Parivartan Program is a women’s retailer training program, part of our global &nbsp;initiative that aims to economically empower 5 million women across our value chain by the year 2020. Through this program we are training Nepali women retailers on business skills, such as Shop, Stock, Customer and Financial Management. We launched this initiative with 30 women retailers on 8th March- International Women’s Day and we plan to conduct more trainings across Nepal this year.</p>
<p>
	One of our associates recently went to Antarctica as part of an international team with Sir Robert Swan- a renowned polar explorer and environmentalist. Swan visited Nepal last year to support our efforts towards water and environmental protection. We hope that through this international exposure our associates can create awareness and make a difference towards climate change.&nbsp;</p>
<p>
	Coca-Cola Nepal also has partnerships with UNHABITAT and the Government of Nepal for The Partnership for Safe Water Project to reduce the risk posed by untreated water. The Project provides improved access to drinking water by promoting Household Water Treatment (HWT) options in local communities and spreading awareness on ‘Safe drinking water’ in urban centres of Nepal.</p>
<p>
	We have also partnered with the All Nepal Football Association (ANFA) for the Coca-Cola Cup, national grassroots football tournament since 2006. This initiative is a part of our global commitment to create a sporting culture in the country by promoting a healthy and active lifestyle. This tournament involves 10, 000 boys and girls from over 500 schools across 6 regions of the country.</p>
<p>
	We also organize a number of initiatives to create awareness on World Water Day and World Environment Day,as well as conduct the Everest Marathon and International Olympic Day Run.&nbsp;</p>
<p>
	<strong>How has the ongoing financial or economic crisis in Nepal affected the soft drinks market? &nbsp;And how is Coke facing it?&nbsp;</strong></p>
<p>
	Economic and political stability is important for the country and of course for businesses as well. As a business, we hope that there is ample predictability in policies and regulations. As a business entity, we expect governmentsto have a long term outlook and a world view to spur growth in any market that we operate in. We believe that Governments should work collectively with industry and policy bodies to implement effective policies that spur economic growth. The Coca-Cola strategy for solving some of the world’s most pressing issues is what we call the ‘Golden Triangle’ -- the coming together of civil society, business and government to develop collaborative partnerships and create a model for growth. We have been constantly working towards such partnerships worldwide and we are seeing a positive difference in these communities.&nbsp;</p>
<p>
	<strong>What are your views on the trends in the Nepali economy over the next one or two years, and impact for soft drinks business in general, and the Coca Cola group of drinks in particular?</strong></p>
<p>
	As I mentioned, creating stable and predictable policies and a business-friendly environment is something that all business entities look for to invest in countries in the long term. As businesses we hope that Governments will work collectively with industry and policy bodies to implement effective regulationsto spur economic growth. As I mentioned, our philosophy is driving effective collaborations and partnerships between government, business and civil society.&nbsp;</p>
<p>
	With regards to the beverage industry in Nepal, I think the packaged beverage consumption is on the rise and the non-alcoholic ready to drink (NARTD) category continues to evolve to varying consumer demands. Coca-Cola has a strong focus on innovation and we will continue to provide our consumers with beverage choices for all occasions and cater to the advancements of the Nepali beverage market.</p>',
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		'Article' => array(
			'id' => '1058',
			'article_category_id' => '46',
			'title' => 'IFC Has Been A Pioneer In Promoting And Developing Local Capital Market',
			'sub_title' => '',
			'summary' => null,
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	 </p>
<p>
	<img alt="Jingdong Hua" height="245" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_june2013_jingdong_hua_ifc(1).jpg" style="float:left; margin:0 10px 0 0;" width="200" />The World Bank Group (WBG) says Nepal is a priority country for it. &nbsp;Internaional Finance Corporation (IFC), is a member of WBG and through it the WBG is enhancing its engagement in Nepal by way of both Investment Services and Advisory Services. To facilitate private sector growth in Nepal, IFC works to promote private investment in infrastructure, tourism, financial markets, transportation, and trade finance. Through advisory services, IFC contributes to increasing access to finance for businesses, making it easier to do business, facilitating public-private dialogue for policy reforms, and promoting regional trades.&nbsp;</p>
<p>
	Recently, Jingdong Hua, Vice President, Treasury and Syndications of IFC had visited Nepal. He talked with Siromani Dhungana of New Business Age about role of IFC to strengthen Nepal’s Private sector.&nbsp;</p>
<p>
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	<strong>The main objective of your mission is to sensitise the Nepali policymakers and opinion makers on the importance of developing local capital markets as the foundation for sustainable growth. What prompted the IFC to pursue this particular objective?&nbsp;</strong></p>
<p>
	&nbsp;IFC has been a pioneer in promoting and developing local capital market. As a matter of fact, in the last 10 years, IFC has provided over $10 billion in 60 different local currencies. The reason is very simple. We help private sector entrepreneur. In case of most of our private entrepreneurs, their business generates revenue in local currencies and generates many local friends. We want entrepreneurs to focus to grow their business instead of worrying about foreign exchange facilities. At a micro level that is the motivation. And at the macro level, the motivation is the foundation for the growth of the capital market. You need a vibrantly liquid capital market support from where the private entrepreneurs can efficiently finance their operation depending on the risk of the capital.</p>
<p>
	Over the past several years, our team in Nepal has been working tirelessly in terms of supporting the power sector in the country with hydropower being the most common sector. That truly is the bottom line. We need to unlock the country to political advantage of its economic potential and some of the hydropower projects do generate local currency revenue. We have been engaging with the government for several years in terms of starting the dialogue, presenting the rationale and explaining the mechanical process. We are happy that we are getting encouraging support from the government. We are waiting for a green signal from the government about regulatory approval. We are very optimistic that the government will be supporting us.</p>
<p>
	<strong>What can the media do to help in this matter?&nbsp;</strong></p>
<p>
	Media plays an important role to sensitise the citizen on the experience of other emerging countries who have benefitted from open and vibrant capital market. It can also highlight the IFC project about how critically they are helping to resolve the infrastructural performance so as to unlock economic opportunity in different sectors.</p>
<p>
	<strong>IFC has been planning to issue local currency bond in Nepal. Could you please highlight the logic behind this?&nbsp;</strong></p>
<p>
	Our projects require local currency financing. To issue these bonds in the Nepali market, there needs to be a regulatory approval from the government for which there is a process. And we are engaging with the government. We are hopeful that in the near future, we will be able to obtain that approval.</p>
<p>
	<strong>What impediments do you see in successful implementation of this idea?&nbsp;</strong></p>
<p>
	We are very optimistic that it will be very successful. As a matter of fact, we have opened three other new markets elsewhere in the world during the last four months. For instance, we have issued local currency bond in The Dominican Republic and in Nigeria. In both cases, those were the first ever foreign bonds issued in local currency in the two countries. While in Russia, we issued the biggest bond by foreign issuer with a very innovative feature of linking coupon rate with inflation target index. We have a lot of experience working with the local pension fund, insurance company, local bank, and local investment community to showcase the benefit from different perspectives.&nbsp;</p>
<p>
	<strong>What do you have to say to the Nepali private sector that is focusing more on the problems of getting foreign capital than on local currency funds?&nbsp;</strong></p>
<p>
	For the market to be recognised by the foreign investors to attract more foreign direct investment, there has to be an environment that enables the private sector to survive. &nbsp;Stable regulatory framework too is required to support foreign investment.Also needed are some critical early success example which demonstrate that the market is viable and ready. There are many things to be developed in terms of capital market. As it needs regulatory framework, market infrastructure and capital market player, the government should regularly facilitate and support the process. It is a long term process and IFC is committed to help Nepal in every way.</p>
<p>
	<strong>The idea of utilising the local capital market for raising capital to invest in infrastructure projects is being floated for quite some time in Nepal but nothing concrete could be achieved so far. What was lacking in those ideas generated locally?&nbsp;</strong></p>
<p>
	IFC issues local currency denominated bonds. It is not just the domestic investor who can buy; foreign investor can also buy if they feel comfortable investing in Nepali rupees. The local currency bond can also attract foreign investors. It has to ensure safety in terms of settlement and investment in the market so that other players can invest on the basis of that.</p>
<p>
	<strong>How do you see the progress of IFC’s investments in Nepal?</strong></p>
<p>
	I have visited Buddha Air and had a conversation with the owner directly and how critical our financing is. So it would be beneficial if we not only provide critical financing but also the advisory support on how to improve their management and safety.</p>',
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			'title' => 'Nepal Is Land-linked,  We Should Take Advantage Of This',
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			'content' => '<p>
	<img alt="Narayan Kazi Shrestha" height="472" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_May2013_rajesh_kazi(1).jpg" width="580" /></p>
<p>
	<strong>Rajesh Kazi Shrestha&nbsp;</strong><strong>Chairman&nbsp;</strong><strong>Nepal China Chamber of Commerce &amp; Industry (NCCCI)</strong></p>
<p>
	Rajesh Kazi Shrestha is Chairman of Nepal China Chamber of Commerce &amp; Industry (NCCCI) and International Chamber of Commerce, Nepal (ICC, Nepal). In the past, he has been in charge of various organizations, such as the Nepal Chamber of Commerce. He is also the former Assistant Minister at Ministry of Industry, Commerce and Supplies. He spoke with Siromani Dhungana of New Business Age about Nepal-China Chamber of Commerce and Industry and its involvement in promoting country’s business environment.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong style="font-size: 12px;">How do you see the current role of Nepal’s private sector?</strong></p>
<p>
	Private sector should be taken as the engine of the national economy. Even though the entire country has been facing power scarcity and political instability, Nepal’s private sector is optimistic about leading the country to economic prosperity. In fact, private sector has been playing a crucial role for the overall economic development of the country.&nbsp;</p>
<p>
	<strong>What is Nepal-China Chamber of Commerce and Industry doing to address the problem of growing deficit in Nepal’s trade with China? &nbsp;</strong></p>
<p>
	Actually, Nepal-China Chamber of Commerce and Industry is established to promote export of Nepali products to China and Chinese products to Nepal. In order to address growing trade deficit figure, we are doing our best to promote more Nepali products in China. The organization has been participating in many promotional activities such as trade fairs where we can promote Nepali products.&nbsp;</p>
<p>
	Due to our promotional activities over the past few years, we can now say that many handicraft, thangka painting and wooden crafts entrepreneurs in many districts, including Lalitpur and Bhaktapur, are benefitted. However, those handicraft entrepreneurs from Lalitpur and Bhaktapur cannot survive if there are no Chinese buyers of their products. There are more examples of other sectors like this that show how Chinese market is becoming more important for us. It is also important to mention here that Nepal and China have signed zero tariff agreement, which ensures export of more than 7,787 items at zero-tariff into chinese market. The provision helps us to expand our trade with China. Nepal should also put its effort on trade promotion between the two countries. The construction of a well-facilitated dry port and a Special Economic Zone would help us to boost trade with China and to attract more Chinese investment. Now, we are more focused on how to get more facilities for our exporters, so we have requested support from the Finance Minister in order to increase trade between both countries.&nbsp;</p>
<p>
	<strong>Nepali traders have failed to take advantage of zero tariff facility provided by China, why?</strong></p>
<p>
	I do not think so. In fact, there are some norms set by the Chinese government which Nepali side has been failing to comply with. Especially, there are some problems such as the issuance of Certificate of Origin.&nbsp;</p>
<p>
	Non tariff barriers such as strict quarantine system, certification standards and rules of origin have created many challenges to the process of trade between the two countries. It’s obvious that there is a lack of effective coordination among Nepali traders and government agencies. Also, there are some other complications on both sides.&nbsp;</p>
<p>
	We are working to sort out current problems and we are optimistic about the settling of these issues very soon. We want to see a concrete agreement to ease quarantine related complications and other non-tariff barriers.</p>
<p>
	<strong>China’s Exim Bank is likely to set up its branch in Nepal. Considerig that Nepal didn’t get the expected benefits from the other foreign banks operating in Nepal, what should Nepal do to get benefits from the presence of Chinese Bank? &nbsp;&nbsp;</strong></p>
<p>
	We have been talking about the presence of Chinese Bank in Nepal for the last three or four years. It is not only for trading but also for investment. Chinese side is very positive. The current Chinese Ambassador is optimistic about the fact that Chinese Bank will start operating in Nepal during his tenure. Not only Exim Bank but also some other banks are negotiating about starting to offer their services in Nepal. If Exim Bank comes, it will have a positive impact on investment. Chinese banks have rational interest rate and also they have capacity to invest. Their presence will definitely help to attract Chinese investors to Nepal.</p>
<p>
	<strong>Chinese investment in Nepal is increasing pretty fast in the recent years. Do you think that Chinese investment is actually helping Nepal? &nbsp;(it is also said that the interest of the Chinese in Nepal is more diplomatic than economic)</strong></p>
<p>
	Yes, the Chinese investment in Nepal is increasing at a rapid pace. Some mega projects such as Pokhara Airport, Kathmandu Ring Road or Dry Port of Sindhupalchowk will be started soon. Similarly, some Chinese investors are involved in mining and water resources projects too. Very soon, if the political situation improves, more Chinese investors will be interested in investing in Nepal. &nbsp;</p>
<p>
	Chinese investment may help the overall national development. As we represent the private sector, our main interest is to strengthen the trade and the economic relation between the two countries. We always lobby for the economic prosperity and investment with the Government of China and our other counterparts. Together, these two countries can achieve good economic prosperity.</p>
<p>
	<strong>What are the possible investment areas for China in Nepal? Would it be resource-seeking or market-seeking? Obviously, it not technology seeking, capital seeking or manpower seeking as China is better than Nepal in all these.</strong></p>
<p>
	Obviously, the first is hydropower sector. Second is tourism, third is mines and minerals and fourth is the agro sector. Nepal has enough resources and lots of business opportunities; however, it is a fact that the current investment size is extremely small. Chinese businessmen have been investing in small-scale sector such as hotels, restaurants and other small trades but we want Chinese investors to start some mega projects. The problem is that the unstable government and policies and the problem of power outage have created much hurdles to attract such investment. Despite the hurdles, there are still many chances to expedite Nepal-China business relationship. Around two or three Chinese delegations have been visiting Nepal every month to explore business opportunities. Chinese investors are very much interested but they often ask about the rules, regulations and opportunities. If the political scenario becomes stable and labour problem is solved, I hope many of them will come to Nepal.</p>
<p>
	<strong>Chinese goods have the reputation of being cheap and inferior in quality. In this context, what prospects do you see for such products in Nepal?&nbsp;</strong></p>
<p>
	It is not like that. Chinese manufactures produce goods according to the necessity of consumers. It depends on the type of goods consumers want. When you are in the USA, European countries or in most of Asian countries and seek high quality products, you will find Chinese ones. We get surprised when we see what we get here and what products are available there. It depends on the quality required and the purchasing power of the buyer. It depends on what type of goods Nepali traders want to import and that’s why I think it solely depends on the buyers’ choice and affordability.</p>
<p>
	<strong>How successful do you rate your own business link with China considering the general perception of Chinese goods being cheap and inferior?&nbsp;</strong></p>
<p>
	We don’t evaluate the Chinese products supplied as per our demands and orders. The same goods can have high or low quality based on how much one can afford. It depends on our buying capacity. It’s us who are responsible for the low quality of the products because we often order low quality goods for Nepali market. &nbsp;</p>
<p>
	It is often cited that Nepali industries are suffering from the cheap imports from China. What’s your opinion?&nbsp;</p>
<p>
	Both Nepal and China are members of World Trade Organization (WTO). According to its principle, we can’t stop importing from its member countries. If we are able to manage our market, we don’t have to worry about cheap imports from China. On the other side, cheap goods imported from China have ensured mass access to the sophisticated goods and also to the daily consumable goods.</p>
<p>
	<strong>What are the critical trade barriers between Nepal and China?</strong></p>
<p>
	There are hurdles and barriers in all sectors but it is still an open and growing market. Some remedies would be to have better policies from the &nbsp;government, a friendly investment environment, labour reforms, security… etc. There are certain issues which should be resolved. We are solving the barriers step by step, as they appear in front of us.</p>
<p>
	<strong>How are the exporters and importers overcoming the language barrier in trade between China and Nepal? How is your chamber helping in this? (it is said that, due to language problems, Nepali traders in China are always in disadvantage in their dispute with Chinese importers or exporters)</strong></p>
<p>
	Yes, it is a little difficult but now most of the Chinese exporters understand English. Nowadays, there are English speaking employees in almost every office and different chambers. And some businessmen who are already doing business can understand Chinese also. If there is any dispute we step in to solve it, we are also giving information about the queries and problems of the business person there. The exporters were very much interested in trade fair there, we are participating there regularly and we exchange our delegation also from different chamber from different aspects.</p>
<p>
	<strong>What points do you think need to be revised in Nepal-China trade-related treaties?</strong></p>
<p>
	Both governments should have frequent meetings to understand and solve the obstacles, if there are. There are some area where we are facing &nbsp;problems, such as &nbsp;quarantine or infrastructures but these issues should be solved very soon. In China, they are not accepting Nepali quarantine certificates. Nepal has three issuing authorities for different sectors and product lines, which makes the Chinese confused as they think it should be done by a single authority. Because of that, we are facing difficulties to export our food items.</p>
<p>
	<strong>The Nepali government has planned to develop Rasuwa as another hub for Nepal-China trade. What is your assessment of the progress in this?&nbsp;</strong></p>
<p>
	The road is already there and, after Sigatse, the railway will come to Rasuwa. We are trying to join railway side from China and India so that Nepal will be linked with both of these countries. We can develop environment for tourism and business also. The government of China is committed on this and we are very optimistic about completing and operating it soon.&nbsp;</p>
<p>
	<strong>It is often argued that Nepal should be developed as the transit point for China-India trade, but no concrete development seems to be taking place on this direction. What are the impediments?&nbsp;</strong></p>
<p>
	We are not a land-locked country but we are a land-linked country with two economic giants at north and south. We should take advantage of this unique geographical position. The main problem of this situation is that everyone has his or her own agenda and we have no unified and strong agenda and vision for concrete developments. A stable government, a strong linkage of these three countries and an open transit road are our most primary necessities.&nbsp;</p>',
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			'description' => 'Rajesh Kazi Shrestha is Chairman of Nepal China Chamber of Commerce & Industry (NCCCI) and International Chamber of Commerce, Nepal (ICC, Nepal). In the past, he has been in charge of various organizations, such as the Nepal Chamber of Commerce. He is also the former Assistant Minister at Ministry of Industry, Commerce and Supplies.',
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			'article_category_id' => '46',
			'title' => 'Interview : Michael Maedel',
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			'content' => '<p>
	<img alt="Michael Maedel" height="931" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_michael_maedel_april2013(1).jpg" style="margin: 0px 0px 0px 10px; float: right; text-align: justify;" width="300" /></p>
<p style="text-align: justify;">
	Michael Maedel joined JWT in 1990 as Chairman and CEO of JWT Germany, based in Frankfurt. In 1993 he also took on the role of Area Director Central and Eastern Europe before becoming President of Europe, Middle East and Africa in 1997. Michael is a member of the Board of the J. Walter Thompson Company, New York and a member of the Office of the Chief Executive. Before joining JWT, Michael worked for Young &amp; Rubicam for some 13 years.&nbsp;</p>
<p style="text-align: justify;">
	He joined Y&amp;R Frankfurt as a trainee and worked his way to Account Director before moving to Vienna, his birthplace, in 1978 as Chairman. In 1983 he returned to Y&amp;R Frankfurt as Executive Director and General Manager. In 1985 Michael was hired by Ted Bates Werbagentur, Frankfurt as Chairman where he remained before moving to JWT.</p>
<p style="text-align: justify;">
	Michael has a degree in economics from the University of Vienna. He is married with three children. He covers diverse contemporary themes of advertising in an hour-long tet-e-tet with Prof Ujjwal K Chowdhury of New Business Age.</p>
<p style="text-align: justify;">
	<strong>The Suave Charmer</strong></p>
<p style="text-align: justify;">
	You wait to meet the Asia-Pacific Chairman of JWT, global advertising major, with bated breath, and in comes an unassuming tall 6+ feet lanky European gentleman, Michael Maedel, for whom Singapore is the new home now. You expect attitude, jargons, numbers, and rushed talks. And soon you find none.</p>
<p style="text-align: justify;">
	“I feel an oldie in JWT, almost been there for all the 149 years of its history, and have seen the massive developments and changes that have happened therein,” he kicks off the hour-long chat with a charming half-smile.</p>
<p style="text-align: justify;">
	<strong>Exciting Times</strong></p>
<p style="text-align: justify;">
	Never more significant have been the changing times ever before than this moment. He is bang-on, with economic recession sweeping across Europe, budget-deficit tackling in USA becoming tougher by the day, growing polarization of the world economic order, while good spots of growth evolving in larger parts of Asia, and some parts of Africa and Latin America.&nbsp;</p>
<p style="text-align: justify;">
	He, however, sees light at the end of the tunnel with a soft landing in China, India getting their act together post the next general elections, Indonesia showing economic promise, and Myanmar opening up to greater possibilities. In all of these and a few other Asian economies, the rising middle class is leading rapid changes within the domestic economies and making the world ever more inter-connected. But the times are exciting for other reasons too.</p>
<p style="text-align: justify;">
	“The defining point of today is that the consumers interact among themselves through multiple channels seamlessly, and that is creating new brand stories. Gone are the days of brand-consumer dialogues. Consumers’ interactions among themselves, and brand’s dialogues simultaneously with consumers and the community continuously, are determining the new basis of the New Media era of digital brand communication,” explains Michael.</p>
<p style="text-align: justify;">
	In this scenario, natural outcome is real-time communication today, “akin to a news-room situation for the agency of the future, and advertising agencies will increasingly go live to stay relevant”. A fabulous challenge this is for brand owners “who have lost the hitherto considered exclusive rights of theirs over their brands!” The feelings of the community and aspirations of the consumers, coupled with their interactions, are determining the contours of the brand in today’s era.</p>
<p style="text-align: justify;">
	<strong>150 years of JWT</strong></p>
<p style="text-align: justify;">
	&nbsp;“You can only be in the business so long when you care about your clients, when you stay relevant, and even when you evolve through failures, learning new insights.”</p>
<p style="text-align: justify;">
	As JWT turns 150 years in 2014, Michael takes pride in surviving healthily in a fast-paced industry, being the first agency to have created a television ad, to have used research in advertising, first one also to use testimonials in advertising, and ever remaining “a group of permanently dissatisfied individuals.”</p>
<p style="text-align: justify;">
	And he surely intends to see a series of activities to express the JWT values and stories of 150 years, come January 2014.</p>
<p style="text-align: justify;">
	He recounts the cases of engagement ring campaign in US, Europe and China for De Beers diamond and the balloon jumping from space campaign which was planned in a day for Kit Kat as good examples of meaningful communication in line with brand positioning, long term branding, seamless transition to social media, not distracting but enhancing the brand values.</p>
<p style="text-align: justify;">
	<strong>Thompson Nepal</strong></p>
<p style="text-align: justify;">
	Michael has a thumps-up for his Team Nepal, led for long and efficiently by Joydeb Chakravorty. “Being in the top of the game for a long period, with entrepreneurial spirit, spotting opportunities and jump upon them, delivering value even under extreme constraints, the JWT team in Nepal is impressive, on a sound footing and delivering value and volumes to an impressive array of campaigns for clients like Unilever, Pepsi, Nokia”.</p>
<p style="text-align: justify;">
	And his advice to them? Take a long-term view, not just managing tomorrow for your clients, not being limited to fads and flavours of the day, managing uncertainties in the market better through consistency and honesty in cultivating the brand personality of each client in this challenging market.</p>
<p style="text-align: justify;">
	He used this latest March 2013 visit to look at some of the good work done in Nepal, like the Pepsi Drink &amp; Drive Campaign, in which the idea was based on local behavior and insight, turning it on the head appealing to people’s consciousness. He appreciated the Unilever work done in Nepal too.&nbsp;</p>
<p style="text-align: justify;">
	“With technology, a brilliant app can come from any country today, no borders for a good idea. Also, for a local campaign, the two defining criteria are: first, how does it compare with your local competitors. Our work is the best in each of its categories. Second, creativity is always a means to an end and that is better bottom-line for the client post the campaign. Ask Pepsi in Nepal and you will get the answer.</p>
<p style="text-align: justify;">
	He hopes that better audience measurement techniques will evolve in the Nepali market which will justify higher communication investments in future.</p>
<p style="text-align: justify;">
	<strong>Biggest Advertising Challenge</strong></p>
<p style="text-align: justify;">
	The single biggest challenge for the advertising industry world-over, according to Michael, is to evolve the current compensation model or system. Today compensation is based on cost-input model, where remuneration is based on inputs used in the process and value of media used with the advertising outcome. However, right rewarding and compensation should now be based on the value-output model, according to him, which looks at the outcome in terms of value to the client in qualitative and quantitative terms.</p>
<p style="text-align: justify;">
	<strong>Relevant Consumer Insight</strong></p>
<p style="text-align: justify;">
	“Days to bulldoze your success with huge budgets are gone. Then your target audiences could not escape the campaign. Today you neither have such budgets, not the plethora of media channels of all hues allows you that luxury,” he notes. Again, bang-on!&nbsp;</p>
<p style="text-align: justify;">
	These are times of relevant consumer insight that goes beyond conventional research. There is the availability of massive data, but the moot question is how do we make use of this for relevant insight, and then how do we translate this insight into an engaging idea, which is then amplified through right media selection. “And there is no short cut in this process,” he concludes.</p>
<p style="text-align: justify;">
	While he finds ambient and ambush advertising as good ideas at times, it is only a great, topical and relevant idea that can cut through the clutter. Even in spite of a huge proliferation of channels of communication, it is all the more important that your communication is rooted in a strong coherent and relevant idea: what does the brand essentially stand for.</p>
<p style="text-align: justify;">
	<strong>Digital Communication</strong></p>
<p style="text-align: justify;">
	Though it is beyond debate today that the entire communication business is becoming eventually digital, the client side investment in digital is still low and there is a wide discrepancy between the price of the digital media and the price to the agency.&nbsp;</p>
<p style="text-align: justify;">
	“Garage-run digital shops will either grow is size, or disappear, or shall be acquired,” Michael sounds prophetic looking at the scenario with digital agencies today.</p>
<p style="text-align: justify;">
	And he is right that digital was once considered an experimental medium and not seen as an integral element in building and sustaining brands. Not any more. Today, digital has gone into the heart of branding.</p>
<p style="text-align: justify;">
	<strong>Evolving Talent</strong></p>
<p style="text-align: justify;">
	And these changing times surely need new talent suitable for the digital age and real-time communication.&nbsp;</p>
<p style="text-align: justify;">
	Noting that JWT historically has been a university of training and ideas of sorts, he hopes to contribute to train and retain talent in Nepal, bring back Nepali talent from elsewhere with exciting new perspectives, and is open to partner nurturing talent with educational and media initiatives, and with support from clients.</p>
<p style="text-align: justify;">
	<strong>Brand Nepal</strong></p>
<p style="text-align: justify;">
	And, before he bids adieu, the idea mooted by Michael Maedel, Chairman, JWT Asia Pacific, is that of Brand Nepal, essence of Nepal beyond cliché images of the Himalayas and rafting-trekking-paragliding.</p>
<p style="text-align: justify;">
	“Conceptualize the brand from economic perspective, from the point of view of attracting foreign direct investment and accelerate business activities to unleash the full potential of the nation. Build the brand through responsible communication with ground-swell of support of stake-holders. Promote the Brand internally and externally through various means.”&nbsp;</p>
<p style="text-align: justify;">
	This is the Brand Doctor’s prescription for which he is ready to participate in brain-storming session with clients, media and government representatives whenever such an initiative is taken up by non-governmental economic forces.</p>',
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			'description' => '‘From dialogues to tri-logues and real-time communications, brand communication is up for unprecedented changes today, world-over’',
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			'title' => 'Investment Is Not A Big Thing These Days',
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			'content' => '<p style="text-align: justify;">
	<img align="left" alt="Binod Chaudhary" height="288" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_binod_feb2013.jpg" style="margin: 0 10px 10px 0;" width="350" />Binod Chaudhary is the President of Chaudhary Group (CG), one of the leading business houses of Nepal. He is also the Chairman Emeritus of Confederation of Nepalese Industries (CNI). A prominent industrialist, Chaudhary has recently published an autobiography, ‘Atmakatha’. This book tells the successful story of how Wai Wai noodles, initially imported from Thailand, which later took such a big market share. “Currently, 1 billion packets of Wai Wai noodles are produced annually which accounts for 1% of the total noodle production of the world”, claims Chaudhary. In an interview with New Business Age, Chaudhary talks about the CG’s successful ventures and the group’s plans among other issues.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Excerpts:</strong></p>
<p>
	<strong style="text-align: justify;">You seem to be saying and doing whatever the Industrialist Dhirubhai Ambani of India used to say and do. Are you influenced by him?</strong></p>
<p style="text-align: justify;">
	I always say that I am influenced by two people in India - J.R.D. Tata and Dhirubhai Ambani. The status given to the Tata Group by J.R.D. Tata is unmatched by any other business house in the world. But the industrial revolution in India was brought by Dhirubhai Ambani. Hence, I am his big fan.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You happen to praise the former leader of South Korea, Park Chung-Hee as well. Do you believe that the government should praise the industrialists?</strong></p>
<p style="text-align: justify;">
	Park Chung-Hee has given birth to many multi-national companies during his regime. That is why the multinational companies of South Korea are successful globally. I am a 100% supporter of that. I truly believe that in a country like Nepal, private companies cannot develop without support from the government. In countries like Japan and Korea, the government has pushed the private companies to grow. I believe that the same should apply in our case as well.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Why did you change the decade long established Chaudhary Group into CG?</strong></p>
<p style="text-align: justify;">
	This is just a branding. The word CG is easy to remember for people but Chaudhary Group is not. You have to twist your tongue a little bit. Actually, the brand “Chaudhary’s” could not be well established. There used to be a logo of Chaudhary’s in our every product. But, that could never be the talk of the town. Today, no one says Chaudhary’s. Everyone likes to say CG.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have set up several Noodle producing plants throughout India. Similarly, you have invested in luxury resorts in cooperation with Taj Hotel. How much have you invested like this within Nepal and abroad?</strong></p>
<p style="text-align: justify;">
	We also do not have an exact account of that. We have many companies that are being run by different individuals. Again the criterion to judge a company has become different these days. Today, a company is judged on basis of its brand, marketability etc. According to that, the co-investors invest. Today, the Tata family owns only 3% of the Tata Group. But, they are buying several companies of millions of dollars in the name of Tata industries and are trading worldwide. That’s why investment is not a big thing these days. I constantly repeat that a multinational company cannot be setup by just collecting money from Nepal. There is not enough capital to do that. Furthermore, there is a possibility of development within and without. If you have the capability of industrialization, capital will follow you. Today, we are producing Wai Wai in more than 3 countries. In those countries, there are several investors who are interested to invest in Wai Wai. We are working in hotels in different nations, in our own brand and in others’ brands. We have an option of choosing whom to mingle with. We have already earned that trust of the investors in the international market. That is why investment value and volume by an individual company or industrialist is not the key factor here.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The main question is when we can say with certainty that Binod Chaudhary is an internationally recognized billionaire.</strong></p>
<p style="text-align: justify;">
	Binod Chaudhary is only a face. If someday CG group comes to be recognized as Nepal’s billionaire company, it is not only my pride but yours too. And I pray that the day comes soon.&nbsp;</p>
<p style="text-align: justify;">
	<strong>For some time past, you have been concentrating more on imports, rather than on two or four flagship industries like Wai Wai.&nbsp;</strong></p>
<p style="text-align: justify;">
	During the last twenty years, the nation has faced insurgency. Today also it exists in some form or the other. The only company that developed both horizontally and vertically during this period is CG. If CG owned only 3 companies back then, today it owns 14. If 500 people worked back then, today 3000 people do. &nbsp;If CG vertically owned 6 business houses back then, today the number is 10. The cement company has also been added to them. In fact, we are building the nation’s largest cement company. We are also trying to set up hydro power plants with over 240 MW capacity each. We have entered the ayurveda sector. &nbsp;In terms of education, we have established 5 institutions where over 4000 students are studying. We are going to invest Rs. 1 billion in education. Then an additional 10000 students will have the opportunity to study annually. Service industry is also being looked at closely by us. If you look at this sector by turning the pages of Aarthik Abhiyan National Daily, you can find the answer to your question over there itself.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have recently left the chairmanship of CNI. Why was CNI unable to do anything much impactful during those years of your leadership?</strong></p>
<p style="text-align: justify;">
	I am doing well in CNI. Recently, a new leadership has arrived. We are also visiting districts. However, we are not in favour of opening branches in all the 75 districts. CNI mainly represents the industrial sector of the nation. Where there are no industries, it is not necessary to open the branches but we are frequently visiting the districts where there are industries.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Some time ago, you said that Nepal Airlines Corporation should be operated under PPP. Are you interested in investing in the corporation as well?</strong></p>
<p style="text-align: justify;">
	I have lost that interest now. I do not know if any private investor can show a positive route to Nepal Airlines Corporation. It is difficult to bring a change in such a corrupt system.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Nepalis cannot legally invest in the foreign markets. That would be great if possible. You got involved in a political party and also reached the constituent assembly. But, you could not do anything substantial in this regard.</strong></p>
<p style="text-align: justify;">
	Everybody agrees in this issue. Nepal Rastra Bank has been introducing several fiscal policies for that from time to time. But no proposal has yet been passed in the assembly. That is why it is not a law yet. Nepalis have opened restaurants and hotels in US and Japan. The important thing is that Nepalis are investing. When Nepalis could not invest and only the non residents could, Binod Chaudhary had to make Barun and Rahul Chaudhary, NRNs. Everyone should appreciate it. Please do not consider it illegal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You are such a successful industrialist. But, CG has not been able to make returns to the society accordingly. Except for some minor contributions, no significant contributions in CSR (Corporate Social Responsibility) can be seen. Why?</strong></p>
<p style="text-align: justify;">
	We believe that we have a major involvement in the social sector. Our brand line is ‘Touching life everyday’, which means we do touch lives every day. CSR also has different ways. Donation is also one of them. The other is to help the society during desperate times. You can consider Norvic hospital and educational institutes for this case. Without these initiatives people would have been deprived of quality education and health. It’s a part of CG to cooperate with the society. Some receive concessions and some receive scholarships. You take from those who can give and you give to those who can’t.&nbsp;</p>
<p style="text-align: justify;">
	Recently, we have agreed to set up a social business fund in cooperation with Noble prize winner Muhammad Yunus’s Muhammad Yunus Center. That will help the Nepalis who want to set up a business but do not have enough resources to do exactly that. We are always committed to shake hands with the society and move forward.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are your suggestions to the Nepalis who want to start up new businesses in Nepal?</strong></p>
<p style="text-align: justify;">
	New businesses will have to face a lot of difficulties. I strongly suggest not losing hope. It always takes time to see the results. And, I am very hopeful for everyone.&nbsp;</p>',
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			'title' => '“Private security business needs to be governed by separate law”',
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			'summary' => 'G4S Security Services Nepal is the largest private security solutions firm in Nepal with a presence spanning over two decades.',
			'content' => '<p style="text-align:justify"><span style="font-size:18px">G4S Security Services Nepal is the largest private security solutions firm in Nepal with a presence spanning over two decades. The United Kingdom based multinational security services provider started operating in Nepal in 1996 through its subsidiary company. Established in 1901, G4S operates in 124 countries of the world. Since its inception, G4S Nepal has been providing various types of security services to its clients including diplomatic missions, government institutions, BFIs, hospitals, five-star hotels, commercial complexes, educational institutions, private residences, telecom service providers, hydropower plants and industrial facilities. The company also provides security for personal protection of VVIPs and premises protection during special events. In an interview with New Business Age, Mahesh Shrestha, Managing Director of G4S Security Services Nepal talks about the current security business situation, challenges and opportunities in the sector, future plans of the company, among other issues. Excerpts:</span></p>

<p style="text-align:justify"><span style="font-size:16px"><strong>The presence of G4S in the country has spanned over two decades. What has the journey been like for your company in terms of growth and services?</strong></span><br />
It has been a wonderful experience for us. We faced different challenges and came across many opportunities over the years. Being a MNC, G4S is committed to the quality and effectiveness of its security services.&nbsp;</p>

<p style="text-align:justify">We have an annual turnover of Rs 850 million and our target is to achieve the Rs 900 million mark this year. G4S has held the position of the largest security service company in Nepal in the last 20 years. We command 85 percent of the market share in the high-end, around 40 percent in the mid-end and around 25 percent in the low-end segments.&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br />
&nbsp; &nbsp;<br />
<span style="font-size:16px"><strong>Being the only security services solutions MNC in Nepal, how do you take your opportunities?</strong></span><br />
G4S is an opportunity itself for the people seeking international standards in security services.&nbsp; We assure complete security solutions to our clients in complying with global standards. G4S is highly committed in terms of assuring and guaranteeing quality security services along with top level customer care, management response and operational arrangements for its clients.&nbsp;</p>

<p style="text-align:justify">We have a very strong workforce comprising of 5,000 personnel which itself is an opportunity for many Nepalis from an employment perspective. We have 10 branch networks in major cities across the country. The branches are being operated in a full-fledged manner which includes providing training to new recruits. Similarly, we are also paying millions of rupees in revenue to the government.&nbsp;</p>

<p style="text-align:justify">Gorkhalis are renowned the world over for their courage, honesty and trust in security services. In this regard, it is a matter of pride for G4S to be present in Nepal.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How does G4S Security Services Nepal ensure top-end security to its clients?</strong></span><br />
We have a holistic approach in providing security services to our clients. We provide security services according to the needs of our clients. G4S Nepal has been offering integrated security solutions including manned security, cash security services, modern electronic safety systems and technology. Similarly, we have the secured support service where newly trained personnel are engaged in housekeeping works that include security of confidential documents in their first phase of duties. Meanwhile, we also provide security services for events, travel alongside transit and storage of valuable goods.&nbsp;</p>

<p style="text-align:justify">We study the possible risks and prepare ourselves for future challenges. We also assess the risk management factors to minimise future losses. While providing services, we prepare rules for specific tasks first. After agreeing with clients, we prepare standard operating plans (SOPs) for the designated services. Different types of SOPs are developed for different clients and we retrain security personnel before deploying them on their respective duties.&nbsp;&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is G4S moving ahead in terms of using new technology?</strong></span><br />
G4S believes in moving ahead adopting new technologies in order to provide versatile and efficient security services to its clients. We update ourselves with the new technology as soon as they are introduced in the market. We have created a separate department for the purpose. Modernising security systems is a global requirement and G4S is investing more in this aspect as well. Utilisation of new technologies is also important for a company like G4S to control unnecessary expenses.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>The time now is all about electronic surveillance and security solutions.&nbsp; What will be the future of manned security in this regard?&nbsp;</strong></span><br />
Electronic security solutions are efficient in many ways. For instance, use of such systems is cost effective and surveillance and monitoring works can be done with ease. However, neither manned nor electronic security systems can replace each other.&nbsp; Both types of security solutions complement each other. They have their own importance, benefits and limitations. The services that manned security provides are not fulfilled by electronic security and vice versa.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is the relationship between G4S Security Services Nepal and its parent company?</strong></span><br />
The global organisation has been helping us in a range of areas including training, capacity enhancement of security personnel and using new technology in security, among other things. We need to contact the parent company on a daily basis to submit management, finance, quality reports etc. The head office appoints the country director. We need to report on a daily, weekly and monthly basis and submit it to the global system. G4S from 124 countries around the globe keep data on it. The data we maintain on the global system can affect the share price of G4S in the London Stock Exchange. All branches are controlled by the head company. It is completely a group company.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is G4S Nepal different from other companies in employee management?</strong></span><br />
We have been providing various benefits and perks to staff and security personnel. All employees are paid salaries in a timely manner and on the same date. They are entitled for provident fund and annual grades. People who leave the company are subjected to gratuity as well. The labour law has clearly mandated employers to provide benefits to the workers including a minimum salary and employment guarantee. We have been providing all these as required by the law. We are very aware in terms of following the law and maintaining the quality of our services. It clearly demonstrates our concern regarding the international brand and image of G4S.</p>

<p style="text-align:justify">G4S is a company of confidence for all its staffers and service seekers. According to the new Labour Act, employees are entitled for 45 days of paid leave annually.&nbsp; We were providing an annual leave of 40 days to employees for many years even before the new law came into force a few months ago. Likewise, staff at G4S Nepal get festival leave of 16 days. Every staff working is entitled to insurance worth Rs 200,000.&nbsp;</p>

<p style="text-align:justify">Many staff have stayed here for many years because of the excellent work environment and benefits. Over the years, many employees who started their career in the company as security personnel have been promoted to managerial level posts.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How do you view the new Labour Act?&nbsp;&nbsp;</strong></span><br />
The new Labour Act is a positive step for the security service business. The Act has guaranteed social security and other benefits to employees from the day they join the companies. The government has clearly mentioned the facilities and services to employees this time. I think effective implementation of the law will help to spur on healthy competition in the domestic security services market. There are many compliance related issues in this sector at present and security service companies who do not maintain good quality of service are likely to come under pressure from the provisions of the Act.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How can Nepali security service providers engage in healthy competition?&nbsp;&nbsp;</strong></span><br />
Healthy competition will start and flourish when factors such as quality, ethics and professionalism become key parameters of competition among the players in the market. Unfortunately, many security companies in Nepal do not bother about these factors. If someone is engaged in unethical business practices, then how can there be fair competition? We are always guided by value-based practices in business.&nbsp;&nbsp;</p>

<p style="text-align:justify">We do not consider any other company as our competitors. Many are not even providing a minimum salary as required by the law. So we do not even compare ourselves with them.&nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>What challenges do you see in the security services business?</strong></span><br />
&nbsp;The scarce human resource is the major challenge here. Manpower is both raw and finished goods in the security business. Similarly, we don&rsquo;t have a law to govern private security businesses.&nbsp; Security service providers at present are simply guided by the Companies Act. Also, the awareness of security among the people is also relatively low.&nbsp;</p>

<p style="text-align:justify">Lack of standardisation is another issue. Neighbouring India and countries like Dubai have standardised private security businesses. The government needs to conduct a rating of the companies that are working in the sector. It can be an important step in terms of standardisation of the security business as the companies can levy service charges from the clients according to the ratings.&nbsp;</p>

<p style="text-align:justify">Similarly, government bodies in many countries provide proper training to the people who look to join the private security workforce. We don&rsquo;t have such facilities here. Many companies in Nepal deploy untrained people as guards increasing the security risks to their clients and themselves as well.&nbsp; &nbsp; &nbsp; &nbsp;</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How do you ensure that the best security personnel join the workforce of G4S?&nbsp; &nbsp;</strong></span><br />
Anyone looking to join our company as security personnel needs to possess a clean background. They are required to be physically and mentally and fit. The candidates should have a basic school education and also be capable of speaking English. We conduct written and oral tests. Those selected are sent for training which is of 80 credit hours. Only those who are able to pass the training are recruited. Similarly, we conduct refresher training courses every three months for new recruits. In the meantime, we also provide counsel and retrain the employees on a daily basis. We have set the retirement age of the security personnel at 55. G4S assures the quality of service in this way.&nbsp;</p>

<p style="text-align:justify">We follow the international standards set by the global company while providing services and recruiting people. From training to supervision and service areas, we follow rules set by our parent organisation.</p>

<p style="text-align:justify"><span style="font-size:16px"><strong>How is G4S planning to expand its services and enter new areas in the security business in the future?</strong></span><br />
We are conducting an in-depth study to expand our areas of work and increase investments. We are looking to provide high-end security services to BFIs such as alternative solutions and ideas for cash security. G4S globally has been providing these types of services for a long time. We have been constantly discussing with BFIs and the central bank to identify their needs and requirements in security.&nbsp;</p>

<p style="text-align:justify">We seek to contextualise the services according to the local needs. The services we provide are not only a matter of business for G4S.&nbsp; It is also a matter of contributing towards nation building directly or indirectly while doing business.&nbsp; For instance, enhancing the skills of the workforce and quality of service is a top priority in G4S&rsquo;s plans. It will add efficiency to our work and is also likely to have a national level impact. Nepal receives hundreds of billions of rupees in remittance yearly from the migrant workers many of who go abroad to work as security guards and it is necessary for us to focus on this aspect. By enhancing the skills of migrant workers and quality of service, Nepal can earn more money in remittance as the demand for Nepali workers will go up.</p>

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		'Article' => array(
			'id' => '2767',
			'article_category_id' => '46',
			'title' => '“Hospitality Is The Right Industry”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;">Anil Malik is the general manager of Radisson Hotel Kathmandu since August 2013. He has wide experience in the hospitality sector and this is his third tenure with the Carlson Group. Earlier he has worked with the Grand Hyatt, Centara Hotels and Resorts and the O Hotel. He spoke to the New Business Age about his experience in Nepal and the tourism possibilities of the country.&nbsp;</span><strong style="font-size: 16px;">Excerpts:&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Tell us about your career and corporate journey?</strong></span></div>
<div>
	Right from my childhood I have seen my mother hosting guests at home. I did Bachelor of Science with geology as major. However after graduation I got interested in hospitality. I appeared in the all India entrance examination, I was qualified and with great hard work I jumped into the hospitality industry.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Why hotels and hospitality? What points of attraction and challenges mark work in hotel sector?&nbsp;</strong></span></div>
<div>
	I personally feel that hospitality is the only sector where you meet so many unique people, learn new culture and learn new food habits. That&rsquo;s why I personally feel that hospitality is the right industry for a person like me who loves food and meet new people.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Carlson Group is the only group, which is expanding, in large capacity. In India we in 2014 we are expecting to have 50 new properties. We are expanding in China, and Hong Kong. In Nepal there are possibilities of expansion and my company is seriously looking to it. Because the country has lots of potential and I have also visited some of the places such as Chitawan and Pokhara, which hold high possibilities. A feasibility report for these possibilities is underway and which I look forward to present at the Carlson office. Carlson has got various brands under its umbrella. We have got budget segments therefore possibilities can be worked out according to the demand. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What major practices have you introduced in Radisson in the last quarter?</strong></span></div>
<div>
	When I joined I found training opportunities lacking here. There are many hotel management colleges in the country but the biggest challenge is that most of the graduate go aboard to work thereby creating scarcity of skilled manpower. Since my initial days here I have always tried to engage with the staff and to make them more management friendly. There are a number of union issues in Nepal and here also there were some issues in the past. I have been trying to resolve this issue in a professional way by engaging with the employees and interacting with them through open communication channels. As part of this strategy, we started organizing Friday town hall meeting where the general manager interacts about the budget and other management issues with the staff. This is one of the initiations that I took. Apart from that we have started participating in various corporate social responsibility programmes and as a part of it we have made some donation to the Red Cross Nepal and on February 15 we organized Radathon in association with the Nepal Tourism Board.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What contribution have you made specifically in making the hotel more hospitable?&nbsp;</strong></span></div>
<div>
	Last year we added around hundred rooms to existing 160 rooms capacity of hotel Radisson. The additional hundred rooms are very modern compared to other hotels. And now my task is to see that the corporate people target these hundred rooms. To achieve this objective we are building close ties with the corporate sector. Besides this we are going to open the doors of our new Indian cuisine restaurant to our guest and adding to that a Japanese restaurant opening in the pipeline.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What are the major challenges of hotel industry in Nepal? How do you think they can be addressed?&nbsp;</strong></span></div>
<div>
	Recently Trip Advisor rated Nepal as the hottest destination. The only challenge I personally feel here is that the tour operators who are getting this groups in the country they are somehow trying to undersell Nepal as a major tourist destination. The occupancy must have grown but not the revenue and let&rsquo;s not forget that tourism plays a very important role in the development of the country&rsquo;s economy. Therefore we should try not to undersell Nepal. Costly airfare is another problem. It costs around Rs 50,000 to fly back and forth to Delhi. Such a high fare, I think, is bringing down the number of Indian tourist visiting Nepal. At the same time the rooms are expensive as we have 18 hours power cuts and we cannot compromise with our services for our guests. That is revenue is less and expenses are more.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Tourism potentials are very high in Nepal but the income is still around $ 5 billion and 11 per cent of the nation&rsquo;s GDP. Where is &nbsp;the disconnect? What can be done in this context by the private sector and the government?</strong></span></div>
<div>
	In Nepal there are many areas, which can be explored. Tourist visit Nepal mostly to see Kathmandu. The government of Nepal along with the Nepal Tourism Board should brand it as &lsquo;Explore Nepal&rsquo; and they should come out with new destinations that are still to be explored. I personally feel that the government should identify new values and new areas to attract much more tourist.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is the situation of skilled manpower in the hospitality industry?</strong></span></div>
<div>
	There are eight five-star hotels since a very long time. Though the government has itself not taken any measures to expand it, very soon three hotels are coming to Nepal. Along with that the government has also signed agreements with around ten other five-star properties. Opening of these hotels will open new job opportunities. What I have found is staff appointment in Nepal is very low. Job openings are available only if a person retires from the position or moves abroad. So how do you expect to have new talent when there are no new hotels and no new vacancies?</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What are your suggestions to the major hotel and tourism management colleges? What inputs should they make to develop talent here?</strong></span></div>
<div>
	They have to be more professional, the corporate culture has to be taught and exposure has to be given to them. And the same time they should have a tie up with some groups of hotel where some concrete steps can be taken. At the moment my hotel has around 80 trainees but what about the other students as there are only eight five-star hotels. &nbsp;Definitely the remaining students will move abroad.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is your personal management philosophy with regards to hotel management and its efficient leadership?</strong></span></div>
<div>
	Speaking on a personal note there has to be a leadership quality and attitude has to be very positive. Along with it one should have an urge to teach the juniors, should believe in teamwork as it&rsquo;s not possible to achieve the objectives without team work. At the same time one should try to impart maximum knowledge to juniors to make the team competent. The country should also have a corporate culture, which I hope will definitely grow.&nbsp;</div>
<div>
	&nbsp;</div>',
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			'description' => 'Anil Malik is the general manager of Radisson Hotel Kathmandu since August 2013. He has wide experience in the hospitality sector and this is his third tenure with the Carlson Group. Earlier he has worked with the Grand Hyatt, Centara Hotels and Resorts and the O Hotel. He spoke to the New Business Age about his experience in Nepal and the tourism possibilities of the country. Excerpts:',
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		'Article' => array(
			'id' => '2586',
			'article_category_id' => '46',
			'title' => '“We Are On The Lead Position In SAARC Region”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;">Government-run Nepal Telecom topped the list of largest taxpayers, in terms of both income and value added taxes, in the fiscal year 2011-12. The partially privatized and Nepse-listed telecom service provider contributed some Rs 9 billion to the government coffer that year. The government recently picked <strong>Anoop Ranjan Bhattarai</strong>, who was previously serving as Director at the company&rsquo;s Wireless Telephone Directorate, to lead the company. Bhattarai is regarded as one of the few smart techies in Nepal with considerable knowledge of technological aspect of the telecom industry. Soon after he assumed the new position, he spoke to <strong>Siromani Dhungana</strong> of New Business Age about his plans for leading the company.<strong> Excerpt:&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What does your appointment as MD of NTC promises to its consumers and stakeholders?&nbsp;</strong></span></div>
<div>
	My appointment as the Managing Director is a breakthrough to a 3-month-long deadlock in finalizing the organizational leadership. This appointment is the change for betterment; betterment for the organization, betterment for the staffs working here, and most importantly betterment for all our stakeholders. My tenure as MD of the organization will concentrate in providing world class advanced and consumer friendly telecom services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Some officials and even trade union representatives often talk about making reforms in the company. What areas are you planning to reform?&nbsp;</strong></span></div>
<div>
	My key areas for reform will center on improving company&rsquo;s work culture, increasing its efficiency, ensuring timely execution of projects and improving service delivery. If we pay appropriate attention to these sectors, our performance will improve and thereby enable use to remain competent in the free market economy.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Quality of service has often been controversial when we talk about Nepal Telecom. Even the regulator blames NT for flouting quality indicators. You are perceived as a person with guts to reform the company. How is your appointment going to change anything that Nepali consumers can feel the benefit?</strong></span></div>
<div>
	Of course, the quality of service in urban areas is going to be improved and these changes can be perceived within one month. After upgrading networks in urban areas, we will focus on improving quality of services in the rural areas. I assure our customers across the country that in a few months time there will be visible improvements in the quality of our services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Do you think you will be able to overcome political hurdles that might be obstructing the performance of Nepal Telecom?</strong></span></div>
<div>
	As a government owned company, all stakeholders including the political system, definitely wants to see it growing and increasing its contribution to national development. &nbsp;I do not think there will be any political hurdles that will obstruct growth of the company. All we have to do is ensure that all initiatives are conducted in transparent and reliable manner.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>How do you tackle problems created by Public Procurement Act?</strong></span></div>
<div>
	At present, NT has to follow Public Procurement Act. Consultation process is going on with the Public Procurement Monitoring Office (PPMO) so as to refine or redefine the directive. I am confident that the ongoing as well as additional consultation processes will help NT move forward more efficiently.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>News reports during last year claimed that NT provides unnecessary perks and facilities to officials at the Ministry of Information and Communication. What will you do to this end?</strong></span></div>
<div>
	I am not aware of such services being offered to the ministry or its officials. And the ministry has also not requested for the same from the company.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Successive leadership at NT has been failing to materialize the plan of bringing strategic partner to increase competency of the company. Can we expect anything tangible from you?</strong></span></div>
<div>
	The process for introducing strategic partner is gaining momentum. Within few weeks, NT will initiate the process. I am hopeful fresh initiatives will be successful in bringing strategic partner in the company.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>How do you see the challenges from private operators at the moment? Will you bring specific plans to cope with those challenges?</strong></span></div>
<div>
	We offer diverse service and have a dominant presence throughout the nation. Our competitors are lagging far behind compared to us, in general. However, we have experienced competition in certain business aspects of telecommunication services. This has opened up new opportunities for NT to grow from within. We should accept challenges and take it as an opportunity to do even better in the future.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What new services can we expect from you?</strong></span></div>
<div>
	We have seen a huge demand for reliable and affordable data service in coming days. So we are mainly focusing on the same. In this fiscal year we will launch WiFi and FTTH (Fiber to the Home) services. Our expert team is also exploring the areas of service expansion. Naturally all our existing as well as prospective consumers demand reliable, diversified and advanced services from Nepal Telecom and as a service provider we are all working and focusing more on the same to make tangible improvement in the options and quality we offer. We also have plan to introduce new services like WiFi, countrywide 3G services through GSM and CDMA technologies and also have plans to provide our own Social Networking Service very soon.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What do you think the major challenges for the company are?</strong></span></div>
<div>
	Our major challenges, as of now, are:</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Bridge the digital divide</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Modernizing customer service&nbsp;</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Proceedings to introduce an international strategic partner</div>
<div>
	&bull;<span class="Apple-tab-span" style="white-space:pre"> </span>Boost employees&rsquo; morale and improve work culture</div>
<div>
	These are some major challenges. The list may go even longer. We have to come out with appropriate solution for all challenges. I will put my effort to overcome these challenges during my tenure.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Till the mid-80s, Nepal was considered as a country having the best telecom services in the region. What happened since then?</strong></span></div>
<div>
	NT has already launched 4G WIMAX service. We were the first to launch 3G services in the SAARC region. So technically speaking, we are still in leading position within the region and we will not let our achievements to go down.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>You have also expertise in modern technology. Please share your experience and plan to expand new technology including LTE?</strong></span></div>
<div>
	We have applied for frequency spectrum for LTE and once we get it, we will start deploying LTE in all major cities. Within 2015, we aim to provide LTE services throughout the nation.</div>',
			'published' => true,
			'created' => '2014-02-13',
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			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'Government-run Nepal Telecom topped the list of largest taxpayers, in terms of both income and value added taxes, in the fiscal year 2011-12. The partially privatized and Nepse-listed telecom service provider contributed some Rs 9 billion to the government coffer that year.',
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	(int) 3 => array(
		'Article' => array(
			'id' => '2492',
			'article_category_id' => '46',
			'title' => '“Situation Is Difficult In Nepal For The Manufacturing Sector To Prosper”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;">Kedia Organisation, the oldest and one of the most talked about business conglomerates of the country, has been practicing a synergistic combination of family ownership and professional management since 1909 A.D. Named after their fathers, Late Sundarmal Kedia and Late Ram Kumar Kedia, it was surely a turning point for the Kedias when the first foundation stone of their present day multimillion conglomerate was laid in the form of a small cloth trading business. The group envisions reaching the zenith and being a premium conglomerate through outstanding service performance and clear business vision. Manoj Kedia, Executive Director of Kedia International and Vice president of the Confederation of Nepalese Industries (CNI), talks with New Business Age&rsquo;s Homnath Gaire and Upashana Neupane on the group&rsquo;s journey in Nepal so far, role of the private sector in nation&rsquo;s development and the group&rsquo;s future plans. Excerpts:</span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>How is the history of Kedia Group different from the general history of Nepal&rsquo;s private sector?</strong></span></div>
<div>
	Trading business in Nepal started along with the Kedia Family. Initially, Kedia family started its business as a cloth merchant with stores in Birgunj and Kathmandu that sold clothes imported from India. With initiation of Late Brij Lal Kedia we gradually expanded our business to food grains trading. It started small but as time progressed it expanded across Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	He used to collect food grains from every corner of the country and supply them to even remote areas that lacked transportation facilities. For the first time in Nepal, he fixed prices of food grains and at a certain point, even the Khadya Sansthan (government owned Nepal Food Corporation) fixed food grain prices by consulting him. Later he established rice mills, dal mills and many more food grain factories. He established Nepal&rsquo;s first modern rice mill, Bhagwati Rice Mill.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Later Shankar Lal Kedia expanded foothold in the manufacturing sector. He established factories related to steel furniture, stainless steel utensils, textile, umbrella, socks, wheat flour, corrugated steel, copper utensil etc. During that time the steel, textile, and corrugated sheet industries were pioneers in their respective fields in Nepal and they are the backbones of the present day Kedia Organisation.</div>
<div>
	&nbsp;</div>
<div>
	At the same time we also entered in general merchandising sector by importing goods from third countries and bulk-traded them in local market. Our imports included cloth, electronics, food items, medical equipment, household products, hardware, cement, sugar, and edible oil among others. We also exported rice to Tibet and pulses and lentils to Sri Lanka, Bangladesh and to some European countries.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We established Caltex Company, a petrol pump agent in Nepal, and this is still in operation as Kedia Auto in Birgunj.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Kedia Group also is one of the first industrial houses to advertise its products. We sponsored the &ldquo;Sundar Sushil Sangeet&rdquo;, a popular song-on-request programme aired on Radio Nepal, to promote our products.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Amid this long list of successful ventures, we also had some disappointing projects. Though we had bagged the license to launch Coca Cola in Nepal, we had to drop the project in the last minute due to some partnership problems. In 2015 B.S. we had to give up the launch of an iron steel factory project, even though necessary equipment and machinery were imported, after King Mahendra dissolved the democratic government and assumed power. Similarly in 2036-2037 B.S. we had to pull back from establishing the Kedia Paper Industry</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is the present status of Kedia Group and how is it different from the overall situation of the private sector?</strong></span></div>
<div>
	Despiteour engagement in diverse sectors, manufacturing sector is our major area. We have established ourselves in the cement, carpet, and the sugar industry. Recently we have started manufacturing PVC carpet and are upgrading production capacity of Indusankhar Sugar Mill, Nepal&rsquo;s one of the oldest and leading sugar industries.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In the past we invested in the banking and financial sector. We had invested in Siddhartha Insurance, Siddhartha Capital and Siddhartha Bank.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Kedia Group has made some significant investment in the service sector and presently we run several schools and hospitals in the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Along with bulk trading, Kedia Group has once invested in housing projects. And as part of its plan to expand its foothold, the group has made small investments in other sectors like hydropower for getting acquainted with them.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>How is this conglomerate with interests in so diverse fields being managed and controlled?</strong></span></div>
<div>
	We have a joint family and we have divided our tasks within our family members for various sectors. We work in our respective sectors. Our father&rsquo;s generation is also actively involved in managing the business.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In the recent years, Nepal&rsquo;s private sector is diverting investments to service and trade sector from the manufacturing sector. What is the reason?</div>
<div>
	Nepal is a market of its own kind. Situation is difficult here for the manufacturing sector to prosper. Power shortage, a major problem faced by this sector, has been one of the major causes for such decrease in investment in such sectors. Open import is another hindering factor. Nepali market is crowded with cheap products from China and India and it is very hard for domestic products to compete with imported products in the market, especially in terms of cost. As such, only ethnic Nepali products can sustain in the local market.</div>
<div>
	&nbsp;</div>
<div>
	Lack of skilled and productive manpower, unfriendly labour environment and decrease in agricultural production that has triggered increased imports of agro products, are other factors that are affecting the growth of the manufacturing industries in Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong><img alt="Manoj Kedia" src="/userfiles/images/inter1%20(Copy)(1).jpg" style="float: left; margin: 0px 10px 0px 0px;width: 300px; height: 321px;" />You are a vice-president of Confederation of Nepalese Industries (CNI) that specializes in the promotion of industries rather than trading. Why is not CNI doing something to put a stopper on the deindustrialization of Nepali economy?</strong></span></div>
<div>
	This accusation is wrong. CNI has unwavering vision and mission to achieve. It was established to address private sector&rsquo;s problems by promoting liberal policies.The organization believes that the country can achieve prosperity via private sector&rsquo;s involvement in development activities. It has always focused on facilitating the activities of private sector.</div>
<div>
	&nbsp;</div>
<div>
	In reality, many of the genuine issues and demands raised by CNI for promoting private sector remain unaddressed due to concerned authorities&rsquo; reluctance. I am pretty confident that the private sector can make tangible impact if issues and demands raised by CNI are endorsed by the parliament.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>You said Kedia Group is also entering the power generation sector. Would you please elaborate on this?</strong></span></div>
<div>
	The entire industrial sector has been suffering from power deficit. Industrial sector incurs billions of losses due to it. It is a national problem and it is obvious that major business houses want to engage in the power generation business.</div>
<div>
	&nbsp;</div>
<div>
	Presently power/energy costs have increased steeply. Simultaneously, demand for power has also increased. Hydropower has high market potential. As we are aware, due to our inability to use our energy resources, we are purchasing energy from neighbouring countries in various forms like petrol, diesel and oil. Most of our financial resources, which we could have invested in productive sectors, are spent in purchasing energy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Hydropower projects need lots of investment. We need laws and policies friendly enough to attract FDI in that sector. So far, Kedia organisation has not made substantial investment in this sector. We have invested as shareholder in this sector to study the sectoral behaviour.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Why is the Kedia Group not generating power through cogeneration from its sugar mill and supplying it to the national grid?</strong></span></div>
<div>
	We can produce 10 Mega Watt of electricity from cogeneration, that too when the country faces maximum power shortage. To produce power, we need huge investment for developing infrastructure. If such infrastructures are developed in all industries across the nation, 30 to 40 Mega Watt of electricity can be produced. It is far less costly than thermal power plants and other alternative means and takes less time to establish also.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, huge investment is required to develop necessary infrastructure for such a project. As policy keeps changing, it entails huge investment risks. Such risk can be only taken if the state formulates conducive policy and provides special incentives. Otherwise, as an entrepreneur, I would not risk my investment.</div>
<div>
	&nbsp;</div>
<div>
	Presently, waste from the paper mill remains unexploited. If government supports in setting up power plants, such wastes can be used to generate multifuel whenever the nation needs.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Despite being a major player in agro-processing industry why is the Kedia Group not building backward linkages with the farmers?</strong></span></div>
<div>
	We have been coordinating with farmers. We regularly provide them with various skill-based trainings and loans too. We have set up Sugar Mill in Sarlahi district, the major sugarcane growing centre of the country, and it is an instance that reflects how we work in coordination with farmers. In addition to that, we have been actively engaged with farmers in the dairy business as well.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Now that the Constituent Assembly elections are over, how do you visualize the business scenario in the days ahead?</strong></span></div>
<div>
	Democracy has to be institutionalised. Political issues have been settled and that marked the crossing of transitional politics. The rhetoric of transition politics should not be repeated and we should be optimistic of economic growth in the days ahead. Kedia Group is very hopeful of contributing to the overall development of the country.</div>
<div>
	&nbsp;</div>
<div>
	During the last half-decade, there have been many positive changes in the political regime. With the successful completion of second Constituent Assembly election, it&rsquo;s time to focus on institutionalising the achievements.</div>
<div>
	&nbsp;</div>
<div>
	Now, political parties should prioritize national interests by brushing aside their partisan and personal interests and focus on formulating collective goals to achieve national economic growth.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It&rsquo;s an achievement for the private sector that almost all major political parties consider it as the backbone of the national economy. Unity in diversity is our speciality and Nepali leaders should translate this mantra into reality. They should prioritize economic prosperity in their political agenda. Nepali business won&rsquo;t get good reputation in international market unless our economy is strong and self-reliant. It is possible and all we need is sincere commitment from our politicians.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What agenda would you like the upcoming government to focus on for the progress of business-economic field?&nbsp;</strong></span></div>
<div>
	The government should show readiness to address some pending economic agenda. It should create environment whereby industries can be set up in every district. Local bodies should be given authority for deciding utilization of local resources. The central government should act as intermediary to mitigate problems faced by the private sector at the local level.</div>
<div>
	&nbsp;</div>
<div>
	Above all, state should ensure political stability and strong governance and ensure their commitment made in the last election to the general public of drafting and promulgating the new constitution within the promised time frame. Economic growth of the nation can sustain and progress only if the state and political actors act as strong catalyst and continue propelling it.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>The manufacturing index for the last fiscal year and the trade statistics for the first four months of the current fiscal year show some positive indications of improvement over the previous year. How do you interpret this information?</strong></span></div>
<div>
	It is too early to comment on this. &nbsp;We do not see any drastic changes in the manufacturing sector over the last fiscal year. There are several reasons for the said improvement of manufacturing index. Firstly there was comparatively better supply of electricity, and secondly political realm remained stable during the last fiscal year. Dollar revaluation also contributed much for the better performance in the exports trade. We had less volume of imports, that is the domestic market imported fewer consignments in the last fiscal year, and this helped show improvement in the growth rate of the trade deficit. But we should remember that the trade deficit is still increasing though in slower rate.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Where do you see Kedia Group of Industries in five years of time?</strong></span></div>
<div>
	In five years, we envision our involvement in diverse business. We will be engaging in the infrastructure, tourism, power and in the manufacturing sector. All we need is a strong and stable government, business-friendly policies and fair competition between private sector players. &nbsp;The domestic market has huge potentials and Kedia Group looks forward to tap and invest in them to create more jobs in the domestic market itself.</div>',
			'published' => true,
			'created' => '2014-01-24',
			'modified' => '2014-01-24',
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			'description' => 'Kedia Organisation, the oldest and one of the most talked about business conglomerates of the country, has been practicing a synergistic combination of family ownership and professional management since 1909 A.D. Named after their fathers, Late Sundarmal Kedia and Late Ram Kumar Kedia, it was surely a turning point for the Kedias when the first foundation stone of their present day multimillion conglomerate was laid in the form of a small cloth trading business.',
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		'Article' => array(
			'id' => '2312',
			'article_category_id' => '46',
			'title' => '“Nepal-India-China Trilateral Mechanism Needed For Nepal’s Power Development”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;">Chilime Hydropower Company Limited (Chilime), incorporated in 1995, is promoted by Nepal Electricity Authority and owned by the local community also. &nbsp;Its model has been considered as one of the best way to generate wealth for the local people &nbsp;and assists in sustainable development.&nbsp;<strong>Kul Man Ghising</strong>, Managing Director of this public company, recently spoke to&nbsp;<strong>Siromani Dhungana</strong>&nbsp;of New Business Age on issues related to Nepal&rsquo;s hydropower sector.&nbsp;<strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What is the progress of power projects being developed by your company?&nbsp;</strong></span></div>
<div>
	We have four projects under Chilime Hydropower Company, namely Sanjen, Mid-Bhotekoshi, Rasuwagadhi and Bemdang. We have been developing all these projects through our subsidiary companies -- Sanjen Jalavidhyut Company, Madhya Bhotekohi Jalavidhyut Company, Rasuwagadhi Hydropower Company and Bemdang Khola. Mid-Bhotekoshi with an installed capacity of 102 MW in Sindhupalchowk district is being developed through Madhya Bhotekoshi. Sanjen is &nbsp;developing two projects&ndash;Sanjen of 42.5 MW and Upper Sanjen &nbsp;of 14.8 MW capacity in Rasuwa district. Rasuwagadhi Hydropower is developing a new project - 111 MW Rasuwagadhi Project in Rasuwa district. We have almost completed all pre-construction tasks including procurement process and taking EIA certificate and other clearances. All these projects will start construction by the end of the current fiscal year. Among these four projects, the progress of Sanjen is rapid. We have planned to complete all works of Sanjen project by 2016 and other projects by 2017.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>The first project developed by your company is often cited as an ideal model for Nepal&rsquo;s power projects. And more examples of such successful model were expected from your company. But none of the projects in the pipeline viz. Sanjen, Madhya Bhote Koshi and Rasuwagadhi are complete so far. Why this delay?&nbsp;</strong></span></div>
<div>
	I do not think there is delay in the progress of projects. We have been working on all projects according to the project timeframe developed by the company. In Nepal, pre-construction works take almost 60 per cent of time required to develop hydropower projects. We have lengthy procedural formalities to complete before starting the actual construction. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We have already completed works that include getting approval from various ministries and government agencies, tunnel testing, infrastructure development at the site among others. Given the usual standard in Nepal, it should be considered as a great achievement for any hydro company to start construction work within three years of acquiring licence. Within three years, we have prepared Detailed Project Report (DPR) and other ground works necessary to start the construction of the project.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	No project can be undertaken without financing. It was challenging to identify proper financing channels. We managed to arrange equity participation from our partners including Nepal Electricity Authority (NEA), Chilime and the public. But debt financing was really important and it is our achievement to have convinced Employees Provident Fund (EPF) to invest in our projects within a year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Financing is not possible without reaching Power Purchase Agreement (PPA) with NEA and DPR is essential for entering into PPA. These are time-consuming processes. Hydropower companies have to go through many hurdles to enter into PPA in Nepal. Companies have been chasing NEA for years to get PPA approved. Process of getting environmental impact assessment (EIA) certificate is unnecessarily lengthy in Nepal. Government agencies compel hydro companies to wait for 2/3 years to acquire EIA certificate. That&rsquo;s not all. Ministry of Forestry takes another 2/3 years to provide consent for chopping trees in project sites. &nbsp;It takes five years just to complete the process at the Ministry of Environment and Ministry of Forestry. These all pre-construction processes are unnecessarily lengthy in Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Adding to it, as a public company we have to follow lengthy procurement process that takes around one to two years to complete. Despite all these hurdles, we have been working aggressively to complete all projects in the stipulated time.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;In Nepal, no project has been completed in less than 10 years of its initiation. Administrative hassles have been causing the delay in completing pre-construction works. Sometimes, I feel these are unnecessary hurdles. The government should focus on easing off these hassles, if it wants to propel hydropower development.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong><img alt="Kul Man Ghising, Managing Director, Chilime Hydropower Company Limited" src="/userfiles/images/intr2%20(Copy).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 250px; height: 368px;" />Some private sector power developers have also pointed out that Chilime is specially favoured by the government and the Nepal Electricity Authority in various respects, such as PPA rate and the choice of projects. What is your assessment?</strong></span></div>
<div>
	As a public company, we have to face dozens of hurdles to develop a hydropower project. First, we have to face problem in public dealings during land acquisition. We follow transparent methods in public dealing and do not pick up influential persons to get them on our side andstart work. Even at the ministry, our projects are processed by taking more time than other private sector companies. The allegations that Chilime has got special privileges are completely baseless. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Developers often complain about the increasing demands of the locals in the project site. How is the situation in projects being developed by Chilime?&nbsp;</strong></span></div>
<div>
	We should not always blame locals for friction in the development of hydro projects. Local people do not always put irrelevant and irrational demands. Power developers should take care of their logical demands. They should maintain transparency in their deals. For a project to be sustainable, deprived people should also get project benefits. This is what we do in our projects. Providing benefits only to a handful of local people always creates trouble.. The activities which are not transparent and are aimed at appeasing a handful of locals are major reasons behind problems at the local level. Power developers should ensure that the project benefits locals through employment opportunities, infrastructure development among others. We have been doing all these activities at the local level and maintained transparency in our dealings. We have decided to float shares to locals on equal basis to create sense of ownership on the project among them.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>One major problem cited in the development of hydropower in Nepal is the lack of capital. To address this problem, legal provisions have been reviewed and the developers have been allowed to raise money from the general public by issuing shares them even before the project construction starts. Why don&rsquo;t the developers use this facility to raise fund?&nbsp;</strong></span></div>
<div>
	There is a great possibility of rasing the capital through issuing shares to the general people. But, Security Board of Nepal&rsquo;s (SEBON) regulation does not allows to issue shares to the general people without solving equity issue among the promoters. Private sector is not very &nbsp;much eager to submit equity details of all the promoters. Due to equity issue, it is not easy to float shares to the public from the private sector power developers. Majority of power developers do not want to issue shares to the public.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In the recent days, people&rsquo;s attraction in buying shares clearly hints that we can generate capital by floating shares to the public. Even generating equity is not a big problem in Nepal. We have enough fund but our problem is how to manage fund. Trust on developers is also equally important before floating shares. All developers can not be as trustworthy as Chilime. If developers fail to make profit, people will not invest in shares of hydro companies in the future. This part also should be considered.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Some analysts suggest that developing hydropower projects in Nepal with an aim to export power to India will benefit Nepal because of the seasonal variation in the water flow and peak demand of electricity in Nepal and India. What is your opinion on this?&nbsp;</strong></span></div>
<div>
	Due to seasonal hydrology, energy management is indeed a challenging task in Nepal. Currently, NEA is responsible to manage energy in the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Development of transmission line for interconnection is a must. Optimum utilization of hydro energy is not possible in the country without interconnection. All power generators should be connected in the national power grid to utilize hydro potential to its full capacity. Interconnection with India means getting connected with the entire South Asian region. It would be really good if we can develop cross-border or regional transmission line.</div>
<div>
	&nbsp;</div>
<div>
	But first, we have to put optimum efforts to develop more power projects so that we can reach the level of a power surplus country. The demand of power will automatically go up in the domestic market too if we generate enough power. More factories &nbsp;will come up here if we can ensure sufficient power supply to them.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What other &nbsp;legal and administrative hurdles are there in developing a hydro project? &nbsp;</strong></span></div>
<div>
	The government has failed to expedite procedure in hydro projects development especially the administrative procedures. It should remove all administrative hassles if it really wants rapid growth in the hydro power sector. We have already talked about the year-long procedural hurdles that exist in various government agencies.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There are some unnecessary and irrational taxes levied on hydropower projects in Nepal. Besides the royalty that the projects have to pay the government, &nbsp;Ministry of Forestry charges one per cent tax on power developers which does not match with government&rsquo;s commitment of facilitating hydropower sector.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Power trading company is necessary to manage energy market in Nepal. We don&rsquo;t have a reliable entity to manage electricity market. NEA is the entity which is signing PPA in Nepal. And this PPA &nbsp;is not based on scientific approach. PPA rates should be decided on the basis of several factors including condition of the project site. . It should be transparent and scientific if Nepal has to be a power surplus nation.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the government should form a scientific pricing mechanism. The price of electricity should not be the same during peak &nbsp;and normal hours. It should focus its effort on all these aspects.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	PPA in terms of dollar has been raised and the government should address this issue along with making the PPA bankable.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The balance sheet of NEA is not convincing to foreign power developers. Foreign investors cannot be assured of the safety oftheir investment when they have to sign agreement with a company that is in such huge loss. If the government cannot provide sovereign guarantee, it should provide payment guarantee. Additionally, in order to attract Foreign Direct Investment (FDI), the government should ensure security mechanism to boost confidence of foreign developers.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What challenges and opportunities do you see in Nepal&rsquo;s hydro power sector?</strong></span></div>
<div>
	Our nearest power market is India and there are potential investors in China. We can bring investors from China and use Indian power market. We can make a trilateral mechanism and develop trilateral business since we have resources, India has market and China has capital to invest.Investment in joint venture among these three countries will be mutually beneficial and can create unique opportunities for all. Chilime model is sufficient to generate power if domestic market is the only target. But, if we want prosperity from hydropower sector, we have to attract foreign power developers and for that we have to open avenues in foreign markets.&nbsp;</div>',
			'published' => true,
			'created' => '2013-12-22',
			'modified' => '2013-12-30',
			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'Chilime Hydropower Company Limited (Chilime), incorporated in 1995, is promoted by Nepal Electricity Authority and owned by the local community also.  Its model has been considered as one of the best way to generate wealth for the local people  and assists in sustainable development. Kul Man Ghising, Managing Director of this public company, recently spoke to Siromani Dhungana of New Business Age on issues related to Nepal’s hydropower sector. Excerpts:',
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			'id' => '2179',
			'article_category_id' => '46',
			'title' => '“There Are Obvious Reasons Why We Decided To Invest In Hotel Business”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Shesh Ghale</strong>&nbsp;is a Mebourne, Australia based non-resident Nepali businessman. He has been listed as the 180th richest man in Australia (together with his wife Jamuna Gurung) by BRW News Australia with a fortune of $225 million. Recently, Ghale has been elected as the president of the Non-Resident Nepali Association (NRNA). Ghale, founder and chief executive officer of Melbourne Institute of Technology, under the MIT Group Holdings Nepal, has signed a management contract with Starwood Hotels and Resort Worldwide, Inc. to build a five-star property named&mdash;the Sheraton Kathmandu. He has also come up with some other investment plans in Nepal. Soon after being elected as the president of NRNA, he has pledged to promote entrepreneurship in Nepal. He spoke to&nbsp;<strong>Siromani Dhungana</strong>&nbsp;of New Business Age about his and NRNA&rsquo;s future investment plans in Nepal.&nbsp;<strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>As the new president of NRNA, what&rsquo;re your priorities in Nepal?</strong></span></div>
<div>
	First meeting of the newly elected committee of NRNA has decided to focus on employment generation and sustainable development of Nepal. To achieve these goals we will implement various projects. These projects include establishing a five-star hotel in Kathmandu that will assist in creating employment opportunities and thereby also contribute in economic growth. &nbsp;We will immediately start the feasibility study for constructing this five-star hotel. Along with that we are planning to bring other projects to help us in gaining our objectives.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>What other projects that NRNA will push forward during your tenure?</strong></span></div>
<div>
	We will put emphasis on mutual investment projects. I think NRNA should promote culture of entrepreneurship. During my tenure, we will be doing various activities that promote entrepreneurship in Nepal. These activities will be aimed at translating our slogan &lsquo;Connecting Nepali for Prosperous Nepal&rsquo; into actuality.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>NRNA is often blamed for ignoring blue-colour employees working in the gulf region in spite of their huge contribution to the national economy. What&rsquo;s your say?</strong></span></div>
<div>
	No. Their contribution to the country will be recognized during my tenure. We have decided to create a &lsquo;Relief Fund&rsquo; for migrant workers who have been suffering in foreign land. The fund will be utilized in welfare activities especially for those who die, who get injured and who are shelter less in foreign land. I have pledged to provide Rs 10 million for the fund and I am hopeful that other friends will contribute to the cause. The funds will be ultiized once detailed working procedure is finalized.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong><img alt="Shesh Ghale" src="/userfiles/images/sg%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 321px;" />Getting back to NRNA&rsquo;s decision to invest in hotel sector, why did you choose this business sector to invest in?&nbsp;</strong></span></div>
<div>
	We have good links with foreign star hotel chain brands for investing in hotels. I think we can introduce their expertise here in Nepal. Another reason is the existence of good business prospects for hotels. Non Resident Nepalis can make good profit by investing small amount in this sector. We will encourage new friends to invest in this sector so that the country will get new set of entrepreneurs.</div>
<div>
	&nbsp;</div>
<div>
	But there is strong belief that NRNs should invest in infrastructure rather than hotel sector.</div>
<div>
	&nbsp;</div>
<div>
	There are several obvious reasons why we decided to invest in hotel business. First, the hotel business can generate more employment in small investment. We can generate four hundred jobs if we establish a 200-bed hotel. Second, we can produce skilled manpower by operating hotels with international standard in Nepal. Human resources who work in standard Nepali five-star hotels, can easily get job abroad. Third, hotel business will have a multiplier impact in development. If we establish a hotel in a community, the entire community starts to get benefit from that.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Another reason is the investment in hotel business is easily transferable. &nbsp;Hotel business is one which helps generate foreign exchange reserve.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	NRNA will not, however, undermine infrastructure projects. We will continue all infrastructure projects, including hydropower projects, during my tenure as well. Hydropower has been our priority and it will remain so in the years to come.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Are you also targeting middle-income NRNs during your tenure?</strong></span></div>
<div>
	Yes, indeed. NRNA has planned to start a commercial agriculture project targeting NRNs of middle-east and Korea. NRNs are enthusiastic to invest but do not have much money can benefit from our plan of initiating commercial agro project. On the other hand, commercialization of agriculture sector is Nepal&rsquo;s need of the hour. Nepal should tap potentials in agricultural sector since majority of the people&rsquo;s lives in the country relies heavily on it. Commercializing agriculture sector will also help Nepal in reducing import of agro product.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>You often emphasize on entrepreneurship for the prosperity of the country. Do you have specific plan to promote entrepreneurship in Nepal?</strong></span></div>
<div>
	I am planning to join hands with young Nepali entrepreneurs to promote entrepreneurship in the country. I will create a forum for young entrepreneurs so that they can exchange experience with entrepreneurs from other countries. Also, NRNA has planned to provide a mentor for aspiring entrepreneurs. &nbsp;The concept of mentorship is introduced to synergize the expertise of the older generation with the energy of younger generation.</div>
<div>
	&nbsp;</div>
<div>
	Entrepreneurship development is a time-intensive project rather than capital-intensive. The mentor has to spend time with younger generation entrepreneurs to share experience and to inspire them to do something worthwhile. We are confident that we can produce some good entrepreneurs by materializing this concept.</div>
<div>
	&nbsp;</div>
<div>
	It is said that Nepali products are yet to get foothold in international market. How can we expand country&rsquo;s recognition in international business realm?</div>
<div>
	We NRNs, who have already entered in international business sector, should act as bridge to link Nepal with other international markets. &nbsp;Collective efforts of government bodies and private sector can earn a good reputation for the country. The country needs to pay attention on creating brand name of some products in the international market. Some promotional activities will be also needed to this end. Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has been putting effort to promote Nepali products in the international market. It has a separate Nepali Products Promotion Committee which has been extensively working to promote Nepali products. We will work in close collaboration with FNCCI and young entrepreneurs.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>Do you have other specific plan for promoting Nepali brands in international market?</strong></span></div>
<div>
	It is worthwhile mentioning here that we will be promoting Nepali products through &lsquo;Made in Nepal&rsquo; exhibition in various countries. We have planned to organize such exhibitions in five countries in the first phase. Similarly, we will construct &lsquo;Nepal House&rsquo; in various countries which will be helpful to inform foreigners about Nepal and Nepali culture. We have planned to construct such houses in Mexico, Belgium, UK, USA and Australia. We will gradually expand this concept to other nations and cities too.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><strong>How do you take recent accusations of involvement of political parties in NRNA&rsquo;s recent convention ?</strong></span></div>
<div>
	I want to clear it out that politics is our least priority in Nepal. We are all focused on bringing cultural change regarding entrepreneurship in Nepal. We have to increase productivity for the prosperity of the country and we will be involved in such activities but not in politics directly.</div>',
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			'description' => 'Shesh Ghale is a Mebourne, Australia based non-resident Nepali businessman. He has been listed as the 180th richest man in Australia (together with his wife Jamuna Gurung) by BRW News Australia with a fortune of $225 million. Recently, Ghale has been elected as the president of the Non-Resident Nepali Association (NRNA).',
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			'article_category_id' => '46',
			'title' => '“Private Sector  Is Publicity-Oriented”',
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	&nbsp;</div>
<div>
	<div>
		<span style="font-size: 16px;">Though a businessman, he is well known in political circles. Entering the business world at the age of 14, Ajay Raj Sumargi, Chairman of Mukti Shree Pvt Ltd, has many successes under his belt. Shifting between political and business circles, and from one business sector to the next, Sumargi makes an interesting business personality in Nepal. His favourite sector at the moment is hydropower which, according to him, is the one that can change the economy of the country for the better. He does not try to hide his interest in politics and ways he interacts with political forces in order to develop a common minimum understanding among political leaders. &ldquo;Yes, leaders come to me and request to play the role of mediator when there are disputes and differences among them,&rdquo; he reveals. Sumargi talks to New Business Age&rsquo;s Siromani Dhungana about his journey and perspective on business in Nepal.&nbsp;<strong>Excerpts:&nbsp;</strong></span></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Can you please share with us your journey from being a local businessman outside of the valley to a renowned and one of the richest ones in the country?</strong></span></div>
	<div>
		I was 14 when my father passed away. Our family was already renowned for business at that time. We were involved in various businesses such as transportation, mines and wood works. My mother was always worried about my studies owing to my involvement in business from a very young age. I was responsible toward my younger brothers and we were liable to huge bank loans at that time.</div>
	<div>
		&nbsp;</div>
	<div>
		In 1978, I was liable for a bank loan worth Rs 1.1 million because I had taken over all responsibilities of my father&rsquo;s business. I must confess that I am not a first generation businessman - all I did was continued the businesses initiated by my father. I cleared all my banks loans by 1986 and was able to own a car at that time. All my success today is due to my hard work in those days.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>You entered the business world at a very young age. How did you cope with challenges in business?</strong></span></div>
	<div>
		I was born in a very prosperous and educated family that had great influence at the local level. I cannot forget the contribution of my predecessors for my progress. Similarly, I got many opportunities, warmth and cooperation from society due to my father&rsquo;s fame.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Another reason for my success is my readiness to take risks in business. For instance, I bought a loader worth $60,000 around 1993. At that time most people suggested that I buy a truck instead because the profit attained from trucks was more secure compared to loaders. However, my decision of purchasing a loader paid back and proved to be a right within six years as I was able to reap profit and invest it further in other projects. As a businessman, I always took risks and my readiness to bear risks has benefitted me thus far.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Generally, I change my sector every 11-12 years. In the initial 10 years, I was involved in the business of wood mills; after that, I moved on to the business of mines; later, I got involved in the telecom business and have been in it for the last 10 years.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>So, which sector do you anticipate engaging in the next 10 years?</strong></span></div>
	<div>
		It is obviously the hydropower sector I want to concentrate in the coming decade. I have planned to invest in a 35MW hydropower project in Dhading district. I will also put my energies to bring foreign investment in the hydropower sector.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		I had planned to construct a large capacity hydropower project in Karnali when Pushpa Kamal Dahal was Prime Minister. But it could not start due to hassles at the political level. I have put hydropower in my priority list and I think my presence will have a positive impact just as in the telecom sector. My contribution to make the telecom sector competitive and cheap has proved that I can create positive impact in business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Private sector investment in hydropower has been a much hyped issue. In your opinion, what are some major problems impeding the big hydro hope?</strong></span></div>
	<div>
		There are many problems in the hydropower sector. First, we have entrusted the responsibility of production, transmission and distribution work to the same agency - the Nepal Electricity Authority (NEA). In my opinion, a single government agency cannot carry out all these responsibilities. The government&rsquo;s role should be limited to the monitoring of the entire sector whereas work of production, transmission and distribution should be given to the private sector. But the government should provide some sort of subsidy to develop this sector. Another major problem is in transmission. The existing transmission line is not sufficient to supply electricity to households connected to the grid. The line cannot supply power even if sufficient power is produced. Lack of an effective system in NEA and lack of appropriate policies and laws have also affected the development of the hydropower sector.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>The private sector is also blamed for malpractices in the hydropower sector. What is your say?</strong></span></div>
	<div>
		It seems the private sector has been publicity-oriented to some extent. Hoarding of hydropower licenses is a serious malpractice on the part of the private sector. Such trends tarnish the reputation of the private sector. The government should revoke the licenses of those firms that are squatting on the licenses just for pocketing them.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Genuine businessmen have been suffering due to the license hoarding trend. The government cannot issue licenses to genuine businessmen like me since all rivers are already occupied. The government should end this and the private sector should support the government in doing so.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Let&rsquo;s change the topic. In your opinion, what should the government do to create an environment conducive to entrepreneurship?</strong></span></div>
	<div>
		Instead of the government acting for that purpose, I think the private sector should be sincere. Activities of the private sector should promote and strengthen it. The government alone cannot create an environment conducive for &nbsp;entrepreneurship and a blame game is not enough. &nbsp;Yet, the government has many responsibilities. The government should facilitate business activities by investing in infrastructure. Three sectors including information technology, hydropower and road connectivity are especially important for positive environment in business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>In spite of your attempt to stay away from controversy, you are always amidst it due to your political connections. Why is this so?</strong></span></div>
	<div>
		I never want controversy pertaining to my personal life. But people always try to drag me into it which is not good. I don&rsquo;t think it is my fault. People often see things from a single perspective and fail to evaluate things from multiple sides. I think a one-sided assessment of any person will victimise the concerned person.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>There are rumours that you and Prachanda have joint investment in some commercial organizations. Is this true?</strong></span></div>
	<div>
		I was equally close to late Girija Prasad Koirala. Once, I did not speak with him for three months and later he himself came to my house. This does not mean that I want to show off my connection with leaders. But I have good relations with all leaders regardless of their political ideology. I do not have any special connection with Prachanda. I frequently meet Sushil Koirala, Madhav Kumar Nepal and Ram Chandra Paudel. People do not care when I meet other leaders but I don&rsquo;t understand why they hype my meeting with Prachanda. Instead, I claim that I have played a role among political leaders to mitigate the differences among them. They also ask me to play the role of mediator when there are disputes and differences among them.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>It is also said that you constructed &lsquo;Mukti Tower&rsquo; in Baneshwar, naming it after Prachanda&rsquo;s father?</strong></span></div>
	<div>
		Yes, it is correct that I have constructed Mukti Tower. Its full name is &lsquo;Mukti Shree Tower&rsquo; and I named it after Lord Muktinath. I want to inform that I have kept more than 90 per cent of names of my companies after Lord Muktinath. It is false information that the name of the tower was after Prachanda&rsquo;s father. I don&rsquo;t have special relations with Prachanda. Rather, I have known Dr Baburam Bhattarai for long. What I want as a businessman is very clear - that our leaders should have common minimum agenda for the economic development of the country, and I want to contribute to develop such agenda.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Despite being a businessman, you are equally familiar with the political situation of the country. How do you see the relation between politics and business?</strong></span></div>
	<div>
		Political stability is very important to foster good business environment. Politicians need to assure that it is safe to invest. Similarly, right to property is also very important to create an environment conducive to entrepreneurship. All business people should be convinced that there is level playing field in the business sector. No one will be ready to take risks in an environment of political instability. We want a constitution that will ensure right to property and a free market economy. I want the election to be held in the stipulated time which will be crucial for stability in the country. There may be a group that does not want elections to take place for their own benefit. Prolonged transition in politics will lead us to the worst situation in terms of business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Political parties still seem to be less worried about economic agenda during election. How do you view this?</strong></span></div>
	<div>
		Recently, Nepali Congress organized a meeting with the business community and entrepreneurs to hold a discussion about economic agendas. I was very happy to be participating in the meeting. I want other parties to hold similar discussions. In my opinion, economic agendas should be forwarded in a professional manner, leaving political advantages and disadvantages aside. &nbsp;Political parties should include the issues of economic reform in their manifestos. Political commitments in manifestos help citizens make parties accountable. In spite of having potential for economic prosperity, we have been failing to tap it, forcing our human resource to go abroad for job opportunities.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>So you are worried about the trend of Nepalis seeking jobs abroad?</strong></span></div>
	<div>
		Yes, indeed I am. Our country has been supplying unskilled labour abroad. My wish is to create more and more jobs in this country so that people will not be compelled to seek jobs in a foreign land. If we cannot create enough jobs, the government should at least train the manpower going abroad to prevent trouble there. We need to provide training for basic skills and knowledge for job seekers. Similarly, the country needs to provide basic language training so that employees will be able to converse in a foreign land. Manpower agencies should also be made accountable to their clients.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>What are the three most important qualities to be a successful entrepreneur?</strong></span></div>
	<div>
		Integrity, duty, and patience are essential to be a successful entrepreneur. One should be straightforward and clear in conversation. Anyone should have the courage to say &lsquo;No&rsquo; for what is wrong or impossible and &lsquo;Yes&rsquo; for what is right and possible. Sincerity in business dealings goes a long way. I think, we should respect all and should have patience for everything as well.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Are you satisfied with what you have achieved so far?&nbsp;</strong></span></div>
	<div>
		Yes, indeed, I am satisfied with my work thus far - I am an optimistic person by nature. Rather, I worry about whom to pay for the heat we get from the sun or the air we breathe. I have been interested in contributing to society through various philanthropic deeds. And thus far I have been involved in road and public taps construction, and canal and bridge construction. I get pleasure from social work as I feel I am obligated towards society. Social work has been a satisfactory experience and I request fellow businessmen to realize the same. &nbsp;</div>
</div>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-10-29',
			'modified' => '2013-11-10',
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			'description' => 'Though a businessman, he is well known in political circles. Entering the business world at the age of 14, Ajay Raj Sumargi, Chairman of Mukti Shree Pvt Ltd, has many successes under his belt. Shifting between political and business circles, and from one business sector to the next, Sumargi makes an interesting business personality in Nepal. His favourite sector at the moment is hydropower which, according to him, is the one that can change the economy of the country for the better. He does not try to hide his interest in politics and ways he interacts with political forces in order to develop a common minimum understanding among political leaders.',
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	(int) 7 => array(
		'Article' => array(
			'id' => '1967',
			'article_category_id' => '46',
			'title' => 'Etihad Airways’ Global Network Contributes To The Success Of Kathmandu Route',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size: 14px;">In less than six years of its operation in Nepal, Etihad Airways has already established its brand image among Nepali consumers. Since the commencement of flights in 2007, the United Arab Emirates-based airline has carried more than 500,000 passengers. In addition to connectivity in between Abu Dhabi and Nepal, Etihad Airways offers its service to more than 87 destinations across the globe. New Business Age asked&nbsp;<strong>Pawana Shrestha</strong>, Etihad Airways&rsquo; Country Manager in Nepal about airline&rsquo;s plan.<strong>&nbsp;Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>Etihad Airways recently celebrated its fifth year of operation in Nepal? How has the journey been?</strong></div>
<div>
	Our services to Kathmandu have been a great success. Since the launch of the route in 2007 we have carried more than 570,000 passengers. In addition to carrying passengers between Abu Dhabi and Nepal, Etihad Airways offers seamless connections to more than 94 destinations around the world. Etihad Airways&rsquo; global network has been a major contributor to the success of the Kathmandu route.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are the future plans of Etihad Airways in Nepal?</strong></div>
<div>
	We will continue to work closely with our travel partners to promote tourism to this beautiful country and carry more passengers to cities across our global network.</div>
<div>
	&nbsp;</div>
<div>
	Our close partnerships with the trade and travel industry in Nepal, has been instrumental in our success in Nepal, with the consistently high load factor across all cabins. We are very pleased to be making meaningful contribution to the Nepali economy.</div>
<div>
	&nbsp;</div>
<div>
	<strong>The United Arab Emirates (UAE) is a lucrative destination for many Nepali migrant workers. What is the percentage of migrant workers that Etihad cater to ?</strong></div>
<div>
	We cater to a fairly large number of Nepali workers. However; we carry even more leisure passengers. In 2012 Nepalese workers made up around 30 per cent of our customer base, leisure passengers made up 50 per cent. The remaining were business and corporate travelers.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Numerous other airlines are operating in Nepal. How tough is the market competition for Etihad?</strong></div>
<div>
	Nepal is a very competitive market and there are around 28 airlines currently operating services to Kathmandu. The Abu Dhabi- Kathmandu route, however, has been very successful. This success is due to our commitment to providing our guests with a remarkable travel experience across their entire journey and our focus on delivering award winning product and services.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is your Marketing Strategy in Nepal?</strong></div>
<div>
	Our Marketing strategy focuses on raising the profile of Etihad Airways in the Nepali market and increasing awareness of Abu Dhabi as a leisure destination. The core of our strategy, however, is providing an unbeatable product.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Our marketing strategy involves working closely with our partners, travel agents, industry magazines and trade associations as well as by deploying various promotions, competitions and discount programmes throughout the year. &nbsp;These include tactical campaigns like regular breaking deals, online deals and highly discounted last-minute offers to encourage repeat visitors.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are your CSR programmes in Nepal?</strong></div>
<div>
	Etihad Airways is committed to active participation in causes that support people and strengthen communities across its global network.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;In Nepal, our corporate social responsibility policy centers on projects that assist communities in need and, in the longer term, drive development and empowerment. Therefore, we support orphanages and education projects and homes for the elderly and through medical partners, support critical surgery and health services training.</div>
<div>
	&nbsp;</div>
<div>
	Recently we donated a large amount of waste paper to support a recycling initiative led by Shanti Sewa Griha, a non-governmental &nbsp;organisation providing shelter for the less privileged and fighting discrimination against leprosy patients in Nepal.</div>
<div>
	&nbsp;</div>
<div>
	In 2012 we donated care parcels, made up of packed lunches and blankets, to two social welfare organizations in Kathmandu to keep the less privileged safe from the piercing cold of Nepal.</div>',
			'published' => true,
			'created' => '2013-10-09',
			'modified' => '2013-10-28',
			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'In less than six years of its operation in Nepal, Etihad Airways has already established its brand image among Nepali consumers. Since the commencement of flights in 2007, the United Arab Emirates-based airline has carried more than 500,000 passengers.',
			'sortorder' => '1830',
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	(int) 8 => array(
		'Article' => array(
			'id' => '1678',
			'article_category_id' => '46',
			'title' => '‘Banks Contribute By Dispensing Credit And Absorbing The Additional Income Of People’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;">The Everest Bank Pvt. Ltd. (EBL) appointed&nbsp;</span><strong style="font-size: 14px;">AK Ahluwalia</strong><span style="font-size: 14px;">&nbsp;as its new chief executive officer effective from July 1. Founded in 1994, the bank has been one of the leading banks of the country catering to various segments of society. Ahluwalia, who has 32 years of experience in the banking sector, was deputy general manager of the Punjab National Bank, India. He has key expertise in credit and recovery in the banking system and now leads the Everest Bank which has 50 branches, 25 collection counters and 67 ATMs. In this interview with&nbsp;</span><strong style="font-size: 14px;">Siromani Dhungana</strong><span style="font-size: 14px;">&nbsp;of New Business Age, shares his experiences in banking sector and his plans in Nepal to lead Everest Bank into the next level.&nbsp;</span><strong style="font-size: 14px;">Excerpts:</strong></div>
<div>
	<div>
		&nbsp;</div>
	<div>
		<strong>You worked with the Punjab National Bank for 32 years. How do you see the banking sector in the South Asian region?&nbsp;</strong></div>
	<div>
		In my view, there is one thing common to the entire region which is the general slowdown of the economy. The inflationary trend also affects the cost of goods produced, thus making them uncompetitive in the international market. As a result, exports slow down. There is also a general tendency on the part of entrepreneurs to procrastinate in expanding their existing units or setting up new industries due to the slow economy.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>So you think the manufacturing sector and the banking sector will go well together?&nbsp;</strong></div>
	<div>
		I believe so. When the manufacturing sector is on an upswing, more capacity is created and utilized, more jobs are created and the standard of living of employees improve. People&#39;s purchasing power improves, in turn increasing demand. This is a cycle which continues and contributes in a big way to boost the economy. Banks contribute in their own way by dispensing credit and also by absorbing the additional income of people as deposits, and investing the same.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>You were with the Punjab National Bank in Delhi before coming Everest Bank Limited. What inspired you to be here?&nbsp;</strong></div>
	<div>
		I have worked for 32 years in the Punjab National Bank, having joined as Management Trainee. During my time there, I worked in all types of branches as branch manager and also at the corporate office as well as the circle office. Now I have a chance to work as CEO at Everest Bank Ltd, which is a prominent commercial bank in Nepal. It is my privilege to be a part of this institution and it would be my endeavour to carry it forward and try and make the bank stronger within the framework of regulatory guidelines.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>What are your future plans here onward?&nbsp;</strong></div>
	<div>
		Everest Bank has been doing exceeding well. It has created a unique brand image for itself. Over a period of time, it has become one of the leading commercial banks of Nepal. I believe when you have raised expectations of your stake holders, whether customers, staff, shareholders or promoters, you have to live up to them. It takes a lot to create the brand image and it would be my priority to add further value to it. I have a great team of people working with me who are fully devoted to take the bank to the next level.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Will you bring unique products/services to push the bank to the next level?&nbsp;</strong></div>
	<div>
		I have been CEO of the bank only for a fortnight and it is too early to comment. However, my priority would be to increase the customer base of the bank, both in deposits as well as credit. The existing products are, and also in future would be, in keeping with the customers&rsquo; needs and expectations.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Let&rsquo;s talk about your career and what your banking experience has taught you.&nbsp;</strong></div>
	<div>
		My banking experience has taught me one very simple thing - that if I want my customers to be loyal to me, I have to be loyal to them. When we give correct advice to our customers and deliver exactly what we promise, their loyalty automatically grows.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Your key expertise is in credit and recovery. Can you bring some innovative ideas in these areas?&nbsp;</strong></div>
	<div>
		Credit is basically a function of delivery. For a credit customer, delivery has to be very fast. As far as recovery is concerned, it is basically about being vigilant. If we are vigilant about our accounts, and if the monitoring is good, then recovery is not an issue. Primarily, if we are able to catch signal of an account going sticky at the right time, then corrective measures can be taken immediately.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Any plans for the rural sector?&nbsp;</strong></div>
	<div>
		Prior to my joining EBL, the bank already had plans for agriculture financing, having set up a branch at Rajbiraj, Krishi Udhyam Bikash Sakha. We are also encouraging some corporate clients to boost finances in rural areas.</div>
</div>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-08-23',
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			'description' => 'The Everest Bank Pvt. Ltd. (EBL) appointed AK Ahluwalia as its new chief executive officer',
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	(int) 9 => array(
		'Article' => array(
			'id' => '1442',
			'article_category_id' => '46',
			'title' => 'Development And Growth Should Go Together',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size: 12px;"><span style="font-size:14px;">Radhesh Pant has experience of working nearly a decade in United States in the financial sector. After acquiring good experience of banking sector from the world&rsquo;s number one economy, he returned to Nepal in 1999 and engaged in banking sector. He was also the president of the Nepal Bankers&#39; Association (NBA). He was appointed to head of Nepal Investment Board in 2011. The Investment Board is envisioned to give a one-window solution to potential investors in big projects of over Rs 25 billion with the chairmanship of the Prime Minister of Nepal. Siromani Dhungana and Sujan Dhungnaa of New Business Age spoke to him about prospects of alternative development paradigm in Nepal and his view regarding development versus growth. He says development and growth should go together for the effective development initiative in the country.</span><strong> <span style="font-size:14px;">Excerpt:</span></strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>The ongoing controversy in Nepal regarding growth versus development (more specifically inclusive development) is said to be affecting the functioning of the Nepali economy. How do you view this controversy?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Inclusive development induces economic growth that is sustainable and will result in better livelihood for all the people. Inclusive development will also minimize the gap between the rich and the poor that will culminate in fair distribution of wealth and ample opportunities for all. However, economic growth alone could actually increase the gap between the haves and have nots thereby ensuing inequality, ill-governance, agitation and corruption amongst others which is not sustainable and will result in restlessness, chaos and ultimately civil unrest. This is the risk we are facing in the country right now. We need to focus on inclusive growth and we need to do that fast.&nbsp;</div>
<div>
	For Nepal, with the abundant resources of all kinds, we ought to focus on inclusive development. We need to get our act together. First off, our politicians need to place consistent and consensual priority on inclusive development. Projects that have enormous impact on inclusive growth need to be defined and prioritized. Then we need stable policies such that government changes do not impact these projects and there is continuity. Finally, we need to build our capacity within and outside government to ensure transparency, good governance, accountability and technical ability to monitor and regulate large scale projects. Moreover, we need to be competitive compared to other countries in the region in terms of providing good and timely services, incentives and project formulations.&nbsp;</div>
<div>
	I believe the Investment Board has been established about a year and a half ago for the single purpose of executing large scale projects that assures fair share to Nepal. We are currently focused on large projects that have enormous impact on the economy and would definitely foster inclusive development of Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The Investment board is entrusted to promote economic development of the country and to create employment opportunities. How compatible is this stated mandate with the actual functioning of the Board?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	I think it is absolutely compatible. We have great resources in hydropower, agriculture, tourism amongst others, but we have not been able to capitalize on them. Development of these resources, coupled with the infrastructure development needs in the country to physically connect every nook and corner of the country is the priority. It provides trade of goods, people and services within the country and also abroad. This would create lots of jobs, domestic sustenance, increased exports and will ultimately lead to economic transformation.&nbsp;</div>
<div>
	Investment Board is mandated to do exactly that. Its objective is to provide a fast track approval process and a single window mechanism for prospective investors, both domestic and international. So, essentially by implementing the large scale projects, the Investment Board is the transformation agent that will create ample employment opportunities and inclusive development of Nepal.&nbsp;</div>
<div>
	But having said that, there need to be competitive and coherent policies in place in order to achieve this. Moreover, the Investment Board needs to be at an arm&rsquo;s length from the government and needs to be run professionally, transparently, competitively and with accountability. This is what we have been focused for a year or so. The Investment Board needs to capture the interest of Nepal in all the projects that it executes rather than on vested interests of certain factions. And that is exactly why the Project Development Agreement based on the nine principles that protects Nepal&rsquo;s interest has been formulated.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>So, what are the nine principles? Could you illustrate on that?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Well, currently, we have a Project Development Agreement that is focused on the Hydropower Development. However, this agreement will be emulated for other large projects in other sectors as well. The basic nine principles are that the Project:&nbsp;</div>
<div>
	1. Meet Nepal&rsquo;s electricity needs first.&nbsp;</div>
<div>
	2. Captures for Nepal her fair share of economic benefits.&nbsp;</div>
<div>
	3. Ensures best use of river basin.&nbsp;</div>
<div>
	4. Returns hydro asset to Nepal in good operating condition.&nbsp;</div>
<div>
	5. Transfers project risk to party best able to manage risk.&nbsp;</div>
<div>
	6. It is balanced. The developer is able to receive a fair market based return as compensation for investment, project development and management skills and risk.&nbsp;</div>
<div>
	7. Ensures high environmental sustainability and high safety standards.&nbsp;</div>
<div>
	8. Industrial and Employment Benefits. A good deal is structured so that the demand for goods and services from the tens of billions of dollars of expenditure stimulate many new prosperous business and thousands of skilled and semiskilled jobs for Nepalis.&nbsp;</div>
<div>
	9. Model community benefits includes a package that brings about long term benefits such as training, skill development, employment, business development, community infrastructure - clean water, health services, electrification, housing, etc. It will ensure that local people will become proponents rather than opponents of new hydro projects.&nbsp;</div>
<div>
	With these principles in place, I am confident that Nepal&rsquo;s interest will be protected and that Nepal will be able to maximize its fair share from the project.&nbsp;</div>
<div>
	The government has set an economic growth target of 7 per cent by 2015. Do you think that the government is biting more than it can chew?&nbsp;</div>
<div>
	In my mind, reaching a 7 percent economic growth is not that much of a deal. We need to get our act together. First of all, economic agenda has to be a top priority for all the parties. Consensus amongst the political parties on priority projects is a pre-requisite. Then, elections need to happen in November. We need to send out signals to the investors, both domestic and international that Nepal is ready for business. Stable investment policies that are attractive to investors need to be in place. In the current fiscal year, we are expected to grow at 4.5 percent growth and last year we grew at around 5 percent. If the above preconditions are achieved, adding two more percent is not that difficult. The ball is on our (Nepal&rsquo;s) court.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>In your opinion, what type of policies should the government adopt to promote inclusive development?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Policies need to be clear, simple, sustainable and stable. With every government change, its priorities and policies cannot change. Secondly, inclusive development will not happen overnight. We need to have a long term strategy that is supported by all the stakeholders of development. This includes the political parties, government, private sector and Nepali people in general. The policies and laws need to complement the project execution rather than hindering it. If we are able to execute projects that harness our resources (which are spread across the country), inclusive development will become a reality.</div>
<div>
	&nbsp;</div>',
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			'description' => 'Radhesh Pant has experience of working nearly a decade in United States in the financial sector. After acquiring good experience of banking sector from the world’s number one economy, he returned to Nepal in 1999 and engaged in banking sector. He was also the president of the Nepal Bankers' Association (NBA). He was appointed to head of Nepal Investment Board in 2011.',
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			'article_category_id' => '46',
			'title' => 'Coca-Cola Strives Be Relevant To New Generations',
			'sub_title' => '',
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			'content' => '<p>
	 </p>
<p>
	Coca-Cola’s India unit and South West Asia business operations comprise key markets – India, Nepal, Bhutan, Bangladesh, Sri Lanka and Maldives. Nepal is one of the key markets for Coca-Cola and the business unit’s role is critical to the company to maintain its market share and brand name. Recently, Neeraj Garg, vice president at Coca-cola India and South West Asia Business Unit visited Nepal. New Business Age Editor-in-chief Madan Lamsal talked with him regarding business prospects of Coca-Cola in Nepali market during his visit.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>Kindly talk about your career growth and your role in the Coca Cola business today.</strong></p>
<p>
	I have spent most of my working life with Coca-Cola, having been with the company for almost two decades now. I joined in 1994 and worked in a variety of roles mostly involving Operations and Commercial beverages. I had an eight year stint with Coca-Cola China where I worked on a variety of roles from Business Development to Shanghai Region Manager and also managed The Coca-Cola Company’s Global Partnership for the 2010 World Expo in Shanghai. I moved back to India in early 2011 as VP-Operations providing leadership support to the company owned bottling operations (CBO) and franchise bottling operations (FBO’s) in India. In October 2012, I took over the role of VP-South West Asia Operations and as the Head of our Juice business for the India and South West Asia Business Unit.</p>
<p>
	Coca-Cola is a great company and a great brand to work for. I’ve had some extremely challenging yet fantastic experiences in my years with Coke. I have had the pleasure of working with some of the most engaged and inspiring people as a part of the Coca-Cola family and I hope I can continue to do so in the future as well.&nbsp;</p>
<p>
	<strong>Till a few years ago Coke in Nepal enjoyed close to 80 percent of market share. That is now reduced about 64 percent only, somewhat due to aggressive marketing from the competitor. What is being planned in order for Coke to regain the same past glory? Where have you reached in your expansion plan for Coca-Cola in Nepal?</strong></p>
<p>
	The Coca-Cola Company is one of the largest beverages companies and our products are available in more than 200 countries. In Nepal as well, our brands enjoy consumer preference and share of throat, as we like to call it.&nbsp;</p>
<p>
	After 126 years in the beverage business, we are still innovating, evolving and striving to be relevant to new generations. &nbsp;We constantly strive to stay relevant to our consumers by focusing on their needs and consumption patterns and connecting with them through our products. For example, Trademark Coca-Cola has partnered with the All Nepal Football Association for the Coca-Cola Cup to connect with young footballers across Nepal and promote healthy active lifestyles. Brand Fanta has partnered with the Miss Nepal pageant to stay relevant to teenagers and add some ‘play’ in their lives. So we are constantly trying to find touch points that connect our brands with our consumers across the country.&nbsp;</p>
<p>
	We face aggressive competition in any country that we operate in, but this is good since it not only helps the category to grow, but also provides consumers with a choice of high quality beverages. &nbsp;</p>
<p>
	Providing consumers with choice and value continues to be the cornerstone of our business strategy.We are focused on offering a range of products in different packs at varying price points, which is in keeping with our OBPPC (occasion, brand, price, pack, and channel) architecture. To ensure this, we are investing in our distribution, innovation and marketing investments to continue to drive recruitment for the beverage category. Further improvement in the company’s route-to-market and organizational capabilities are also areas we need to focus on. We have solid plans for Nepal this year and if we can do the right things every day, business growth is a given.</p>
<p>
	<strong style="font-size: 12px;">Coca-Cola in Nepal does not have a wide range of products that the company’s consumers enjoy elsewhere. What are you doing in this regard? Is any products line expansion in the offing in Nepal?</strong></p>
<p>
	The Coca-Cola Company is one of the largest beverages companies in the world today. We are available in more than 200 countries across the world and have more than 3500 product offerings, including more than 800 low and no calorie products, for our consumers to choose from.</p>
<p>
	Our efforts in Nepal need to be directed at being the beverage of choice all day, every day. We need to continue to do the right things each day and at all times.We want to provide our consumers across Nepal with a wide variety of products. We currently offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes across channels. We are focused on leveraging the growth opportunity that a market like Nepal provides and we are constantly researching and evaluating need states to grow our business and expand our portfolio of products.</p>
<p>
	We have been researching and innovating and have a number of plans for Nepal this year in terms of our beverage choices and packaging varieties. You will have to watch out for those in the coming months!</p>
<p>
	<strong>What is the contribution of Coca-Cola’s pure juice and juice products to its total annual revenue collection from Nepal?&nbsp;</strong></p>
<p>
	We currently offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes including in RGB 250ml, Cans 330 ml, PET 500ml, 1.5 Liters and 2.25 Liters. Our current portfolio does not include juices and juice products. As I said before, we are focusing on our distribution, route-to-market and organizational capabilities to drive recruitment for the beverage category, grow our business and expand our portfolio of products, in line with consumer choice and preference.</p>
<p>
	<strong>Coca-Cola’s fruit juice and juice products like the Minute-Maid and Simply Orange apparently do not have any significant market share in the Nepali market. What are the plans to promote these juice products of the company in Nepal?</strong></p>
<p>
	As I mentioned earlier, we currently do not manufacture any juice in Nepal.We offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes. Packaged beverage consumption is on the rise in Nepal and we are constantly evaluating opportunities to provide our consumers with a variety of still and sparkling beverages.We need to continue to do the right things each day and at all times, to further grow the packaged ready to drink beverage business in the country. We will of course continue to innovate and evolve our portfolio of products to cater to consumers’ tastes in the Nepalese market.</p>
<p>
	<strong>There is one controversy in Nepal. People say that the Coke they get to drink here in Nepal or this part of the world is not the same as what the people in the US or Europe get to drink. Is the perception right? If there is perceptive difference, why so and do you find reasons enough to alter this perception? How?</strong></p>
<p>
	Our beverages across the world provide consumers with the same great taste and quality. We strive toprovide the same high quality, safe and tasty products in all 200+ countries in which we operate. Our quality testing parameters and taste standards apply to all our manufacturing facilities worldwide. We aim to provide our consumers the same refreshing and flavourful beverages across the world.</p>
<p>
	<strong>Coke is no doubt the most popular carbonated drinks in Nepal as well as in the South Asian region. But perhaps the same is not true for Coke’s juices. How far is Coca-Cola from realizing the optimum potential of its juice business in the South Asianregion?&nbsp;</strong></p>
<p>
	Nepal’s beverage industry is growing. Consumers now have a lot of choice in terms of choosing what type of beverage they want, at what pack and what occasion.</p>
<p>
	That being said, the industry still has a lot of potential to grow. This is a country which has a relatively low per capita consumption levels for packaged beverages and we see steady and robust growth in both sparkling and still beverage categories in the future. The per capita consumption of our products is only 9.2. Contrast this to a global average of 92, 38 in China and 728 in Mexico. In Nepal our portfolio includes Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda. In India we have products like Thums Up and Limca and the Minute Maid Brand of juices.&nbsp;</p>
<p>
	Minute Maid Pulpy Orange is the number one orange juice drink and Maaza, our mango juice drink has been the leader in the mango juice category for years now. In Sri Lanka as well, we have our Minute Maid range of juices, including Orange, Mango, Apple and Mixed Fruit flavours which are doing exceptionally well in that market. We are currently the market leaders in Sri Lanka. So we are seeing a rise in the consumption of juice and juice drinks in all our markets in this region. Our outlook towards juices and juice based beverages in this region is very positive. With disposable incomes rising, consumers are focusing on hygiene and quality of packaged beverages which will lead to growth in consumption of our juice drinks as well.</p>
<p>
	<strong>The company’s other beverages such asLimca, ThumsUp, Maaza etc.are quite popular in India but not that much in Nepal. Is the company going to adopt any new marketing strategy in order to promote these brands in Nepal?</strong></p>
<p>
	Our efforts in Nepal need to be directed at being the beverage of choice all day, every day.We want to provide our consumers across Nepal with a wide variety of products and we have been investing behind our brands and brand positioning to drive recruitment for the sparkling beverage category. We currently offer Trademark Coca-Cola, Diet Coke, Fanta, Sprite and Kinley Soda in Nepal in a variety of pack sizes. We are focused on leveraging the growth opportunity that a market like Nepal provides. We have some solid marketing plans for Nepal this year and we will continue to innovate and evolve our portfolio of products to cater to consumers’ taste preferences in Nepal.</p>
<p>
	<strong>Is the company planning to promote its juice brands in a major way globally as it seems the consumers, of not only Coke but also other carbonated drinks as well, seem to gradually believe that soda is not very god for human health and hence are shifting to juices which are healthier alternatives? &nbsp; &nbsp;&nbsp;</strong></p>
<p>
	All over the world, consumers are telling us they care about their well-being, and we care too. &nbsp;We recognize the health of our business is interwoven with the well-being of our consumers, our employees and the communities in which we operate. &nbsp;That is why we offer consumers a wide range of choices in products, sizes and with and without calories. Bringing real choice to consumers everywhere, and educating them on the role their choices play in achieving sensible, balanced diets and active, healthy lifestyles, is part of our commitment to responsible marketing and consumer education around our products.</p>
<p>
	As I said before, we have more than 3500 product offerings, which include more than 800 low and no calorie products, for our consumers to choose from. We have demonstrated that both the Sparkling and Still segments have tremendous upside. We want to be a total beverage company and keeping this in mind have launched several products in the recent past to ensure we are able to cater to the varying needs of the consumer. Juices and juice drinks play a key role in our portfolio and have been showing robust growth over the past few years. All our products, not just juice drinks, can be enjoyed as part of an active healthy lifestyle.</p>
<p>
	<strong><img alt="Neeraj Garg, vice president at Coca-cola India and South West Asia Business Unit" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_june2013_neeraj_garg(2).jpg" style="float:right; margin:0 0 0 10px;" />In recent years, Coke in Nepal is increasing its spend on CSR activities. What new activities are being planned?</strong></p>
<p>
	We operate in world which is constantly innovating and evolving to become more and more sustainable in the long term. Consumers across the world are conscious to companies that are investing in CSR and are seen doing something for the betterment of the community.&nbsp;</p>
<p>
	Sustainability is a crucial component of The Coca-Cola Company’s global business strategy and Vision 2020 statement. We strongly believe that in order for us to do well, we need our communities to succeed and give us the social license to operate. As our Chairman Muhtar Kent puts it- ‘Sustainable business thrives only amongst sustainable communities.’ We have developed a global framework for all our sustainability initiatives across the world and have an entire vertical dedicated to CSR and sustainability.&nbsp;</p>
<p>
	In Nepal, we have designed various programs under this global sustainability framework of ‘Me We World’, with an emphasis on Water and Sanitation, Climate Protection and promoting Healthy Active Living.</p>
<p>
	We have recently launched two of our flagship CSR initiatives the Support My School Program and the 5BY20 Parivartan Training Program in Nepal.&nbsp;</p>
<p>
	We have launched the ‘Support My School’ Campaign in partnership with UN HABITAT, ENPHO, CEN and some municipal corporations. This is grassroots level campaign that aims to create awareness and address issues in schools which lead to absenteeism or children dropping out of school. We are focusing on improving water and sanitation facilities and developing the overall infrastructure of schools across Nepal.&nbsp;</p>
<p>
	The 5BY20 Parivartan Program is a women’s retailer training program, part of our global &nbsp;initiative that aims to economically empower 5 million women across our value chain by the year 2020. Through this program we are training Nepali women retailers on business skills, such as Shop, Stock, Customer and Financial Management. We launched this initiative with 30 women retailers on 8th March- International Women’s Day and we plan to conduct more trainings across Nepal this year.</p>
<p>
	One of our associates recently went to Antarctica as part of an international team with Sir Robert Swan- a renowned polar explorer and environmentalist. Swan visited Nepal last year to support our efforts towards water and environmental protection. We hope that through this international exposure our associates can create awareness and make a difference towards climate change.&nbsp;</p>
<p>
	Coca-Cola Nepal also has partnerships with UNHABITAT and the Government of Nepal for The Partnership for Safe Water Project to reduce the risk posed by untreated water. The Project provides improved access to drinking water by promoting Household Water Treatment (HWT) options in local communities and spreading awareness on ‘Safe drinking water’ in urban centres of Nepal.</p>
<p>
	We have also partnered with the All Nepal Football Association (ANFA) for the Coca-Cola Cup, national grassroots football tournament since 2006. This initiative is a part of our global commitment to create a sporting culture in the country by promoting a healthy and active lifestyle. This tournament involves 10, 000 boys and girls from over 500 schools across 6 regions of the country.</p>
<p>
	We also organize a number of initiatives to create awareness on World Water Day and World Environment Day,as well as conduct the Everest Marathon and International Olympic Day Run.&nbsp;</p>
<p>
	<strong>How has the ongoing financial or economic crisis in Nepal affected the soft drinks market? &nbsp;And how is Coke facing it?&nbsp;</strong></p>
<p>
	Economic and political stability is important for the country and of course for businesses as well. As a business, we hope that there is ample predictability in policies and regulations. As a business entity, we expect governmentsto have a long term outlook and a world view to spur growth in any market that we operate in. We believe that Governments should work collectively with industry and policy bodies to implement effective policies that spur economic growth. The Coca-Cola strategy for solving some of the world’s most pressing issues is what we call the ‘Golden Triangle’ -- the coming together of civil society, business and government to develop collaborative partnerships and create a model for growth. We have been constantly working towards such partnerships worldwide and we are seeing a positive difference in these communities.&nbsp;</p>
<p>
	<strong>What are your views on the trends in the Nepali economy over the next one or two years, and impact for soft drinks business in general, and the Coca Cola group of drinks in particular?</strong></p>
<p>
	As I mentioned, creating stable and predictable policies and a business-friendly environment is something that all business entities look for to invest in countries in the long term. As businesses we hope that Governments will work collectively with industry and policy bodies to implement effective regulationsto spur economic growth. As I mentioned, our philosophy is driving effective collaborations and partnerships between government, business and civil society.&nbsp;</p>
<p>
	With regards to the beverage industry in Nepal, I think the packaged beverage consumption is on the rise and the non-alcoholic ready to drink (NARTD) category continues to evolve to varying consumer demands. Coca-Cola has a strong focus on innovation and we will continue to provide our consumers with beverage choices for all occasions and cater to the advancements of the Nepali beverage market.</p>',
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	(int) 11 => array(
		'Article' => array(
			'id' => '1058',
			'article_category_id' => '46',
			'title' => 'IFC Has Been A Pioneer In Promoting And Developing Local Capital Market',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img alt="Jingdong Hua" height="245" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_june2013_jingdong_hua_ifc(1).jpg" style="float:left; margin:0 10px 0 0;" width="200" />The World Bank Group (WBG) says Nepal is a priority country for it. &nbsp;Internaional Finance Corporation (IFC), is a member of WBG and through it the WBG is enhancing its engagement in Nepal by way of both Investment Services and Advisory Services. To facilitate private sector growth in Nepal, IFC works to promote private investment in infrastructure, tourism, financial markets, transportation, and trade finance. Through advisory services, IFC contributes to increasing access to finance for businesses, making it easier to do business, facilitating public-private dialogue for policy reforms, and promoting regional trades.&nbsp;</p>
<p>
	Recently, Jingdong Hua, Vice President, Treasury and Syndications of IFC had visited Nepal. He talked with Siromani Dhungana of New Business Age about role of IFC to strengthen Nepal’s Private sector.&nbsp;</p>
<p>
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	<strong>The main objective of your mission is to sensitise the Nepali policymakers and opinion makers on the importance of developing local capital markets as the foundation for sustainable growth. What prompted the IFC to pursue this particular objective?&nbsp;</strong></p>
<p>
	&nbsp;IFC has been a pioneer in promoting and developing local capital market. As a matter of fact, in the last 10 years, IFC has provided over $10 billion in 60 different local currencies. The reason is very simple. We help private sector entrepreneur. In case of most of our private entrepreneurs, their business generates revenue in local currencies and generates many local friends. We want entrepreneurs to focus to grow their business instead of worrying about foreign exchange facilities. At a micro level that is the motivation. And at the macro level, the motivation is the foundation for the growth of the capital market. You need a vibrantly liquid capital market support from where the private entrepreneurs can efficiently finance their operation depending on the risk of the capital.</p>
<p>
	Over the past several years, our team in Nepal has been working tirelessly in terms of supporting the power sector in the country with hydropower being the most common sector. That truly is the bottom line. We need to unlock the country to political advantage of its economic potential and some of the hydropower projects do generate local currency revenue. We have been engaging with the government for several years in terms of starting the dialogue, presenting the rationale and explaining the mechanical process. We are happy that we are getting encouraging support from the government. We are waiting for a green signal from the government about regulatory approval. We are very optimistic that the government will be supporting us.</p>
<p>
	<strong>What can the media do to help in this matter?&nbsp;</strong></p>
<p>
	Media plays an important role to sensitise the citizen on the experience of other emerging countries who have benefitted from open and vibrant capital market. It can also highlight the IFC project about how critically they are helping to resolve the infrastructural performance so as to unlock economic opportunity in different sectors.</p>
<p>
	<strong>IFC has been planning to issue local currency bond in Nepal. Could you please highlight the logic behind this?&nbsp;</strong></p>
<p>
	Our projects require local currency financing. To issue these bonds in the Nepali market, there needs to be a regulatory approval from the government for which there is a process. And we are engaging with the government. We are hopeful that in the near future, we will be able to obtain that approval.</p>
<p>
	<strong>What impediments do you see in successful implementation of this idea?&nbsp;</strong></p>
<p>
	We are very optimistic that it will be very successful. As a matter of fact, we have opened three other new markets elsewhere in the world during the last four months. For instance, we have issued local currency bond in The Dominican Republic and in Nigeria. In both cases, those were the first ever foreign bonds issued in local currency in the two countries. While in Russia, we issued the biggest bond by foreign issuer with a very innovative feature of linking coupon rate with inflation target index. We have a lot of experience working with the local pension fund, insurance company, local bank, and local investment community to showcase the benefit from different perspectives.&nbsp;</p>
<p>
	<strong>What do you have to say to the Nepali private sector that is focusing more on the problems of getting foreign capital than on local currency funds?&nbsp;</strong></p>
<p>
	For the market to be recognised by the foreign investors to attract more foreign direct investment, there has to be an environment that enables the private sector to survive. &nbsp;Stable regulatory framework too is required to support foreign investment.Also needed are some critical early success example which demonstrate that the market is viable and ready. There are many things to be developed in terms of capital market. As it needs regulatory framework, market infrastructure and capital market player, the government should regularly facilitate and support the process. It is a long term process and IFC is committed to help Nepal in every way.</p>
<p>
	<strong>The idea of utilising the local capital market for raising capital to invest in infrastructure projects is being floated for quite some time in Nepal but nothing concrete could be achieved so far. What was lacking in those ideas generated locally?&nbsp;</strong></p>
<p>
	IFC issues local currency denominated bonds. It is not just the domestic investor who can buy; foreign investor can also buy if they feel comfortable investing in Nepali rupees. The local currency bond can also attract foreign investors. It has to ensure safety in terms of settlement and investment in the market so that other players can invest on the basis of that.</p>
<p>
	<strong>How do you see the progress of IFC’s investments in Nepal?</strong></p>
<p>
	I have visited Buddha Air and had a conversation with the owner directly and how critical our financing is. So it would be beneficial if we not only provide critical financing but also the advisory support on how to improve their management and safety.</p>',
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			'id' => '978',
			'article_category_id' => '46',
			'title' => 'Nepal Is Land-linked,  We Should Take Advantage Of This',
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			'content' => '<p>
	<img alt="Narayan Kazi Shrestha" height="472" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_May2013_rajesh_kazi(1).jpg" width="580" /></p>
<p>
	<strong>Rajesh Kazi Shrestha&nbsp;</strong><strong>Chairman&nbsp;</strong><strong>Nepal China Chamber of Commerce &amp; Industry (NCCCI)</strong></p>
<p>
	Rajesh Kazi Shrestha is Chairman of Nepal China Chamber of Commerce &amp; Industry (NCCCI) and International Chamber of Commerce, Nepal (ICC, Nepal). In the past, he has been in charge of various organizations, such as the Nepal Chamber of Commerce. He is also the former Assistant Minister at Ministry of Industry, Commerce and Supplies. He spoke with Siromani Dhungana of New Business Age about Nepal-China Chamber of Commerce and Industry and its involvement in promoting country’s business environment.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong style="font-size: 12px;">How do you see the current role of Nepal’s private sector?</strong></p>
<p>
	Private sector should be taken as the engine of the national economy. Even though the entire country has been facing power scarcity and political instability, Nepal’s private sector is optimistic about leading the country to economic prosperity. In fact, private sector has been playing a crucial role for the overall economic development of the country.&nbsp;</p>
<p>
	<strong>What is Nepal-China Chamber of Commerce and Industry doing to address the problem of growing deficit in Nepal’s trade with China? &nbsp;</strong></p>
<p>
	Actually, Nepal-China Chamber of Commerce and Industry is established to promote export of Nepali products to China and Chinese products to Nepal. In order to address growing trade deficit figure, we are doing our best to promote more Nepali products in China. The organization has been participating in many promotional activities such as trade fairs where we can promote Nepali products.&nbsp;</p>
<p>
	Due to our promotional activities over the past few years, we can now say that many handicraft, thangka painting and wooden crafts entrepreneurs in many districts, including Lalitpur and Bhaktapur, are benefitted. However, those handicraft entrepreneurs from Lalitpur and Bhaktapur cannot survive if there are no Chinese buyers of their products. There are more examples of other sectors like this that show how Chinese market is becoming more important for us. It is also important to mention here that Nepal and China have signed zero tariff agreement, which ensures export of more than 7,787 items at zero-tariff into chinese market. The provision helps us to expand our trade with China. Nepal should also put its effort on trade promotion between the two countries. The construction of a well-facilitated dry port and a Special Economic Zone would help us to boost trade with China and to attract more Chinese investment. Now, we are more focused on how to get more facilities for our exporters, so we have requested support from the Finance Minister in order to increase trade between both countries.&nbsp;</p>
<p>
	<strong>Nepali traders have failed to take advantage of zero tariff facility provided by China, why?</strong></p>
<p>
	I do not think so. In fact, there are some norms set by the Chinese government which Nepali side has been failing to comply with. Especially, there are some problems such as the issuance of Certificate of Origin.&nbsp;</p>
<p>
	Non tariff barriers such as strict quarantine system, certification standards and rules of origin have created many challenges to the process of trade between the two countries. It’s obvious that there is a lack of effective coordination among Nepali traders and government agencies. Also, there are some other complications on both sides.&nbsp;</p>
<p>
	We are working to sort out current problems and we are optimistic about the settling of these issues very soon. We want to see a concrete agreement to ease quarantine related complications and other non-tariff barriers.</p>
<p>
	<strong>China’s Exim Bank is likely to set up its branch in Nepal. Considerig that Nepal didn’t get the expected benefits from the other foreign banks operating in Nepal, what should Nepal do to get benefits from the presence of Chinese Bank? &nbsp;&nbsp;</strong></p>
<p>
	We have been talking about the presence of Chinese Bank in Nepal for the last three or four years. It is not only for trading but also for investment. Chinese side is very positive. The current Chinese Ambassador is optimistic about the fact that Chinese Bank will start operating in Nepal during his tenure. Not only Exim Bank but also some other banks are negotiating about starting to offer their services in Nepal. If Exim Bank comes, it will have a positive impact on investment. Chinese banks have rational interest rate and also they have capacity to invest. Their presence will definitely help to attract Chinese investors to Nepal.</p>
<p>
	<strong>Chinese investment in Nepal is increasing pretty fast in the recent years. Do you think that Chinese investment is actually helping Nepal? &nbsp;(it is also said that the interest of the Chinese in Nepal is more diplomatic than economic)</strong></p>
<p>
	Yes, the Chinese investment in Nepal is increasing at a rapid pace. Some mega projects such as Pokhara Airport, Kathmandu Ring Road or Dry Port of Sindhupalchowk will be started soon. Similarly, some Chinese investors are involved in mining and water resources projects too. Very soon, if the political situation improves, more Chinese investors will be interested in investing in Nepal. &nbsp;</p>
<p>
	Chinese investment may help the overall national development. As we represent the private sector, our main interest is to strengthen the trade and the economic relation between the two countries. We always lobby for the economic prosperity and investment with the Government of China and our other counterparts. Together, these two countries can achieve good economic prosperity.</p>
<p>
	<strong>What are the possible investment areas for China in Nepal? Would it be resource-seeking or market-seeking? Obviously, it not technology seeking, capital seeking or manpower seeking as China is better than Nepal in all these.</strong></p>
<p>
	Obviously, the first is hydropower sector. Second is tourism, third is mines and minerals and fourth is the agro sector. Nepal has enough resources and lots of business opportunities; however, it is a fact that the current investment size is extremely small. Chinese businessmen have been investing in small-scale sector such as hotels, restaurants and other small trades but we want Chinese investors to start some mega projects. The problem is that the unstable government and policies and the problem of power outage have created much hurdles to attract such investment. Despite the hurdles, there are still many chances to expedite Nepal-China business relationship. Around two or three Chinese delegations have been visiting Nepal every month to explore business opportunities. Chinese investors are very much interested but they often ask about the rules, regulations and opportunities. If the political scenario becomes stable and labour problem is solved, I hope many of them will come to Nepal.</p>
<p>
	<strong>Chinese goods have the reputation of being cheap and inferior in quality. In this context, what prospects do you see for such products in Nepal?&nbsp;</strong></p>
<p>
	It is not like that. Chinese manufactures produce goods according to the necessity of consumers. It depends on the type of goods consumers want. When you are in the USA, European countries or in most of Asian countries and seek high quality products, you will find Chinese ones. We get surprised when we see what we get here and what products are available there. It depends on the quality required and the purchasing power of the buyer. It depends on what type of goods Nepali traders want to import and that’s why I think it solely depends on the buyers’ choice and affordability.</p>
<p>
	<strong>How successful do you rate your own business link with China considering the general perception of Chinese goods being cheap and inferior?&nbsp;</strong></p>
<p>
	We don’t evaluate the Chinese products supplied as per our demands and orders. The same goods can have high or low quality based on how much one can afford. It depends on our buying capacity. It’s us who are responsible for the low quality of the products because we often order low quality goods for Nepali market. &nbsp;</p>
<p>
	It is often cited that Nepali industries are suffering from the cheap imports from China. What’s your opinion?&nbsp;</p>
<p>
	Both Nepal and China are members of World Trade Organization (WTO). According to its principle, we can’t stop importing from its member countries. If we are able to manage our market, we don’t have to worry about cheap imports from China. On the other side, cheap goods imported from China have ensured mass access to the sophisticated goods and also to the daily consumable goods.</p>
<p>
	<strong>What are the critical trade barriers between Nepal and China?</strong></p>
<p>
	There are hurdles and barriers in all sectors but it is still an open and growing market. Some remedies would be to have better policies from the &nbsp;government, a friendly investment environment, labour reforms, security… etc. There are certain issues which should be resolved. We are solving the barriers step by step, as they appear in front of us.</p>
<p>
	<strong>How are the exporters and importers overcoming the language barrier in trade between China and Nepal? How is your chamber helping in this? (it is said that, due to language problems, Nepali traders in China are always in disadvantage in their dispute with Chinese importers or exporters)</strong></p>
<p>
	Yes, it is a little difficult but now most of the Chinese exporters understand English. Nowadays, there are English speaking employees in almost every office and different chambers. And some businessmen who are already doing business can understand Chinese also. If there is any dispute we step in to solve it, we are also giving information about the queries and problems of the business person there. The exporters were very much interested in trade fair there, we are participating there regularly and we exchange our delegation also from different chamber from different aspects.</p>
<p>
	<strong>What points do you think need to be revised in Nepal-China trade-related treaties?</strong></p>
<p>
	Both governments should have frequent meetings to understand and solve the obstacles, if there are. There are some area where we are facing &nbsp;problems, such as &nbsp;quarantine or infrastructures but these issues should be solved very soon. In China, they are not accepting Nepali quarantine certificates. Nepal has three issuing authorities for different sectors and product lines, which makes the Chinese confused as they think it should be done by a single authority. Because of that, we are facing difficulties to export our food items.</p>
<p>
	<strong>The Nepali government has planned to develop Rasuwa as another hub for Nepal-China trade. What is your assessment of the progress in this?&nbsp;</strong></p>
<p>
	The road is already there and, after Sigatse, the railway will come to Rasuwa. We are trying to join railway side from China and India so that Nepal will be linked with both of these countries. We can develop environment for tourism and business also. The government of China is committed on this and we are very optimistic about completing and operating it soon.&nbsp;</p>
<p>
	<strong>It is often argued that Nepal should be developed as the transit point for China-India trade, but no concrete development seems to be taking place on this direction. What are the impediments?&nbsp;</strong></p>
<p>
	We are not a land-locked country but we are a land-linked country with two economic giants at north and south. We should take advantage of this unique geographical position. The main problem of this situation is that everyone has his or her own agenda and we have no unified and strong agenda and vision for concrete developments. A stable government, a strong linkage of these three countries and an open transit road are our most primary necessities.&nbsp;</p>',
			'published' => true,
			'created' => '2013-05-19',
			'modified' => '2013-06-06',
			'keywords' => 'Nepal is Land-linked, we should take advantage of this',
			'description' => 'Rajesh Kazi Shrestha is Chairman of Nepal China Chamber of Commerce & Industry (NCCCI) and International Chamber of Commerce, Nepal (ICC, Nepal). In the past, he has been in charge of various organizations, such as the Nepal Chamber of Commerce. He is also the former Assistant Minister at Ministry of Industry, Commerce and Supplies.',
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			'article_category_id' => '46',
			'title' => 'Interview : Michael Maedel',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Michael Maedel" height="931" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_michael_maedel_april2013(1).jpg" style="margin: 0px 0px 0px 10px; float: right; text-align: justify;" width="300" /></p>
<p style="text-align: justify;">
	Michael Maedel joined JWT in 1990 as Chairman and CEO of JWT Germany, based in Frankfurt. In 1993 he also took on the role of Area Director Central and Eastern Europe before becoming President of Europe, Middle East and Africa in 1997. Michael is a member of the Board of the J. Walter Thompson Company, New York and a member of the Office of the Chief Executive. Before joining JWT, Michael worked for Young &amp; Rubicam for some 13 years.&nbsp;</p>
<p style="text-align: justify;">
	He joined Y&amp;R Frankfurt as a trainee and worked his way to Account Director before moving to Vienna, his birthplace, in 1978 as Chairman. In 1983 he returned to Y&amp;R Frankfurt as Executive Director and General Manager. In 1985 Michael was hired by Ted Bates Werbagentur, Frankfurt as Chairman where he remained before moving to JWT.</p>
<p style="text-align: justify;">
	Michael has a degree in economics from the University of Vienna. He is married with three children. He covers diverse contemporary themes of advertising in an hour-long tet-e-tet with Prof Ujjwal K Chowdhury of New Business Age.</p>
<p style="text-align: justify;">
	<strong>The Suave Charmer</strong></p>
<p style="text-align: justify;">
	You wait to meet the Asia-Pacific Chairman of JWT, global advertising major, with bated breath, and in comes an unassuming tall 6+ feet lanky European gentleman, Michael Maedel, for whom Singapore is the new home now. You expect attitude, jargons, numbers, and rushed talks. And soon you find none.</p>
<p style="text-align: justify;">
	“I feel an oldie in JWT, almost been there for all the 149 years of its history, and have seen the massive developments and changes that have happened therein,” he kicks off the hour-long chat with a charming half-smile.</p>
<p style="text-align: justify;">
	<strong>Exciting Times</strong></p>
<p style="text-align: justify;">
	Never more significant have been the changing times ever before than this moment. He is bang-on, with economic recession sweeping across Europe, budget-deficit tackling in USA becoming tougher by the day, growing polarization of the world economic order, while good spots of growth evolving in larger parts of Asia, and some parts of Africa and Latin America.&nbsp;</p>
<p style="text-align: justify;">
	He, however, sees light at the end of the tunnel with a soft landing in China, India getting their act together post the next general elections, Indonesia showing economic promise, and Myanmar opening up to greater possibilities. In all of these and a few other Asian economies, the rising middle class is leading rapid changes within the domestic economies and making the world ever more inter-connected. But the times are exciting for other reasons too.</p>
<p style="text-align: justify;">
	“The defining point of today is that the consumers interact among themselves through multiple channels seamlessly, and that is creating new brand stories. Gone are the days of brand-consumer dialogues. Consumers’ interactions among themselves, and brand’s dialogues simultaneously with consumers and the community continuously, are determining the new basis of the New Media era of digital brand communication,” explains Michael.</p>
<p style="text-align: justify;">
	In this scenario, natural outcome is real-time communication today, “akin to a news-room situation for the agency of the future, and advertising agencies will increasingly go live to stay relevant”. A fabulous challenge this is for brand owners “who have lost the hitherto considered exclusive rights of theirs over their brands!” The feelings of the community and aspirations of the consumers, coupled with their interactions, are determining the contours of the brand in today’s era.</p>
<p style="text-align: justify;">
	<strong>150 years of JWT</strong></p>
<p style="text-align: justify;">
	&nbsp;“You can only be in the business so long when you care about your clients, when you stay relevant, and even when you evolve through failures, learning new insights.”</p>
<p style="text-align: justify;">
	As JWT turns 150 years in 2014, Michael takes pride in surviving healthily in a fast-paced industry, being the first agency to have created a television ad, to have used research in advertising, first one also to use testimonials in advertising, and ever remaining “a group of permanently dissatisfied individuals.”</p>
<p style="text-align: justify;">
	And he surely intends to see a series of activities to express the JWT values and stories of 150 years, come January 2014.</p>
<p style="text-align: justify;">
	He recounts the cases of engagement ring campaign in US, Europe and China for De Beers diamond and the balloon jumping from space campaign which was planned in a day for Kit Kat as good examples of meaningful communication in line with brand positioning, long term branding, seamless transition to social media, not distracting but enhancing the brand values.</p>
<p style="text-align: justify;">
	<strong>Thompson Nepal</strong></p>
<p style="text-align: justify;">
	Michael has a thumps-up for his Team Nepal, led for long and efficiently by Joydeb Chakravorty. “Being in the top of the game for a long period, with entrepreneurial spirit, spotting opportunities and jump upon them, delivering value even under extreme constraints, the JWT team in Nepal is impressive, on a sound footing and delivering value and volumes to an impressive array of campaigns for clients like Unilever, Pepsi, Nokia”.</p>
<p style="text-align: justify;">
	And his advice to them? Take a long-term view, not just managing tomorrow for your clients, not being limited to fads and flavours of the day, managing uncertainties in the market better through consistency and honesty in cultivating the brand personality of each client in this challenging market.</p>
<p style="text-align: justify;">
	He used this latest March 2013 visit to look at some of the good work done in Nepal, like the Pepsi Drink &amp; Drive Campaign, in which the idea was based on local behavior and insight, turning it on the head appealing to people’s consciousness. He appreciated the Unilever work done in Nepal too.&nbsp;</p>
<p style="text-align: justify;">
	“With technology, a brilliant app can come from any country today, no borders for a good idea. Also, for a local campaign, the two defining criteria are: first, how does it compare with your local competitors. Our work is the best in each of its categories. Second, creativity is always a means to an end and that is better bottom-line for the client post the campaign. Ask Pepsi in Nepal and you will get the answer.</p>
<p style="text-align: justify;">
	He hopes that better audience measurement techniques will evolve in the Nepali market which will justify higher communication investments in future.</p>
<p style="text-align: justify;">
	<strong>Biggest Advertising Challenge</strong></p>
<p style="text-align: justify;">
	The single biggest challenge for the advertising industry world-over, according to Michael, is to evolve the current compensation model or system. Today compensation is based on cost-input model, where remuneration is based on inputs used in the process and value of media used with the advertising outcome. However, right rewarding and compensation should now be based on the value-output model, according to him, which looks at the outcome in terms of value to the client in qualitative and quantitative terms.</p>
<p style="text-align: justify;">
	<strong>Relevant Consumer Insight</strong></p>
<p style="text-align: justify;">
	“Days to bulldoze your success with huge budgets are gone. Then your target audiences could not escape the campaign. Today you neither have such budgets, not the plethora of media channels of all hues allows you that luxury,” he notes. Again, bang-on!&nbsp;</p>
<p style="text-align: justify;">
	These are times of relevant consumer insight that goes beyond conventional research. There is the availability of massive data, but the moot question is how do we make use of this for relevant insight, and then how do we translate this insight into an engaging idea, which is then amplified through right media selection. “And there is no short cut in this process,” he concludes.</p>
<p style="text-align: justify;">
	While he finds ambient and ambush advertising as good ideas at times, it is only a great, topical and relevant idea that can cut through the clutter. Even in spite of a huge proliferation of channels of communication, it is all the more important that your communication is rooted in a strong coherent and relevant idea: what does the brand essentially stand for.</p>
<p style="text-align: justify;">
	<strong>Digital Communication</strong></p>
<p style="text-align: justify;">
	Though it is beyond debate today that the entire communication business is becoming eventually digital, the client side investment in digital is still low and there is a wide discrepancy between the price of the digital media and the price to the agency.&nbsp;</p>
<p style="text-align: justify;">
	“Garage-run digital shops will either grow is size, or disappear, or shall be acquired,” Michael sounds prophetic looking at the scenario with digital agencies today.</p>
<p style="text-align: justify;">
	And he is right that digital was once considered an experimental medium and not seen as an integral element in building and sustaining brands. Not any more. Today, digital has gone into the heart of branding.</p>
<p style="text-align: justify;">
	<strong>Evolving Talent</strong></p>
<p style="text-align: justify;">
	And these changing times surely need new talent suitable for the digital age and real-time communication.&nbsp;</p>
<p style="text-align: justify;">
	Noting that JWT historically has been a university of training and ideas of sorts, he hopes to contribute to train and retain talent in Nepal, bring back Nepali talent from elsewhere with exciting new perspectives, and is open to partner nurturing talent with educational and media initiatives, and with support from clients.</p>
<p style="text-align: justify;">
	<strong>Brand Nepal</strong></p>
<p style="text-align: justify;">
	And, before he bids adieu, the idea mooted by Michael Maedel, Chairman, JWT Asia Pacific, is that of Brand Nepal, essence of Nepal beyond cliché images of the Himalayas and rafting-trekking-paragliding.</p>
<p style="text-align: justify;">
	“Conceptualize the brand from economic perspective, from the point of view of attracting foreign direct investment and accelerate business activities to unleash the full potential of the nation. Build the brand through responsible communication with ground-swell of support of stake-holders. Promote the Brand internally and externally through various means.”&nbsp;</p>
<p style="text-align: justify;">
	This is the Brand Doctor’s prescription for which he is ready to participate in brain-storming session with clients, media and government representatives whenever such an initiative is taken up by non-governmental economic forces.</p>',
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			'description' => '‘From dialogues to tri-logues and real-time communications, brand communication is up for unprecedented changes today, world-over’',
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			'id' => '883',
			'article_category_id' => '46',
			'title' => 'Investment Is Not A Big Thing These Days',
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			'content' => '<p style="text-align: justify;">
	<img align="left" alt="Binod Chaudhary" height="288" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_binod_feb2013.jpg" style="margin: 0 10px 10px 0;" width="350" />Binod Chaudhary is the President of Chaudhary Group (CG), one of the leading business houses of Nepal. He is also the Chairman Emeritus of Confederation of Nepalese Industries (CNI). A prominent industrialist, Chaudhary has recently published an autobiography, ‘Atmakatha’. This book tells the successful story of how Wai Wai noodles, initially imported from Thailand, which later took such a big market share. “Currently, 1 billion packets of Wai Wai noodles are produced annually which accounts for 1% of the total noodle production of the world”, claims Chaudhary. In an interview with New Business Age, Chaudhary talks about the CG’s successful ventures and the group’s plans among other issues.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Excerpts:</strong></p>
<p>
	<strong style="text-align: justify;">You seem to be saying and doing whatever the Industrialist Dhirubhai Ambani of India used to say and do. Are you influenced by him?</strong></p>
<p style="text-align: justify;">
	I always say that I am influenced by two people in India - J.R.D. Tata and Dhirubhai Ambani. The status given to the Tata Group by J.R.D. Tata is unmatched by any other business house in the world. But the industrial revolution in India was brought by Dhirubhai Ambani. Hence, I am his big fan.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You happen to praise the former leader of South Korea, Park Chung-Hee as well. Do you believe that the government should praise the industrialists?</strong></p>
<p style="text-align: justify;">
	Park Chung-Hee has given birth to many multi-national companies during his regime. That is why the multinational companies of South Korea are successful globally. I am a 100% supporter of that. I truly believe that in a country like Nepal, private companies cannot develop without support from the government. In countries like Japan and Korea, the government has pushed the private companies to grow. I believe that the same should apply in our case as well.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Why did you change the decade long established Chaudhary Group into CG?</strong></p>
<p style="text-align: justify;">
	This is just a branding. The word CG is easy to remember for people but Chaudhary Group is not. You have to twist your tongue a little bit. Actually, the brand “Chaudhary’s” could not be well established. There used to be a logo of Chaudhary’s in our every product. But, that could never be the talk of the town. Today, no one says Chaudhary’s. Everyone likes to say CG.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have set up several Noodle producing plants throughout India. Similarly, you have invested in luxury resorts in cooperation with Taj Hotel. How much have you invested like this within Nepal and abroad?</strong></p>
<p style="text-align: justify;">
	We also do not have an exact account of that. We have many companies that are being run by different individuals. Again the criterion to judge a company has become different these days. Today, a company is judged on basis of its brand, marketability etc. According to that, the co-investors invest. Today, the Tata family owns only 3% of the Tata Group. But, they are buying several companies of millions of dollars in the name of Tata industries and are trading worldwide. That’s why investment is not a big thing these days. I constantly repeat that a multinational company cannot be setup by just collecting money from Nepal. There is not enough capital to do that. Furthermore, there is a possibility of development within and without. If you have the capability of industrialization, capital will follow you. Today, we are producing Wai Wai in more than 3 countries. In those countries, there are several investors who are interested to invest in Wai Wai. We are working in hotels in different nations, in our own brand and in others’ brands. We have an option of choosing whom to mingle with. We have already earned that trust of the investors in the international market. That is why investment value and volume by an individual company or industrialist is not the key factor here.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The main question is when we can say with certainty that Binod Chaudhary is an internationally recognized billionaire.</strong></p>
<p style="text-align: justify;">
	Binod Chaudhary is only a face. If someday CG group comes to be recognized as Nepal’s billionaire company, it is not only my pride but yours too. And I pray that the day comes soon.&nbsp;</p>
<p style="text-align: justify;">
	<strong>For some time past, you have been concentrating more on imports, rather than on two or four flagship industries like Wai Wai.&nbsp;</strong></p>
<p style="text-align: justify;">
	During the last twenty years, the nation has faced insurgency. Today also it exists in some form or the other. The only company that developed both horizontally and vertically during this period is CG. If CG owned only 3 companies back then, today it owns 14. If 500 people worked back then, today 3000 people do. &nbsp;If CG vertically owned 6 business houses back then, today the number is 10. The cement company has also been added to them. In fact, we are building the nation’s largest cement company. We are also trying to set up hydro power plants with over 240 MW capacity each. We have entered the ayurveda sector. &nbsp;In terms of education, we have established 5 institutions where over 4000 students are studying. We are going to invest Rs. 1 billion in education. Then an additional 10000 students will have the opportunity to study annually. Service industry is also being looked at closely by us. If you look at this sector by turning the pages of Aarthik Abhiyan National Daily, you can find the answer to your question over there itself.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have recently left the chairmanship of CNI. Why was CNI unable to do anything much impactful during those years of your leadership?</strong></p>
<p style="text-align: justify;">
	I am doing well in CNI. Recently, a new leadership has arrived. We are also visiting districts. However, we are not in favour of opening branches in all the 75 districts. CNI mainly represents the industrial sector of the nation. Where there are no industries, it is not necessary to open the branches but we are frequently visiting the districts where there are industries.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Some time ago, you said that Nepal Airlines Corporation should be operated under PPP. Are you interested in investing in the corporation as well?</strong></p>
<p style="text-align: justify;">
	I have lost that interest now. I do not know if any private investor can show a positive route to Nepal Airlines Corporation. It is difficult to bring a change in such a corrupt system.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Nepalis cannot legally invest in the foreign markets. That would be great if possible. You got involved in a political party and also reached the constituent assembly. But, you could not do anything substantial in this regard.</strong></p>
<p style="text-align: justify;">
	Everybody agrees in this issue. Nepal Rastra Bank has been introducing several fiscal policies for that from time to time. But no proposal has yet been passed in the assembly. That is why it is not a law yet. Nepalis have opened restaurants and hotels in US and Japan. The important thing is that Nepalis are investing. When Nepalis could not invest and only the non residents could, Binod Chaudhary had to make Barun and Rahul Chaudhary, NRNs. Everyone should appreciate it. Please do not consider it illegal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You are such a successful industrialist. But, CG has not been able to make returns to the society accordingly. Except for some minor contributions, no significant contributions in CSR (Corporate Social Responsibility) can be seen. Why?</strong></p>
<p style="text-align: justify;">
	We believe that we have a major involvement in the social sector. Our brand line is ‘Touching life everyday’, which means we do touch lives every day. CSR also has different ways. Donation is also one of them. The other is to help the society during desperate times. You can consider Norvic hospital and educational institutes for this case. Without these initiatives people would have been deprived of quality education and health. It’s a part of CG to cooperate with the society. Some receive concessions and some receive scholarships. You take from those who can give and you give to those who can’t.&nbsp;</p>
<p style="text-align: justify;">
	Recently, we have agreed to set up a social business fund in cooperation with Noble prize winner Muhammad Yunus’s Muhammad Yunus Center. That will help the Nepalis who want to set up a business but do not have enough resources to do exactly that. We are always committed to shake hands with the society and move forward.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are your suggestions to the Nepalis who want to start up new businesses in Nepal?</strong></p>
<p style="text-align: justify;">
	New businesses will have to face a lot of difficulties. I strongly suggest not losing hope. It always takes time to see the results. And, I am very hopeful for everyone.&nbsp;</p>',
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Latest

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Price of Gold Reaches All-Time High in Nepal

FOREX

Currency	Unit	Buy	Sell
U.S. Dollar	1	121.23	121.83
European Euro	1	131.65	132.31
UK Pound Sterling	1	142.47	143.18
Swiss Franc	1	124.29	124.90
Australian Dollar	1	71.69	72.05
Canadian Dollar	1	83.90	84.32
Japanese Yen	10	10.94	11.00
Chinese Yuan	1	17.17	17.26
Saudi Arabian Riyal	1	32.27	32.43
UAE Dirham	1	33.01	33.17
Malaysian Ringgit	1	27.36	27.50
South Korean Won	100	9.77	9.82

Update: 2020-03-25 | Source: Nepal Rastra Bank (NRB)

Bullion

Fine Gold	1 tola	77000.00
Tejabi Gold	1 tola	76700.00
Silver	1 tola	720.00

Update : 2020-03-25

Source: Federation of Nepal Gold and Silver Dealers' Association

Petroleum

Petrol	1 Liter	106.00
Diesel	1 Liter	95.00
Kerosene	1 Liter	95.00
LP Gas	1 Cylinder	1375.00