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			'title' => 'Buddha Air Captures Majority Market Share',
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<p>
	<img alt="Buddha Air, New Business Age" height="229" src="http://newbusinessage.com/ckfinder/userfiles/Images/civil_aviation_april2013_buddha_air(1).jpg" width="549" /></p>
<p>
	Buddha Air captured 56 per cent of the aviation market share carrying 881,611 passengers in 2012. According to the Civil Aviation Authority of Nepal Office at Tribhuvan International Airport, Buddha Air’s passenger carriage increased by 12.35 per cent compared to 2011. Paras Jung Pandey, Sales and Marketing Director of the airline claimed, “If airlines flying to only urban destinations are considered, Buddha Air has 65 per cent market share.”</p>
<p>
	Buddha Air is currently operating to only urban destinations. According to Pandey, as the airline is offering competitive fares and operates with larger aircrafts having higher number of seats, its market presence is increasing year by year. &nbsp;Currently, Buddha Air is operating with five 72 seater and three 19 seater aircrafts. In 2011 too, Budha Air was the market leader carrying 691,000 passengers.</p>
<p>
	Pandey said, “Air passengers are constantly increasing and we have been able offer fares that suit their paying capacity. So, airline’s market share is increasing accordingly.” Out of seven regularly operating domestic airlines, remaining six airlines have only 44 per cent market share. Yeti Airlines has second highest market share of 28.74 per cent carrying 452,806 in 2012. All domestic airlines that operate regular flights carried 1.56 million passengers in 2012.&nbsp;</p>',
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			'description' => 'Buddha Air captured 56 per cent of the aviation market share carrying 881,611 passengers in 2012. According to the Civil Aviation Authority of Nepal Office at Tribhuvan International Airport, Buddha Air’s passenger carriage increased by 12.35 per cent compared to 2011.',
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			'title' => 'Nepal’s Airlines Companies In Red: CAAN',
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	 </p>
<p>
	Nepal’s private airlines are bearing the brunt of higher fuel prices, hefty insurance premiums and fluctuation in passengers’ flow, according to regulator Civil Aviation Authority of Nepal (CAAN). Domestic airlines suffered a huge loss of Rs 172.8 million during the last fiscal year, says CAAN. Among the nine fixed-wing airlines, four enjoyed a net profit of Rs 162 million while the rest suffered a net loss of Rs 108.8 million in the last fiscal year.</p>
<p>
	The net profit of the six helicopter companies in the country stood at Rs 30.2 million in 2011-12, up from Rs 27.6 million in the previous fiscal year. Airlines operating on remote sectors are incurring losses while only a few that are flying trunk routes are earning profits, said CAAN, adding that an increase in insurance premium had also become a big headache for airlines. Around Rs 1 billion goes out of the country as insurance premium, according to the authority.&nbsp;</p>
<p>
	Nepal saw a significant growth in air transport after the aviation policy was liberalized in 1992. Aircraft movement jumped four-fold from 24,600 in 1992 to 95,000 in 2012. There are 55 fixed-wing aircraft and 26 helicopters in Nepal at present. Air traveller movement reached 1.03 million in 2008, 1.37 million in 2009 and 1.55 million in 2010. However, the growth rate slipped 2 percent to 1.58 million in 2011. In 2012, passenger movement fell 0.55 percent to 1.575 million, according to CAAN.</p>',
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	 </p>
<p>
	<strong>By Prof Ujjwal K Chowdhury</strong></p>
<p>
	The tallest leader in the main opposition party of India, Bharatiya Janata Party (BJP), today is undoubtedly Narendra Modi. The pressures of the people at the rank and file of the party has already forced the disconnected national leadership to come scurrying to Modi to lead the party at the centre, and soon he will be its Prime Ministerial candidate for the general elections in 2014. As a New Nepal is expected to emerge from the polls of 2013, Indian General Elections of 2014 (which may be earlier than scheduled) may give rise to a New India under Modi, with implications for Nepal as well in South Asia.</p>
<p>
	<img alt="South Asia, New Business Age" height="317" src="http://newbusinessage.com/ckfinder/userfiles/Images/south_asia_april2013_narendra.jpg" style="float:left; margin:0 10px 0 0;" width="350" /></p>
<p>
	<strong>Modi’s Journey: Version 2.0:</strong></p>
<p>
	The journey of this single resolute man at the top of Gujarat’s affairs started as a Pracharak of Rashtriya Swayamsevak Sangh (RSS) in the first stage of his public life. He was deputed to Gujarat politics to quell the conflict between the Kesubhai Patel and Shankersinh Vaghela factions of BJP some twelve years ago, signalling the start of version 2.0 of his public life.</p>
<p>
	Since then, for a dozen years, he has refrained from going to Delhi much, completely disassociated himself from national politics of BJP and focussed on Gujarat to ensure his third consecutive victory in Gujarat Assembly elections as recently as on December 20, 2012.</p>
<p>
	That he will win the elections for BJP was a foregone conclusion. Question was of the margin. His focus was purely on economic development, and he played it to the hilt, with the glamour of 3D technologies and the force of social media apart from mainstream media.&nbsp;</p>
<p>
	Presently, Gujarat holds around 30 per cent of India’s stock market capitalisation, contributes 22 per cent of the total exports and about 9.5 per cent of the country’s total work force. Gujarat is also a power surplus state, providing electricity even to the villages.The state has registered more than 12% agriculture growth in the last five years against the national average of 2%.</p>
<p>
	The per capita income at constant prices has shown robust growth in the past five years. There is also a major thrust on infrastructure. The development of ports and port-based investment activity is an instance. There is also a plan for shipbuilding parks along the coastline.</p>
<p>
	Hence, the development slogan, soft Hindutva through Vivekananda Yatra and no tickets to minorities, a techno-savvy one person, one agenda focussed campaign paid off yielding a rich dividend of 115 MLAs for BJP in a House of 182 MLAs.</p>
<p>
	<strong>Modi’s Journey: Version 3.0:&nbsp;</strong></p>
<p>
	<strong>The 10-point Road-map:</strong></p>
<p>
	The most interesting now will be to watch the roadmap that Modi takes in his third and most crucial and challenging phase in public and political life.</p>
<p>
	First, managing home. Gujarat is his home-turf. But now to move to the Centre, he has to leave a legacy that symbolizes him in every sense. Significantly, he has kept his Cabinet small, and has at least two favourites in significant positions for grooming a future CM (and if needed, a Deputy CM too): Saurabh Patel and Anandiben Patel.&nbsp;</p>
<p>
	Second, managing the Sangh Pariwar. He cannot afford to alienate Nagpur, which still holds a veto power in the Sangh Parivar. As his popularity soars, RSS under Mohan Bhagwat may be left with no choice but rally behind its extra-ordinary Swayamsevak. But Modi would do well to keep Bhagwat in good humour at this stage.&nbsp;</p>
<p>
	Third, managing the NDA. It is almost certain that JD (United) of Nitish Kumar-Sharad Yadav shall leave NDA if Modi is the front-man. But, Modi has his own dark horses: Jayalalitha led AIADMK, Naveen Patnaik led BJD, Uddhav led Shiv Sena and Raj led MNS in Maharashtra are sure to through their weight behind Modi which will outgrow the strength of JD(U) concentrated in Bihar alone. Interestingly, BS Yediyurappa, the beleaguered rebel BJP leader who has just set up Karnataka Janata Party, may stage a comeback if Modi is the central leader of BJP.&nbsp;</p>
<p>
	Fourth, managing minorities. What Modi needs to guard is not to create an anti-minority image any further, rather focus on non-appeasement anti-votebank all-people development agenda, being silent on minority-focused discourse in Indian politics in his interests.&nbsp;</p>
<p>
	Fifth, managing the riot-image and legal cases. Herein again, silence is golden. One partial statement after Gujarat victory this time was itself a good strategy, “Forgive me if I have done any mistake”. This is the best policy: being humble but not talking about the past and riots. Vengeance is a measure for lesser mortals.</p>
<p>
	Sixth, creating symbolisms. It will be a great move for Modi to seek election to the Parliament from Lucknow, which elected Atal Behari Vajpayee several times. Symbolically strong, this will rejuvenate BJP in Uttar Pradesh, bring in Kalyan Singh at the centre-stage in UP, and lead to soft Hindutva polarization in favour of BJP in most of the Hindi heartland.</p>
<p>
	Seventh, strengthening mass constituencies. In 2014, the dominant section of the electorate shall be young people below 35 years of age. The electorate between 18 and 35 years of age are expected to be above 40% of the voters, and in case of a good franchise, the younger voters are expected to be participating more. Modi has succeeded tremendously with the youth in Gujarat ensuring a hat-trick of victories. If he can put forth a viable plan for Young India, package and communicate it in a techno-savvy way (for which he is well-known), and make it caste and community-neutral, he is assured of a huge support herein.</p>
<p>
	Eighth, harnessing the woman-power. Half the young people are women, and a large part of elder women are dependent emotionally and financially on the younger population. Also, Modi’s personal charisma, single status, and a straight talking image et al go well with the women. He, however, will need to walk the talk on women’s safety issues which is the major concern for a large number of vocal women,both urban and rural.</p>
<p>
	Ninth, envisioning an Alternative India. Herein lies the major creative challenge to Moditva. If he can change the discourse of Indian politics from divisive identity to development issues, from regional parochialism to a uniform Indian-ness, from Western outlook to political language to a pride in everything Indian, he has made a great start to this third phase in his political journey. He has started this through his recent speeches, first in Sriram College in Delhi and more recently in the India Today Conclave.</p>
<p>
	Tenth, and finally, creating a global image and acceptability. While Vibrant Gujarat has given Modi the global image of a productive performing leader, and Indian diaspora looks up to him for a national leadership role now, he still needs to politically cultivate major global forces and global Indians more. Hence, formal and informal channels need to be evolved through visits, use of media, receiving delegations, use of global Indian bodies, et al, which position Modi as the undisputable leader whom the nation has been waiting for long.</p>
<p>
	<span style="font-size:10px;">The author is former Dean of Symbiosis International University and President of the advisory board at Whistling Woods School of Communication, Mumbai.</span></p>',
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			'title' => 'Change The Way We Think Of Stocks',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Hom Nath Gaire</strong></p>
<p>
	 </p>
<p>
	What does it mean to value a stock as a business? How does it differ from the way most investors think about investing in stocks? These are the fundamental questions one should ask while planning to invest in stock market. To answer these questions, let’s start by considering what a stock actually is. In simple terms, a stock of a company represents a share of ownership of an actual business.&nbsp;</p>
<p>
	But as Warren Buffett, prominent American stock investor, often says, most people tend to think of a stock as a ticker symbol with a squiggly line attached. Most people think it is easier to look at a stock chart and try to predict whether its price will go up or down than it is to understand the underlying business and its performance. But the truth is, almost nobody is good at this. It takes an extremely rare individual to do it with enough consistency to make money.</p>
<p>
	Some professional and dedicated part-time traders succeed by buying and selling stocks using short-term strategies. But the overwhelming majority of investors would make a lot more money – and lose a lot less – if they learned to approach stocks in the way they would move toward ownership in a business. However, it is not an easy task to find a business that is simple enough to fully understand than to consistently predict where the price of its stock is going next.</p>
<p>
	Still, there are a number of benefits of this approach about investment. Several of the world’s greatest investors have shown that this approach is one of the simplest, safest, and most consistent ways to make money from the stock market. But perhaps even more important is the peace of mind. Let’s go through an example to clarify the concept. Suppose there are two investors who are buying stock in the same company, say X. &nbsp;Investor A, approaches investing as a business owner and does a little homework on the underlying business. He believes company X is a wonderful business trading at a good price, and he decided to buys a sizeable number of shares. But investor B is like most people and decides to buy share of X without any real understanding of the underlying business. May be he saw the stock X is being advertised on local news paper or television, heard this or that famous investor was buying it, or has a friend who made a lot of money in it.&nbsp;</p>
<p>
	If the share price of company X goes up, both investors will probably be feeling good about their decision. But what if the price was to suddenly fall by 5 percent, 10 percent or even more? Or the market experiences a serious correction that takes most stocks down with it?&nbsp;</p>
<p>
	In this case, the investor A is much more likely to sleep well at night. He knows he bought a quality business and he knows he paid a good price for it. Like wise, he also knows the fluctuations in the share price have nothing to do with the underlying business. In fact, he may actually be happy to see the price fall – as Warren Buffett used to say – because it will allow him to buy more shares or reinvest his dividends at a better price. On the other hand, Investor B would probably be in worry. Because, he has no idea what the underlying business is actually worth or what a fair price for it is. He only knows that he has lost money. He is probably still speculating whether it will be a 5 percent correction or a 30 percent crash and whether he should sell his ownership right now or wait it out.</p>
<p>
	The fact is, one normally can not know those things in any kind of reliable manner. But what he knows is that great businesses consistently make money all the way through good times and bad ones. And he can have a lot of certainty that over the long run, he will be rewarded from that great business as a shareholder. Thus, all should try to take decision like investor A, in our example rather than like B. Then only we can sleep well at night and simultaneously we can make money from the stock market.&nbsp;</p>
<p>
	Just look at the history of the 20th Century in global stock market. What calamity didn’t happen in the 20th Century? There were two world wars and various smaller ones, a great depression, hyperinflation, unemployment and even stagflation. All the productive resources were either seized by the government of destroyed in the wars and calamities; there were 50 percent to 90 percent marginal tax rates for many of those years. Nevertheless over the century, the Dow Jones Industrial Average (DJIA), world’s oldest stock index soared thousands fold. Likewise, the Bombay Stock Exchange’s sensitive index, SENSEX has also gained thousands fold over the same period.</p>
<p>
	These two examples, of course, stand witness that companies would have done better even under the government-created problems, though the business suffered from the politics, wars, the economy and inflation. However, there are never any guarantees in the stock market, betting on great businesses was always the right thing to do over the last 100 years. And there is a very high probability that you’ll do well buying great businesses over the next 100 years. Thus let’s start to think differently about the stock market.</p>
<p>
	<strong>How to Identify a Great Business?</strong></p>
<p>
	The first step for this approach is as simple as changing your thinking. It is nothing but just deciding you won’t buy a stock unless you can understand its business, even if it looks attractive and it’s reasonably priced. Most peoples would intuitively understand this if they were buying an actual business outright, but they seldom make the connection when buying stocks. What one should notice when to begin thinking this way is, very few stocks are likely to meet set criteria. When you really understand what you’re buying, you’ll tend to be much more selective and gravitate toward great businesses.&nbsp;</p>
<p>
	There are a few clues to identify a great business and to leave behind a poor one. The easiest one to identify is a profit margin of consistent thickness over many years, even if it’s a thin profit margin. For example, Wal-Mart’s net profit margin is thin, around 3%. But it is a very consistent and ranges every year like clockwork. Likewise, Microsoft’s gross margin has been around 80% for many years.&nbsp;</p>
<p>
	Consistent margins tell that something special is going on there. That business has been able to extract that profit out of the market because it’s doing something that people really want year after year and it has positioned itself in the marketplace so that it can keep doing it.</p>
<p>
	Another big clue of a great business is consistent free cash flow generation. That is a sign that the business does not require all kinds of expensive reinvestment year after year. It means the business can invest relatively little of that cash profit and put the rest toward things like paying out dividends, buying back shares, or making new investments in the future. A business gains a great deal of flexibility when it is able to generate a lot of free cash flow. A third clue is a history of dividend payments that rise every single year for many years (dividend grower). Not all great businesses have this trait, but many of them do. So it is something to look for. There are obviously more, but these are the big ones that most great businesses share.&nbsp;</p>
<p>
	<strong>How to Value a Business?</strong></p>
<p>
	Once a great business is identified, the next problem is to determine the fair trading price or value of business. There are two primary ways to value a business. One is by net worth, and the other one is by profit generation. Net worth is calculated the same way we would do it for ourselves. If one wants to find out what his net worth is, add up all the cash and all assets, like house, cars, etc. Then he should subtract everything he owes – things like mortgage, credit cards, and car loans – and that difference is his net worth.&nbsp;</p>
<p>
	We can do the same thing with a company. For this, first of all we should look at a company’s balance sheet and assign a value to its cash and other assets, add them all up, subtract what it owes – debt and other liabilities – and get its net worth. This is a simple example. This calculation can get rather complicated, depending on the business. Sometimes, assets have to be revalued, for example, if the company owns a bunch of land that they paid very little for many years ago that’s worth much more now. But the basic idea is the same. This measure of value is best-suited for asset-heavy businesses or strict value investing situations – where one can buy assets in a significant discount and wait for the market to fairly value it. Fair valuations will vary significantly, depending on the industry and the situation.&nbsp;</p>
<p>
	The other way to value a business is based on profit generation, or how much free cash flow the company produces. This tends to be a better measure of value for really great businesses or a business that you’re confident are going to make more money next year, five years from now, and 20 years from now. We can look to history for a benchmark for valuing these great businesses. When companies have bought out or taken over really great businesses in the past they had a tendency to pay right around 30 times of free cash flow. &nbsp;So generally speaking, if you can find one of these really great businesses trading for around 15 or 16 times free cash flow, you are probably getting a really good deal that you should buy and hang on to for a long time.</p>
<p>
	<strong>Conclusion&nbsp;</strong></p>
<p>
	Of course, the valuation of business or valuing companies is not an easy task. But this will get you started. There is a temptation for investors just learning to value businesses to focus on the “net worth”-type companies as mentioned earlier – the so-called “deep value” stocks – because they can appear to be much easier to value correctly. But what one may come to realize is many of those situations don’t work out very well. Oftentimes, what you’re really doing is buying a bad business that may be on its last steps.&nbsp;</p>
<p>
	So, after a while, many value investors may decide they don’t want to buy lousy businesses anymore. They may decide they would rather buy great businesses that are going to maintain and grow their value for a long time. That’s a typical transition for a value investor to make money from stock market. In fact, Warren Buffett himself made this transition over his career, which encourages new value investors to keep that in mind.</p>
<p>
	In our case in Nepal, the present stock market condition is quite favourable to choose the great business. First thing you’ll notice when you begin thinking this way is, very few stocks are likely to meet those criteria. When you really understand what you’re buying, you’ll tend to be much more selective and inclined toward great businesses.&nbsp;</p>
<p>
	<span style="font-size:10px;">The author is the Deputy Director of Confederation of Nepalese Industries and can be contacted via email at gaire_mukunda@hotmail.com. This article is based on an interview with value investor Dan Ferris published in The Daily Crux in December 2012.</span></p>',
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			'title' => 'NEPSE Declines After Highest Rise In 39 Months',
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			'content' => '<p>
	<strong>By Bikram Chitrakar</strong></p>
<p>
	<span style="color:#00f;"><strong>(Review for 19 Feb to 21 Mar, 2013)</strong></span></p>
<p>
	<span style="color:#00f;"><strong><img alt="" height="433" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock_taking_april2013_bikram_chitrakar_sectorwise_distribution.jpg" style="float:left;margin:0 10px 0 0;" width="349" /><br />
	</strong></span></p>
<p>
	<strong style="color: rgb(0, 0, 255);"><img alt="Stock Taking, New Business Age" height="353" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock_taking_april2013_bikram_chitrakar_market_trend.jpg" style="float: right; margin-top:10px;" width="370" /></strong></p>
<p>
	The Nepali stock market receded from the green terrain during the review period as the investors gave top priority to political clues. The benchmark Nepse index shed 20.94 points or 3.97% to close at the review period’s low of 527.98 whereas the highest point was 548.92 on 19 Feb, 2013.</p>
<p>
	The index had reached 39 months high of 555.93 on 17 February 2013. The previous high of Nepse was 553.4 on 13 December, 2009.&nbsp;</p>
<p>
	Protests voiced by some political sections on the appointment of Chief Justice Khila Raj Regmi as the chairman of the government is the main reason for the recent decline, say market analysts.&nbsp;</p>
<p>
	Another reason was the profit booking by some investors lured by the new highs made by the Nepse. &nbsp;</p>
<p>
	One major recent development is that Nepal Stock Exchange (Nepse) has started preliminary research to upgrade its current trading system. It was on 24 August, 2007 that Nepse replaced the open-out-cry system by remote trading system using Wide Area Network. That system enables brokers to connect to the Nepse server through remote location and perform the transaction. The new system being tried is to facilitate individual investors to place order from their own home using the broker’s system.</p>
<p>
	As the market has turned down touching a high due to profit booking and political climate, stationary movement is expected for few sessions until some healthy clues are received by the investors.&nbsp;</p>
<p>
	<strong>Performance by Sector</strong></p>
<p>
	During the review period, the “others” sector dropped down by 65.78 points or 9.30% to settle at 707.27. Manufacturing sector posted a heavy loss of 53.88 points or 6.44% to settle at 836.99. Hydropower sector plummeted 37.19 points to rest at 1035.86. The commercial banking sector declined 17.27 points or 3.27% to 528.02. Similarly, finance sector descended 1.56 points or 0.62% to 253.09. However, hotels sector added 5.89 points or 0.88% to reach at 666.97. Insurance sub-index gained 2.28 points or 0.26% to 881.02 while development bank accelerated 1.43 points or 0.57% to close at 252.76&nbsp;</p>
<p>
	Sensitive index that measures the performance of 120 blue chip scrips at the secondary market skid 6.15 points or 4.46% to 137.9 while the float index calculated on the basis of real transaction went downhill 0.35 points or 0.94% to 37.27. Total of Rs. 2,823,647,321 turnover was realized during the review period from 10,267,018 units of share traded via 31,100 transactions.</p>
<p>
	The accompanying figure depicts the sector-wise distribution based on the total volume of trade. As usual commercial banks accounted for the heavy volume of trade with 81.33% of total trade. Hydropower sector occupied 6.50% while insurance sector constituted 3.62% and rest of the sectors covered the remaining.&nbsp;</p>
<p>
	Technically, the Simple Moving Average (SMA) has shown a sluggish movement as Nepse Index has been outcast by 30 Days SMA. Index has shown sideways movement for upcoming sessions for confirming the trend.</p>
<p>
	<img alt="Stock Taking" height="374" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock_taking_april2013_bikram_chitrakar_movement_in_indices.jpg" width="368" /></p>
<p>
	<span style="font-size:10px;">Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.</span></p>',
			'published' => true,
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			'keywords' => '',
			'description' => 'Stationary movement is expected for few sessions until some healthy clues are received by the investors.',
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	(int) 5 => array(
		'Article' => array(
			'id' => '949',
			'article_category_id' => '57',
			'title' => 'Proudly ‘Made In Nepal’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Sajag Karki</strong></p>
<p style="text-align: justify;">
	<br />
	<img alt="Brand Talk, April 2013" height="186" src="http://newbusinessage.com/ckfinder/userfiles/Images/brand_talk_april2013_made_in_nepal(1).jpg" style="margin:0 0 0 10px; float:right;" width="250" />The recent international trade fair held in Kathmandu showcased a wide range of high quality Nepali products. When we, being Nepali, have just started to be aware of our own products, a significant question triggered in my mind: “How could we brand Nepali products to market them globally?”&nbsp;</p>
<p style="text-align: justify;">
	We are all aware of special Nepali products like Palpali Dhaka ko topi, khukuri, handicrafts along with organic Ilam tea and many more. Along with this, herbal products, linen fabrics, lokta paper are indigenous to Nepal sourced within the country. However, these products &nbsp;haven’t gained popularity in the foreign market and not as expected in the Nepali market as well.&nbsp;</p>
<p style="text-align: justify;">
	The reason behind this is the lack of branding of Nepali products. We have an emotional attachment to these products, which is very good but it is high time to think rationally and start showcasing our products in the international arena. Though armed with an array of high quality Nepali products we seem to be lagging behind and it’s time to step up and change this scenario.</p>
<p style="text-align: justify;">
	&nbsp;If Swiss watches can be world famous for their quality and lineage, &nbsp;why can’t Nepali products? Of course it would be naïve to expect this happening overnight, but we can definitely make a start. For this purpose, we need to create a set of features that can identify our products as a Nepali brand, distinguishing them from other generic products. Instead of building castles in the air, we need to focus on specific and concrete aspects of branding. Going back to the basics: a brand is a name, logo, symbol or design which is intended to identify the goods and services of one seller or a group of sellers and differentiate them from their competition. Branding is more of package built around a product with both tangible and intangible elements associated with it. Anything as such can be branded: goods, services and experiences. Also events, persons or places, and even properties, corporations and &nbsp;ideas.&nbsp;</p>
<p style="text-align: justify;">
	My previous articles explain how Nepal itself is a place brand, &nbsp;attracting tourists because of its unique features (such as birthplace of Lord Gautam Buddha, Mt.Everest or our rich cultural heritage.) This time, I’m focusing on products that are made in Nepal, and how branding is the only way to market them internationally. &nbsp;First and foremost, we need an authentication branding our products as “Made in Nepal” so it can be used in various product lines such as clothing, handicraft, herbal products, tea, coffee or accessories.&nbsp;</p>
<p style="text-align: justify;">
	With a mix of all such unique and easily identifiable products of Nepal, it builds credibility by associating with genuine Nepali products. &nbsp;Now that the products have an authentication, the individual items in the product line can be positioned in different ways, targeting specific audiences. Let’s say linen clothing items like shirts, caps, trousers and coats/jacket can be positioned as “Cool as the Everest air”. This instantly describes the product being cool and light during summer time. Similarly, all our ‘made in Nepal’ products can be positioned accordingly. Along with advertisements of Nepali products telling the unique story of our rich cultural heritage, we need to participate in exhibitions and trade fairs organized in other parts of the world. Spreading good word of mouth about our Nepali brands would also do wonders. In this way, entrepreneurs would be able to get exposure to technologies used in other nations and transfer this knowledge back to Nepal.&nbsp;</p>
<p style="text-align: justify;">
	There is a huge demand for such products worldwide and, with proper market research and segmentation, we can create a niche for them. We are blessed with infinite natural resources that we can use to our advantage when selling Nepali products.&nbsp;</p>
<p style="text-align: justify;">
	With the changing times, we need to adopt a promotional and distribution strategy that suits the needs of today’s dynamic customers. Outlets selling Nepali products must have an atmosphere telling a unique story. It is very important also to have &nbsp;highly trained and knowledgeable sales staff to also depict quality of the products. The international trade fair has opened the gates to take Nepali products to new heights. &nbsp;With tactful branding strategies, there is no wonder we’ll see our products being the world’s best brand.&nbsp;</p>
<p>
	<span style="font-size: 10px;">The Article is based on research and author’s practical experience as a marketing and advertising professional. He can be reached at sajag_karki@hotmail.com</span></p>
<div>
	 </div>',
			'published' => true,
			'created' => '2013-04-18',
			'modified' => '2013-04-18',
			'keywords' => '',
			'description' => 'If Swiss watches can be world famous for their quality and lineage, why can’t Nepali products be?',
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	(int) 6 => array(
		'Article' => array(
			'id' => '948',
			'article_category_id' => '47',
			'title' => 'A Driven Calling',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img alt="Kumud Kumar Dugar, A driven calling, April 2013" height="421" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality_april_2013_kumud_kumar(1).jpg" style="float:right; margin:0 0 0 10px;" width="300" />Kumud Dugar predicts 2013 and 2014 to be the most decisive years for his Group. Numerous projects and products are in the pipeline, making these two years full of equal challenges and opportunities for him, and the Group. “These two years will decide the future of KL Dugar Group. If all goes well, the Group’s turnover will increase three folds within this time,” says Dugar.&nbsp;</p>
<p style="text-align: justify;">
	Dugar has been taking care of the Group since 1991, right after he completed his graduation. More specifically, he looks after the Food Grain Business of KL Dugar Group that includes eight different industries. Dugar had joined the Group as the Director, but recalls working as a cashier. “I kept track of where the money comes from and where it goes. It was very essential for me to know about the exact finances of the Group,” says Dugar.&nbsp;</p>
<p style="text-align: justify;">
	From the moment he joined, he had a dream of professionally managing the group, although at that time he didn’t know what professional management exactly was. To start with, he ordered a customized accounts package from Kolkata, customised for his Group. He brought in new technologies, computerized the systems and set up numerous industries and took the Group where it is today. He says he was driven by a thirst to work and move ahead, with a strong passion of do something novel.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Early Life</strong></p>
<p style="text-align: justify;">
	Born in 1967 in Biratnagar to Krishan Lal Dugar and Jatan Devi Dugar, Dugar’s mind was set to business right from childhood. Most of his childhood was spent in Kolkata as he was there for about 18 years, from kindergarten to graduation. He was in Nepal only for vacations then. Dugar was involved with Dugar Group long before it separated into three groups in 1990. He used to work in the liaison office of the Group in Kolkata since he was in Grade 9. &nbsp;After graduating from St Xavier’s College in Kolkata, he thought of starting a business in India. In the process, he bought a granite mine and a solvent plant in Hyderabad, but wasn’t able to go on with that business. Due to the separation of Dugar Group, he felt he was needed in the newly formed KL Dugar Group, so he returned to Nepal.&nbsp;</p>
<p style="text-align: justify;">
	As soon as he joined KL Dugar Group, he set up a vanaspati factory in Biratnagar. As the Group was newly formed, he felt immensely challenged and pressurized. Driven to prove himself, he says he set up the factory from scratch in just six months. “No one could have done this back then. I set up Swastik Oil Industries at a cost of 22 million rupees. It still is the largest oil industry of the country,” says Dugar with pride. This was his first venture as the MD of the Group, and a lot more industries were about to follow. During his stay in Biratnagar, he set up numerous industries. Saurabh Oil Mill, Vikas Flour Mill, Gyan Food Products, Pratibha Rice Mill and Gyan Herbals Pvt Ltd are among a few of them. Dugar shifted to Kathmandu in the year 1995. &nbsp;</p>
<p style="text-align: justify;">
	Dugar considers the separation to be a major turning point in his life. He first took it as a challenge, but later he figured it out that it was beneficial for him, as it gave him his individuality and helped him grow more. Rather than import export business, he focussed on local materials and set up locally based industries. “I always wanted to do something for the country. Today, I think I have contributed by branding the local products,” says Dugar. At present, the food products of the Group are exported to numerous countries worldwide.&nbsp;</p>
<p style="text-align: justify;">
	As a child, Dugar was not so mischievous, but rather disciplined, a quiet one. He says he was not very good in school and always was mediocre student, but very good in accounts. “I was very interested in accountancy, and was also very good at it,” recalls Dugar. He also possessed leadership in his school but remember being shy around girls.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Personal Side</strong></p>
<p style="text-align: justify;">
	Dugar was married with Namita Dugar in 1991, and the marriage was an arranged one. It was immediately after the formation of his Group, and business was his top priority then. &nbsp;As a result, his personal life was somehow out of balance. He says he went for his honeymoon after three years of his marriage. “Back then, I felt much challenged, and was very busy. I could not give time to my family and children. I didn’t take any holidays either,” says he. But later, when all his businesses went well, he was able to balance both the professional and personal aspects of his life.&nbsp;</p>
<p style="text-align: justify;">
	Dugar likes to takes immediate decisions and doesn’t want to linger on issues. &nbsp;He says he can’t stay idle for even an hour. He remembers him being bored once on a three-day vacation with his family. He says he is very industrious, and is always thinking about his business. He firmly believes in teamwork and says that the system should work, not a person. Regarding his finances, he maintains that the accounts should be updated till the present moment, and not yesterday. Dugar believes in doing fair business, and strictly follows his business ethics.&nbsp;</p>
<p style="text-align: justify;">
	Not at all a party goer, Dugar likes to spend his evenings with his family after a stressful day. He likes to watch TV and spend most of his free time at home, with his children. “I feel more responsible towards my family and children because I couldn’t give much attention to them when I started business. Now I can afford time for them, and I feel I have to make up for the lost time,” says he. Dugar is the proud father of son Saurabh and daughters Bhavika and Drishika. A scrupulous follower of traditions, Dugar strictly abstains from alcohol, tobacco and non-vegetarian food. He loves Indian vegetarian food and is not very fond of trying new dishes.</p>
<p style="text-align: justify;">
	<strong>Hobbies</strong></p>
<p style="text-align: justify;">
	Dugar loves to travel, especially to modern cities in the world. He loves branded stuffs and loves to shop. He has been to Dubai, US and many countries in Europe. His other interests are music and dancing. He loves to listen to Hindi songs, and watches movies once in a while. He says he is quiet brand conscious. “I am very obsessed with being dressed properly. All my outfits are stitched in Mumbai. I am also very fond of clothes,” says Dugar. He also loves branded watches, and carries the latest gadgets though he is not too fond of them. He believes he has to be familiar with technology as it helps in the business too.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Way Ahead</strong></p>
<p style="text-align: justify;">
	According to Dugar, KL Dugar’s future ventures will be in sectors of hydropower and construction. The Groups’ largest project United Cements is all set to start by the end of this year. KL Residency will be handed over in 2013 and Nepal Hydro Developers Pvt Ltd will also commence in 2013. &nbsp;In addition, more than 30 products related to home appliances, automobiles and others are in the pipe line. Dugar says that he has to work even harder now, as the recent times are even more competitive.&nbsp;</p>
<p style="text-align: justify;">
	Nepali entrepreneurs are as capable as any others in the world. “We are doing our best even when faced by worst of situations. We have load shedding and political problem; still Nepali entrepreneurs are doing their job. We can do even more if the government is more supportive,” says he. Dugar wants to be number one in whatever he does, and is always striving for excellence. “Dhara oil and Gyan flour are one of my best products. I want to remain number one, and want my legacy to go with the products,” says Dugar. According to him, his greatest asset is the trust that his customers have put in him and the Group.&nbsp;</p>
<p style="text-align: justify;">
	Dugar believes that three things are very crucial for the success of any business. One has to be loyal and committed towards his business, have knowledge the business, and most importantly, one should be very critical of finances. &nbsp;He says he gives equal importance to one thousand rupees and one million. Moreover, he thinks one should have faith in his staffs and should have frequent interactions as they have more knowledge than the boss. “A good suggestion from them can change your entire perspective and help the business,” says Dugar.&nbsp;</p>',
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			'keywords' => '',
			'description' => 'For Kumud Kumar Dugar, MD, KL Dugar Group, failures are as important as success as he believes they keep you striving for success. He says that people need to fail to succeed. “Failures should be analyzed, and then they serve as a lesson. More importantly, one has to learn to be responsible for their failures. Blaming others for your failures is never going to help,” says Dugar.',
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		'Article' => array(
			'id' => '947',
			'article_category_id' => '40',
			'title' => 'New Year Hues: Products, Promises And People',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Siromani Dhungana<br />
	<br />
	<br />
	<br />
	New Year Hues: Products, Promises and People</strong><br />
	<br />
	Outlets of the world&rsquo;s most famous brands have already started doing their business in Kathmandu providing consumers chances of more choices and selections. The powerful combination of sophistication in use of goods, changing lifestyle in the urban area and consumers&rsquo; access to information created by information and technology have brought about an unprecedented shift in the consumers&rsquo; brand use habit. On the other hand, it has created both opportunities and challenges for companies looking for potential buyers. Increased competition among various players has compelled them to lure customers by offering different packages. New Business Age tries to catch-up some existing market phenomenon in Nepal and explores the connection between products and people in the market.<br />
	<br />
	The fastest-growing middle and upper middle-class consumers have created many opportunities for companies in the Nepali market. Earning enough to afford quality brands and quality consumer experiences, the younger generation has become brand-focused and up to date with the latest arrivals. From gadgets, clothing and watches to other personal belongings, the new generation has become brand conscious and choosy.<br />
	&nbsp;<br />
	On the other hand, the increasing competition among different brands has forced companies to lure potential consumers by offering attractive packages. Various companies have been trying to lure consumers using various techniques including bumper offers, appointment of brand ambassadors, advertising campaigns in the media and other packages to ensure the success of their brands. Private business houses have been aggressively putting their effort to get a hold in the market, opines young entrepreneur Meele Shrestha of Maxlee Traders Pvt Ltd. New Year 2070 may not witness a drastic change in the market but it can create a different type of vibration, she adds.<br />
	<br />
	<br />
	<img alt="products" src="/userfiles/images/2070-1.jpg" style="margin: 10px; width: 400px; height: 280px;" /><br />
	<br />
	<strong>Marketing of Products</strong><br />
	<br />
	Marketers always think that if they want a product to catch on, they have to think up a catchy slogan or come up with a slick advertisement to create a buzz. It is really impossible to exactly assess what propels consumers to buy particular products.<br />
	<br />
	Advertising campaigns are not enough. Companies should also think about linking products to the environment and let the environment do the work besides the advertisement and other ways of publicity of products.Consumers&rsquo; behaviour is strongly influenced by subtle environmental cues. In Nepal, most consumers want to follow the wealthy population in terms of products consumption and buying. Availability, price structure and quality of products largely determine whether the product can hold the market.<br />
	<br />
	<br />
	<strong>Consumers&rsquo; Psychology</strong><br />
	<br />
	Even big companies around the world cannot always predict consumers&rsquo; psychology correctly. Sometimes, a simple product can create a trend in the market but other times even meticulously designed and decorated product may fail to attract consumers.<br />
	<br />
	Consumers&rsquo; decisions on products are driven largly by implicit associations with the imagery connected to a brand. And, sometimes their decision may be associated with the subconscious emotional appeal of products. Why and how people buy some products and not others? Consumers&rsquo; psychology is a specialty area that studies how our thoughts, beliefs, feelings and perceptions influence how we buy and how we relate to goods and services.<br />
	<br />
	<img alt="nepali market" src="/userfiles/images/2070-2.jpg" style="width: 400px; height: 266px; margin: 10px;" /><br />
	<br />
	<strong>Diversifying Nepali Market</strong><br />
	<br />
	Markets of various products and brands have a tremendous potential to expand in Nepal. The modern marketing approach is a post 1990 phenomenon, a large section of people is still out of the the modern market system leaving room for new and innovative companies to expand their presence. And that is happening too.<br />
	<br />
	Kathmandu has many outlets and high-end streets to showcase state-of-the-art brands of various products. The trend of opening modern outlets outside the Kathmandu valley is on the rise. Pokhara, Biratnagar, Dharan, Itahari, Birgunj among others are slowly waking up to the modern marketing approach.<br />
	<br />
	The population of Nepal as of June 22, 2011 stands at 26.49 million showing a population growth rate of 1.35 per annum, according to Central Bureau of Statistics. According to the Nepal Demographic and Health Survey, a total of 40 per cent of people are below 15 years of age and another 30 percent are between 15-49 years of age. Clearly, the country has a huge potential for products and brands. because of the large youth population.<br />
	<br />
	All companies need to win the hearts and minds of the consumers to get a foothold in the market. In this issue, New Business Age presents a consumer-focused story looking at various products and brands and they promises to the consumers for the New Year 2070 BS. It also looks at the preferences and opinions of some consumers from various segments of society:<br />
	<br />
	<br />
	<br />
	<strong>Automobile</strong><br />
	<br />
	Nepal has seen the penetration of two- and four-wheelers increase at a rapid pace, thanks to the expansion of road connectivity and increased income of citizens. Expansions of roads throughout the country and a steep rise in the number of migrant workers have played a catalytic role in the growth of automobile sales. So, many automobile brands have been able to establish themselves and automobile has become one of the largest customs duty contributors in the country. Nepali consumers have been using four-wheelers ranging from the most expensive one to the cheapest Nano car. Similarly, Nepal-assembled brands such as Mustang and Sherpa have also been rolling on the Nepali roads.<br />
	<br />
	In fact, the automobile market is all set to open a new avenue in the country. New Business Age has talked with highly popular automobile brands, Volkswagen and Honda, regarding their business prospects in Nepal (keeping the Nepali New Year 2070 BS in mind.)<br />
	<br />
	<br />
	<img alt="watch" src="/userfiles/images/watch.jpg" style="width: 400px; height: 248px; margin: 10px;" /><br />
	<br />
	<strong>Watches and Clocks</strong><br />
	<br />
	The Global Industry Analysts (GIA), Inc predicts that the global market for Watches and Clocks is poised to reach US$46.6 billion and US$5.4 billion, respectively, by the year 2017. In a report &lsquo;Watches and Clocks &ndash; a Global Strategic Business Report&rsquo; released last year, GIA has concluded that the recuperation in demand for luxury watches post recession, robust demand from developing markets especially the Asia-Pacific and rising popularity of fashionable, vintage and innovative models are forecast to drive market growth.<br />
	<br />
	The Nepali market for watches and clocks has been ballooning, say traders. Around 50,000 pieces of branded watches are sold every year in Nepal, according to them. Globally famous watch brands have already started their business in Nepal and are doing well. On the occasion of New Year, New Business Age has approached some top watch brands in the Nepali market. Most famous brands available in Nepal such as Rolex, Rado, Tag Heuer, Omega, Titanic and Esprit will focuse on advertising to attract consumers in the New Year, according to their authorised distributer in Nepal.<br />
	<br />
	<img alt="mobile" src="/userfiles/images/2070-6.jpg" style="width: 400px; height: 269px; margin: 10px;" /><br />
	<strong>Mobile</strong><br />
	<br />
	According to the latest data made available by Nepal Telecommunications Authority (NTA), Nepal&rsquo;s telephone penetration rate reached 70 per cent in mid- December 2012. The mobile handset market will go hand in hand with the mobile penetration rate and the trade in hand-held terminals that<br />
	&nbsp;<br />
	have increased significantly in the last couple of years. The annual transaction of mobile sets in the Nepali market stands at around Rs 13 billion, says president of Mobile Traders Association of Nepal, Purushottam Basnet.<br />
	<br />
	The cheaper series of android phones has created an &lsquo;android revolution&rsquo; in the country, he opines, adding that a mobile set was considered as a sophisticated personal belonging until not long ago, but it has now become an essential commodity.It is obvious the customers who the companies should always take care of, authorised sellers of mobile sets say. According to them, no special package has been developed so far focusing on Nepali New Year but consumers will definitely benefit due to increased competition and presence of many popular brands in the mobile market.<br />
	<br />
	<br />
	<img alt="wear/fashion" src="/userfiles/images/2070-8.jpg" style="margin: 10px;" /><br />
	<strong>Wear/Fashion</strong><br />
	<br />
	The young generation is &lsquo;fashionable&rsquo; and choosy. This generation also tends to emphasize brand value in their spending.It is very smart to follow the latest trends and embrace innovative fashion design. Today, those who can&rsquo;t afford a particular brand, would wait until they can.<br />
	<br />
	Fashion in Nepal is a fast growing industry with increasing events such as fashion weeks or beauty peasants. Now a days, many world famous brands are available in the Nepali market. Lee, Levis, Springwood, Northface, Jeanswest, Pashmina and others brands have succeeded to win the hearts and minds of Nepali consumers in the dress and fashion regime. However, some local designers, too, have made their presence felt.<br />
	<br />
	Dress and fashion-lovers in the town will have reason to cheer in the Nepali New Year because most of the dress brands and outlets are going to offer discount schemes or other packages. But it takes time to know the nature of the offers because brands do not want to reveal their special package in advance, because of competition.<br />
	<br />
	<br />
	&nbsp;<img alt="cosmetic" src="/userfiles/images/2070-11.jpg" style="width: 400px; height: 314px; margin: 10px;" /><br />
	<strong>Cosmetics</strong><br />
	<br />
	The country&rsquo;s cosmetics market has witnessed a rapid growth over the last couple of years. With each passing year, the availability of cosmetic products has increased significantly and the consumption rate has soared. There is no dearth of the world&rsquo;s leading cosmetic brands in the local market. Whatever you want, the market has it. Traders estimate that the country&rsquo;s cosmetic market is worth more than Rs 15 billion annually, and it is growing at the rate of 25-30 percent.<br />
	<br />
	A growing middle class and rising awareness about personal image and hygiene, which has resulted in greater spending on beauty and personal care products, has played a very constructive role on the rise of demand for cosmetic items. From globally recognized brands like Lakme, L&rsquo;Oreal, Garnier, VLCC and Emami to others like Mac&rsquo;s Lavera, Nova, Chase, Astaberry, Lotus and Ayur, the domestic market at current features around 80 brands of cosmetic products. The market is showing continuous growth, says Adhiti Adhikari of Laavanya brand.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>Airlines</strong><br />
	<br />
	Nepal saw a significant growth in air transport after the aviation policy was liberalised in 1992. The annual passenger movement reached around three million in 2012. According to Civil Aviation Authority of Nepal (CAAN), 31 international airlines are operating in Nepal. Similarly, 15 domestic companies, including nine fixed-wing and six helicopter companies, are also in operation.<br />
	<br />
	The prospects look bright with the private sector playing a leading role and investing billions in the industry. Buddha Air and Yeti Airlines have successfully proved their salt in the domestic market while internationally acclaimed companies such as Oman Air, Qatar Air, Jet Airways and Thai Air -- to name a few -- have also served the Nepali travellers well. Domestic airlines are all set to introduce some special packages to customers, international companies will also bring special offers targeting the Nepali New Year. For the time being, keep on guessing what offers domestic and international airlines may bring to attract travelers.<br />
	<br />
	<br />
	<img alt="liquor" height="312" src="/userfiles/images/2070-15.jpg" style="margin: 10px;" width="176" /><br />
	<br />
	<br />
	<strong>Liquor</strong><br />
	<br />
	There is a huge market for alcohol . The demand has been increasing each year due to the rise in household income, which comes from remittance inflows. There have been instances in some districts where most of the remitted money was spent on imported, high premium liquor.<br />
	<br />
	Both domestic and international brands have been doing their business in the Nepali market. Liquor is also a major source of revenue in the country. The overall business of restaurant and bar has decreased due to Mapase (a campaign against drunk-drive launched by Division of Metropolitan Traffic Police); but liquor business is still one of the evergreen sectors in the country.<br />
	<br />
	People had mostly negative perception about liquor in the Nepali society until some years ago. This perception has changed now and alcohol has become a part of daily life now. Whether it is a gathering or a grand party, it is not considered complete without liquor.<br />
	<br />
	Some famous liquor brands such as Antiquity, Ballentine, Royal Stag and Signature have already won the trust of middle class consumers. World-class brands such as Red Label, Black Label and Chivas Regal have also been doing good business in the Nepali market. It is for sure that many of us will be celebrating the occasion sipping of liquor according of our choice.<br />
	<br />
	<br />
	<strong><img alt="paints" height="231" src="/userfiles/images/2070-19.jpg" style="margin: 10px;" width="250" /><br />
	Paints</strong><br />
	<br />
	The paint market has thrived over the years, creating much space for paint companies to expand their market in the country. Rapid urbanisation, construction boom and growing awareness among customers have triggered the demand of paints, giving a leg up to the domestic paint industry, mostly joint ventures and subsidiaries of Indian multinational companies.<br />
	<br />
	The annual domestic demand for paints (including decorative and industrial categories) currently stands at around 40,000 metric tonnes, according to industry sources. The data released by Nepal Rastra Bank, there was a turnover of around Rs 4.10 billion in fiscal year 2011-12.<br />
	<br />
	Despite the slowed demand in the recent days due to recession in the construction sector, m a n u f a c t u r e r s observe that the market is growing. Demand of paint will never go down because a fresh coat of paint is always required even in old houses and people want to change the &nbsp;<br />
	colour to give a different look to their apartments and rooms.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>Housing</strong><br />
	<br />
	Nepal&rsquo;s real estate sector has been in an ailing state for three years now. The real estate and housing industry witnessed a speedy growth (which many say was an unnatural growth) until the Nepal Rastra Bank (NRB), regulator of the country&rsquo;s financial market, suddenly restricted banks&rsquo; lending to the sector in September 2010.<br />
	<br />
	The government planned to purchase houses and apartments for senior civil servants last year. The decision, could give a new lease of life to the cash strapped housing sector, is moving at a snail&rsquo;s pace. However, some positive indication of growth has been seen in the realty sector from the beginning of this year. According to real estate entrepreneurs and housing developers, this business has grown by 33 per cent in the first half of the current fiscal year, compared to the same period in the previous year.<br />
	<br />
	The New Year is expected to bring new hopes and new enthusiasm to the realty sector, opines secretary at Nepal Land ad Housing Developers Association (NLHDA), Bhesh Raj Lohani.<br />
	<br />
	<br />
	<strong>Computers</strong><br />
	<br />
	A study carried out by the Computer Association of Nepal (CAN) last year showed that the computer penetration rate in the country had crossed five per cent. The survey was carried out based on the record of import of computer monitors and branded laptops, according to CAN general secretary Narayan Neupane.The penetration rate at present may have crossed eight percent, he says, adding that the trend of using computers is on the rise since schools, health institutions, clubs and other social groups in the far-flung areas of the country have started using computers for their day-to-day activities.<br />
	<br />
	It is likely that the transaction of overall ICT products will double in the next few years. Internet penetration rate increased to around 23 per cent till mid- December, and the rise of Internet users will have a direct impact on the trade of computers, he claims. High competition among world class brands including HP, Dell, Asus, Compaq, MAC, Sony, Lenovo and Acer have not only contributed to lower the price, due to hard competition, but also have provided quality products to Nepali customers.<br />
	<br />
	&nbsp;</p>
<p>
	&nbsp;</p>
<p>
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;New Year is Definitely a High Season for Passenger Cars&rsquo;<br />
	<br />
	<br />
	<br />
	<img alt="sarik" src="/userfiles/images/SARIK.jpg" style="width: 150px; height: 144px; margin: 10px;" /><br />
	SARIK BOGATI<br />
	<br />
	Head of Marketing, Pooja International (authorised distributer of Volkswagen)</strong><br />
	<br />
	<br />
	<strong>Can you please tell us briefly the overall business scenario of your product in the first quarter of 2013?</strong><br />
	<br />
	The year 2013 seems to be very lucky for Pooja International and the automotive division of Vishal group. Talking about the Volkswagen Brand, we have very good starting with arrivals of fresh 2013 models of Polo and Vento from India. There are many updates in the features like bluetooth in steering control, auto Aircon in Polo, increased leg room, introduction of new colours in cars, new alloys and black headlamps. We have started receiving the New Tiguan, Golf and New Touareg, which are also catching up the market. As a corporate strategy, the automotive division of Vishal Group has expanded its wing in a new segment with acquirement of dealership of &lsquo;Kobelco&rsquo; construction equipment in February 2013.<br />
	<br />
	<br />
	<strong>What possibilities do you see for the business in next quarter, i.e., April- June, 2013 as the Nepali New Year sets in?</strong><br />
	<br />
	New Year and spring season is definitely high seasons for passenger cars. We have so many bankers in queue waiting to upgrade to Volkswagen in this season. Moreover, we will have more cars coming in this quarter from both Germany and India. Now, we can supply the cars to the customers who have been booking and waiting for months. We are very hopeful of the next quarter.<br />
	<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are the main features of your products/brands?</strong><br />
	<br />
	Kobelco construction equipment definitely is an exciting brand and has amazing performance machines which we will offer this year. Moreover, we are expecting some new models and facelifts of Volkswagen coming from India this year.<br />
	<br />
	<br />
	<strong>Can you please provide the price ranges?</strong><br />
	<br />
	We really can&rsquo;t say the price now. But the price would be similar range at what we are offering now.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products/brands more popular especially in the next month: April (Baisakh)?</strong><br />
	<br />
	We would be more focused on branding.</p>
<p>
	&nbsp;</p>
<p>
	&nbsp;</p>
<p>
	<br />
	<br />
	<strong>&lsquo;Toyota Starts to Book New Product Etios Targeting Nepali New Year&rsquo;<br />
	<br />
	<br />
	<img alt="" src="/userfiles/images/SAHARA.jpg" style="width: 150px; height: 151px; margin: 10px;" /><br />
	<br />
	SAHARA KC<br />
	Executive Divisional Manager<br />
	United Traders Syndicate (UTS)<br />
	(authorised dealer of Toyota in Nepal)</strong><br />
	<br />
	<br />
	<strong>Could you please tell briefly the overall business scenario of the produt/brand?</strong><br />
	<br />
	After a hugely successful business year, Toyota now is facing a mild slowdown in terms of sales, which can be ascribed to the recent economic crunch and inability of Toyota to meet the existing demand. The first quarter of this year is almost gone by in the anticipation of launching our new product Etios.<br />
	<br />
	<br />
	<strong>What are the expected returns within the next quarter?</strong><br />
	<br />
	The next quarter is expected to bring a boom in our business with the launch of our highly awaited product Etios. As the Nepali New Year approaches, we will be accepting bookings for the car. Looking at the large number of inquiries about the product, we are expecting a lot of bookings prior to the launch.<br />
	<br />
	<br />
	<img alt="sahara" src="/userfiles/images/sahara1.jpg" style="margin: 10px;" /><br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are the main features of your brands?</strong><br />
	<br />
	As of now, we do not have any new product offering for New Year but we are expecting sales of the product that we have in our offering. Avanza, Hilux, Fortuner, Corolla, Yaris are a few products that we expect to sell more.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products more popular?</strong><br />
	<br />
	Apart from our regular promotional campaigns and promotions for Etios that we will begin from the next month, the launching of Etios will be something the city has never witnessed before. We are focused on making the event an eye catcher for not only our customers and prospects but for anyone who gets a mere glimpse of the event.<br />
	<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;December to January is Considered a Dull Period&rsquo;<br />
	<br />
	<br />
	<img alt="rahul" src="/userfiles/images/RAHUL.jpg" style="width: 150px; height: 143px; margin: 10px;" /><br />
	<br />
	RAHUL DHANUKA<br />
	Brand Manager<br />
	Esprit Watch</strong><br />
	<br />
	<br />
	&nbsp;<br />
	<strong>How do you see the possibility of the business in the next quarter?</strong><br />
	<br />
	With the Nepali New Year approaching, people will certainly start feeling the heat of summer. The watch business is likely to rise because of the change of season. People tend to spend more on watches in summer than in winter. Moreover, the New Year will bring festive mood back. So, people will spend comparatively more than in any other time of the year. We also have the latest collections in store, so watch lovers can try out new collections that will certainly match the latest trend and fashion.<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are main features of your products/ brands?</strong><br />
	<br />
	We have several brands available at all our outlets. Most recently launched brands are Esprit and Pierre Cardin. The brands trendy and casual models. Few most sought other products and brands are: Fossil and Kenith Cole.<br />
	<br />
	<br />
	<strong>Can you please provide price ranges of these brands?</strong><br />
	<br />
	The price ranges from Rs 10000 to Rs15000.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products popular in the next month?</strong><br />
	<br />
	We have three outlets for our products and all of them are located in prime areas like Durbar Marg, City Center and Blue Bird Mall. We are using different branding and promotional strategies. We mainly focus on the print media like different magazines, newspaper, hoarding boards, etc. We have also started targeting our customers through social media like Facebook and Twitter. Fan pages on facebook have helped us a great deal to attract young mass towards our products.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;Today is What Technology Stays on, Tomorrow is Where it Moves Ahead&rsquo;</strong><br />
	&nbsp;</p>
<p>
	<img alt="sachin" src="/userfiles/images/SACHIN.jpg" style="width: 150px; height: 148px; margin: 10px;" /><br />
	<br />
	<strong>SACHIN UDAS<br />
	Marketing Manager, Teletalk (authorised distributer of Colors Mobile)</strong><br />
	<br />
	<br />
	<br />
	Colors is one of the most popular mobile set brands in the country. It has full ranges of mobile phones from basic level to touch-based lifestyle phones, along with CDMA and hi-end smartphones. Colors is a reliable brand with one year of warranty.Colors has the largest network with 18 service centres from East to West. Colors operates after-service follow-ups to assure customers are satisfied with the products.<br />
	<br />
	Colors brand believes in value transferring. We have four major series of Phone: Fighter, Lifestyle and Touch, CDMA and X-factor series. Fighter series consists bar phones with basic features, which can play MP3/ MP4. Fighter series is very popular all over the country. Lifestyle and Touch Series offers multi media facilities like touch screen. Colors&rsquo;s has introduced smartphones under X-factor series. In less than a year, the company has taken good market share of smartphones.We will have entry level android phones, which we want in every teen&rsquo;s hand so that they can explore different apps that are useful in learning languages and also for other purposes. We believe that the android is the key for Nepali teens to experience and explore possibilities of technology.<br />
	<br />
	Colors&rsquo;s X-factor tablets will be soon arriving to the market. It will come in 7 inch and 8 inch screen sizes with 3G SIM compatibility.&nbsp; Colors brand believes that today is what technology stays on, tomorrow is where it moves ahead.<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;New Year is Expected to Bring New rays in Summer Sale&rsquo;<br />
	<br />
	<img alt="achal" src="/userfiles/images/ACHAL.jpg" style="width: 150px; height: 164px; margin: 10px;" /><br />
	ACHAL AGARWAL<br />
	Director<br />
	JeansWest, Nepal</strong><br />
	<br />
	<br />
	<br />
	<strong>Can you tell us briefly the overall business scenario of your products in the first quarter of 2013?</strong><br />
	<br />
	The overall business scenario was very exciting during the first quarter. It has been two years since we introduced our brand in Nepal and people have responded well to the product.<br />
	<br />
	<br />
	<strong>What possibilities do you see for the business in next quarter as the Nepali New Year sets in?</strong><br />
	<br />
	We expect a good sale during April-June since it is summer and people come to buy summer goods.<br />
	<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are their main features?</strong><br />
	<br />
	We have lots of products including T-shirts, half shirts, quarter pants, pants and summer jeans (for men and women) in the New Year.<br />
	<br />
	The main features of our brand are:<br />
	<br />
	a. Company controlled prices: This has become one of the major factors behind our brand to be so successful within such a short span of time. Our products are almost 30 per cent less priced than the similar kind of goods in the market.<br />
	b. Quality: JeansWest is known for its quality in Australia and worldwide markets.<br />
	c. Brand: JeansWest is a very big brand of Australia and so people know about this brand making it very easy for us to get established in the market.<br />
	d. Variety: At JeansWest, we have a very wide range of products.<br />
	e. Size and Fit: JeansWest products have been received well in the Nepali market because of their sizes and fittings for Nepali people.<br />
	<br />
	<br />
	<br />
	<strong>Can you please provide price ranges of the same?</strong><br />
	<br />
	Price ranges from Rs 990 to Rs 4000.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products more popular in the New Year 2070 BS?</strong><br />
	<br />
	Paper media and hoarding boards will be our main marketing strategies in the New Year.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;Customer Satisfaction is a Must to Make Products Popular and Desirable&rsquo;<br />
	<br />
	<br />
	<br />
	<img alt="dilip" src="/userfiles/images/DILIP.jpg" style="width: 150px; height: 168px; margin: 10px;" /><br />
	DILIP KC<br />
	Sports Plaza Pvt Ltd<br />
	(Authorised distributer of Reebok, Rockport and Lee brands)</strong><br />
	<br />
	<br />
	<br />
	&nbsp;<br />
	<strong>Could you please tell us briefly the overall business scenario of products in the first quarter of 2013?</strong><br />
	<br />
	Sports Plaza Pvt Ltd covers Reebok, Rockport and Lee brands, which are one of the best apparel and footwear brands in the world. January 2013 sets in with winter at its peak and as the brand covers an entire range of winter apparels, footwear and accessories, we do not need to worry much about sales and acceptance of our products by our customers. These are world class products with the best designers putting in latest trends in fashion and comfort. They also involve new technologies in footwear and even in fabrics, not available in general.<br />
	<br />
	<br />
	<strong>How do you see the possibility of the business in the next quarter as the Nepali New Year sets in?</strong><br />
	<br />
	We are very optimistic about the business in the next quarter, when we will put our summer arrivals on display, welcoming spring summer with latest and the best in designs and the quality fabrics best suited for our customers. The lightweight footwear and air flow technologies are ultimate in comfort and style. We are sure of high sales volumes in spite of tough competition from other brands.<br />
	<br />
	<br />
	<strong>What are the main features of your products?</strong><br />
	<br />
	As already mentioned, Reebok is a premium sports brand always putting in highest standards of quality and workmanship, both on their footwear and sports apparels. The main features are light weight and best quality fabrics available in the industry with the latest technologies that goes into making them. To mention a few, the fabrics are play dry, which keep our body cool even in peak summer, zig fabrics which are proven to give back the energy dissipated from the body during workouts and exercising and the easy tone range &ndash; helping to tone the body muscles.<br />
	<br />
	Rockport is a trendy leather footwear range for men offering great style and comfort. Also the high technologies that go into Leather processing, The sole, and the workmanship required to make them. Lee is a casual fashion brand with best Denims and cottons available in the market. The designs, quality and price range has been well accepted in the market.<br />
	<br />
	<br />
	<br />
	<strong>Can you please provide the price ranges?</strong><br />
	<br />
	As there are many varieties of products, it would not be possible to cover the prices on this short space. However, if you want prices for some specific product range, we shall be glad to provide the same.<br />
	<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products/brands more popular?</strong><br />
	<br />
	We strongly believe that our customers&rsquo; satisfaction is the most desired strategy that would make our products popular and desirable. However, we can never undervalue the great cooperation and good wishes of our media friends from all publishing houses and advertising agencies, who have worked hard making great designs and offering us the best coverage available.<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;We Want to Strengthen Laavanya Brand in the Coming Year&rsquo;<br />
	<br />
	<br />
	<br />
	<img alt="aditi" src="/userfiles/images/ADITI.jpg" style="width: 150px; height: 143px; margin: 10px;" /><br />
	ADITI BHATTARAI<br />
	Business Development Manager Laavanya Luxury Ayurveda</strong><br />
	<br />
	<br />
	<strong>Can you tell us briefly the overall business scenario of your brand in the first quarter of 2013?</strong><br />
	<br />
	This quarter has been significant for the company as we celebrated our first anniversary in February along with the commercial launch of our sales in the United States. This event has reinforced the strength of Laavanya as both national and international brand. We want to build on this perception and strengthen the brand further for the year.<br />
	<br />
	<br />
	<strong>What possibilities do you see for the business in next quarter, i.e., April- June, 2013 as the Nepali New Year sets in?</strong><br />
	<br />
	April to June is a special season for all our products because we have special events like New Year and wedding season of Baisakh and Asadh. Our products make great gifts for occasions like these. Our cleansing products like the Royal Saffron Ubtan (known as Bukuwa in Nepali) have special significance on wedding rituals and can be used by the brides (and their families) for beautifying as well as religious purposes. Last year, this period brought us the best sales and business prospects in the entire year.<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are their main features?</strong><br />
	<br />
	Taking the season into consideration, we will be promoting our cleanser, face mask and moisturizers this quarter. The cleanser (Royal Saffron Ubtan) and Face Mask (Mukha Kantibarkdhak Powder) are designed for all skin types and are beneficial in windy season, especially in Kathmandu where the effects of dirt from the street impact the skin directly. These products gently remove dirt particles and leftover make up, can be used daily.<br />
	<br />
	<br />
	<strong>Can you please provide price ranges of those products?</strong><br />
	<br />
	Royal Saffron Ubtan-Rs 1250<br />
	Mukha Kantibardhak Powder-Rs 1250<br />
	Radiance Cream-Rs 1650<br />
	Deep Nourishing Cream-Rs 1950<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products/brands more popular especially in the next month?</strong><br />
	<br />
	We mostly focused on personal selling and word-of-mouth publicity this past year. In this quarter, we will be focusing on advertising through the print media and social media. We have used social media effectively in conveying the benefits of Ayurveda and our products and how and when to use them, we want to give continuity to that. We will also offer a special discount offer for New Year.<br />
	<br />
	&nbsp;</p>
<p>
	<br />
	<strong>&lsquo;Overall Business scenario is Good in the First Half of the Current FY&rsquo;</strong></p>
<p>
	&nbsp;</p>
<p>
	<img alt="bhesh raj lohani" src="/userfiles/images/bhesraj.jpg" style="width: 150px; height: 167px; margin: 10px;" /><br />
	<strong>BHESH RAJ LOHANI<br />
	Managing Director<br />
	Green Hill City Pvt Ltd</strong><br />
	<br />
	<br />
	<br />
	<strong>How is overall business of housing sector?</strong><br />
	<br />
	Green Hill City is the largest housing industry in Nepal. It will be developing around 800 units in 320 ropanies of land. As regarding the overall business scenario the product sellings are quite good in the first half of the current fiscal year. Out of 490 units constructed by the company, 130 units have been sold and ownership of 96 units had already been transferred.<br />
	<br />
	<br />
	<strong>What are the main features of Green Hill City&rsquo;s products?</strong><br />
	<br />
	We have two different products: acquiring land and constructing houses by consumers themselves and purchasing completed houses. Green Hill City is committed to providing quality services and best housing products to its customers. We have targeted all types of consumers ranging from the middle class to the upper class.<br />
	<br />
	<br />
	<strong>Can you please provide price ranges?</strong><br />
	<br />
	The price of housing units and colonies constructed by Green Hill City ranges from Rs 6.7 million to 30 million.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products more popular?</strong><br />
	<br />
	Till date we have been promoting our publicity strategies through newspaper advertisements, TV promos and hoarding board. The next campaign consist of a number of sales executive going the various corporate house providing the information about the products through direct marketing by the help of brochure and flyers.<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;Nerolac Produces Many Ranges of Products&rsquo;</strong></p>
<p>
	&nbsp;</p>
<p>
	<br />
	<img alt="rajendra" src="/userfiles/images/rajendra.jpg" style="width: 150px; height: 232px; margin: 10px;" /><br />
	<strong>RAJENDRA DESAI<br />
	Country Head<br />
	Nerolac Paints</strong><br />
	<br />
	<br />
	Considering the market&rsquo;s feedback, the paint market is opening and the season is starting after the winter. Cold weather is almost gone and we see a bright sun every day, which will help to increase the sales of paints and allied products. The construction activities are in full swing, these means an increased demands of paints. Paint sales in the first quarter will be much higher than in the last quarter, and it is expected that the trend will continue in the coming months. We will have 3 per cent more than last year. We have started producing various ranges of Nerolac products, along with existing range of Nepal Shalimar brands. We are keen to market super premium products both for exterior and interior use.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;ICT Market is Always Looking to Give Better and more Suitable technology&rsquo;<br />
	<br />
	<br />
	<img alt="" src="/userfiles/images/nabin.jpg" style="width: 150px; height: 160px; margin: 10px;" /><br />
	NABIN JOSHI<br />
	Assistant General Manager<br />
	Astral Computers Nepal Pvt Ltd</strong><br />
	<br />
	<br />
	<strong>Can you please tell briefly the overall business scenario of the ICT products in the first quarter of 2013?</strong><br />
	<br />
	The first three months seem good in terms of business prospects. Because the CAN InfoTech 2013 was held in the same quarter, the promotion of IT business was better compared to previous quarters. Due to CAN InfoTech, we were able to reach the end user as well as corporate customers. Therefore overall business scenario of ICT products looks bright.<br />
	<br />
	<br />
	<strong>How do you see the possibility of the business in the next quarter?</strong><br />
	<br />
	Along with consumers&rsquo; positive perception, ICT sector needs favorable and appropriate policies to grow. Despite of all above causes, the purchasing trend from organisations has increased. So, we are expecting the same situation, even with better possibilities in the next quarter.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make ICT products more popular?</strong><br />
	<br />
	Nepal&rsquo;s IT market is price driven. However, ICT products do not adapt to a single strategy for better publicity.<br />
	Apart from price, we also educate customers and suggest them the right product to enhance the productivity. Educating customers means building long term relationships, which enables to win their trust. In order to get more publicity about our products, we are trying to reach more and more customers, listening to their requirements and suggesting them the best option.<br />
	<br />
	<br />
	&nbsp;</p>',
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			'created' => '2013-04-17',
			'modified' => '2013-07-28',
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			'description' => 'Outlets of the world’s most famous brands have already started doing their business in Kathmandu providing consumers chances of more choices and selections. The powerful combination of sophistication in use of goods, changing lifestyle in the urban area and consumers’ access to information created by information and technology have brought about an unprecedented shift in the consumers’ brand use habit.',
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	(int) 8 => array(
		'Article' => array(
			'id' => '946',
			'article_category_id' => '38',
			'title' => 'Why Employees Leave An Organization?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<strong>By Nibha Shakya</strong></p>
<p>
	One of the major parts of HR relates to attrition. HR professionals from diverse organization came together on February 27, 2013 for HR Kurakani to discuss why an employee really leaves the organization and how it can be managed and controlled. The programme was organised jointly by Real Solutions and Hotel Annapurna. The major points raised during the programme were as follows:&nbsp;</p>
<p>
	<strong>REASONS:</strong></p>
<p>
	<strong>Relation with boss</strong></p>
<p>
	Employees don’t leave the job, they leave the manager. If employees don’t like the manager’s leadership style, management style or can not tune up with their immediate managers, they prefer leaving the job, despite they are well paid. So, relationship with their boss has been major reason cited for employee leaving the organization.&nbsp;</p>
<p>
	<strong>No Career Progression</strong></p>
<p>
	Most likely, employees leaving the organization are good employees. They would leave if they found that they have no opportunity of growth or career progression or they are not recognized for their performance.</p>
<p>
	<strong>High Stress Level</strong></p>
<p>
	People leave the job because of high stress level. Though remuneration is good, they tend to move because of high work pressure.&nbsp;</p>
<p>
	<strong>Poor Communication</strong></p>
<p>
	Communication plays an important role. The clarity of goal, task, grievances etc if not communicated well between management and employee, there’s chance of HR turnover.&nbsp;</p>
<p>
	<strong>Remuneration and Benefits</strong></p>
<p>
	If the salary paid is not commensurate with the role of the employee, there is tendency of leaving the job. Monotonous job, no clear reporting line, no harmony between old and new employees, &nbsp;lack of clarity in policies etc could be other reasons behind employee leaving the organization.&nbsp;</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>POSSIBLE SOLUTIONS:</strong></p>
<p>
	<strong>Each manager is a HR Manager &nbsp;</strong></p>
<ul>
	<li>
		HR has major role in making One to One Meeting between manager and employee. The instruction should be provided by HR to both the manager and employee before such a meeting as how and what should be discussed. Such meeting can be conduced in a regular basis. It helps to clear communication and solve any problems beforehand.&nbsp;</li>
	<li>
		Patting on the back appreciating employee’s effort, emotional support during their hard time, understanding employee’s perspective are few examples that help create a bond among the employees. This helps in retaining the employees.&nbsp;</li>
	<li>
		The directing quality, inspiring, delegating, communication ability of boss etc matter a lot in employee retention. So, leadership of the manager plays a crucial role. Similarly, the employee also needs to have capability to understand the boss’s perspective. Likewise, the manager need to remain updated.&nbsp;</li>
</ul>
<p>
	<strong>Recruitment and Selection</strong></p>
<p>
	Similarly, right recruitment and selection helps in retaining employees. If right employees are placed in right place, there is less chance of turnover.&nbsp;</p>
<p>
	<strong>Competitive Remuneration and Benefits</strong></p>
<p>
	Salaries should be aligned with the job responsibilities. Likewise, more customized benefits (that would give benefits to the employees as well as to their family) would help in retention.&nbsp;</p>
<p>
	<strong>Tactful and Staff Care</strong></p>
<p>
	HR professional should be tactful in dealing conflict and complaints of employees. They should be proactive in solving any issue before it comes up. Likewise, HR professionals need to work as facilitators in various ways. Proper practice of staff care and stress management helps in minimizing the employee turnover as they would feel valued.&nbsp;</p>
<p>
	<strong>Culture and Environment&nbsp;</strong></p>
<p>
	Also the Culture and environment of &nbsp;the organization play an important role in decision of leaving and staying with the organization. Working environment with good team, handful resources, good behaviour and learning and sharing session help in retaining the employees.&nbsp;</p>
<p>
	<strong>Exit Interview</strong></p>
<p>
	Exit Interview would bring many insights on various issues of the organization from leadership role to operation level discrepancies. Effective exit interview helps identify the reason behind leaving and other improvement factors which would be beneficial for the organization. The findings can be analyzed and improvement can be made as necessary.&nbsp;</p>
<p>
	Attrition upto certain level is healthy but high attrition would hamper overall performance of the organization. Understanding reasons on employee leaving the organization and taking corrective actions from HR and &nbsp;top management would help in minimizing employee turnover in the organization.&nbsp;</p>
<p>
	<img alt="Management, April 2013" height="624" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/management_april2013.jpg" width="317" /></p>
<p>
	<span style="font-size:10px;">Shakya is Sr HR Executive at Real Solutions.</span></p>
<div>
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	(int) 9 => array(
		'Article' => array(
			'id' => '945',
			'article_category_id' => '34',
			'title' => 'Financial Literacy Initiative To Kick-off In Mid-April',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img alt="Financial Literacy Initiative, April 2013" height="172" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/biz_news_financial_literacy_initiative.jpg" width="380" /></p>
<p>
	Month-long Financial Literacy Initiative (FLI) will start in mid-April. It is an initiative taken for the first time in Nepal by Center for Economic and Financial Studies (CEFS), says coordinator of the initiative Olin Thakur. New Business Age Pvt Ltd will contribute to the event as an official media partner. “Financial Literacy Month Celebration” is a part of Financial Literacy Initiative, Thakur says, adding that the celebration includes various workshops, quiz/essay competitions, round table discussions, award distributions and various other financial awareness activities in various places across the nation.</p>
<p>
	“Financial literacy is the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/she invests it (turn it into more) and how that person donates it to help others,” according to organiser.Financial literacy encompasses both knowing about money matters and being equipped to utilize that knowledge by applying it across a range of contexts. What a person needs to know to be financially literate will vary depending upon their circumstances and needs.&nbsp;</p>
<p>
	Generally, however, it will involve an understanding of a person’s own values and priorities, budgeting, savings and how to manage money, credit, the importance of insurance and protecting against risk, investment basics and retirement planning along with others.</p>
<p>
	<strong>Why is it Important in context of Nepal?</strong></p>
<p>
	Good financial literacy skills help individuals and families make the most of opportunities, meet their goals and secure their financial wellbeing, as well as contribute to the economic health of society, Thakur claims. “Improved financial literacy can increase economic participation and social inclusion, drive competition and market efficiency in the financial services sector, and potentially reduce regulatory intervention.”</p>
<p>
	Individuals and households must have the tools to cope with the increasingly complex world of financial instruments. Moreover, financial education ensures poverty reduction and economic growth facility. So, financial literacy is becoming more necessary. Nevertheless, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources. Raising interest in personal finance is now a focus program in most countries around the globe, according to organiser.</p>
<p>
	Organiser says that Financial Literacy Initiative is to help Nepali people in understanding and addressing financial matters, and thereby contribute financial wellbeing; to promote and enhance financial capability among each; to enhance the present knowledge base; to manage financial resources effectively; to empower individuals to make informed choices, avoid pitfalls, know where to go for help; and take other actions to improve their present and long-term financial well-being.</p>
<p>
	“We believe that Financial literacy Initiative will be very crucial in helping the Nepali citizens of various age groups of Nepal to understand and adjust to the situation in which they are now to help them acknowledge themselves in a wiser way and find the loopholes and the gaps in their way of doing micro-macro financial transactions in their day to day lives,” Thakur further added.</p>
<p>
	<strong>Bridging Gaps&nbsp;</strong></p>
<p>
	It aims at facilitating them to bridge the gaps in their financial knowledge and understanding as well as enable them to manage their day to day transactions and future planning in a cost-time efficient ways be it the transaction of a rupee or a million. The event page can be found at social network website facebook by clicking: www.facebook.com/flinepal or official website of Center for Economic and Financial Studies (CEFS).</p>',
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		'Article' => array(
			'id' => '943',
			'article_category_id' => '52',
			'title' => 'Private Sector Concerns',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	Nepal’s private sector has been constantly undermined, ignored or often humiliated by the State for long. Even after restoration of peace seven years ago, things hardly changed for better. So much so, the newly installed ‘election’ government too doesn’t seem much concerned about predicaments the business and industry sectors of the country are currently faced with.</p>
<p style="text-align: justify;">
	All communist party literatures, most prominently of the Maoist Party, unrelentingly criticized the form of the government what their jargon said to be of a ‘bourgeois comprador’, the state of the State run by the rent-seeking elites and bureaucrats. But it is the very Maoist Party which played the most crucial role to form the present government comprising of only former bureaucrats. This was a complete anti-thesis to their sworn doctrine. And, it was but natural for ‘bourgeois compradors’ not to listen to the private sector entrepreneurs.&nbsp;</p>
<p style="text-align: justify;">
	In the run up to form new government, headed by incumbent Chief Justice of the Supreme Court, Khil Raj Regmi, four major political parties signed an 11-point agreement. Sadly, that document didn’t incorporate even a single sentence regarding the sorry state of the economy and prescription to reinvigorate it. FNCCI, the umbrella organization of Nepali businesses and industries, however, protested against this apparent apathy of the country’s major political forces and supposedly apolitical government now at the helm of affairs. But materially not much change seems to be in the offing.&nbsp;</p>
<p style="text-align: justify;">
	Similarly, next thing the Maoists after coming to power in 2008 professed was protecting the ‘nationalist’ businesses. But, in practice, it is the only nationalist businessmen and industrialists that they have selectively made to suffer. The business people who had created businesses and had links to other countries, primarily India, have already shifted to their businesses or wealth. Only those who chose to work here and die here, or the most nationalist ones, are subjected to suffer day in and day out. And, nobody cares.</p>
<p style="text-align: justify;">
	Surprisingly, political parties other than the Maoist have also maintained a suspicious silence on economic issues like increased infringement of private property rights and rapidly deteriorating business climate of the country. &nbsp;The present government is also likely to shirk away from responsibility of doing its bit in the guise of just being an election government. The fact is: the economy should be a continuous priority regardless of any nature of government that comes in or goes out, with whatever pretext. But, alas; this has not been the case for Nepal.</p>
<p style="text-align: justify;">
	One of the major concerns of the private sector has been the politically protected, rampant corruption in the financial administration of the country. But, the Maoist Party now seems to have engaged in indirect form of extortion by using highly corrupt bureaucrats. One of the recent media reports suggests that a few notably corrupt officials under political protection of the Party are deliberately inflicting pain on some businesspersons by making them to make rounds to the revenue investigation office, without framing any charges. Maoists’ pick to head the anti-corruption constitutional body-the Commission for the Investigation of Abuse of Authority- has surprised many.</p>
<p style="text-align: justify;">
	These things have longer repercussions in the country’s business environment. &nbsp;Nepal is already in the red area of the ‘doing business’ and ‘private property rights’ indices. According to an estimate by the business community, some 150,000 large or medium level Nepali business households have fled the country to settle and start business abroad during last one decade.&nbsp;</p>
<p style="text-align: justify;">
	These realities must be of concern to the parties that provide leadership to the country. But, now it appears as if improving the country’s businesses climate is not in any party’s agenda. This also implies that the Nepali private sector, at least for some time to come, have to depend on whatever little they can do on their own and contribute to make things better. One of the appropriate medium of such contribution could be the elections themselves where they can advocate and vote for the party which is better in terms of creating a business-friendly climate in Nepal. They can’t just keep complaining and doing nothing meaningful.</p>
<div>
	 </div>',
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			'description' => 'Nepal’s private sector has been constantly undermined, ignored or often humiliated by the State for long. Even after restoration of peace seven years ago, things hardly changed for better.',
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		'Article' => array(
			'id' => '942',
			'article_category_id' => '31',
			'title' => '‘I Have Identified Planning As A Major Weakness In Most Companies’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="">
	Volker Kleinn is a management expert with a degree in business administration from a German university that he says is about equivalent to MBA. He has held senior managerial positions in American multinationals such as Digital Equipment Corporation (known as DEC which was acquired by Compaq which in turn merged with HP in 2002), Apollo Computer (a leading manufacturer of network workstations until acquired by HP in 1989 and gradually closed down over the next eight years) and Autodesk (Still a major multinational software manufacturer) in Europe and the Asia-Pacific. Retired from an active career more than a decade ago, Volker, nevertheless, finds time to help companies in the developing world to improve their management. He has been visiting Nepal regularly since the early 2000s through the Senior Expert Corp (SCE) programme of the Swisscontact and has helped more than a dozen Nepali companies from different sectors. Volker talked with New Business Age when he was in Kathmandu recently for a similar purpose.</p>
<p style="">
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	 </p>
<p style="">
	<strong>You have been helping private firms, particularly in the developing world, with management issues. How and when did you start this?</strong></p>
<p style="">
	After I retired, I decided to work on a voluntary basis with entrepreneurs and enterprises in the developing countries. This way I wanted to give something back to society. My idea was to contribute to reduce the migration pressure by helping companies in the developing countries to maintain or create employment. So, I registered with the Senior Expert Corps of Swisscontact and through them I came to Nepal.</p>
<p style="">
	<strong>Could you share with us the common problems faced by companies in the developing world?</strong></p>
<p style="">
	In the industrialized countries with predominantly market economies, business management talent has been developed over a long time and therefore there is an established talent pool for management. In the developing countries (especially in Eastern Europe), market economies did not exist for a long time and therefore there still is not a big enough talent pool for management. Any management role requires creativity, initiative and drive. A manager needs to accept responsibility, accountability and I am glad to note, that there are more and more people here in Nepal who are willing to step up to this requirement.&nbsp;</p>
<p style="">
	<strong>Which Nepali companies have you already helped to improve their management?</strong></p>
<p style="">
	Let me not mention names, but I have been working in several industries, such as IT, Communication, Trading, Media, etc. and I also have been giving management training courses at different organizations.&nbsp;</p>
<p style="">
	<strong>What problems do you find in the Nepali companies which you have already worked with?</strong></p>
<p style="">
	For me management is a continuous cycle of Planning, Organizing, Monitoring and Controlling. I have identified Planning as a major weakness in most companies. Operational plans and budgets often do not exist. Since I am convinced that you can only mange what you measure, it is very difficult to evaluate the success of any business if there is no goal or plan to compare performance to. As a consequence, management is in most cases is re-active rather than pro-active, which means that managers are not rally managing but rather getting managed by their environment and circumstances.</p>
<p style="">
	The second area that needs a lot of improvement in most of the companies I have worked with is Management Information. I think it is common knowledge that you do accounting not only for shareholder or tax purposes, but also for management purposes. I have experienced, that most companies give priority to tax requirements. Also, a lot of record keeping is still done manually. These facts make it often very difficult to use financial information for management purposes.</p>
<p style="">
	In addition, I am very concerned about the sustainability of my efforts to help. I have often observed what I call ‘the rubber band syndrome’. This means changes are initiated while I am here, i.e. when the rubber band is under tension, but as soon as I leave, i.e. the rubber band is released, things flip back to the old position. One has to keep in mind that the human brain is change-resistant. That means it requires a constant flow of energy to make changes sustainable.&nbsp;</p>
<p style="">
	It’s apparently been nearly a decade since you started advising Nepali private sector companies on management issues. What do you think of Nepal’s private sector?</p>
<p style="">
	The private sector has made the economy function under what are not very favourite conditions. Everywhere in the world, you can see that the biggest roadblocks for development are corruption and unreliable legal system. Both factors have an impact on the business opportunities that the private sector can pursue.&nbsp;</p>
<p style="">
	<strong>What are the strengths and weaknesses of the Nepali private sector?</strong></p>
<p style="">
	The private sector is divided into two major categories. On the one hand, there are family-owned businesses, which are mostly hierarchically (or paternalistically) organized. These companies tend to maintain limited transparency. On the other, there are newly founded companies which are trying to be more open, but sometimes lack the courage for the degree of openness as Western companies normally practice. This means that I consider the lack of delegation of authority, i.e. empowerment of senior managers as a weakness of the private sector.&nbsp;</p>
<p style="">
	<strong>What are the areas that the Nepali companies need to work on to improve their overall management?</strong></p>
<p style="">
	I have experienced a big gap between shareholders (owners) who are often also the most senior managers and the managers who are not owners. This is often because of the lack of confidence and trust. It would be helpful if professional managers were trusted more to contribute in terms of planning and execution. Empowerment of people is important throughout the organization, but it is more important with regard to the top professional managers. I believe that the time is over where information was considered as power. I am convinced that information creates responsibility and therefor owners should be encouraged to be more transparent vis-a-vis their managers with regard to information about strategy and performance.</p>
<p style="">
	In almost all companies I have worked in, I was told that it is difficult to find competent mangers. I know that there are a lot of Nepalis working as expatriates abroad and gaining international management experience. It would be helpful in my opinion if a campaign is started to offer senior positions for expats who want to come home. News- and job-portals could create a special section to attract experienced people to return. On the other hand, it is alarming that most of the college graduates aspire to leave the country. This represents a skill drain which will have a long-term negative impact on businesses here in the country.&nbsp;</p>
<p style="">
	<strong>What is your impression of the spirit of entrepreneurship in Nepal and the Nepali entrepreneurs?</strong></p>
<p style="">
	Based on my observation, the environment in Nepal is not very conducive to entrepreneurial behaviour. Starting a business here is still burdened with bureaucratic requirements. I believe that this is one of the major reasons why well-educated and talented people are leaving the country.</p>
<p style="">
	<strong>How do you rate the work culture in the organizations you have worked in? What improvements have you usually suggested?</strong></p>
<p style="">
	Empowerment of employees is not very common. The organizations are mostly very hierarchically organized and people rather ask their superiors for taking a decision than deciding for themselves. This is very often a sign of insecurity and lack of self-confidence, but it could also be caused by the unwillingness to accept responsibility.</p>
<p style="">
	<strong>How can private sector companies incentivize the performance of their marketing folks in Nepali context?</strong></p>
<p style="">
	When you say marketing folks I assume that you mean sales people. Sales people around the world are normally incentivized by an incentive compensation plan that rewards good performance. Good performance means meeting or exceeding your target. In the organizations that I was responsible for during my professional career, I had always implemented a plan that rewarded over goal performance proportionally. I was always proud when the best sales people earned more than I did.</p>
<p style="">
	<strong>What sort of good HR practices need to be evolved in the Nepali private sector? Do these practices differ from sector to sector?&nbsp;</strong></p>
<p style="">
	There are certain basic HR practices that should be common in every company. These practices relate to work ethics, loyalty to your employer, confidentiality and attendance discipline. There are other areas where practices would differ, especially in sectors with shift work or other special requirements like workplace security. Attendance discipline is obviously difficult to implement with the frequent bandhs where a few people hold a whole country hostage. This has an enormous negative impact on the productivity and therefore the competitiveness of the private sector.</p>
<p style="">
	<strong>What sort of socio-political environment you find in Nepal in the context of the growth of enterprises? What are the impediments and how to ameliorate the situation ahead?&nbsp;</strong></p>
<p style="">
	Let me just mention two points that come to mind immediately.</p>
<ul>
	<li style="">
		The lack of a functioning mail system requires hand delivery by messengers of a lot of documents, such as newspapers, letters, invoices, etc.</li>
	<li style="">
		Cashless payment systems are not very efficient or customary. This again employs a lot of messengers, who have to collect often cash and sometimes cheques. This keeps a lot of motor bikes on the roads all day.&nbsp;</li>
</ul>',
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			'description' => 'Volker Kleinn is a management expert with a degree in business administration from a German university that he says is about equivalent to MBA. Volker talked with New Business Age when he was in Kathmandu recently for a similar purpose.',
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			'title' => 'Why Are Most Domestic Airlines Running In Loss?',
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			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Akhilesh Tripathi</strong></p>
<p style="text-align: justify;">
	Leaving a few as exceptions, most domestic private sector airlines in Nepal are not in sound financial health. In fact, a majority of them have always been struggling for survival. The list of Nepali private airlines closed down so far is a long one, carrying well over a dozen names of which a few grounded their fleet and downed their shutters after flying in the Nepali sky for as long as a decade. Examples are Necon Air and Cosmic Air. Their contemporaries &nbsp;such as Skyline Air, Shangril-Lai Air, Mountain Air, Nepal Airways, Lumbini Air, Everest Air – to name a few – were also closed down.&nbsp;</p>
<p style="text-align: justify;">
	Many – five dozen to be exact - haven’t started their operations despite receiving the Airline Operator’s Certificate (AOC) from the Civil Aviation Authority of Nepal (CAAN) many years ago. They are airlines on paper only. Understandably, the biggest deterrent for them is the collapse of several airlines in the past. There is no doubt that the present of the domestic aviation industry has improved, but not enough. A few airlines are really doing well – but they are oonly a few. Others are in the red, according to a highly-placed source at CAAN. Recently, two airlines have been in problems – Agni Air and Guna Air. The latter was acquired by Simirik Air, a helicopter service provider, which rebranded it as Simrik Airlines and launched its domestic flights. &nbsp;</p>
<p style="text-align: justify;">
	The Number One airline (Buddha Air) at present is far ahead the Number Two (Yeti Airlines) in terms of the number of passengers carried as well as the profit made annually. And there is always a stiff competition among a couple of other private airlines for the Number Three position in the domestic aviation market which has all together 15 private airlines (nine fixed-wing and six rotary-wing) in operation at present. Of the total 1.6 million domestic air passengers in 2012, the Number One airline carried more than 800,000 and also made, according to knowledgeable sources, more than Rs 4 billion in profit. The remaining Rs 3 billion of the annual business was shared by the remaining 14 airlines. That speaks volumes about how profitable some of them might just be!</p>
<p style="text-align: justify;">
	Ever since the country adopted a liberal aviation policy in 1992, the number of companies seeking and receiving AOC has been rising year on year. However, sustainability has been a major problem for them. “Four of the nine fixed-wing airlines and three of the six rotary-wing airlines operational at present are in profit. Others are in loss,” reveals the CAAN source.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Why?</strong></p>
<p style="text-align: justify;">
	Why civil aviation is yet to become a profitable business for a majority of the private airlines operational at present? Is the number of airlines more than the market can actually sustain? Why so many airlines have failed? And why do others face the risk of failure? Nubiz sought answers to these questions from four experts of Nepal’s aviation industry: T R Manandhar (Director General of CAAN), Saral Shamser Rana (Deputy Marketing Director of Yeti Airlines), Manoj Karki (Managing Director of Goma Airlines) and Pradeep Shrestha (CEO of Air Kasthamandap). This is how they answered these questions:</p>
<div style="text-align: justify;">
	<strong>‘Airlines should go for mergers’</strong></div>
<div style="text-align: justify;">
	<strong><br />
	</strong></div>
<div>
	<div style="text-align: justify;">
		Yes, it’s true that several airlines have closed down, mainly because of financial reasons, in the past. We have also heard complaints that the number of airlines is more than the market can actually sustain. Therefore, the government has made the Airline Operator’s Certificate Requirements (AOCR) more stringent a couple of months back. Now, no AOC will be issued unless the airline procures the aircraft. Though we have adopted a liberal aviation policy, we don’t encourage companies to enter the aviation industry at the moment, unless they have serious, long-term plans supported by adequate capital base. There are three airlines operating scheduled flights on the trunk routes at present. Two more, Namaste Air and Blue Airways, have applied for scheduled domestic operations on the trunk routes; they are in the process of procuring aircraft.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The main reason why so many domestic airlines collapsed and why many others are incurring a loss is low capital base and lack of long-term planning. Everyone planning an airline company should be clear that it requires huge investments and the operating cost is also very high which means the promoters need deep pockets. The airlines which are operating chartered flights to the remote areas are in loss. That’s why we have started building paved runways at airports in the rural areas. Currently, paved runways are under construction at over half a dozen such airports. Similarly, we are also installing modern aviation tools and technologies such as Tower Console, VOR, CCR, Met equipment, PAPI Light etc at various airports.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		I seriously feel that the existing airlines should go for mergers among themselves. This will increase their capital base and fleet and lower the operational cost to some extent. What the experience shows is many airlines collapsed after they faced accidents. So, they must pay proper attention to all the safety measures in order to avoid accidents. There is lack of skilled technical and expert human resource. For example, there is a limited supply of captains and engineers. So, airlines often ‘hunt’ such human resource from among themselves which ultimately affects the operation of those airlines which lose such human resource. The demand of airline service will not increase by any significant degree unless there is a considerable growth in tourist arrivals.</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		T R Manandhar</div>
	<div style="text-align: right;">
		Director General</div>
	<div style="text-align: right;">
		CAAN</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		<strong>‘Only an aviation expert should run an airline’</strong></div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		Very few investors have grasped the aviation business in Nepal properly. An airline cannot be run like most other businesses. Without the experience and knowledge about the costs involved, the turnaround times and expenses that are actually incurred, one will never see a sustainable business. You need an aviation expert to run an aviation business, not just one with the capital to finance it.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The variables in the market, the trends and patterns are unpredictable. A factor such as weather can make or break a season for an airline. Working with the correct promotions team, at the right prices and focusing on the long run is crucial to succeed. The competition is also fierce, and has in the past brought about the closure of various airlines. Seeking opportunities to work together for mutual benefit is rare; rather it’s the opposite and many are out there to bring others down.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The lack of training and experience amongst the teams within the airline is another cause for the downfall. Crew should not be rushed to senior positions just to fill up spaces or to meet some compliance. It is one of the reasons why the accident rate in Nepal is higher than in most places on earth and that directly leads to my next point - insurance premium: loss of one, borne by many. There might be many variable costs in the running of an airline but a primary fixed cost beside the loan is the insurance premium. Whether you fly or not, you always have to pay it. It’s a cost that can bring a company down and it does not take into account a bad season.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The reasons can be endless, however this is not a struggle only faced in Nepal. Richard Branson, founder of Virgin Airlines, on his advice to become a millionaire, said, “The easiest way to become a millionaire is to first become a billionaire and then start an airline!” However, with the backing of investors and good leadership, Nepali aviation can reach greater heights.&nbsp;</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		Capt Pradeep Shrestha</div>
	<div style="text-align: right;">
		Chief Executive Officer</div>
	<div style="text-align: right;">
		Air Kasthamandap</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		<strong>‘Many airlines enter the market without proper market study’</strong></div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		The airlines have to take huge loans from banks as the investment cost is very high. In the past, some companies entered the aviation market only for the sake of it, making the supply higher than the demand. This caused unhealthy competition leading to sustainability problems at the end. The survival of airlines in Nepal is very challenging, especially for those flying to the remote areas where the runways are really bad; other several airport facilities are simply absent. The operating cost is very high. For example, a single servicing of the engine costs around Rs 700,000 to 1 million. Many airlines enter the market without studying the opportunities available.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Airlines flying to the remote areas have additional challenges. The cost of operating flights in the remote areas is comparatively high. The government should fix the number of flights and the rates for remote areas based on the flow of passengers and the operational cost of the flights. The government can help the airlines flying to the rural areas in terms of fuel costs and VAT and other taxes. However, increasing the tourist arrivals is one sure way to make aviation a profitable business for domestic airlines. More tourists means more opportunities for the airlines to make money. The government should make the issuance of AOC more stringent so that there is a balance between demand and supply. Airlines such as Yeti Airlines, Buddha Air, Simrik Air etc seem to have a profitable business. But they have taken huge loans for which the interest is also quite high. However, they have been able to stand out in the market because of proper planning, professional and efficient service, good market strategy, adequate investment and operating capital.&nbsp;</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		Saral Shamser Rana</div>
	<div style="text-align: right;">
		Deputy Marketing Director</div>
	<div style="text-align: right;">
		Yeti Airlines</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		<strong>‘Airlines fail miserably in financial risk management’</strong></div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		The major reason behind the collapse of most domestic airlines in the past is the failure to manage the financial risks. Managerial shortcomings, lack of aircraft matching the country’s geography, lack of enough support from the government and the then aviation policy could be the other reasons. However, it is commendable that the private sector has continued to support the domestic aviation industry despite these odds.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Aircraft matching the country’s difficult geography are a must for an airline. Skilled manpower is another prerequisite. As there is lack of enough skilled human resource, one airline has to often ‘steal’ talents and experienced human resource from the others. The airfares have not increased according to the hike in the aviation fuel prices in recent times. Operating flights in the remote areas entails even higher costs. Hence, profit becomes even more challenging for these airlines. The operating cost of an airline is very high. And it takes at least a few years before an airline can expect profits. So the promoters need to have deep pockets as well as patience and long-term plans before jumping into the market.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Experience has shown that if someone wants to run an airline, then s/he should focus on the airline only. Diverting the income from the airline to other investments may cause problems, especially in the beginning years. We have already seen the fall of several companies which invested the income from aviation into other sectors. The promoters should have enough capital to meet all financial problems that could crop up in the future.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Also, the government needs to revise the aviation policy. The number of passengers has been on a constant rise in flights to the major urban destinations. However, it is difficult for the airlines flying to the rural areas to get enough passengers while the risks of flying are also high in these areas.</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		Manoj Karki</div>
	<div style="text-align: right;">
		Managing Director</div>
	<div style="text-align: right;">
		Goma Air</div>
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Nepal’s Civil Aviation: Some Facts</strong></div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		The Nepali private sector entered the domestic air transport after the adoption of Liberal Aviation Policy in 1992. Nepal Airways was the first private airline to start scheduled domestic flights in Nepal (1992). It got the Airline Operator’s Certification from the Civil Aviation Authoruty of Nepal (CAAN) in Feb 1992. Necon Air followed suit in September 1992. In 2001 two other local airlines – Shangri-La Air and Karnali Air merged with Necon which operated flights to all major domestic destinations. It also had flights to Patna and Varanasi in India before being closed down in 2003.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Domestic operation by jet aircraft commenced in 2004 by Cosmic Air. Some 75 private airlines have received AOC from CAAN but only 15 of them are operational at present – nine fixed-wing and 6 rotor-wing airlines. Over a dozen which came into operation after 1992 have closed down so far. Nine fixed-wing airlines operational at present - Nepal Airlines (government-owned), Buddha Air, Yeti Airlines, Sita Air, Tara Air, Air Kasthamandap, Makalu Air, Goma Air, Simrik Airlines (Guna Air has been renamed as Simrik Airlines after it was recently acquired by Simrik Air, a helicopter company) and Agni Air (AOC still valid but flights grounded at present). The domestic civil aviation industry is said to be growing at 10-12 per cent per anum.Private investment in civil aviation is estimated above Rs 11 billion.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Six rotor-wing airlines operational at present are:&nbsp;</div>
	<ul>
		<li style="text-align: justify;">
			Buddha, Yeti and Simrik are the three airlines operating mountain flights at present.</li>
		<li style="text-align: justify;">
			NAC, Sita Air and Tara Air are the airlines flying to the rural areas</li>
		<li style="text-align: justify;">
			Air Kasthamandap launched a test flight to the Syangboche Airport, the highest-altitude airport in Nepal (3780m) on March 18, 2013. &nbsp;</li>
		<li style="text-align: justify;">
			Air Kasthamandap, Makalu Air and Goma Air, three new players in the aviation market, have single-engine aircraft and don’t have scheduled flights. They operate chartered and cargo flights, mostly to the rural areas.</li>
		<li style="text-align: justify;">
			Namaste Airlines has applied for permission for domestic flights.</li>
	</ul>
</div>
<div style="text-align: justify;">
	 </div>',
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			'created' => '2013-04-17',
			'modified' => '2013-05-23',
			'keywords' => 'Why Are Most Domestic Airlines Running In Loss?',
			'description' => 'Leaving a few as exceptions, most domestic private sector airlines in Nepal are not in sound financial health. In fact, a majority of them have always been struggling for survival.',
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		'Article' => array(
			'id' => '939',
			'article_category_id' => '39',
			'title' => 'NLIC: Becoming Online-friendly',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Sudharson Thapaliya</strong></p>
<p style="text-align: justify;">
	As the numbers of internet users is rising day by day, Nepal Life Insurance Company (NLIC) is planning to go for online friendly operating systems. According to the company officials, the process has been initiated long ago and will be completed very soon. The company claims that ‘Any customer can calculate the payable premium amount through premium calculator present in the website’. Besides this, the company also has full fledged online service through the website and technologically advanced system of inter-connectivity between the head office and all branches spread all over Nepal.&nbsp;</p>
<p style="text-align: justify;">
	“We have to take advantage of technology in every business and insurance is no exception,” said Vivek Jha, Chief Executive Officer of the NLIC. “This is why we have decided to go for website.” He added that this would be helpful for awareness of general public towards insurance.</p>
<p style="text-align: justify;">
	“Life insurance business is a long term business and its growth and prosperity depends on focused strategic planning and proper implementation of it,” said CEO Jha. He added that as per the present scenario of life insurance sector in the country working towards awareness enhancement to general public is the key factor for success and a basic challenge.&nbsp;</p>
<p style="text-align: justify;">
	The company is also in the process of launching a new website which shall be customer friendly with special features like checking one’s policy status online. NLIC has also been creating awareness through social media like facebook, twitter and you tube</p>
<p style="text-align: justify;">
	<strong>Company Background</strong></p>
<p style="text-align: justify;">
	Established under Company Act 2053 and Insurance Act 2049 as a public limited company on 2001, NLIC is the first Nepali owned life insurance Company that provides only life insurance services. Before the incorporation of the company, there were only companies that either both life and non life insurance or had foreign investors. Incorporated by Nepali promoters, the company’s shares are owned 80 percent by major promoters and rest is owned by general punlic. The company has reinsurance treaty with ‘Hannover Re Life Reinsurance Company’, Germany for conventional policies and ‘SCOR Global Life’, France for Term Assurance Foreign Expatriate policies.</p>
<p style="text-align: justify;">
	Nepal Life City Center is the major investment by NLIC. City Center is claimed by the company to be the first proper mall in Nepal. The company has an authorized capital of 100 Crore, issued capital of Rs. 50 Crore and paid up capital of Rs. 37.50 Crore to till date. Presently Nepal Life provides a bonus rate of NPR. 60-80 per thousand sum assured per annum, which the company claims the highest among life insurance companies in Nepal.</p>
<p style="text-align: justify;">
	Also it has presently proposed a dividend of 126.32% to its shareholders of which as 56.32% is cash dividend and 70% bonus shares. “This has given a tremendous boost to its share price in the stock market and increased the investors’ confidence towards the company,” CEO Jha claimed.</p>
<p style="text-align: justify;">
	<strong>Turning Point&nbsp;</strong></p>
<p style="text-align: justify;">
	 </p>
<p>
	<strong><img alt="NLIC" height="260" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_table1.jpg" style="float: left; margin: 0px 5px 0px 0px; text-align: justify;" width="300" /></strong></p>
<p style="text-align: justify;">
	The company believes last year was the major turning point for it, when it rebranded. “New logo and caption provides a better corporate image to the consumers, it was a major turning point for us”, said CEO Jha. “This gave a very vital and positive impact on gaining the confidence of the existing as well as new consumers for us”. The company had started rebranding campaigns with the slogan of “Naya Josh, Naya Soch, Naya Umang, Rato Tika, 10 on 10, Nepali haru ko pahilo rojai Nepal Life” last year.</p>
<p style="text-align: justify;">
	“It was necessary for a wider awareness about the company as well as for life insurance as a whole,” shared Jha. “The campaign was able to provide a better corporate image among the existing and new consumers and gain their confidence. Furthermore, we came up with the caption ‘Kinaki Jeewan Amulya Chha (Because Life is Precious)’ projecting a broader and positive aspect of life.”&nbsp;</p>
<p style="text-align: justify;">
	<strong>Connecting People via Own Branches</strong></p>
<p style="text-align: justify;">
	The company has more than 100 establishments all over the country. It has 20 branches in the major cities of the country to provide services to its customers. The branches are in Kathmandu, Biratnagar, Birgunj, Butwal, Pokhara, Banepa, Narayanghat, Nepalgunj, Birtamod, Lahan, Janakpur, Mahendranagar, Ghorahi, Surkhet, Hetauda, Phidim, Urlabari, Dhangadi, Nuwakot, and Lalitpur.</p>
<p style="text-align: justify;">
	Besides these branches, the company has opened many sales centers. They are spread in Manthali, Barhabishe, Charikot, Bhaktapur, Choutara, Salleri, Damak, Letang, Khandabari, Bhojpur, Chandranigapur, Gaur, Ilam, Bhadrapur, Palpa, Gulmi, Arghakhanchi, Pyuthan, Humla, Rolpa, Mugu, Bajura, Bhairahawa, Taulihawa, Sunwal, Tulsipur ghorahi, Salyan, Rukum, Chourjahari, Bhaluwang, Manahari, Sindhuli, Malangwa, Jaleshwor, Gorkha, Dhading, Bouddha, Katari, Rajbiraj, Siraha, Dadeldhura, Baitadi, Belauli, Dipayal, Lamjung, Kawasoti, Madi, Guleriya, Jumla, Bardiya, Kamdi, Jajarkot, Baglung, Damauli, Waling, Dailekh, Salli, Taplejung,Yashok,Tharpu,Tikapur, Rangeli and Kirtipur.</p>
<p style="text-align: justify;">
	<img alt="Bonus Rate Growth of NLIC" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_bonus_rate_growth.jpg" /></p>
<p style="text-align: justify;">
	<strong>Human Resources</strong></p>
<p style="text-align: justify;">
	“Human Resources is our main asset,” CEO Jha shared “because, they are in direct touch with grass-root consumers.” “Leadership must emerge from people themselves,” he added. “We provide suitable environment to grow leadership in employees.” According to him, the company has participatory style of management for important decisions regarding organizational policies, new product development etc. “We follow CRM 2 where every organizational employee is responsible for developing customer relationship and providing them the best service,” he added. At present the company has around 250 staffs and more than 18000 active insurance agents.&nbsp;</p>
<p style="text-align: justify;">
	<strong><img alt="Investment Portfolio, NLIC" height="241" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_investment_portfolio.jpg" width="582" /></strong></p>
<p style="text-align: justify;">
	<strong>Lo</strong><strong>oking for Bright Future</strong></p>
<p style="text-align: justify;">
	Life Insurance in Nepal is a growing industry. There are 25 insurance companies, 16 non-life and nine life insurance companies. One Rastriya Beema Sansthan has been allowed to provide both life and non-life services. Though insurance was initiated in 1948 in Nepal, mainly due to lack of awareness, it is estimated that only around five percent are insured all over the country. CEO Jha opined that the number of insured people is even lower than five percent as some of the people are insured multiple times while some are under-insured than what they can afford. At present, it is estimated that contribution in Gross Domestic Product from insurance sector is less than two percent in Nepal.</p>
<p style="text-align: justify;">
	“If we are able to spread awareness about the significance of insurance among the peoples, then insurance business has huge potential in Nepal,” he said. “To uplift insurance business, insurance companies, regulatory body and government have to join hands”.Foreign company’s presence through their agents in Nepal and attracting Nepali customers to do insurance out of their nation, which is legally not allowed, is again a major challenge. He said, “Large numbers of people are insuring themselves with foreign companies in the trust of only the agent they do not know what will happen during the time of claim settlement and also unaware about the illegality of such practice.”&nbsp;</p>
<p style="text-align: justify;">
	He believes that if our insurance sector can convince the people then large sum of money could be utilized for the growth of Nepali economy. He concludes, “Also at present the returns provided by Nepal Life is greater than some of the leading companies in neighbouring countries”. “Presently even in such dire situation the investment by insurance sector is around 60 billion. So if Nepal can prioritize this sector, this figure can multiply manifold.”</p>
<p style="text-align: justify;">
	<strong>Products and Marketing</strong></p>
<p style="text-align: justify;">
	NLIC has launched various types of life insurance policies. These includes Surakshit Jeevan Beema Yojana, Keta-Keti-Jeevan Beema (Shiksha and Vivah), Jeevan Laxmi- Triple Benefit with Bonus, Jeevan Sahara, Jeevan Sarathi, New Term Life Insurance, Saral Jeevan and &nbsp;Jeevan Jyoti.&nbsp;</p>
<p style="text-align: justify;">
	Company believes in fair marketing of products. Generally, marketing people sell the policies by manipulating people. CEO Jha termed ‘mis-selling’ to these practice. “We believe in fair marketing strategy”, he added. “We believe in our products rather than pin pointing the loopholes of others; we trained our grass root agents to follow fair marketing practices”.</p>
<p style="text-align: justify;">
	<strong>CSR Activities</strong></p>
<p style="text-align: justify;">
	In the journey of 12 years, NLIC has tried to do Corporate Service Responsibility (CSR) in different ways for instance, NLIC sponsored differently abled poet Biyog Sapkota’s ‘poem collection launch programe’. Besides this, the company has contributed for the renovation of the pond at historically significant landmark, Kamladi Ganesh Mandir. “We are planning to do some CSR activities differently, yet the concept is not finalized yet,” CEO Jha said. “In near future we will come with new and innovative style of CSR activities”.&nbsp;</p>
<p style="text-align: justify;">
	<img alt="Corporate Focus, NLIC" height="154" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_premium_income.jpg" width="580" /></p>',
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			'description' => '“Life insurance business is a long term business and its growth and prosperity depends on focused strategic planning and proper implementation of it” - Vivek Jha',
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	(int) 14 => array(
		'Article' => array(
			'id' => '938',
			'article_category_id' => '73',
			'title' => 'The Great Himalaya Trail: Once Is Not Enough',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<img alt="" height="367" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/development_partner_april2013(1).jpg" width="580" /></p>
<p style="text-align: justify;">
	The Great Himalaya Trail (GHT), one of the longest and highest trekking trails of the world, within two years of its opening, has grabbed attention from around the world. The trail is known as one of the top 20 adventure destinations by the National Geographic Adventure magazine, thanks to the successful marketing and branding of the trail.</p>
<p style="text-align: justify;">
	The Great Himalaya Trail Development Programme (GHTDP), a two-year programme, has become one of the most popular programmes of tourism development in Nepal. The GHTDP is being implemented by the Nepali Government with technical support of SNV and funded by the UK Department for International Development (DFID.) It is being monitored by NGOs and host communities to ensure that GHTDP is living to meet the goals of responsible tourism at its best. Other partners of the programmes are Nepal Tourism Board (NTB) and Trekking Agencies’ Association of Nepal (TAAN).</p>
<p style="text-align: justify;">
	SNV has taken up the role of advisor to successfully implement the GHTDP. Its role in the project is to provide technical advice and capacity building support to the Ministry of Culture, Tourism and Civil Aviation and the GHTDP Steering Committee. The programme is funded by the UKAID.</p>
<p style="text-align: justify;">
	<strong>Branding the GHT</strong></p>
<p style="text-align: justify;">
	According to Mim Hamal, GHTDP Team Leader, marketing has been mostly done through the website, newsletters and optimum use of the social media. Participation in travel fairs such as ITB, WTM and &nbsp;travel fairs organised by NTB and TAAN and familiarisation. The trail has also been listed as a prime product by Hauser Exkursionen, a German tour operator, in its catalogue and website. Hamal is optimistic and thinks that the attention the trail is getting (as one of the best adventure trekking trail to stroll around the majestic mountains of the Himalayas) will attract tourists from all over &nbsp;the world.</p>
<p style="text-align: justify;">
	According to Hamal, who is also SNV Senior Advisor, the trail is divided into ten connecting treks of two to three weeks long treks each. He stated that each section is being branded with the unique selling points. This opens up the opportunity for tourist to come repeatedly to Nepal to complete the trail. “This is the product that fulfils the Nepali tourism slogan: once is not enough,” said Hamal.</p>
<div>
	<div style="text-align: justify;">
		<strong>Prospects</strong></div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Mim Hamal expressed the possibility for the trail to be expanded up to 4500 kilometres. “Countries like Afghanistan and China are interested in extending the trail into their territories,” he revealed. Currently, the GHT is 1700 kilometres long.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The trail, that began as a pilot testing in 2009/10 from Humla and Dolpa, has now touched 16 districts in the Himalayan region. The GHT starts in Taplejung district and ends in Humla and Darchula, in the Far West of Nepal, close to the Indian and the Chinese border. The trail connects popular treks in the Annapurna and Everest regions with exotic and virgin tourist destinations in the Eastern and Western Nepal. The GHT takes the travellers to a fascinating vista of mountains and green forest, along with rustic culture and livelihood of mountain people.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Trekkers have the option to choose from two routes: one passes through the average altitude of 4000 to 5000 metres, the other &nbsp;remains mostly below 4000 metres. The upper route is considered quite challenging but promises breathtaking views of the mountains up-close, while the lower trail takes one to the culturally rich villages in the remote mountains of Nepal. This lower trail also allows the traveller to enjoy the biodiversity of the route. The GHT is not only for foreigner adventure seekers, this could also be the perfect trekking destination for Nepali people wanting to travel through the majestic mountains of the country.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>Impact on Livelihood</strong></div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The GHT has not only brought tourists to the remote mountains but also development opportunities, employment and possibility of improving livelihoods. Hamal states that the awareness programmes carried out in the route have changed the way people treat tourists, “Earlier, people used to offer beer to tourists in the early morning. These days they offer treated and filtered water for drinking.”&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Similarly, the cooking, guiding, porter and handicraft, lodge management and housekeeping trainings among others &nbsp;provided by the GHTDP have secured self employment for local people. Tourist flow has also opened up market for their agro products, skills and locally made products. The opening of the GHT has also contributed to the building of seven suspension and temporary bridges by the GHTDP. These bridges are not only used by trekkers but also have eased transportation for local people, directly benefiting them.&nbsp;</div>
	<div style="text-align: justify;">
		<strong><br />
		</strong></div>
	<div style="text-align: justify;">
		<strong>Bottlenecks</strong></div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		However, Hamal states that the government has not yet finalised the official route of the GHT. He says that the official route for the endorsement by the cabinet was submitted around a year ago but the cabinet has not endorsed it so far. He also complained about the lack of &nbsp;tourism policies. Moreover, the government does not give a visa for more than 90 days. He demands the extension of this permit for at least two to three years in order for travellers to complete the entire route. Hamal also believes that the current charge for getting a trekking route permit that is as high as US $ 10,000 must be reduced.</div>
	<div style="text-align: justify;">
		Inductive Benefits</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Other infrastructure development, such as micro hydropower in Pathivara, has been initiated. Wi-Fi connectivity is being established targeting tourists coming to the trail. Similarly, the GHT has also provided solar panels for lighting facilities to 40 households in Barpak in Gorkha.Hamal claimed that there are around 100 travel companies&nbsp;</div>
	<div style="text-align: justify;">
		operating in the GHT. These companies are also given training courses on sustainable and eco-tourism promotion of the route.</div>
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong><span style="font-size:14px;">‘The GHT Will Play a Vital Role in Improving the Overall Tourism Scenario’</span></strong></div>
<div style="text-align: justify;">
	<strong><span style="font-size:14px;"><br />
	</span></strong></div>
<div style="text-align: justify;">
	<img alt="" height="273" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/development_partner_mim_april2013.jpg" width="200" /></div>
<div>
	<div style="text-align: justify;">
		<strong><span style="font-size:11px;">Mim Hamal</span></strong></div>
	<div style="text-align: justify;">
		<strong><span style="font-size:11px;">GHTDP Team Leader</span></strong></div>
	<div>
		<p style="text-align: justify;">
			<strong><span style="font-size:11px;">and SNV Senior Advisor</span></strong></p>
		<div style="text-align: justify;">
			<strong><br />
			</strong></div>
	</div>
	<div style="text-align: justify;">
		<strong>Excerpts:</strong></div>
	<div style="text-align: justify;">
		<strong><br />
		</strong></div>
	<div style="text-align: justify;">
		<strong>What was the idea behind the development of Great Himalayan Trail (GHT)?</strong></div>
	<div style="text-align: justify;">
		The idea behind the development of the Great Himalaya Trail was to promote remote destinations that have not been explored so far. We foresaw that GHT has a huge potential in providing a significant boost to Nepal’s tourism industry and associated support sectors. We estimated that it could help channel tourist and pro-poor tourism investments to less visited and under-developed districts, thereby spreading tourism benefits more widely and inclusively among impoverished mountain communities. And, I believe that we have been successful in achieving that to an extent.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>The trail is a remarkable adventure package in Nepal. How do you think this trail alone will help to promote other trails and the overall tourism in Nepal?</strong></div>
	<div style="text-align: justify;">
		Trekking and mountaineering has the largest international market when it comes to tourism products in Nepal. And, as you say it yourself, that this is a remarkable adventure package, it will most certainly play a vital role in improving the overall tourism scenario in Nepal by attracting those segment of tourists who are in pursuit of a new tourism product who want to explore newer, off-beat-track destinations. This trail will provide a sublet to other smaller, side trails which trekkers are not yet aware of, thereby also promoting other smaller trails</div>
	<div style="text-align: justify;">
		.</div>
	<div style="text-align: justify;">
		<strong>How has the GHT helped in enhancement of livelihood of people living along the trekking trail?</strong></div>
	<div style="text-align: justify;">
		Rather than saying just GHT or SNV, I must also highlight the roles played by the DDC, local NGOs and the local people themselves; the UK Government’s Department for International Development (DFID), who is funding GHTDP – their role is equally important in enhancing the livelihoods of people. With help from these actors, we have identified the needs of people living along the trail and have provided leadership trainings, cook, guide, porter, lodge management, house-keeping, handicraft trainings. We have also invested in infrastructure development – building bridges, micro-hydro extensions, providing solar electrifications, drinking water, investing in trail maintenance and waste management.&nbsp;</div>
	<div style="text-align: justify;">
		On the other hand, we are marketing and promoting these destinations (in the European and American markets) so that there is increase of tourist inflow in these areas. All these activities and involvement is expected to benefit the local mass in some way or the other, most definitely in improving their livelihood.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>SNV’s one of the targets is pro poor sustainable tourism. How do you evaluate Nepal’s progress in this direction?</strong></div>
	<div style="text-align: justify;">
		I can’t speak on behalf of Nepal’s progress overall because there are plenty of players in pro-poor sustainable tourism and I am not the right person to judge others’ progress. But for SNV, I would say we have made good progress with projects like TRPAP, MAST-Nepal in the past, and GHTDP and HITT in the present. All were/are focused on pro-poor sustainable tourism. We were innovative. We are thinking out of the box.</div>
	<div style="text-align: justify;">
		We started with sustainable market projects, which were really about bringing tourism benefits more equally - in particular to the remote and impoverished mountain districts - providing for new business and employment opportunities, and which has also been declared one of the priorities of the Government of Nepal. Our progress has been good and fulfilling.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>How has SNV recognized and incorporated the role of the private sector in tourism?</strong></div>
	<div style="text-align: justify;">
		The private sector has a very important role to play in carrying out any development project. We recognise the importance of their involvement which is why along with having an agreement with the Government of Nepal, and local capacity builders; we also have an agreement with TAAN, Nepal German Chamber of Commerce and Industry (NGCCI) at the central level and District Chamber of Commerce at the local level. This cooperation is necessary to carry out work smoothly. Working in this manner has turned out to be a really positive process. We are all committed to the same objective, which is striving towards poverty reduction in the country, and we all want to make this work.</div>
</div>
<div style="text-align: justify;">
	 </div>',
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			'description' => 'The trail is known as one of the top 20 adventure destinations 
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			'id' => '954',
			'article_category_id' => '60',
			'title' => 'Buddha Air Captures Majority Market Share',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img alt="Buddha Air, New Business Age" height="229" src="http://newbusinessage.com/ckfinder/userfiles/Images/civil_aviation_april2013_buddha_air(1).jpg" width="549" /></p>
<p>
	Buddha Air captured 56 per cent of the aviation market share carrying 881,611 passengers in 2012. According to the Civil Aviation Authority of Nepal Office at Tribhuvan International Airport, Buddha Air’s passenger carriage increased by 12.35 per cent compared to 2011. Paras Jung Pandey, Sales and Marketing Director of the airline claimed, “If airlines flying to only urban destinations are considered, Buddha Air has 65 per cent market share.”</p>
<p>
	Buddha Air is currently operating to only urban destinations. According to Pandey, as the airline is offering competitive fares and operates with larger aircrafts having higher number of seats, its market presence is increasing year by year. &nbsp;Currently, Buddha Air is operating with five 72 seater and three 19 seater aircrafts. In 2011 too, Budha Air was the market leader carrying 691,000 passengers.</p>
<p>
	Pandey said, “Air passengers are constantly increasing and we have been able offer fares that suit their paying capacity. So, airline’s market share is increasing accordingly.” Out of seven regularly operating domestic airlines, remaining six airlines have only 44 per cent market share. Yeti Airlines has second highest market share of 28.74 per cent carrying 452,806 in 2012. All domestic airlines that operate regular flights carried 1.56 million passengers in 2012.&nbsp;</p>',
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			'created' => '2013-04-20',
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			'keywords' => '',
			'description' => 'Buddha Air captured 56 per cent of the aviation market share carrying 881,611 passengers in 2012. According to the Civil Aviation Authority of Nepal Office at Tribhuvan International Airport, Buddha Air’s passenger carriage increased by 12.35 per cent compared to 2011.',
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			'id' => '953',
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			'title' => 'Nepal’s Airlines Companies In Red: CAAN',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Nepal’s private airlines are bearing the brunt of higher fuel prices, hefty insurance premiums and fluctuation in passengers’ flow, according to regulator Civil Aviation Authority of Nepal (CAAN). Domestic airlines suffered a huge loss of Rs 172.8 million during the last fiscal year, says CAAN. Among the nine fixed-wing airlines, four enjoyed a net profit of Rs 162 million while the rest suffered a net loss of Rs 108.8 million in the last fiscal year.</p>
<p>
	The net profit of the six helicopter companies in the country stood at Rs 30.2 million in 2011-12, up from Rs 27.6 million in the previous fiscal year. Airlines operating on remote sectors are incurring losses while only a few that are flying trunk routes are earning profits, said CAAN, adding that an increase in insurance premium had also become a big headache for airlines. Around Rs 1 billion goes out of the country as insurance premium, according to the authority.&nbsp;</p>
<p>
	Nepal saw a significant growth in air transport after the aviation policy was liberalized in 1992. Aircraft movement jumped four-fold from 24,600 in 1992 to 95,000 in 2012. There are 55 fixed-wing aircraft and 26 helicopters in Nepal at present. Air traveller movement reached 1.03 million in 2008, 1.37 million in 2009 and 1.55 million in 2010. However, the growth rate slipped 2 percent to 1.58 million in 2011. In 2012, passenger movement fell 0.55 percent to 1.575 million, according to CAAN.</p>',
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			'content' => '<p>
	 </p>
<p>
	<strong>By Prof Ujjwal K Chowdhury</strong></p>
<p>
	The tallest leader in the main opposition party of India, Bharatiya Janata Party (BJP), today is undoubtedly Narendra Modi. The pressures of the people at the rank and file of the party has already forced the disconnected national leadership to come scurrying to Modi to lead the party at the centre, and soon he will be its Prime Ministerial candidate for the general elections in 2014. As a New Nepal is expected to emerge from the polls of 2013, Indian General Elections of 2014 (which may be earlier than scheduled) may give rise to a New India under Modi, with implications for Nepal as well in South Asia.</p>
<p>
	<img alt="South Asia, New Business Age" height="317" src="http://newbusinessage.com/ckfinder/userfiles/Images/south_asia_april2013_narendra.jpg" style="float:left; margin:0 10px 0 0;" width="350" /></p>
<p>
	<strong>Modi’s Journey: Version 2.0:</strong></p>
<p>
	The journey of this single resolute man at the top of Gujarat’s affairs started as a Pracharak of Rashtriya Swayamsevak Sangh (RSS) in the first stage of his public life. He was deputed to Gujarat politics to quell the conflict between the Kesubhai Patel and Shankersinh Vaghela factions of BJP some twelve years ago, signalling the start of version 2.0 of his public life.</p>
<p>
	Since then, for a dozen years, he has refrained from going to Delhi much, completely disassociated himself from national politics of BJP and focussed on Gujarat to ensure his third consecutive victory in Gujarat Assembly elections as recently as on December 20, 2012.</p>
<p>
	That he will win the elections for BJP was a foregone conclusion. Question was of the margin. His focus was purely on economic development, and he played it to the hilt, with the glamour of 3D technologies and the force of social media apart from mainstream media.&nbsp;</p>
<p>
	Presently, Gujarat holds around 30 per cent of India’s stock market capitalisation, contributes 22 per cent of the total exports and about 9.5 per cent of the country’s total work force. Gujarat is also a power surplus state, providing electricity even to the villages.The state has registered more than 12% agriculture growth in the last five years against the national average of 2%.</p>
<p>
	The per capita income at constant prices has shown robust growth in the past five years. There is also a major thrust on infrastructure. The development of ports and port-based investment activity is an instance. There is also a plan for shipbuilding parks along the coastline.</p>
<p>
	Hence, the development slogan, soft Hindutva through Vivekananda Yatra and no tickets to minorities, a techno-savvy one person, one agenda focussed campaign paid off yielding a rich dividend of 115 MLAs for BJP in a House of 182 MLAs.</p>
<p>
	<strong>Modi’s Journey: Version 3.0:&nbsp;</strong></p>
<p>
	<strong>The 10-point Road-map:</strong></p>
<p>
	The most interesting now will be to watch the roadmap that Modi takes in his third and most crucial and challenging phase in public and political life.</p>
<p>
	First, managing home. Gujarat is his home-turf. But now to move to the Centre, he has to leave a legacy that symbolizes him in every sense. Significantly, he has kept his Cabinet small, and has at least two favourites in significant positions for grooming a future CM (and if needed, a Deputy CM too): Saurabh Patel and Anandiben Patel.&nbsp;</p>
<p>
	Second, managing the Sangh Pariwar. He cannot afford to alienate Nagpur, which still holds a veto power in the Sangh Parivar. As his popularity soars, RSS under Mohan Bhagwat may be left with no choice but rally behind its extra-ordinary Swayamsevak. But Modi would do well to keep Bhagwat in good humour at this stage.&nbsp;</p>
<p>
	Third, managing the NDA. It is almost certain that JD (United) of Nitish Kumar-Sharad Yadav shall leave NDA if Modi is the front-man. But, Modi has his own dark horses: Jayalalitha led AIADMK, Naveen Patnaik led BJD, Uddhav led Shiv Sena and Raj led MNS in Maharashtra are sure to through their weight behind Modi which will outgrow the strength of JD(U) concentrated in Bihar alone. Interestingly, BS Yediyurappa, the beleaguered rebel BJP leader who has just set up Karnataka Janata Party, may stage a comeback if Modi is the central leader of BJP.&nbsp;</p>
<p>
	Fourth, managing minorities. What Modi needs to guard is not to create an anti-minority image any further, rather focus on non-appeasement anti-votebank all-people development agenda, being silent on minority-focused discourse in Indian politics in his interests.&nbsp;</p>
<p>
	Fifth, managing the riot-image and legal cases. Herein again, silence is golden. One partial statement after Gujarat victory this time was itself a good strategy, “Forgive me if I have done any mistake”. This is the best policy: being humble but not talking about the past and riots. Vengeance is a measure for lesser mortals.</p>
<p>
	Sixth, creating symbolisms. It will be a great move for Modi to seek election to the Parliament from Lucknow, which elected Atal Behari Vajpayee several times. Symbolically strong, this will rejuvenate BJP in Uttar Pradesh, bring in Kalyan Singh at the centre-stage in UP, and lead to soft Hindutva polarization in favour of BJP in most of the Hindi heartland.</p>
<p>
	Seventh, strengthening mass constituencies. In 2014, the dominant section of the electorate shall be young people below 35 years of age. The electorate between 18 and 35 years of age are expected to be above 40% of the voters, and in case of a good franchise, the younger voters are expected to be participating more. Modi has succeeded tremendously with the youth in Gujarat ensuring a hat-trick of victories. If he can put forth a viable plan for Young India, package and communicate it in a techno-savvy way (for which he is well-known), and make it caste and community-neutral, he is assured of a huge support herein.</p>
<p>
	Eighth, harnessing the woman-power. Half the young people are women, and a large part of elder women are dependent emotionally and financially on the younger population. Also, Modi’s personal charisma, single status, and a straight talking image et al go well with the women. He, however, will need to walk the talk on women’s safety issues which is the major concern for a large number of vocal women,both urban and rural.</p>
<p>
	Ninth, envisioning an Alternative India. Herein lies the major creative challenge to Moditva. If he can change the discourse of Indian politics from divisive identity to development issues, from regional parochialism to a uniform Indian-ness, from Western outlook to political language to a pride in everything Indian, he has made a great start to this third phase in his political journey. He has started this through his recent speeches, first in Sriram College in Delhi and more recently in the India Today Conclave.</p>
<p>
	Tenth, and finally, creating a global image and acceptability. While Vibrant Gujarat has given Modi the global image of a productive performing leader, and Indian diaspora looks up to him for a national leadership role now, he still needs to politically cultivate major global forces and global Indians more. Hence, formal and informal channels need to be evolved through visits, use of media, receiving delegations, use of global Indian bodies, et al, which position Modi as the undisputable leader whom the nation has been waiting for long.</p>
<p>
	<span style="font-size:10px;">The author is former Dean of Symbiosis International University and President of the advisory board at Whistling Woods School of Communication, Mumbai.</span></p>',
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			'title' => 'Change The Way We Think Of Stocks',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Hom Nath Gaire</strong></p>
<p>
	 </p>
<p>
	What does it mean to value a stock as a business? How does it differ from the way most investors think about investing in stocks? These are the fundamental questions one should ask while planning to invest in stock market. To answer these questions, let’s start by considering what a stock actually is. In simple terms, a stock of a company represents a share of ownership of an actual business.&nbsp;</p>
<p>
	But as Warren Buffett, prominent American stock investor, often says, most people tend to think of a stock as a ticker symbol with a squiggly line attached. Most people think it is easier to look at a stock chart and try to predict whether its price will go up or down than it is to understand the underlying business and its performance. But the truth is, almost nobody is good at this. It takes an extremely rare individual to do it with enough consistency to make money.</p>
<p>
	Some professional and dedicated part-time traders succeed by buying and selling stocks using short-term strategies. But the overwhelming majority of investors would make a lot more money – and lose a lot less – if they learned to approach stocks in the way they would move toward ownership in a business. However, it is not an easy task to find a business that is simple enough to fully understand than to consistently predict where the price of its stock is going next.</p>
<p>
	Still, there are a number of benefits of this approach about investment. Several of the world’s greatest investors have shown that this approach is one of the simplest, safest, and most consistent ways to make money from the stock market. But perhaps even more important is the peace of mind. Let’s go through an example to clarify the concept. Suppose there are two investors who are buying stock in the same company, say X. &nbsp;Investor A, approaches investing as a business owner and does a little homework on the underlying business. He believes company X is a wonderful business trading at a good price, and he decided to buys a sizeable number of shares. But investor B is like most people and decides to buy share of X without any real understanding of the underlying business. May be he saw the stock X is being advertised on local news paper or television, heard this or that famous investor was buying it, or has a friend who made a lot of money in it.&nbsp;</p>
<p>
	If the share price of company X goes up, both investors will probably be feeling good about their decision. But what if the price was to suddenly fall by 5 percent, 10 percent or even more? Or the market experiences a serious correction that takes most stocks down with it?&nbsp;</p>
<p>
	In this case, the investor A is much more likely to sleep well at night. He knows he bought a quality business and he knows he paid a good price for it. Like wise, he also knows the fluctuations in the share price have nothing to do with the underlying business. In fact, he may actually be happy to see the price fall – as Warren Buffett used to say – because it will allow him to buy more shares or reinvest his dividends at a better price. On the other hand, Investor B would probably be in worry. Because, he has no idea what the underlying business is actually worth or what a fair price for it is. He only knows that he has lost money. He is probably still speculating whether it will be a 5 percent correction or a 30 percent crash and whether he should sell his ownership right now or wait it out.</p>
<p>
	The fact is, one normally can not know those things in any kind of reliable manner. But what he knows is that great businesses consistently make money all the way through good times and bad ones. And he can have a lot of certainty that over the long run, he will be rewarded from that great business as a shareholder. Thus, all should try to take decision like investor A, in our example rather than like B. Then only we can sleep well at night and simultaneously we can make money from the stock market.&nbsp;</p>
<p>
	Just look at the history of the 20th Century in global stock market. What calamity didn’t happen in the 20th Century? There were two world wars and various smaller ones, a great depression, hyperinflation, unemployment and even stagflation. All the productive resources were either seized by the government of destroyed in the wars and calamities; there were 50 percent to 90 percent marginal tax rates for many of those years. Nevertheless over the century, the Dow Jones Industrial Average (DJIA), world’s oldest stock index soared thousands fold. Likewise, the Bombay Stock Exchange’s sensitive index, SENSEX has also gained thousands fold over the same period.</p>
<p>
	These two examples, of course, stand witness that companies would have done better even under the government-created problems, though the business suffered from the politics, wars, the economy and inflation. However, there are never any guarantees in the stock market, betting on great businesses was always the right thing to do over the last 100 years. And there is a very high probability that you’ll do well buying great businesses over the next 100 years. Thus let’s start to think differently about the stock market.</p>
<p>
	<strong>How to Identify a Great Business?</strong></p>
<p>
	The first step for this approach is as simple as changing your thinking. It is nothing but just deciding you won’t buy a stock unless you can understand its business, even if it looks attractive and it’s reasonably priced. Most peoples would intuitively understand this if they were buying an actual business outright, but they seldom make the connection when buying stocks. What one should notice when to begin thinking this way is, very few stocks are likely to meet set criteria. When you really understand what you’re buying, you’ll tend to be much more selective and gravitate toward great businesses.&nbsp;</p>
<p>
	There are a few clues to identify a great business and to leave behind a poor one. The easiest one to identify is a profit margin of consistent thickness over many years, even if it’s a thin profit margin. For example, Wal-Mart’s net profit margin is thin, around 3%. But it is a very consistent and ranges every year like clockwork. Likewise, Microsoft’s gross margin has been around 80% for many years.&nbsp;</p>
<p>
	Consistent margins tell that something special is going on there. That business has been able to extract that profit out of the market because it’s doing something that people really want year after year and it has positioned itself in the marketplace so that it can keep doing it.</p>
<p>
	Another big clue of a great business is consistent free cash flow generation. That is a sign that the business does not require all kinds of expensive reinvestment year after year. It means the business can invest relatively little of that cash profit and put the rest toward things like paying out dividends, buying back shares, or making new investments in the future. A business gains a great deal of flexibility when it is able to generate a lot of free cash flow. A third clue is a history of dividend payments that rise every single year for many years (dividend grower). Not all great businesses have this trait, but many of them do. So it is something to look for. There are obviously more, but these are the big ones that most great businesses share.&nbsp;</p>
<p>
	<strong>How to Value a Business?</strong></p>
<p>
	Once a great business is identified, the next problem is to determine the fair trading price or value of business. There are two primary ways to value a business. One is by net worth, and the other one is by profit generation. Net worth is calculated the same way we would do it for ourselves. If one wants to find out what his net worth is, add up all the cash and all assets, like house, cars, etc. Then he should subtract everything he owes – things like mortgage, credit cards, and car loans – and that difference is his net worth.&nbsp;</p>
<p>
	We can do the same thing with a company. For this, first of all we should look at a company’s balance sheet and assign a value to its cash and other assets, add them all up, subtract what it owes – debt and other liabilities – and get its net worth. This is a simple example. This calculation can get rather complicated, depending on the business. Sometimes, assets have to be revalued, for example, if the company owns a bunch of land that they paid very little for many years ago that’s worth much more now. But the basic idea is the same. This measure of value is best-suited for asset-heavy businesses or strict value investing situations – where one can buy assets in a significant discount and wait for the market to fairly value it. Fair valuations will vary significantly, depending on the industry and the situation.&nbsp;</p>
<p>
	The other way to value a business is based on profit generation, or how much free cash flow the company produces. This tends to be a better measure of value for really great businesses or a business that you’re confident are going to make more money next year, five years from now, and 20 years from now. We can look to history for a benchmark for valuing these great businesses. When companies have bought out or taken over really great businesses in the past they had a tendency to pay right around 30 times of free cash flow. &nbsp;So generally speaking, if you can find one of these really great businesses trading for around 15 or 16 times free cash flow, you are probably getting a really good deal that you should buy and hang on to for a long time.</p>
<p>
	<strong>Conclusion&nbsp;</strong></p>
<p>
	Of course, the valuation of business or valuing companies is not an easy task. But this will get you started. There is a temptation for investors just learning to value businesses to focus on the “net worth”-type companies as mentioned earlier – the so-called “deep value” stocks – because they can appear to be much easier to value correctly. But what one may come to realize is many of those situations don’t work out very well. Oftentimes, what you’re really doing is buying a bad business that may be on its last steps.&nbsp;</p>
<p>
	So, after a while, many value investors may decide they don’t want to buy lousy businesses anymore. They may decide they would rather buy great businesses that are going to maintain and grow their value for a long time. That’s a typical transition for a value investor to make money from stock market. In fact, Warren Buffett himself made this transition over his career, which encourages new value investors to keep that in mind.</p>
<p>
	In our case in Nepal, the present stock market condition is quite favourable to choose the great business. First thing you’ll notice when you begin thinking this way is, very few stocks are likely to meet those criteria. When you really understand what you’re buying, you’ll tend to be much more selective and inclined toward great businesses.&nbsp;</p>
<p>
	<span style="font-size:10px;">The author is the Deputy Director of Confederation of Nepalese Industries and can be contacted via email at gaire_mukunda@hotmail.com. This article is based on an interview with value investor Dan Ferris published in The Daily Crux in December 2012.</span></p>',
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			'description' => 'The present stock market condition is quite favourable to choose this great business.',
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	(int) 4 => array(
		'Article' => array(
			'id' => '950',
			'article_category_id' => '42',
			'title' => 'NEPSE Declines After Highest Rise In 39 Months',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Bikram Chitrakar</strong></p>
<p>
	<span style="color:#00f;"><strong>(Review for 19 Feb to 21 Mar, 2013)</strong></span></p>
<p>
	<span style="color:#00f;"><strong><img alt="" height="433" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock_taking_april2013_bikram_chitrakar_sectorwise_distribution.jpg" style="float:left;margin:0 10px 0 0;" width="349" /><br />
	</strong></span></p>
<p>
	<strong style="color: rgb(0, 0, 255);"><img alt="Stock Taking, New Business Age" height="353" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock_taking_april2013_bikram_chitrakar_market_trend.jpg" style="float: right; margin-top:10px;" width="370" /></strong></p>
<p>
	The Nepali stock market receded from the green terrain during the review period as the investors gave top priority to political clues. The benchmark Nepse index shed 20.94 points or 3.97% to close at the review period’s low of 527.98 whereas the highest point was 548.92 on 19 Feb, 2013.</p>
<p>
	The index had reached 39 months high of 555.93 on 17 February 2013. The previous high of Nepse was 553.4 on 13 December, 2009.&nbsp;</p>
<p>
	Protests voiced by some political sections on the appointment of Chief Justice Khila Raj Regmi as the chairman of the government is the main reason for the recent decline, say market analysts.&nbsp;</p>
<p>
	Another reason was the profit booking by some investors lured by the new highs made by the Nepse. &nbsp;</p>
<p>
	One major recent development is that Nepal Stock Exchange (Nepse) has started preliminary research to upgrade its current trading system. It was on 24 August, 2007 that Nepse replaced the open-out-cry system by remote trading system using Wide Area Network. That system enables brokers to connect to the Nepse server through remote location and perform the transaction. The new system being tried is to facilitate individual investors to place order from their own home using the broker’s system.</p>
<p>
	As the market has turned down touching a high due to profit booking and political climate, stationary movement is expected for few sessions until some healthy clues are received by the investors.&nbsp;</p>
<p>
	<strong>Performance by Sector</strong></p>
<p>
	During the review period, the “others” sector dropped down by 65.78 points or 9.30% to settle at 707.27. Manufacturing sector posted a heavy loss of 53.88 points or 6.44% to settle at 836.99. Hydropower sector plummeted 37.19 points to rest at 1035.86. The commercial banking sector declined 17.27 points or 3.27% to 528.02. Similarly, finance sector descended 1.56 points or 0.62% to 253.09. However, hotels sector added 5.89 points or 0.88% to reach at 666.97. Insurance sub-index gained 2.28 points or 0.26% to 881.02 while development bank accelerated 1.43 points or 0.57% to close at 252.76&nbsp;</p>
<p>
	Sensitive index that measures the performance of 120 blue chip scrips at the secondary market skid 6.15 points or 4.46% to 137.9 while the float index calculated on the basis of real transaction went downhill 0.35 points or 0.94% to 37.27. Total of Rs. 2,823,647,321 turnover was realized during the review period from 10,267,018 units of share traded via 31,100 transactions.</p>
<p>
	The accompanying figure depicts the sector-wise distribution based on the total volume of trade. As usual commercial banks accounted for the heavy volume of trade with 81.33% of total trade. Hydropower sector occupied 6.50% while insurance sector constituted 3.62% and rest of the sectors covered the remaining.&nbsp;</p>
<p>
	Technically, the Simple Moving Average (SMA) has shown a sluggish movement as Nepse Index has been outcast by 30 Days SMA. Index has shown sideways movement for upcoming sessions for confirming the trend.</p>
<p>
	<img alt="Stock Taking" height="374" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock_taking_april2013_bikram_chitrakar_movement_in_indices.jpg" width="368" /></p>
<p>
	<span style="font-size:10px;">Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.</span></p>',
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			'keywords' => '',
			'description' => 'Stationary movement is expected for few sessions until some healthy clues are received by the investors.',
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	(int) 5 => array(
		'Article' => array(
			'id' => '949',
			'article_category_id' => '57',
			'title' => 'Proudly ‘Made In Nepal’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Sajag Karki</strong></p>
<p style="text-align: justify;">
	<br />
	<img alt="Brand Talk, April 2013" height="186" src="http://newbusinessage.com/ckfinder/userfiles/Images/brand_talk_april2013_made_in_nepal(1).jpg" style="margin:0 0 0 10px; float:right;" width="250" />The recent international trade fair held in Kathmandu showcased a wide range of high quality Nepali products. When we, being Nepali, have just started to be aware of our own products, a significant question triggered in my mind: “How could we brand Nepali products to market them globally?”&nbsp;</p>
<p style="text-align: justify;">
	We are all aware of special Nepali products like Palpali Dhaka ko topi, khukuri, handicrafts along with organic Ilam tea and many more. Along with this, herbal products, linen fabrics, lokta paper are indigenous to Nepal sourced within the country. However, these products &nbsp;haven’t gained popularity in the foreign market and not as expected in the Nepali market as well.&nbsp;</p>
<p style="text-align: justify;">
	The reason behind this is the lack of branding of Nepali products. We have an emotional attachment to these products, which is very good but it is high time to think rationally and start showcasing our products in the international arena. Though armed with an array of high quality Nepali products we seem to be lagging behind and it’s time to step up and change this scenario.</p>
<p style="text-align: justify;">
	&nbsp;If Swiss watches can be world famous for their quality and lineage, &nbsp;why can’t Nepali products? Of course it would be naïve to expect this happening overnight, but we can definitely make a start. For this purpose, we need to create a set of features that can identify our products as a Nepali brand, distinguishing them from other generic products. Instead of building castles in the air, we need to focus on specific and concrete aspects of branding. Going back to the basics: a brand is a name, logo, symbol or design which is intended to identify the goods and services of one seller or a group of sellers and differentiate them from their competition. Branding is more of package built around a product with both tangible and intangible elements associated with it. Anything as such can be branded: goods, services and experiences. Also events, persons or places, and even properties, corporations and &nbsp;ideas.&nbsp;</p>
<p style="text-align: justify;">
	My previous articles explain how Nepal itself is a place brand, &nbsp;attracting tourists because of its unique features (such as birthplace of Lord Gautam Buddha, Mt.Everest or our rich cultural heritage.) This time, I’m focusing on products that are made in Nepal, and how branding is the only way to market them internationally. &nbsp;First and foremost, we need an authentication branding our products as “Made in Nepal” so it can be used in various product lines such as clothing, handicraft, herbal products, tea, coffee or accessories.&nbsp;</p>
<p style="text-align: justify;">
	With a mix of all such unique and easily identifiable products of Nepal, it builds credibility by associating with genuine Nepali products. &nbsp;Now that the products have an authentication, the individual items in the product line can be positioned in different ways, targeting specific audiences. Let’s say linen clothing items like shirts, caps, trousers and coats/jacket can be positioned as “Cool as the Everest air”. This instantly describes the product being cool and light during summer time. Similarly, all our ‘made in Nepal’ products can be positioned accordingly. Along with advertisements of Nepali products telling the unique story of our rich cultural heritage, we need to participate in exhibitions and trade fairs organized in other parts of the world. Spreading good word of mouth about our Nepali brands would also do wonders. In this way, entrepreneurs would be able to get exposure to technologies used in other nations and transfer this knowledge back to Nepal.&nbsp;</p>
<p style="text-align: justify;">
	There is a huge demand for such products worldwide and, with proper market research and segmentation, we can create a niche for them. We are blessed with infinite natural resources that we can use to our advantage when selling Nepali products.&nbsp;</p>
<p style="text-align: justify;">
	With the changing times, we need to adopt a promotional and distribution strategy that suits the needs of today’s dynamic customers. Outlets selling Nepali products must have an atmosphere telling a unique story. It is very important also to have &nbsp;highly trained and knowledgeable sales staff to also depict quality of the products. The international trade fair has opened the gates to take Nepali products to new heights. &nbsp;With tactful branding strategies, there is no wonder we’ll see our products being the world’s best brand.&nbsp;</p>
<p>
	<span style="font-size: 10px;">The Article is based on research and author’s practical experience as a marketing and advertising professional. He can be reached at sajag_karki@hotmail.com</span></p>
<div>
	 </div>',
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			'description' => 'If Swiss watches can be world famous for their quality and lineage, why can’t Nepali products be?',
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	(int) 6 => array(
		'Article' => array(
			'id' => '948',
			'article_category_id' => '47',
			'title' => 'A Driven Calling',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img alt="Kumud Kumar Dugar, A driven calling, April 2013" height="421" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality_april_2013_kumud_kumar(1).jpg" style="float:right; margin:0 0 0 10px;" width="300" />Kumud Dugar predicts 2013 and 2014 to be the most decisive years for his Group. Numerous projects and products are in the pipeline, making these two years full of equal challenges and opportunities for him, and the Group. “These two years will decide the future of KL Dugar Group. If all goes well, the Group’s turnover will increase three folds within this time,” says Dugar.&nbsp;</p>
<p style="text-align: justify;">
	Dugar has been taking care of the Group since 1991, right after he completed his graduation. More specifically, he looks after the Food Grain Business of KL Dugar Group that includes eight different industries. Dugar had joined the Group as the Director, but recalls working as a cashier. “I kept track of where the money comes from and where it goes. It was very essential for me to know about the exact finances of the Group,” says Dugar.&nbsp;</p>
<p style="text-align: justify;">
	From the moment he joined, he had a dream of professionally managing the group, although at that time he didn’t know what professional management exactly was. To start with, he ordered a customized accounts package from Kolkata, customised for his Group. He brought in new technologies, computerized the systems and set up numerous industries and took the Group where it is today. He says he was driven by a thirst to work and move ahead, with a strong passion of do something novel.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Early Life</strong></p>
<p style="text-align: justify;">
	Born in 1967 in Biratnagar to Krishan Lal Dugar and Jatan Devi Dugar, Dugar’s mind was set to business right from childhood. Most of his childhood was spent in Kolkata as he was there for about 18 years, from kindergarten to graduation. He was in Nepal only for vacations then. Dugar was involved with Dugar Group long before it separated into three groups in 1990. He used to work in the liaison office of the Group in Kolkata since he was in Grade 9. &nbsp;After graduating from St Xavier’s College in Kolkata, he thought of starting a business in India. In the process, he bought a granite mine and a solvent plant in Hyderabad, but wasn’t able to go on with that business. Due to the separation of Dugar Group, he felt he was needed in the newly formed KL Dugar Group, so he returned to Nepal.&nbsp;</p>
<p style="text-align: justify;">
	As soon as he joined KL Dugar Group, he set up a vanaspati factory in Biratnagar. As the Group was newly formed, he felt immensely challenged and pressurized. Driven to prove himself, he says he set up the factory from scratch in just six months. “No one could have done this back then. I set up Swastik Oil Industries at a cost of 22 million rupees. It still is the largest oil industry of the country,” says Dugar with pride. This was his first venture as the MD of the Group, and a lot more industries were about to follow. During his stay in Biratnagar, he set up numerous industries. Saurabh Oil Mill, Vikas Flour Mill, Gyan Food Products, Pratibha Rice Mill and Gyan Herbals Pvt Ltd are among a few of them. Dugar shifted to Kathmandu in the year 1995. &nbsp;</p>
<p style="text-align: justify;">
	Dugar considers the separation to be a major turning point in his life. He first took it as a challenge, but later he figured it out that it was beneficial for him, as it gave him his individuality and helped him grow more. Rather than import export business, he focussed on local materials and set up locally based industries. “I always wanted to do something for the country. Today, I think I have contributed by branding the local products,” says Dugar. At present, the food products of the Group are exported to numerous countries worldwide.&nbsp;</p>
<p style="text-align: justify;">
	As a child, Dugar was not so mischievous, but rather disciplined, a quiet one. He says he was not very good in school and always was mediocre student, but very good in accounts. “I was very interested in accountancy, and was also very good at it,” recalls Dugar. He also possessed leadership in his school but remember being shy around girls.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Personal Side</strong></p>
<p style="text-align: justify;">
	Dugar was married with Namita Dugar in 1991, and the marriage was an arranged one. It was immediately after the formation of his Group, and business was his top priority then. &nbsp;As a result, his personal life was somehow out of balance. He says he went for his honeymoon after three years of his marriage. “Back then, I felt much challenged, and was very busy. I could not give time to my family and children. I didn’t take any holidays either,” says he. But later, when all his businesses went well, he was able to balance both the professional and personal aspects of his life.&nbsp;</p>
<p style="text-align: justify;">
	Dugar likes to takes immediate decisions and doesn’t want to linger on issues. &nbsp;He says he can’t stay idle for even an hour. He remembers him being bored once on a three-day vacation with his family. He says he is very industrious, and is always thinking about his business. He firmly believes in teamwork and says that the system should work, not a person. Regarding his finances, he maintains that the accounts should be updated till the present moment, and not yesterday. Dugar believes in doing fair business, and strictly follows his business ethics.&nbsp;</p>
<p style="text-align: justify;">
	Not at all a party goer, Dugar likes to spend his evenings with his family after a stressful day. He likes to watch TV and spend most of his free time at home, with his children. “I feel more responsible towards my family and children because I couldn’t give much attention to them when I started business. Now I can afford time for them, and I feel I have to make up for the lost time,” says he. Dugar is the proud father of son Saurabh and daughters Bhavika and Drishika. A scrupulous follower of traditions, Dugar strictly abstains from alcohol, tobacco and non-vegetarian food. He loves Indian vegetarian food and is not very fond of trying new dishes.</p>
<p style="text-align: justify;">
	<strong>Hobbies</strong></p>
<p style="text-align: justify;">
	Dugar loves to travel, especially to modern cities in the world. He loves branded stuffs and loves to shop. He has been to Dubai, US and many countries in Europe. His other interests are music and dancing. He loves to listen to Hindi songs, and watches movies once in a while. He says he is quiet brand conscious. “I am very obsessed with being dressed properly. All my outfits are stitched in Mumbai. I am also very fond of clothes,” says Dugar. He also loves branded watches, and carries the latest gadgets though he is not too fond of them. He believes he has to be familiar with technology as it helps in the business too.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Way Ahead</strong></p>
<p style="text-align: justify;">
	According to Dugar, KL Dugar’s future ventures will be in sectors of hydropower and construction. The Groups’ largest project United Cements is all set to start by the end of this year. KL Residency will be handed over in 2013 and Nepal Hydro Developers Pvt Ltd will also commence in 2013. &nbsp;In addition, more than 30 products related to home appliances, automobiles and others are in the pipe line. Dugar says that he has to work even harder now, as the recent times are even more competitive.&nbsp;</p>
<p style="text-align: justify;">
	Nepali entrepreneurs are as capable as any others in the world. “We are doing our best even when faced by worst of situations. We have load shedding and political problem; still Nepali entrepreneurs are doing their job. We can do even more if the government is more supportive,” says he. Dugar wants to be number one in whatever he does, and is always striving for excellence. “Dhara oil and Gyan flour are one of my best products. I want to remain number one, and want my legacy to go with the products,” says Dugar. According to him, his greatest asset is the trust that his customers have put in him and the Group.&nbsp;</p>
<p style="text-align: justify;">
	Dugar believes that three things are very crucial for the success of any business. One has to be loyal and committed towards his business, have knowledge the business, and most importantly, one should be very critical of finances. &nbsp;He says he gives equal importance to one thousand rupees and one million. Moreover, he thinks one should have faith in his staffs and should have frequent interactions as they have more knowledge than the boss. “A good suggestion from them can change your entire perspective and help the business,” says Dugar.&nbsp;</p>',
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			'description' => 'For Kumud Kumar Dugar, MD, KL Dugar Group, failures are as important as success as he believes they keep you striving for success. He says that people need to fail to succeed. “Failures should be analyzed, and then they serve as a lesson. More importantly, one has to learn to be responsible for their failures. Blaming others for your failures is never going to help,” says Dugar.',
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			'id' => '947',
			'article_category_id' => '40',
			'title' => 'New Year Hues: Products, Promises And People',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Siromani Dhungana<br />
	<br />
	<br />
	<br />
	New Year Hues: Products, Promises and People</strong><br />
	<br />
	Outlets of the world&rsquo;s most famous brands have already started doing their business in Kathmandu providing consumers chances of more choices and selections. The powerful combination of sophistication in use of goods, changing lifestyle in the urban area and consumers&rsquo; access to information created by information and technology have brought about an unprecedented shift in the consumers&rsquo; brand use habit. On the other hand, it has created both opportunities and challenges for companies looking for potential buyers. Increased competition among various players has compelled them to lure customers by offering different packages. New Business Age tries to catch-up some existing market phenomenon in Nepal and explores the connection between products and people in the market.<br />
	<br />
	The fastest-growing middle and upper middle-class consumers have created many opportunities for companies in the Nepali market. Earning enough to afford quality brands and quality consumer experiences, the younger generation has become brand-focused and up to date with the latest arrivals. From gadgets, clothing and watches to other personal belongings, the new generation has become brand conscious and choosy.<br />
	&nbsp;<br />
	On the other hand, the increasing competition among different brands has forced companies to lure potential consumers by offering attractive packages. Various companies have been trying to lure consumers using various techniques including bumper offers, appointment of brand ambassadors, advertising campaigns in the media and other packages to ensure the success of their brands. Private business houses have been aggressively putting their effort to get a hold in the market, opines young entrepreneur Meele Shrestha of Maxlee Traders Pvt Ltd. New Year 2070 may not witness a drastic change in the market but it can create a different type of vibration, she adds.<br />
	<br />
	<br />
	<img alt="products" src="/userfiles/images/2070-1.jpg" style="margin: 10px; width: 400px; height: 280px;" /><br />
	<br />
	<strong>Marketing of Products</strong><br />
	<br />
	Marketers always think that if they want a product to catch on, they have to think up a catchy slogan or come up with a slick advertisement to create a buzz. It is really impossible to exactly assess what propels consumers to buy particular products.<br />
	<br />
	Advertising campaigns are not enough. Companies should also think about linking products to the environment and let the environment do the work besides the advertisement and other ways of publicity of products.Consumers&rsquo; behaviour is strongly influenced by subtle environmental cues. In Nepal, most consumers want to follow the wealthy population in terms of products consumption and buying. Availability, price structure and quality of products largely determine whether the product can hold the market.<br />
	<br />
	<br />
	<strong>Consumers&rsquo; Psychology</strong><br />
	<br />
	Even big companies around the world cannot always predict consumers&rsquo; psychology correctly. Sometimes, a simple product can create a trend in the market but other times even meticulously designed and decorated product may fail to attract consumers.<br />
	<br />
	Consumers&rsquo; decisions on products are driven largly by implicit associations with the imagery connected to a brand. And, sometimes their decision may be associated with the subconscious emotional appeal of products. Why and how people buy some products and not others? Consumers&rsquo; psychology is a specialty area that studies how our thoughts, beliefs, feelings and perceptions influence how we buy and how we relate to goods and services.<br />
	<br />
	<img alt="nepali market" src="/userfiles/images/2070-2.jpg" style="width: 400px; height: 266px; margin: 10px;" /><br />
	<br />
	<strong>Diversifying Nepali Market</strong><br />
	<br />
	Markets of various products and brands have a tremendous potential to expand in Nepal. The modern marketing approach is a post 1990 phenomenon, a large section of people is still out of the the modern market system leaving room for new and innovative companies to expand their presence. And that is happening too.<br />
	<br />
	Kathmandu has many outlets and high-end streets to showcase state-of-the-art brands of various products. The trend of opening modern outlets outside the Kathmandu valley is on the rise. Pokhara, Biratnagar, Dharan, Itahari, Birgunj among others are slowly waking up to the modern marketing approach.<br />
	<br />
	The population of Nepal as of June 22, 2011 stands at 26.49 million showing a population growth rate of 1.35 per annum, according to Central Bureau of Statistics. According to the Nepal Demographic and Health Survey, a total of 40 per cent of people are below 15 years of age and another 30 percent are between 15-49 years of age. Clearly, the country has a huge potential for products and brands. because of the large youth population.<br />
	<br />
	All companies need to win the hearts and minds of the consumers to get a foothold in the market. In this issue, New Business Age presents a consumer-focused story looking at various products and brands and they promises to the consumers for the New Year 2070 BS. It also looks at the preferences and opinions of some consumers from various segments of society:<br />
	<br />
	<br />
	<br />
	<strong>Automobile</strong><br />
	<br />
	Nepal has seen the penetration of two- and four-wheelers increase at a rapid pace, thanks to the expansion of road connectivity and increased income of citizens. Expansions of roads throughout the country and a steep rise in the number of migrant workers have played a catalytic role in the growth of automobile sales. So, many automobile brands have been able to establish themselves and automobile has become one of the largest customs duty contributors in the country. Nepali consumers have been using four-wheelers ranging from the most expensive one to the cheapest Nano car. Similarly, Nepal-assembled brands such as Mustang and Sherpa have also been rolling on the Nepali roads.<br />
	<br />
	In fact, the automobile market is all set to open a new avenue in the country. New Business Age has talked with highly popular automobile brands, Volkswagen and Honda, regarding their business prospects in Nepal (keeping the Nepali New Year 2070 BS in mind.)<br />
	<br />
	<br />
	<img alt="watch" src="/userfiles/images/watch.jpg" style="width: 400px; height: 248px; margin: 10px;" /><br />
	<br />
	<strong>Watches and Clocks</strong><br />
	<br />
	The Global Industry Analysts (GIA), Inc predicts that the global market for Watches and Clocks is poised to reach US$46.6 billion and US$5.4 billion, respectively, by the year 2017. In a report &lsquo;Watches and Clocks &ndash; a Global Strategic Business Report&rsquo; released last year, GIA has concluded that the recuperation in demand for luxury watches post recession, robust demand from developing markets especially the Asia-Pacific and rising popularity of fashionable, vintage and innovative models are forecast to drive market growth.<br />
	<br />
	The Nepali market for watches and clocks has been ballooning, say traders. Around 50,000 pieces of branded watches are sold every year in Nepal, according to them. Globally famous watch brands have already started their business in Nepal and are doing well. On the occasion of New Year, New Business Age has approached some top watch brands in the Nepali market. Most famous brands available in Nepal such as Rolex, Rado, Tag Heuer, Omega, Titanic and Esprit will focuse on advertising to attract consumers in the New Year, according to their authorised distributer in Nepal.<br />
	<br />
	<img alt="mobile" src="/userfiles/images/2070-6.jpg" style="width: 400px; height: 269px; margin: 10px;" /><br />
	<strong>Mobile</strong><br />
	<br />
	According to the latest data made available by Nepal Telecommunications Authority (NTA), Nepal&rsquo;s telephone penetration rate reached 70 per cent in mid- December 2012. The mobile handset market will go hand in hand with the mobile penetration rate and the trade in hand-held terminals that<br />
	&nbsp;<br />
	have increased significantly in the last couple of years. The annual transaction of mobile sets in the Nepali market stands at around Rs 13 billion, says president of Mobile Traders Association of Nepal, Purushottam Basnet.<br />
	<br />
	The cheaper series of android phones has created an &lsquo;android revolution&rsquo; in the country, he opines, adding that a mobile set was considered as a sophisticated personal belonging until not long ago, but it has now become an essential commodity.It is obvious the customers who the companies should always take care of, authorised sellers of mobile sets say. According to them, no special package has been developed so far focusing on Nepali New Year but consumers will definitely benefit due to increased competition and presence of many popular brands in the mobile market.<br />
	<br />
	<br />
	<img alt="wear/fashion" src="/userfiles/images/2070-8.jpg" style="margin: 10px;" /><br />
	<strong>Wear/Fashion</strong><br />
	<br />
	The young generation is &lsquo;fashionable&rsquo; and choosy. This generation also tends to emphasize brand value in their spending.It is very smart to follow the latest trends and embrace innovative fashion design. Today, those who can&rsquo;t afford a particular brand, would wait until they can.<br />
	<br />
	Fashion in Nepal is a fast growing industry with increasing events such as fashion weeks or beauty peasants. Now a days, many world famous brands are available in the Nepali market. Lee, Levis, Springwood, Northface, Jeanswest, Pashmina and others brands have succeeded to win the hearts and minds of Nepali consumers in the dress and fashion regime. However, some local designers, too, have made their presence felt.<br />
	<br />
	Dress and fashion-lovers in the town will have reason to cheer in the Nepali New Year because most of the dress brands and outlets are going to offer discount schemes or other packages. But it takes time to know the nature of the offers because brands do not want to reveal their special package in advance, because of competition.<br />
	<br />
	<br />
	&nbsp;<img alt="cosmetic" src="/userfiles/images/2070-11.jpg" style="width: 400px; height: 314px; margin: 10px;" /><br />
	<strong>Cosmetics</strong><br />
	<br />
	The country&rsquo;s cosmetics market has witnessed a rapid growth over the last couple of years. With each passing year, the availability of cosmetic products has increased significantly and the consumption rate has soared. There is no dearth of the world&rsquo;s leading cosmetic brands in the local market. Whatever you want, the market has it. Traders estimate that the country&rsquo;s cosmetic market is worth more than Rs 15 billion annually, and it is growing at the rate of 25-30 percent.<br />
	<br />
	A growing middle class and rising awareness about personal image and hygiene, which has resulted in greater spending on beauty and personal care products, has played a very constructive role on the rise of demand for cosmetic items. From globally recognized brands like Lakme, L&rsquo;Oreal, Garnier, VLCC and Emami to others like Mac&rsquo;s Lavera, Nova, Chase, Astaberry, Lotus and Ayur, the domestic market at current features around 80 brands of cosmetic products. The market is showing continuous growth, says Adhiti Adhikari of Laavanya brand.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>Airlines</strong><br />
	<br />
	Nepal saw a significant growth in air transport after the aviation policy was liberalised in 1992. The annual passenger movement reached around three million in 2012. According to Civil Aviation Authority of Nepal (CAAN), 31 international airlines are operating in Nepal. Similarly, 15 domestic companies, including nine fixed-wing and six helicopter companies, are also in operation.<br />
	<br />
	The prospects look bright with the private sector playing a leading role and investing billions in the industry. Buddha Air and Yeti Airlines have successfully proved their salt in the domestic market while internationally acclaimed companies such as Oman Air, Qatar Air, Jet Airways and Thai Air -- to name a few -- have also served the Nepali travellers well. Domestic airlines are all set to introduce some special packages to customers, international companies will also bring special offers targeting the Nepali New Year. For the time being, keep on guessing what offers domestic and international airlines may bring to attract travelers.<br />
	<br />
	<br />
	<img alt="liquor" height="312" src="/userfiles/images/2070-15.jpg" style="margin: 10px;" width="176" /><br />
	<br />
	<br />
	<strong>Liquor</strong><br />
	<br />
	There is a huge market for alcohol . The demand has been increasing each year due to the rise in household income, which comes from remittance inflows. There have been instances in some districts where most of the remitted money was spent on imported, high premium liquor.<br />
	<br />
	Both domestic and international brands have been doing their business in the Nepali market. Liquor is also a major source of revenue in the country. The overall business of restaurant and bar has decreased due to Mapase (a campaign against drunk-drive launched by Division of Metropolitan Traffic Police); but liquor business is still one of the evergreen sectors in the country.<br />
	<br />
	People had mostly negative perception about liquor in the Nepali society until some years ago. This perception has changed now and alcohol has become a part of daily life now. Whether it is a gathering or a grand party, it is not considered complete without liquor.<br />
	<br />
	Some famous liquor brands such as Antiquity, Ballentine, Royal Stag and Signature have already won the trust of middle class consumers. World-class brands such as Red Label, Black Label and Chivas Regal have also been doing good business in the Nepali market. It is for sure that many of us will be celebrating the occasion sipping of liquor according of our choice.<br />
	<br />
	<br />
	<strong><img alt="paints" height="231" src="/userfiles/images/2070-19.jpg" style="margin: 10px;" width="250" /><br />
	Paints</strong><br />
	<br />
	The paint market has thrived over the years, creating much space for paint companies to expand their market in the country. Rapid urbanisation, construction boom and growing awareness among customers have triggered the demand of paints, giving a leg up to the domestic paint industry, mostly joint ventures and subsidiaries of Indian multinational companies.<br />
	<br />
	The annual domestic demand for paints (including decorative and industrial categories) currently stands at around 40,000 metric tonnes, according to industry sources. The data released by Nepal Rastra Bank, there was a turnover of around Rs 4.10 billion in fiscal year 2011-12.<br />
	<br />
	Despite the slowed demand in the recent days due to recession in the construction sector, m a n u f a c t u r e r s observe that the market is growing. Demand of paint will never go down because a fresh coat of paint is always required even in old houses and people want to change the &nbsp;<br />
	colour to give a different look to their apartments and rooms.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>Housing</strong><br />
	<br />
	Nepal&rsquo;s real estate sector has been in an ailing state for three years now. The real estate and housing industry witnessed a speedy growth (which many say was an unnatural growth) until the Nepal Rastra Bank (NRB), regulator of the country&rsquo;s financial market, suddenly restricted banks&rsquo; lending to the sector in September 2010.<br />
	<br />
	The government planned to purchase houses and apartments for senior civil servants last year. The decision, could give a new lease of life to the cash strapped housing sector, is moving at a snail&rsquo;s pace. However, some positive indication of growth has been seen in the realty sector from the beginning of this year. According to real estate entrepreneurs and housing developers, this business has grown by 33 per cent in the first half of the current fiscal year, compared to the same period in the previous year.<br />
	<br />
	The New Year is expected to bring new hopes and new enthusiasm to the realty sector, opines secretary at Nepal Land ad Housing Developers Association (NLHDA), Bhesh Raj Lohani.<br />
	<br />
	<br />
	<strong>Computers</strong><br />
	<br />
	A study carried out by the Computer Association of Nepal (CAN) last year showed that the computer penetration rate in the country had crossed five per cent. The survey was carried out based on the record of import of computer monitors and branded laptops, according to CAN general secretary Narayan Neupane.The penetration rate at present may have crossed eight percent, he says, adding that the trend of using computers is on the rise since schools, health institutions, clubs and other social groups in the far-flung areas of the country have started using computers for their day-to-day activities.<br />
	<br />
	It is likely that the transaction of overall ICT products will double in the next few years. Internet penetration rate increased to around 23 per cent till mid- December, and the rise of Internet users will have a direct impact on the trade of computers, he claims. High competition among world class brands including HP, Dell, Asus, Compaq, MAC, Sony, Lenovo and Acer have not only contributed to lower the price, due to hard competition, but also have provided quality products to Nepali customers.<br />
	<br />
	&nbsp;</p>
<p>
	&nbsp;</p>
<p>
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;New Year is Definitely a High Season for Passenger Cars&rsquo;<br />
	<br />
	<br />
	<br />
	<img alt="sarik" src="/userfiles/images/SARIK.jpg" style="width: 150px; height: 144px; margin: 10px;" /><br />
	SARIK BOGATI<br />
	<br />
	Head of Marketing, Pooja International (authorised distributer of Volkswagen)</strong><br />
	<br />
	<br />
	<strong>Can you please tell us briefly the overall business scenario of your product in the first quarter of 2013?</strong><br />
	<br />
	The year 2013 seems to be very lucky for Pooja International and the automotive division of Vishal group. Talking about the Volkswagen Brand, we have very good starting with arrivals of fresh 2013 models of Polo and Vento from India. There are many updates in the features like bluetooth in steering control, auto Aircon in Polo, increased leg room, introduction of new colours in cars, new alloys and black headlamps. We have started receiving the New Tiguan, Golf and New Touareg, which are also catching up the market. As a corporate strategy, the automotive division of Vishal Group has expanded its wing in a new segment with acquirement of dealership of &lsquo;Kobelco&rsquo; construction equipment in February 2013.<br />
	<br />
	<br />
	<strong>What possibilities do you see for the business in next quarter, i.e., April- June, 2013 as the Nepali New Year sets in?</strong><br />
	<br />
	New Year and spring season is definitely high seasons for passenger cars. We have so many bankers in queue waiting to upgrade to Volkswagen in this season. Moreover, we will have more cars coming in this quarter from both Germany and India. Now, we can supply the cars to the customers who have been booking and waiting for months. We are very hopeful of the next quarter.<br />
	<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are the main features of your products/brands?</strong><br />
	<br />
	Kobelco construction equipment definitely is an exciting brand and has amazing performance machines which we will offer this year. Moreover, we are expecting some new models and facelifts of Volkswagen coming from India this year.<br />
	<br />
	<br />
	<strong>Can you please provide the price ranges?</strong><br />
	<br />
	We really can&rsquo;t say the price now. But the price would be similar range at what we are offering now.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products/brands more popular especially in the next month: April (Baisakh)?</strong><br />
	<br />
	We would be more focused on branding.</p>
<p>
	&nbsp;</p>
<p>
	&nbsp;</p>
<p>
	<br />
	<br />
	<strong>&lsquo;Toyota Starts to Book New Product Etios Targeting Nepali New Year&rsquo;<br />
	<br />
	<br />
	<img alt="" src="/userfiles/images/SAHARA.jpg" style="width: 150px; height: 151px; margin: 10px;" /><br />
	<br />
	SAHARA KC<br />
	Executive Divisional Manager<br />
	United Traders Syndicate (UTS)<br />
	(authorised dealer of Toyota in Nepal)</strong><br />
	<br />
	<br />
	<strong>Could you please tell briefly the overall business scenario of the produt/brand?</strong><br />
	<br />
	After a hugely successful business year, Toyota now is facing a mild slowdown in terms of sales, which can be ascribed to the recent economic crunch and inability of Toyota to meet the existing demand. The first quarter of this year is almost gone by in the anticipation of launching our new product Etios.<br />
	<br />
	<br />
	<strong>What are the expected returns within the next quarter?</strong><br />
	<br />
	The next quarter is expected to bring a boom in our business with the launch of our highly awaited product Etios. As the Nepali New Year approaches, we will be accepting bookings for the car. Looking at the large number of inquiries about the product, we are expecting a lot of bookings prior to the launch.<br />
	<br />
	<br />
	<img alt="sahara" src="/userfiles/images/sahara1.jpg" style="margin: 10px;" /><br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are the main features of your brands?</strong><br />
	<br />
	As of now, we do not have any new product offering for New Year but we are expecting sales of the product that we have in our offering. Avanza, Hilux, Fortuner, Corolla, Yaris are a few products that we expect to sell more.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products more popular?</strong><br />
	<br />
	Apart from our regular promotional campaigns and promotions for Etios that we will begin from the next month, the launching of Etios will be something the city has never witnessed before. We are focused on making the event an eye catcher for not only our customers and prospects but for anyone who gets a mere glimpse of the event.<br />
	<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;December to January is Considered a Dull Period&rsquo;<br />
	<br />
	<br />
	<img alt="rahul" src="/userfiles/images/RAHUL.jpg" style="width: 150px; height: 143px; margin: 10px;" /><br />
	<br />
	RAHUL DHANUKA<br />
	Brand Manager<br />
	Esprit Watch</strong><br />
	<br />
	<br />
	&nbsp;<br />
	<strong>How do you see the possibility of the business in the next quarter?</strong><br />
	<br />
	With the Nepali New Year approaching, people will certainly start feeling the heat of summer. The watch business is likely to rise because of the change of season. People tend to spend more on watches in summer than in winter. Moreover, the New Year will bring festive mood back. So, people will spend comparatively more than in any other time of the year. We also have the latest collections in store, so watch lovers can try out new collections that will certainly match the latest trend and fashion.<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are main features of your products/ brands?</strong><br />
	<br />
	We have several brands available at all our outlets. Most recently launched brands are Esprit and Pierre Cardin. The brands trendy and casual models. Few most sought other products and brands are: Fossil and Kenith Cole.<br />
	<br />
	<br />
	<strong>Can you please provide price ranges of these brands?</strong><br />
	<br />
	The price ranges from Rs 10000 to Rs15000.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products popular in the next month?</strong><br />
	<br />
	We have three outlets for our products and all of them are located in prime areas like Durbar Marg, City Center and Blue Bird Mall. We are using different branding and promotional strategies. We mainly focus on the print media like different magazines, newspaper, hoarding boards, etc. We have also started targeting our customers through social media like Facebook and Twitter. Fan pages on facebook have helped us a great deal to attract young mass towards our products.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;Today is What Technology Stays on, Tomorrow is Where it Moves Ahead&rsquo;</strong><br />
	&nbsp;</p>
<p>
	<img alt="sachin" src="/userfiles/images/SACHIN.jpg" style="width: 150px; height: 148px; margin: 10px;" /><br />
	<br />
	<strong>SACHIN UDAS<br />
	Marketing Manager, Teletalk (authorised distributer of Colors Mobile)</strong><br />
	<br />
	<br />
	<br />
	Colors is one of the most popular mobile set brands in the country. It has full ranges of mobile phones from basic level to touch-based lifestyle phones, along with CDMA and hi-end smartphones. Colors is a reliable brand with one year of warranty.Colors has the largest network with 18 service centres from East to West. Colors operates after-service follow-ups to assure customers are satisfied with the products.<br />
	<br />
	Colors brand believes in value transferring. We have four major series of Phone: Fighter, Lifestyle and Touch, CDMA and X-factor series. Fighter series consists bar phones with basic features, which can play MP3/ MP4. Fighter series is very popular all over the country. Lifestyle and Touch Series offers multi media facilities like touch screen. Colors&rsquo;s has introduced smartphones under X-factor series. In less than a year, the company has taken good market share of smartphones.We will have entry level android phones, which we want in every teen&rsquo;s hand so that they can explore different apps that are useful in learning languages and also for other purposes. We believe that the android is the key for Nepali teens to experience and explore possibilities of technology.<br />
	<br />
	Colors&rsquo;s X-factor tablets will be soon arriving to the market. It will come in 7 inch and 8 inch screen sizes with 3G SIM compatibility.&nbsp; Colors brand believes that today is what technology stays on, tomorrow is where it moves ahead.<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;New Year is Expected to Bring New rays in Summer Sale&rsquo;<br />
	<br />
	<img alt="achal" src="/userfiles/images/ACHAL.jpg" style="width: 150px; height: 164px; margin: 10px;" /><br />
	ACHAL AGARWAL<br />
	Director<br />
	JeansWest, Nepal</strong><br />
	<br />
	<br />
	<br />
	<strong>Can you tell us briefly the overall business scenario of your products in the first quarter of 2013?</strong><br />
	<br />
	The overall business scenario was very exciting during the first quarter. It has been two years since we introduced our brand in Nepal and people have responded well to the product.<br />
	<br />
	<br />
	<strong>What possibilities do you see for the business in next quarter as the Nepali New Year sets in?</strong><br />
	<br />
	We expect a good sale during April-June since it is summer and people come to buy summer goods.<br />
	<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are their main features?</strong><br />
	<br />
	We have lots of products including T-shirts, half shirts, quarter pants, pants and summer jeans (for men and women) in the New Year.<br />
	<br />
	The main features of our brand are:<br />
	<br />
	a. Company controlled prices: This has become one of the major factors behind our brand to be so successful within such a short span of time. Our products are almost 30 per cent less priced than the similar kind of goods in the market.<br />
	b. Quality: JeansWest is known for its quality in Australia and worldwide markets.<br />
	c. Brand: JeansWest is a very big brand of Australia and so people know about this brand making it very easy for us to get established in the market.<br />
	d. Variety: At JeansWest, we have a very wide range of products.<br />
	e. Size and Fit: JeansWest products have been received well in the Nepali market because of their sizes and fittings for Nepali people.<br />
	<br />
	<br />
	<br />
	<strong>Can you please provide price ranges of the same?</strong><br />
	<br />
	Price ranges from Rs 990 to Rs 4000.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products more popular in the New Year 2070 BS?</strong><br />
	<br />
	Paper media and hoarding boards will be our main marketing strategies in the New Year.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;Customer Satisfaction is a Must to Make Products Popular and Desirable&rsquo;<br />
	<br />
	<br />
	<br />
	<img alt="dilip" src="/userfiles/images/DILIP.jpg" style="width: 150px; height: 168px; margin: 10px;" /><br />
	DILIP KC<br />
	Sports Plaza Pvt Ltd<br />
	(Authorised distributer of Reebok, Rockport and Lee brands)</strong><br />
	<br />
	<br />
	<br />
	&nbsp;<br />
	<strong>Could you please tell us briefly the overall business scenario of products in the first quarter of 2013?</strong><br />
	<br />
	Sports Plaza Pvt Ltd covers Reebok, Rockport and Lee brands, which are one of the best apparel and footwear brands in the world. January 2013 sets in with winter at its peak and as the brand covers an entire range of winter apparels, footwear and accessories, we do not need to worry much about sales and acceptance of our products by our customers. These are world class products with the best designers putting in latest trends in fashion and comfort. They also involve new technologies in footwear and even in fabrics, not available in general.<br />
	<br />
	<br />
	<strong>How do you see the possibility of the business in the next quarter as the Nepali New Year sets in?</strong><br />
	<br />
	We are very optimistic about the business in the next quarter, when we will put our summer arrivals on display, welcoming spring summer with latest and the best in designs and the quality fabrics best suited for our customers. The lightweight footwear and air flow technologies are ultimate in comfort and style. We are sure of high sales volumes in spite of tough competition from other brands.<br />
	<br />
	<br />
	<strong>What are the main features of your products?</strong><br />
	<br />
	As already mentioned, Reebok is a premium sports brand always putting in highest standards of quality and workmanship, both on their footwear and sports apparels. The main features are light weight and best quality fabrics available in the industry with the latest technologies that goes into making them. To mention a few, the fabrics are play dry, which keep our body cool even in peak summer, zig fabrics which are proven to give back the energy dissipated from the body during workouts and exercising and the easy tone range &ndash; helping to tone the body muscles.<br />
	<br />
	Rockport is a trendy leather footwear range for men offering great style and comfort. Also the high technologies that go into Leather processing, The sole, and the workmanship required to make them. Lee is a casual fashion brand with best Denims and cottons available in the market. The designs, quality and price range has been well accepted in the market.<br />
	<br />
	<br />
	<br />
	<strong>Can you please provide the price ranges?</strong><br />
	<br />
	As there are many varieties of products, it would not be possible to cover the prices on this short space. However, if you want prices for some specific product range, we shall be glad to provide the same.<br />
	<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products/brands more popular?</strong><br />
	<br />
	We strongly believe that our customers&rsquo; satisfaction is the most desired strategy that would make our products popular and desirable. However, we can never undervalue the great cooperation and good wishes of our media friends from all publishing houses and advertising agencies, who have worked hard making great designs and offering us the best coverage available.<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;We Want to Strengthen Laavanya Brand in the Coming Year&rsquo;<br />
	<br />
	<br />
	<br />
	<img alt="aditi" src="/userfiles/images/ADITI.jpg" style="width: 150px; height: 143px; margin: 10px;" /><br />
	ADITI BHATTARAI<br />
	Business Development Manager Laavanya Luxury Ayurveda</strong><br />
	<br />
	<br />
	<strong>Can you tell us briefly the overall business scenario of your brand in the first quarter of 2013?</strong><br />
	<br />
	This quarter has been significant for the company as we celebrated our first anniversary in February along with the commercial launch of our sales in the United States. This event has reinforced the strength of Laavanya as both national and international brand. We want to build on this perception and strengthen the brand further for the year.<br />
	<br />
	<br />
	<strong>What possibilities do you see for the business in next quarter, i.e., April- June, 2013 as the Nepali New Year sets in?</strong><br />
	<br />
	April to June is a special season for all our products because we have special events like New Year and wedding season of Baisakh and Asadh. Our products make great gifts for occasions like these. Our cleansing products like the Royal Saffron Ubtan (known as Bukuwa in Nepali) have special significance on wedding rituals and can be used by the brides (and their families) for beautifying as well as religious purposes. Last year, this period brought us the best sales and business prospects in the entire year.<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are their main features?</strong><br />
	<br />
	Taking the season into consideration, we will be promoting our cleanser, face mask and moisturizers this quarter. The cleanser (Royal Saffron Ubtan) and Face Mask (Mukha Kantibarkdhak Powder) are designed for all skin types and are beneficial in windy season, especially in Kathmandu where the effects of dirt from the street impact the skin directly. These products gently remove dirt particles and leftover make up, can be used daily.<br />
	<br />
	<br />
	<strong>Can you please provide price ranges of those products?</strong><br />
	<br />
	Royal Saffron Ubtan-Rs 1250<br />
	Mukha Kantibardhak Powder-Rs 1250<br />
	Radiance Cream-Rs 1650<br />
	Deep Nourishing Cream-Rs 1950<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products/brands more popular especially in the next month?</strong><br />
	<br />
	We mostly focused on personal selling and word-of-mouth publicity this past year. In this quarter, we will be focusing on advertising through the print media and social media. We have used social media effectively in conveying the benefits of Ayurveda and our products and how and when to use them, we want to give continuity to that. We will also offer a special discount offer for New Year.<br />
	<br />
	&nbsp;</p>
<p>
	<br />
	<strong>&lsquo;Overall Business scenario is Good in the First Half of the Current FY&rsquo;</strong></p>
<p>
	&nbsp;</p>
<p>
	<img alt="bhesh raj lohani" src="/userfiles/images/bhesraj.jpg" style="width: 150px; height: 167px; margin: 10px;" /><br />
	<strong>BHESH RAJ LOHANI<br />
	Managing Director<br />
	Green Hill City Pvt Ltd</strong><br />
	<br />
	<br />
	<br />
	<strong>How is overall business of housing sector?</strong><br />
	<br />
	Green Hill City is the largest housing industry in Nepal. It will be developing around 800 units in 320 ropanies of land. As regarding the overall business scenario the product sellings are quite good in the first half of the current fiscal year. Out of 490 units constructed by the company, 130 units have been sold and ownership of 96 units had already been transferred.<br />
	<br />
	<br />
	<strong>What are the main features of Green Hill City&rsquo;s products?</strong><br />
	<br />
	We have two different products: acquiring land and constructing houses by consumers themselves and purchasing completed houses. Green Hill City is committed to providing quality services and best housing products to its customers. We have targeted all types of consumers ranging from the middle class to the upper class.<br />
	<br />
	<br />
	<strong>Can you please provide price ranges?</strong><br />
	<br />
	The price of housing units and colonies constructed by Green Hill City ranges from Rs 6.7 million to 30 million.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products more popular?</strong><br />
	<br />
	Till date we have been promoting our publicity strategies through newspaper advertisements, TV promos and hoarding board. The next campaign consist of a number of sales executive going the various corporate house providing the information about the products through direct marketing by the help of brochure and flyers.<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;Nerolac Produces Many Ranges of Products&rsquo;</strong></p>
<p>
	&nbsp;</p>
<p>
	<br />
	<img alt="rajendra" src="/userfiles/images/rajendra.jpg" style="width: 150px; height: 232px; margin: 10px;" /><br />
	<strong>RAJENDRA DESAI<br />
	Country Head<br />
	Nerolac Paints</strong><br />
	<br />
	<br />
	Considering the market&rsquo;s feedback, the paint market is opening and the season is starting after the winter. Cold weather is almost gone and we see a bright sun every day, which will help to increase the sales of paints and allied products. The construction activities are in full swing, these means an increased demands of paints. Paint sales in the first quarter will be much higher than in the last quarter, and it is expected that the trend will continue in the coming months. We will have 3 per cent more than last year. We have started producing various ranges of Nerolac products, along with existing range of Nepal Shalimar brands. We are keen to market super premium products both for exterior and interior use.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;ICT Market is Always Looking to Give Better and more Suitable technology&rsquo;<br />
	<br />
	<br />
	<img alt="" src="/userfiles/images/nabin.jpg" style="width: 150px; height: 160px; margin: 10px;" /><br />
	NABIN JOSHI<br />
	Assistant General Manager<br />
	Astral Computers Nepal Pvt Ltd</strong><br />
	<br />
	<br />
	<strong>Can you please tell briefly the overall business scenario of the ICT products in the first quarter of 2013?</strong><br />
	<br />
	The first three months seem good in terms of business prospects. Because the CAN InfoTech 2013 was held in the same quarter, the promotion of IT business was better compared to previous quarters. Due to CAN InfoTech, we were able to reach the end user as well as corporate customers. Therefore overall business scenario of ICT products looks bright.<br />
	<br />
	<br />
	<strong>How do you see the possibility of the business in the next quarter?</strong><br />
	<br />
	Along with consumers&rsquo; positive perception, ICT sector needs favorable and appropriate policies to grow. Despite of all above causes, the purchasing trend from organisations has increased. So, we are expecting the same situation, even with better possibilities in the next quarter.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make ICT products more popular?</strong><br />
	<br />
	Nepal&rsquo;s IT market is price driven. However, ICT products do not adapt to a single strategy for better publicity.<br />
	Apart from price, we also educate customers and suggest them the right product to enhance the productivity. Educating customers means building long term relationships, which enables to win their trust. In order to get more publicity about our products, we are trying to reach more and more customers, listening to their requirements and suggesting them the best option.<br />
	<br />
	<br />
	&nbsp;</p>',
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			'description' => 'Outlets of the world’s most famous brands have already started doing their business in Kathmandu providing consumers chances of more choices and selections. The powerful combination of sophistication in use of goods, changing lifestyle in the urban area and consumers’ access to information created by information and technology have brought about an unprecedented shift in the consumers’ brand use habit.',
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	(int) 8 => array(
		'Article' => array(
			'id' => '946',
			'article_category_id' => '38',
			'title' => 'Why Employees Leave An Organization?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<strong>By Nibha Shakya</strong></p>
<p>
	One of the major parts of HR relates to attrition. HR professionals from diverse organization came together on February 27, 2013 for HR Kurakani to discuss why an employee really leaves the organization and how it can be managed and controlled. The programme was organised jointly by Real Solutions and Hotel Annapurna. The major points raised during the programme were as follows:&nbsp;</p>
<p>
	<strong>REASONS:</strong></p>
<p>
	<strong>Relation with boss</strong></p>
<p>
	Employees don’t leave the job, they leave the manager. If employees don’t like the manager’s leadership style, management style or can not tune up with their immediate managers, they prefer leaving the job, despite they are well paid. So, relationship with their boss has been major reason cited for employee leaving the organization.&nbsp;</p>
<p>
	<strong>No Career Progression</strong></p>
<p>
	Most likely, employees leaving the organization are good employees. They would leave if they found that they have no opportunity of growth or career progression or they are not recognized for their performance.</p>
<p>
	<strong>High Stress Level</strong></p>
<p>
	People leave the job because of high stress level. Though remuneration is good, they tend to move because of high work pressure.&nbsp;</p>
<p>
	<strong>Poor Communication</strong></p>
<p>
	Communication plays an important role. The clarity of goal, task, grievances etc if not communicated well between management and employee, there’s chance of HR turnover.&nbsp;</p>
<p>
	<strong>Remuneration and Benefits</strong></p>
<p>
	If the salary paid is not commensurate with the role of the employee, there is tendency of leaving the job. Monotonous job, no clear reporting line, no harmony between old and new employees, &nbsp;lack of clarity in policies etc could be other reasons behind employee leaving the organization.&nbsp;</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>POSSIBLE SOLUTIONS:</strong></p>
<p>
	<strong>Each manager is a HR Manager &nbsp;</strong></p>
<ul>
	<li>
		HR has major role in making One to One Meeting between manager and employee. The instruction should be provided by HR to both the manager and employee before such a meeting as how and what should be discussed. Such meeting can be conduced in a regular basis. It helps to clear communication and solve any problems beforehand.&nbsp;</li>
	<li>
		Patting on the back appreciating employee’s effort, emotional support during their hard time, understanding employee’s perspective are few examples that help create a bond among the employees. This helps in retaining the employees.&nbsp;</li>
	<li>
		The directing quality, inspiring, delegating, communication ability of boss etc matter a lot in employee retention. So, leadership of the manager plays a crucial role. Similarly, the employee also needs to have capability to understand the boss’s perspective. Likewise, the manager need to remain updated.&nbsp;</li>
</ul>
<p>
	<strong>Recruitment and Selection</strong></p>
<p>
	Similarly, right recruitment and selection helps in retaining employees. If right employees are placed in right place, there is less chance of turnover.&nbsp;</p>
<p>
	<strong>Competitive Remuneration and Benefits</strong></p>
<p>
	Salaries should be aligned with the job responsibilities. Likewise, more customized benefits (that would give benefits to the employees as well as to their family) would help in retention.&nbsp;</p>
<p>
	<strong>Tactful and Staff Care</strong></p>
<p>
	HR professional should be tactful in dealing conflict and complaints of employees. They should be proactive in solving any issue before it comes up. Likewise, HR professionals need to work as facilitators in various ways. Proper practice of staff care and stress management helps in minimizing the employee turnover as they would feel valued.&nbsp;</p>
<p>
	<strong>Culture and Environment&nbsp;</strong></p>
<p>
	Also the Culture and environment of &nbsp;the organization play an important role in decision of leaving and staying with the organization. Working environment with good team, handful resources, good behaviour and learning and sharing session help in retaining the employees.&nbsp;</p>
<p>
	<strong>Exit Interview</strong></p>
<p>
	Exit Interview would bring many insights on various issues of the organization from leadership role to operation level discrepancies. Effective exit interview helps identify the reason behind leaving and other improvement factors which would be beneficial for the organization. The findings can be analyzed and improvement can be made as necessary.&nbsp;</p>
<p>
	Attrition upto certain level is healthy but high attrition would hamper overall performance of the organization. Understanding reasons on employee leaving the organization and taking corrective actions from HR and &nbsp;top management would help in minimizing employee turnover in the organization.&nbsp;</p>
<p>
	<img alt="Management, April 2013" height="624" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/management_april2013.jpg" width="317" /></p>
<p>
	<span style="font-size:10px;">Shakya is Sr HR Executive at Real Solutions.</span></p>
<div>
	 </div>',
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			'description' => 'HR professional should be tactful in dealing conflict and complaints of employees. They should be proactive in solving any issue before it comes up.',
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	(int) 9 => array(
		'Article' => array(
			'id' => '945',
			'article_category_id' => '34',
			'title' => 'Financial Literacy Initiative To Kick-off In Mid-April',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img alt="Financial Literacy Initiative, April 2013" height="172" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/biz_news_financial_literacy_initiative.jpg" width="380" /></p>
<p>
	Month-long Financial Literacy Initiative (FLI) will start in mid-April. It is an initiative taken for the first time in Nepal by Center for Economic and Financial Studies (CEFS), says coordinator of the initiative Olin Thakur. New Business Age Pvt Ltd will contribute to the event as an official media partner. “Financial Literacy Month Celebration” is a part of Financial Literacy Initiative, Thakur says, adding that the celebration includes various workshops, quiz/essay competitions, round table discussions, award distributions and various other financial awareness activities in various places across the nation.</p>
<p>
	“Financial literacy is the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/she invests it (turn it into more) and how that person donates it to help others,” according to organiser.Financial literacy encompasses both knowing about money matters and being equipped to utilize that knowledge by applying it across a range of contexts. What a person needs to know to be financially literate will vary depending upon their circumstances and needs.&nbsp;</p>
<p>
	Generally, however, it will involve an understanding of a person’s own values and priorities, budgeting, savings and how to manage money, credit, the importance of insurance and protecting against risk, investment basics and retirement planning along with others.</p>
<p>
	<strong>Why is it Important in context of Nepal?</strong></p>
<p>
	Good financial literacy skills help individuals and families make the most of opportunities, meet their goals and secure their financial wellbeing, as well as contribute to the economic health of society, Thakur claims. “Improved financial literacy can increase economic participation and social inclusion, drive competition and market efficiency in the financial services sector, and potentially reduce regulatory intervention.”</p>
<p>
	Individuals and households must have the tools to cope with the increasingly complex world of financial instruments. Moreover, financial education ensures poverty reduction and economic growth facility. So, financial literacy is becoming more necessary. Nevertheless, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources. Raising interest in personal finance is now a focus program in most countries around the globe, according to organiser.</p>
<p>
	Organiser says that Financial Literacy Initiative is to help Nepali people in understanding and addressing financial matters, and thereby contribute financial wellbeing; to promote and enhance financial capability among each; to enhance the present knowledge base; to manage financial resources effectively; to empower individuals to make informed choices, avoid pitfalls, know where to go for help; and take other actions to improve their present and long-term financial well-being.</p>
<p>
	“We believe that Financial literacy Initiative will be very crucial in helping the Nepali citizens of various age groups of Nepal to understand and adjust to the situation in which they are now to help them acknowledge themselves in a wiser way and find the loopholes and the gaps in their way of doing micro-macro financial transactions in their day to day lives,” Thakur further added.</p>
<p>
	<strong>Bridging Gaps&nbsp;</strong></p>
<p>
	It aims at facilitating them to bridge the gaps in their financial knowledge and understanding as well as enable them to manage their day to day transactions and future planning in a cost-time efficient ways be it the transaction of a rupee or a million. The event page can be found at social network website facebook by clicking: www.facebook.com/flinepal or official website of Center for Economic and Financial Studies (CEFS).</p>',
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			'keywords' => '',
			'description' => 'Financial literacy encompasses both knowing about money matters and being equipped to utilize that knowledge by applying it across a range of contexts. What a person needs to know to be financially literate will vary depending upon their circumstances and needs.',
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	(int) 10 => array(
		'Article' => array(
			'id' => '943',
			'article_category_id' => '52',
			'title' => 'Private Sector Concerns',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	Nepal’s private sector has been constantly undermined, ignored or often humiliated by the State for long. Even after restoration of peace seven years ago, things hardly changed for better. So much so, the newly installed ‘election’ government too doesn’t seem much concerned about predicaments the business and industry sectors of the country are currently faced with.</p>
<p style="text-align: justify;">
	All communist party literatures, most prominently of the Maoist Party, unrelentingly criticized the form of the government what their jargon said to be of a ‘bourgeois comprador’, the state of the State run by the rent-seeking elites and bureaucrats. But it is the very Maoist Party which played the most crucial role to form the present government comprising of only former bureaucrats. This was a complete anti-thesis to their sworn doctrine. And, it was but natural for ‘bourgeois compradors’ not to listen to the private sector entrepreneurs.&nbsp;</p>
<p style="text-align: justify;">
	In the run up to form new government, headed by incumbent Chief Justice of the Supreme Court, Khil Raj Regmi, four major political parties signed an 11-point agreement. Sadly, that document didn’t incorporate even a single sentence regarding the sorry state of the economy and prescription to reinvigorate it. FNCCI, the umbrella organization of Nepali businesses and industries, however, protested against this apparent apathy of the country’s major political forces and supposedly apolitical government now at the helm of affairs. But materially not much change seems to be in the offing.&nbsp;</p>
<p style="text-align: justify;">
	Similarly, next thing the Maoists after coming to power in 2008 professed was protecting the ‘nationalist’ businesses. But, in practice, it is the only nationalist businessmen and industrialists that they have selectively made to suffer. The business people who had created businesses and had links to other countries, primarily India, have already shifted to their businesses or wealth. Only those who chose to work here and die here, or the most nationalist ones, are subjected to suffer day in and day out. And, nobody cares.</p>
<p style="text-align: justify;">
	Surprisingly, political parties other than the Maoist have also maintained a suspicious silence on economic issues like increased infringement of private property rights and rapidly deteriorating business climate of the country. &nbsp;The present government is also likely to shirk away from responsibility of doing its bit in the guise of just being an election government. The fact is: the economy should be a continuous priority regardless of any nature of government that comes in or goes out, with whatever pretext. But, alas; this has not been the case for Nepal.</p>
<p style="text-align: justify;">
	One of the major concerns of the private sector has been the politically protected, rampant corruption in the financial administration of the country. But, the Maoist Party now seems to have engaged in indirect form of extortion by using highly corrupt bureaucrats. One of the recent media reports suggests that a few notably corrupt officials under political protection of the Party are deliberately inflicting pain on some businesspersons by making them to make rounds to the revenue investigation office, without framing any charges. Maoists’ pick to head the anti-corruption constitutional body-the Commission for the Investigation of Abuse of Authority- has surprised many.</p>
<p style="text-align: justify;">
	These things have longer repercussions in the country’s business environment. &nbsp;Nepal is already in the red area of the ‘doing business’ and ‘private property rights’ indices. According to an estimate by the business community, some 150,000 large or medium level Nepali business households have fled the country to settle and start business abroad during last one decade.&nbsp;</p>
<p style="text-align: justify;">
	These realities must be of concern to the parties that provide leadership to the country. But, now it appears as if improving the country’s businesses climate is not in any party’s agenda. This also implies that the Nepali private sector, at least for some time to come, have to depend on whatever little they can do on their own and contribute to make things better. One of the appropriate medium of such contribution could be the elections themselves where they can advocate and vote for the party which is better in terms of creating a business-friendly climate in Nepal. They can’t just keep complaining and doing nothing meaningful.</p>
<div>
	 </div>',
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			'description' => 'Nepal’s private sector has been constantly undermined, ignored or often humiliated by the State for long. Even after restoration of peace seven years ago, things hardly changed for better.',
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	(int) 11 => array(
		'Article' => array(
			'id' => '942',
			'article_category_id' => '31',
			'title' => '‘I Have Identified Planning As A Major Weakness In Most Companies’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="">
	Volker Kleinn is a management expert with a degree in business administration from a German university that he says is about equivalent to MBA. He has held senior managerial positions in American multinationals such as Digital Equipment Corporation (known as DEC which was acquired by Compaq which in turn merged with HP in 2002), Apollo Computer (a leading manufacturer of network workstations until acquired by HP in 1989 and gradually closed down over the next eight years) and Autodesk (Still a major multinational software manufacturer) in Europe and the Asia-Pacific. Retired from an active career more than a decade ago, Volker, nevertheless, finds time to help companies in the developing world to improve their management. He has been visiting Nepal regularly since the early 2000s through the Senior Expert Corp (SCE) programme of the Swisscontact and has helped more than a dozen Nepali companies from different sectors. Volker talked with New Business Age when he was in Kathmandu recently for a similar purpose.</p>
<p style="">
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	 </p>
<p style="">
	<strong>You have been helping private firms, particularly in the developing world, with management issues. How and when did you start this?</strong></p>
<p style="">
	After I retired, I decided to work on a voluntary basis with entrepreneurs and enterprises in the developing countries. This way I wanted to give something back to society. My idea was to contribute to reduce the migration pressure by helping companies in the developing countries to maintain or create employment. So, I registered with the Senior Expert Corps of Swisscontact and through them I came to Nepal.</p>
<p style="">
	<strong>Could you share with us the common problems faced by companies in the developing world?</strong></p>
<p style="">
	In the industrialized countries with predominantly market economies, business management talent has been developed over a long time and therefore there is an established talent pool for management. In the developing countries (especially in Eastern Europe), market economies did not exist for a long time and therefore there still is not a big enough talent pool for management. Any management role requires creativity, initiative and drive. A manager needs to accept responsibility, accountability and I am glad to note, that there are more and more people here in Nepal who are willing to step up to this requirement.&nbsp;</p>
<p style="">
	<strong>Which Nepali companies have you already helped to improve their management?</strong></p>
<p style="">
	Let me not mention names, but I have been working in several industries, such as IT, Communication, Trading, Media, etc. and I also have been giving management training courses at different organizations.&nbsp;</p>
<p style="">
	<strong>What problems do you find in the Nepali companies which you have already worked with?</strong></p>
<p style="">
	For me management is a continuous cycle of Planning, Organizing, Monitoring and Controlling. I have identified Planning as a major weakness in most companies. Operational plans and budgets often do not exist. Since I am convinced that you can only mange what you measure, it is very difficult to evaluate the success of any business if there is no goal or plan to compare performance to. As a consequence, management is in most cases is re-active rather than pro-active, which means that managers are not rally managing but rather getting managed by their environment and circumstances.</p>
<p style="">
	The second area that needs a lot of improvement in most of the companies I have worked with is Management Information. I think it is common knowledge that you do accounting not only for shareholder or tax purposes, but also for management purposes. I have experienced, that most companies give priority to tax requirements. Also, a lot of record keeping is still done manually. These facts make it often very difficult to use financial information for management purposes.</p>
<p style="">
	In addition, I am very concerned about the sustainability of my efforts to help. I have often observed what I call ‘the rubber band syndrome’. This means changes are initiated while I am here, i.e. when the rubber band is under tension, but as soon as I leave, i.e. the rubber band is released, things flip back to the old position. One has to keep in mind that the human brain is change-resistant. That means it requires a constant flow of energy to make changes sustainable.&nbsp;</p>
<p style="">
	It’s apparently been nearly a decade since you started advising Nepali private sector companies on management issues. What do you think of Nepal’s private sector?</p>
<p style="">
	The private sector has made the economy function under what are not very favourite conditions. Everywhere in the world, you can see that the biggest roadblocks for development are corruption and unreliable legal system. Both factors have an impact on the business opportunities that the private sector can pursue.&nbsp;</p>
<p style="">
	<strong>What are the strengths and weaknesses of the Nepali private sector?</strong></p>
<p style="">
	The private sector is divided into two major categories. On the one hand, there are family-owned businesses, which are mostly hierarchically (or paternalistically) organized. These companies tend to maintain limited transparency. On the other, there are newly founded companies which are trying to be more open, but sometimes lack the courage for the degree of openness as Western companies normally practice. This means that I consider the lack of delegation of authority, i.e. empowerment of senior managers as a weakness of the private sector.&nbsp;</p>
<p style="">
	<strong>What are the areas that the Nepali companies need to work on to improve their overall management?</strong></p>
<p style="">
	I have experienced a big gap between shareholders (owners) who are often also the most senior managers and the managers who are not owners. This is often because of the lack of confidence and trust. It would be helpful if professional managers were trusted more to contribute in terms of planning and execution. Empowerment of people is important throughout the organization, but it is more important with regard to the top professional managers. I believe that the time is over where information was considered as power. I am convinced that information creates responsibility and therefor owners should be encouraged to be more transparent vis-a-vis their managers with regard to information about strategy and performance.</p>
<p style="">
	In almost all companies I have worked in, I was told that it is difficult to find competent mangers. I know that there are a lot of Nepalis working as expatriates abroad and gaining international management experience. It would be helpful in my opinion if a campaign is started to offer senior positions for expats who want to come home. News- and job-portals could create a special section to attract experienced people to return. On the other hand, it is alarming that most of the college graduates aspire to leave the country. This represents a skill drain which will have a long-term negative impact on businesses here in the country.&nbsp;</p>
<p style="">
	<strong>What is your impression of the spirit of entrepreneurship in Nepal and the Nepali entrepreneurs?</strong></p>
<p style="">
	Based on my observation, the environment in Nepal is not very conducive to entrepreneurial behaviour. Starting a business here is still burdened with bureaucratic requirements. I believe that this is one of the major reasons why well-educated and talented people are leaving the country.</p>
<p style="">
	<strong>How do you rate the work culture in the organizations you have worked in? What improvements have you usually suggested?</strong></p>
<p style="">
	Empowerment of employees is not very common. The organizations are mostly very hierarchically organized and people rather ask their superiors for taking a decision than deciding for themselves. This is very often a sign of insecurity and lack of self-confidence, but it could also be caused by the unwillingness to accept responsibility.</p>
<p style="">
	<strong>How can private sector companies incentivize the performance of their marketing folks in Nepali context?</strong></p>
<p style="">
	When you say marketing folks I assume that you mean sales people. Sales people around the world are normally incentivized by an incentive compensation plan that rewards good performance. Good performance means meeting or exceeding your target. In the organizations that I was responsible for during my professional career, I had always implemented a plan that rewarded over goal performance proportionally. I was always proud when the best sales people earned more than I did.</p>
<p style="">
	<strong>What sort of good HR practices need to be evolved in the Nepali private sector? Do these practices differ from sector to sector?&nbsp;</strong></p>
<p style="">
	There are certain basic HR practices that should be common in every company. These practices relate to work ethics, loyalty to your employer, confidentiality and attendance discipline. There are other areas where practices would differ, especially in sectors with shift work or other special requirements like workplace security. Attendance discipline is obviously difficult to implement with the frequent bandhs where a few people hold a whole country hostage. This has an enormous negative impact on the productivity and therefore the competitiveness of the private sector.</p>
<p style="">
	<strong>What sort of socio-political environment you find in Nepal in the context of the growth of enterprises? What are the impediments and how to ameliorate the situation ahead?&nbsp;</strong></p>
<p style="">
	Let me just mention two points that come to mind immediately.</p>
<ul>
	<li style="">
		The lack of a functioning mail system requires hand delivery by messengers of a lot of documents, such as newspapers, letters, invoices, etc.</li>
	<li style="">
		Cashless payment systems are not very efficient or customary. This again employs a lot of messengers, who have to collect often cash and sometimes cheques. This keeps a lot of motor bikes on the roads all day.&nbsp;</li>
</ul>',
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			'description' => 'Volker Kleinn is a management expert with a degree in business administration from a German university that he says is about equivalent to MBA. Volker talked with New Business Age when he was in Kathmandu recently for a similar purpose.',
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			'title' => 'Why Are Most Domestic Airlines Running In Loss?',
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			'content' => '<p style="text-align: justify;">
	<strong>By Akhilesh Tripathi</strong></p>
<p style="text-align: justify;">
	Leaving a few as exceptions, most domestic private sector airlines in Nepal are not in sound financial health. In fact, a majority of them have always been struggling for survival. The list of Nepali private airlines closed down so far is a long one, carrying well over a dozen names of which a few grounded their fleet and downed their shutters after flying in the Nepali sky for as long as a decade. Examples are Necon Air and Cosmic Air. Their contemporaries &nbsp;such as Skyline Air, Shangril-Lai Air, Mountain Air, Nepal Airways, Lumbini Air, Everest Air – to name a few – were also closed down.&nbsp;</p>
<p style="text-align: justify;">
	Many – five dozen to be exact - haven’t started their operations despite receiving the Airline Operator’s Certificate (AOC) from the Civil Aviation Authority of Nepal (CAAN) many years ago. They are airlines on paper only. Understandably, the biggest deterrent for them is the collapse of several airlines in the past. There is no doubt that the present of the domestic aviation industry has improved, but not enough. A few airlines are really doing well – but they are oonly a few. Others are in the red, according to a highly-placed source at CAAN. Recently, two airlines have been in problems – Agni Air and Guna Air. The latter was acquired by Simirik Air, a helicopter service provider, which rebranded it as Simrik Airlines and launched its domestic flights. &nbsp;</p>
<p style="text-align: justify;">
	The Number One airline (Buddha Air) at present is far ahead the Number Two (Yeti Airlines) in terms of the number of passengers carried as well as the profit made annually. And there is always a stiff competition among a couple of other private airlines for the Number Three position in the domestic aviation market which has all together 15 private airlines (nine fixed-wing and six rotary-wing) in operation at present. Of the total 1.6 million domestic air passengers in 2012, the Number One airline carried more than 800,000 and also made, according to knowledgeable sources, more than Rs 4 billion in profit. The remaining Rs 3 billion of the annual business was shared by the remaining 14 airlines. That speaks volumes about how profitable some of them might just be!</p>
<p style="text-align: justify;">
	Ever since the country adopted a liberal aviation policy in 1992, the number of companies seeking and receiving AOC has been rising year on year. However, sustainability has been a major problem for them. “Four of the nine fixed-wing airlines and three of the six rotary-wing airlines operational at present are in profit. Others are in loss,” reveals the CAAN source.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Why?</strong></p>
<p style="text-align: justify;">
	Why civil aviation is yet to become a profitable business for a majority of the private airlines operational at present? Is the number of airlines more than the market can actually sustain? Why so many airlines have failed? And why do others face the risk of failure? Nubiz sought answers to these questions from four experts of Nepal’s aviation industry: T R Manandhar (Director General of CAAN), Saral Shamser Rana (Deputy Marketing Director of Yeti Airlines), Manoj Karki (Managing Director of Goma Airlines) and Pradeep Shrestha (CEO of Air Kasthamandap). This is how they answered these questions:</p>
<div style="text-align: justify;">
	<strong>‘Airlines should go for mergers’</strong></div>
<div style="text-align: justify;">
	<strong><br />
	</strong></div>
<div>
	<div style="text-align: justify;">
		Yes, it’s true that several airlines have closed down, mainly because of financial reasons, in the past. We have also heard complaints that the number of airlines is more than the market can actually sustain. Therefore, the government has made the Airline Operator’s Certificate Requirements (AOCR) more stringent a couple of months back. Now, no AOC will be issued unless the airline procures the aircraft. Though we have adopted a liberal aviation policy, we don’t encourage companies to enter the aviation industry at the moment, unless they have serious, long-term plans supported by adequate capital base. There are three airlines operating scheduled flights on the trunk routes at present. Two more, Namaste Air and Blue Airways, have applied for scheduled domestic operations on the trunk routes; they are in the process of procuring aircraft.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The main reason why so many domestic airlines collapsed and why many others are incurring a loss is low capital base and lack of long-term planning. Everyone planning an airline company should be clear that it requires huge investments and the operating cost is also very high which means the promoters need deep pockets. The airlines which are operating chartered flights to the remote areas are in loss. That’s why we have started building paved runways at airports in the rural areas. Currently, paved runways are under construction at over half a dozen such airports. Similarly, we are also installing modern aviation tools and technologies such as Tower Console, VOR, CCR, Met equipment, PAPI Light etc at various airports.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		I seriously feel that the existing airlines should go for mergers among themselves. This will increase their capital base and fleet and lower the operational cost to some extent. What the experience shows is many airlines collapsed after they faced accidents. So, they must pay proper attention to all the safety measures in order to avoid accidents. There is lack of skilled technical and expert human resource. For example, there is a limited supply of captains and engineers. So, airlines often ‘hunt’ such human resource from among themselves which ultimately affects the operation of those airlines which lose such human resource. The demand of airline service will not increase by any significant degree unless there is a considerable growth in tourist arrivals.</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		T R Manandhar</div>
	<div style="text-align: right;">
		Director General</div>
	<div style="text-align: right;">
		CAAN</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		<strong>‘Only an aviation expert should run an airline’</strong></div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		Very few investors have grasped the aviation business in Nepal properly. An airline cannot be run like most other businesses. Without the experience and knowledge about the costs involved, the turnaround times and expenses that are actually incurred, one will never see a sustainable business. You need an aviation expert to run an aviation business, not just one with the capital to finance it.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The variables in the market, the trends and patterns are unpredictable. A factor such as weather can make or break a season for an airline. Working with the correct promotions team, at the right prices and focusing on the long run is crucial to succeed. The competition is also fierce, and has in the past brought about the closure of various airlines. Seeking opportunities to work together for mutual benefit is rare; rather it’s the opposite and many are out there to bring others down.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The lack of training and experience amongst the teams within the airline is another cause for the downfall. Crew should not be rushed to senior positions just to fill up spaces or to meet some compliance. It is one of the reasons why the accident rate in Nepal is higher than in most places on earth and that directly leads to my next point - insurance premium: loss of one, borne by many. There might be many variable costs in the running of an airline but a primary fixed cost beside the loan is the insurance premium. Whether you fly or not, you always have to pay it. It’s a cost that can bring a company down and it does not take into account a bad season.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The reasons can be endless, however this is not a struggle only faced in Nepal. Richard Branson, founder of Virgin Airlines, on his advice to become a millionaire, said, “The easiest way to become a millionaire is to first become a billionaire and then start an airline!” However, with the backing of investors and good leadership, Nepali aviation can reach greater heights.&nbsp;</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		Capt Pradeep Shrestha</div>
	<div style="text-align: right;">
		Chief Executive Officer</div>
	<div style="text-align: right;">
		Air Kasthamandap</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		<strong>‘Many airlines enter the market without proper market study’</strong></div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		The airlines have to take huge loans from banks as the investment cost is very high. In the past, some companies entered the aviation market only for the sake of it, making the supply higher than the demand. This caused unhealthy competition leading to sustainability problems at the end. The survival of airlines in Nepal is very challenging, especially for those flying to the remote areas where the runways are really bad; other several airport facilities are simply absent. The operating cost is very high. For example, a single servicing of the engine costs around Rs 700,000 to 1 million. Many airlines enter the market without studying the opportunities available.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Airlines flying to the remote areas have additional challenges. The cost of operating flights in the remote areas is comparatively high. The government should fix the number of flights and the rates for remote areas based on the flow of passengers and the operational cost of the flights. The government can help the airlines flying to the rural areas in terms of fuel costs and VAT and other taxes. However, increasing the tourist arrivals is one sure way to make aviation a profitable business for domestic airlines. More tourists means more opportunities for the airlines to make money. The government should make the issuance of AOC more stringent so that there is a balance between demand and supply. Airlines such as Yeti Airlines, Buddha Air, Simrik Air etc seem to have a profitable business. But they have taken huge loans for which the interest is also quite high. However, they have been able to stand out in the market because of proper planning, professional and efficient service, good market strategy, adequate investment and operating capital.&nbsp;</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		Saral Shamser Rana</div>
	<div style="text-align: right;">
		Deputy Marketing Director</div>
	<div style="text-align: right;">
		Yeti Airlines</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		<strong>‘Airlines fail miserably in financial risk management’</strong></div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		The major reason behind the collapse of most domestic airlines in the past is the failure to manage the financial risks. Managerial shortcomings, lack of aircraft matching the country’s geography, lack of enough support from the government and the then aviation policy could be the other reasons. However, it is commendable that the private sector has continued to support the domestic aviation industry despite these odds.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Aircraft matching the country’s difficult geography are a must for an airline. Skilled manpower is another prerequisite. As there is lack of enough skilled human resource, one airline has to often ‘steal’ talents and experienced human resource from the others. The airfares have not increased according to the hike in the aviation fuel prices in recent times. Operating flights in the remote areas entails even higher costs. Hence, profit becomes even more challenging for these airlines. The operating cost of an airline is very high. And it takes at least a few years before an airline can expect profits. So the promoters need to have deep pockets as well as patience and long-term plans before jumping into the market.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Experience has shown that if someone wants to run an airline, then s/he should focus on the airline only. Diverting the income from the airline to other investments may cause problems, especially in the beginning years. We have already seen the fall of several companies which invested the income from aviation into other sectors. The promoters should have enough capital to meet all financial problems that could crop up in the future.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Also, the government needs to revise the aviation policy. The number of passengers has been on a constant rise in flights to the major urban destinations. However, it is difficult for the airlines flying to the rural areas to get enough passengers while the risks of flying are also high in these areas.</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		Manoj Karki</div>
	<div style="text-align: right;">
		Managing Director</div>
	<div style="text-align: right;">
		Goma Air</div>
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Nepal’s Civil Aviation: Some Facts</strong></div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		The Nepali private sector entered the domestic air transport after the adoption of Liberal Aviation Policy in 1992. Nepal Airways was the first private airline to start scheduled domestic flights in Nepal (1992). It got the Airline Operator’s Certification from the Civil Aviation Authoruty of Nepal (CAAN) in Feb 1992. Necon Air followed suit in September 1992. In 2001 two other local airlines – Shangri-La Air and Karnali Air merged with Necon which operated flights to all major domestic destinations. It also had flights to Patna and Varanasi in India before being closed down in 2003.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Domestic operation by jet aircraft commenced in 2004 by Cosmic Air. Some 75 private airlines have received AOC from CAAN but only 15 of them are operational at present – nine fixed-wing and 6 rotor-wing airlines. Over a dozen which came into operation after 1992 have closed down so far. Nine fixed-wing airlines operational at present - Nepal Airlines (government-owned), Buddha Air, Yeti Airlines, Sita Air, Tara Air, Air Kasthamandap, Makalu Air, Goma Air, Simrik Airlines (Guna Air has been renamed as Simrik Airlines after it was recently acquired by Simrik Air, a helicopter company) and Agni Air (AOC still valid but flights grounded at present). The domestic civil aviation industry is said to be growing at 10-12 per cent per anum.Private investment in civil aviation is estimated above Rs 11 billion.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Six rotor-wing airlines operational at present are:&nbsp;</div>
	<ul>
		<li style="text-align: justify;">
			Buddha, Yeti and Simrik are the three airlines operating mountain flights at present.</li>
		<li style="text-align: justify;">
			NAC, Sita Air and Tara Air are the airlines flying to the rural areas</li>
		<li style="text-align: justify;">
			Air Kasthamandap launched a test flight to the Syangboche Airport, the highest-altitude airport in Nepal (3780m) on March 18, 2013. &nbsp;</li>
		<li style="text-align: justify;">
			Air Kasthamandap, Makalu Air and Goma Air, three new players in the aviation market, have single-engine aircraft and don’t have scheduled flights. They operate chartered and cargo flights, mostly to the rural areas.</li>
		<li style="text-align: justify;">
			Namaste Airlines has applied for permission for domestic flights.</li>
	</ul>
</div>
<div style="text-align: justify;">
	 </div>',
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		'Article' => array(
			'id' => '939',
			'article_category_id' => '39',
			'title' => 'NLIC: Becoming Online-friendly',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Sudharson Thapaliya</strong></p>
<p style="text-align: justify;">
	As the numbers of internet users is rising day by day, Nepal Life Insurance Company (NLIC) is planning to go for online friendly operating systems. According to the company officials, the process has been initiated long ago and will be completed very soon. The company claims that ‘Any customer can calculate the payable premium amount through premium calculator present in the website’. Besides this, the company also has full fledged online service through the website and technologically advanced system of inter-connectivity between the head office and all branches spread all over Nepal.&nbsp;</p>
<p style="text-align: justify;">
	“We have to take advantage of technology in every business and insurance is no exception,” said Vivek Jha, Chief Executive Officer of the NLIC. “This is why we have decided to go for website.” He added that this would be helpful for awareness of general public towards insurance.</p>
<p style="text-align: justify;">
	“Life insurance business is a long term business and its growth and prosperity depends on focused strategic planning and proper implementation of it,” said CEO Jha. He added that as per the present scenario of life insurance sector in the country working towards awareness enhancement to general public is the key factor for success and a basic challenge.&nbsp;</p>
<p style="text-align: justify;">
	The company is also in the process of launching a new website which shall be customer friendly with special features like checking one’s policy status online. NLIC has also been creating awareness through social media like facebook, twitter and you tube</p>
<p style="text-align: justify;">
	<strong>Company Background</strong></p>
<p style="text-align: justify;">
	Established under Company Act 2053 and Insurance Act 2049 as a public limited company on 2001, NLIC is the first Nepali owned life insurance Company that provides only life insurance services. Before the incorporation of the company, there were only companies that either both life and non life insurance or had foreign investors. Incorporated by Nepali promoters, the company’s shares are owned 80 percent by major promoters and rest is owned by general punlic. The company has reinsurance treaty with ‘Hannover Re Life Reinsurance Company’, Germany for conventional policies and ‘SCOR Global Life’, France for Term Assurance Foreign Expatriate policies.</p>
<p style="text-align: justify;">
	Nepal Life City Center is the major investment by NLIC. City Center is claimed by the company to be the first proper mall in Nepal. The company has an authorized capital of 100 Crore, issued capital of Rs. 50 Crore and paid up capital of Rs. 37.50 Crore to till date. Presently Nepal Life provides a bonus rate of NPR. 60-80 per thousand sum assured per annum, which the company claims the highest among life insurance companies in Nepal.</p>
<p style="text-align: justify;">
	Also it has presently proposed a dividend of 126.32% to its shareholders of which as 56.32% is cash dividend and 70% bonus shares. “This has given a tremendous boost to its share price in the stock market and increased the investors’ confidence towards the company,” CEO Jha claimed.</p>
<p style="text-align: justify;">
	<strong>Turning Point&nbsp;</strong></p>
<p style="text-align: justify;">
	 </p>
<p>
	<strong><img alt="NLIC" height="260" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_table1.jpg" style="float: left; margin: 0px 5px 0px 0px; text-align: justify;" width="300" /></strong></p>
<p style="text-align: justify;">
	The company believes last year was the major turning point for it, when it rebranded. “New logo and caption provides a better corporate image to the consumers, it was a major turning point for us”, said CEO Jha. “This gave a very vital and positive impact on gaining the confidence of the existing as well as new consumers for us”. The company had started rebranding campaigns with the slogan of “Naya Josh, Naya Soch, Naya Umang, Rato Tika, 10 on 10, Nepali haru ko pahilo rojai Nepal Life” last year.</p>
<p style="text-align: justify;">
	“It was necessary for a wider awareness about the company as well as for life insurance as a whole,” shared Jha. “The campaign was able to provide a better corporate image among the existing and new consumers and gain their confidence. Furthermore, we came up with the caption ‘Kinaki Jeewan Amulya Chha (Because Life is Precious)’ projecting a broader and positive aspect of life.”&nbsp;</p>
<p style="text-align: justify;">
	<strong>Connecting People via Own Branches</strong></p>
<p style="text-align: justify;">
	The company has more than 100 establishments all over the country. It has 20 branches in the major cities of the country to provide services to its customers. The branches are in Kathmandu, Biratnagar, Birgunj, Butwal, Pokhara, Banepa, Narayanghat, Nepalgunj, Birtamod, Lahan, Janakpur, Mahendranagar, Ghorahi, Surkhet, Hetauda, Phidim, Urlabari, Dhangadi, Nuwakot, and Lalitpur.</p>
<p style="text-align: justify;">
	Besides these branches, the company has opened many sales centers. They are spread in Manthali, Barhabishe, Charikot, Bhaktapur, Choutara, Salleri, Damak, Letang, Khandabari, Bhojpur, Chandranigapur, Gaur, Ilam, Bhadrapur, Palpa, Gulmi, Arghakhanchi, Pyuthan, Humla, Rolpa, Mugu, Bajura, Bhairahawa, Taulihawa, Sunwal, Tulsipur ghorahi, Salyan, Rukum, Chourjahari, Bhaluwang, Manahari, Sindhuli, Malangwa, Jaleshwor, Gorkha, Dhading, Bouddha, Katari, Rajbiraj, Siraha, Dadeldhura, Baitadi, Belauli, Dipayal, Lamjung, Kawasoti, Madi, Guleriya, Jumla, Bardiya, Kamdi, Jajarkot, Baglung, Damauli, Waling, Dailekh, Salli, Taplejung,Yashok,Tharpu,Tikapur, Rangeli and Kirtipur.</p>
<p style="text-align: justify;">
	<img alt="Bonus Rate Growth of NLIC" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_bonus_rate_growth.jpg" /></p>
<p style="text-align: justify;">
	<strong>Human Resources</strong></p>
<p style="text-align: justify;">
	“Human Resources is our main asset,” CEO Jha shared “because, they are in direct touch with grass-root consumers.” “Leadership must emerge from people themselves,” he added. “We provide suitable environment to grow leadership in employees.” According to him, the company has participatory style of management for important decisions regarding organizational policies, new product development etc. “We follow CRM 2 where every organizational employee is responsible for developing customer relationship and providing them the best service,” he added. At present the company has around 250 staffs and more than 18000 active insurance agents.&nbsp;</p>
<p style="text-align: justify;">
	<strong><img alt="Investment Portfolio, NLIC" height="241" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_investment_portfolio.jpg" width="582" /></strong></p>
<p style="text-align: justify;">
	<strong>Lo</strong><strong>oking for Bright Future</strong></p>
<p style="text-align: justify;">
	Life Insurance in Nepal is a growing industry. There are 25 insurance companies, 16 non-life and nine life insurance companies. One Rastriya Beema Sansthan has been allowed to provide both life and non-life services. Though insurance was initiated in 1948 in Nepal, mainly due to lack of awareness, it is estimated that only around five percent are insured all over the country. CEO Jha opined that the number of insured people is even lower than five percent as some of the people are insured multiple times while some are under-insured than what they can afford. At present, it is estimated that contribution in Gross Domestic Product from insurance sector is less than two percent in Nepal.</p>
<p style="text-align: justify;">
	“If we are able to spread awareness about the significance of insurance among the peoples, then insurance business has huge potential in Nepal,” he said. “To uplift insurance business, insurance companies, regulatory body and government have to join hands”.Foreign company’s presence through their agents in Nepal and attracting Nepali customers to do insurance out of their nation, which is legally not allowed, is again a major challenge. He said, “Large numbers of people are insuring themselves with foreign companies in the trust of only the agent they do not know what will happen during the time of claim settlement and also unaware about the illegality of such practice.”&nbsp;</p>
<p style="text-align: justify;">
	He believes that if our insurance sector can convince the people then large sum of money could be utilized for the growth of Nepali economy. He concludes, “Also at present the returns provided by Nepal Life is greater than some of the leading companies in neighbouring countries”. “Presently even in such dire situation the investment by insurance sector is around 60 billion. So if Nepal can prioritize this sector, this figure can multiply manifold.”</p>
<p style="text-align: justify;">
	<strong>Products and Marketing</strong></p>
<p style="text-align: justify;">
	NLIC has launched various types of life insurance policies. These includes Surakshit Jeevan Beema Yojana, Keta-Keti-Jeevan Beema (Shiksha and Vivah), Jeevan Laxmi- Triple Benefit with Bonus, Jeevan Sahara, Jeevan Sarathi, New Term Life Insurance, Saral Jeevan and &nbsp;Jeevan Jyoti.&nbsp;</p>
<p style="text-align: justify;">
	Company believes in fair marketing of products. Generally, marketing people sell the policies by manipulating people. CEO Jha termed ‘mis-selling’ to these practice. “We believe in fair marketing strategy”, he added. “We believe in our products rather than pin pointing the loopholes of others; we trained our grass root agents to follow fair marketing practices”.</p>
<p style="text-align: justify;">
	<strong>CSR Activities</strong></p>
<p style="text-align: justify;">
	In the journey of 12 years, NLIC has tried to do Corporate Service Responsibility (CSR) in different ways for instance, NLIC sponsored differently abled poet Biyog Sapkota’s ‘poem collection launch programe’. Besides this, the company has contributed for the renovation of the pond at historically significant landmark, Kamladi Ganesh Mandir. “We are planning to do some CSR activities differently, yet the concept is not finalized yet,” CEO Jha said. “In near future we will come with new and innovative style of CSR activities”.&nbsp;</p>
<p style="text-align: justify;">
	<img alt="Corporate Focus, NLIC" height="154" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_premium_income.jpg" width="580" /></p>',
			'published' => true,
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			'description' => '“Life insurance business is a long term business and its growth and prosperity depends on focused strategic planning and proper implementation of it” - Vivek Jha',
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			'title' => 'The Great Himalaya Trail: Once Is Not Enough',
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			'content' => '<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<img alt="" height="367" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/development_partner_april2013(1).jpg" width="580" /></p>
<p style="text-align: justify;">
	The Great Himalaya Trail (GHT), one of the longest and highest trekking trails of the world, within two years of its opening, has grabbed attention from around the world. The trail is known as one of the top 20 adventure destinations by the National Geographic Adventure magazine, thanks to the successful marketing and branding of the trail.</p>
<p style="text-align: justify;">
	The Great Himalaya Trail Development Programme (GHTDP), a two-year programme, has become one of the most popular programmes of tourism development in Nepal. The GHTDP is being implemented by the Nepali Government with technical support of SNV and funded by the UK Department for International Development (DFID.) It is being monitored by NGOs and host communities to ensure that GHTDP is living to meet the goals of responsible tourism at its best. Other partners of the programmes are Nepal Tourism Board (NTB) and Trekking Agencies’ Association of Nepal (TAAN).</p>
<p style="text-align: justify;">
	SNV has taken up the role of advisor to successfully implement the GHTDP. Its role in the project is to provide technical advice and capacity building support to the Ministry of Culture, Tourism and Civil Aviation and the GHTDP Steering Committee. The programme is funded by the UKAID.</p>
<p style="text-align: justify;">
	<strong>Branding the GHT</strong></p>
<p style="text-align: justify;">
	According to Mim Hamal, GHTDP Team Leader, marketing has been mostly done through the website, newsletters and optimum use of the social media. Participation in travel fairs such as ITB, WTM and &nbsp;travel fairs organised by NTB and TAAN and familiarisation. The trail has also been listed as a prime product by Hauser Exkursionen, a German tour operator, in its catalogue and website. Hamal is optimistic and thinks that the attention the trail is getting (as one of the best adventure trekking trail to stroll around the majestic mountains of the Himalayas) will attract tourists from all over &nbsp;the world.</p>
<p style="text-align: justify;">
	According to Hamal, who is also SNV Senior Advisor, the trail is divided into ten connecting treks of two to three weeks long treks each. He stated that each section is being branded with the unique selling points. This opens up the opportunity for tourist to come repeatedly to Nepal to complete the trail. “This is the product that fulfils the Nepali tourism slogan: once is not enough,” said Hamal.</p>
<div>
	<div style="text-align: justify;">
		<strong>Prospects</strong></div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Mim Hamal expressed the possibility for the trail to be expanded up to 4500 kilometres. “Countries like Afghanistan and China are interested in extending the trail into their territories,” he revealed. Currently, the GHT is 1700 kilometres long.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The trail, that began as a pilot testing in 2009/10 from Humla and Dolpa, has now touched 16 districts in the Himalayan region. The GHT starts in Taplejung district and ends in Humla and Darchula, in the Far West of Nepal, close to the Indian and the Chinese border. The trail connects popular treks in the Annapurna and Everest regions with exotic and virgin tourist destinations in the Eastern and Western Nepal. The GHT takes the travellers to a fascinating vista of mountains and green forest, along with rustic culture and livelihood of mountain people.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Trekkers have the option to choose from two routes: one passes through the average altitude of 4000 to 5000 metres, the other &nbsp;remains mostly below 4000 metres. The upper route is considered quite challenging but promises breathtaking views of the mountains up-close, while the lower trail takes one to the culturally rich villages in the remote mountains of Nepal. This lower trail also allows the traveller to enjoy the biodiversity of the route. The GHT is not only for foreigner adventure seekers, this could also be the perfect trekking destination for Nepali people wanting to travel through the majestic mountains of the country.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>Impact on Livelihood</strong></div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The GHT has not only brought tourists to the remote mountains but also development opportunities, employment and possibility of improving livelihoods. Hamal states that the awareness programmes carried out in the route have changed the way people treat tourists, “Earlier, people used to offer beer to tourists in the early morning. These days they offer treated and filtered water for drinking.”&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Similarly, the cooking, guiding, porter and handicraft, lodge management and housekeeping trainings among others &nbsp;provided by the GHTDP have secured self employment for local people. Tourist flow has also opened up market for their agro products, skills and locally made products. The opening of the GHT has also contributed to the building of seven suspension and temporary bridges by the GHTDP. These bridges are not only used by trekkers but also have eased transportation for local people, directly benefiting them.&nbsp;</div>
	<div style="text-align: justify;">
		<strong><br />
		</strong></div>
	<div style="text-align: justify;">
		<strong>Bottlenecks</strong></div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		However, Hamal states that the government has not yet finalised the official route of the GHT. He says that the official route for the endorsement by the cabinet was submitted around a year ago but the cabinet has not endorsed it so far. He also complained about the lack of &nbsp;tourism policies. Moreover, the government does not give a visa for more than 90 days. He demands the extension of this permit for at least two to three years in order for travellers to complete the entire route. Hamal also believes that the current charge for getting a trekking route permit that is as high as US $ 10,000 must be reduced.</div>
	<div style="text-align: justify;">
		Inductive Benefits</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Other infrastructure development, such as micro hydropower in Pathivara, has been initiated. Wi-Fi connectivity is being established targeting tourists coming to the trail. Similarly, the GHT has also provided solar panels for lighting facilities to 40 households in Barpak in Gorkha.Hamal claimed that there are around 100 travel companies&nbsp;</div>
	<div style="text-align: justify;">
		operating in the GHT. These companies are also given training courses on sustainable and eco-tourism promotion of the route.</div>
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong><span style="font-size:14px;">‘The GHT Will Play a Vital Role in Improving the Overall Tourism Scenario’</span></strong></div>
<div style="text-align: justify;">
	<strong><span style="font-size:14px;"><br />
	</span></strong></div>
<div style="text-align: justify;">
	<img alt="" height="273" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/development_partner_mim_april2013.jpg" width="200" /></div>
<div>
	<div style="text-align: justify;">
		<strong><span style="font-size:11px;">Mim Hamal</span></strong></div>
	<div style="text-align: justify;">
		<strong><span style="font-size:11px;">GHTDP Team Leader</span></strong></div>
	<div>
		<p style="text-align: justify;">
			<strong><span style="font-size:11px;">and SNV Senior Advisor</span></strong></p>
		<div style="text-align: justify;">
			<strong><br />
			</strong></div>
	</div>
	<div style="text-align: justify;">
		<strong>Excerpts:</strong></div>
	<div style="text-align: justify;">
		<strong><br />
		</strong></div>
	<div style="text-align: justify;">
		<strong>What was the idea behind the development of Great Himalayan Trail (GHT)?</strong></div>
	<div style="text-align: justify;">
		The idea behind the development of the Great Himalaya Trail was to promote remote destinations that have not been explored so far. We foresaw that GHT has a huge potential in providing a significant boost to Nepal’s tourism industry and associated support sectors. We estimated that it could help channel tourist and pro-poor tourism investments to less visited and under-developed districts, thereby spreading tourism benefits more widely and inclusively among impoverished mountain communities. And, I believe that we have been successful in achieving that to an extent.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>The trail is a remarkable adventure package in Nepal. How do you think this trail alone will help to promote other trails and the overall tourism in Nepal?</strong></div>
	<div style="text-align: justify;">
		Trekking and mountaineering has the largest international market when it comes to tourism products in Nepal. And, as you say it yourself, that this is a remarkable adventure package, it will most certainly play a vital role in improving the overall tourism scenario in Nepal by attracting those segment of tourists who are in pursuit of a new tourism product who want to explore newer, off-beat-track destinations. This trail will provide a sublet to other smaller, side trails which trekkers are not yet aware of, thereby also promoting other smaller trails</div>
	<div style="text-align: justify;">
		.</div>
	<div style="text-align: justify;">
		<strong>How has the GHT helped in enhancement of livelihood of people living along the trekking trail?</strong></div>
	<div style="text-align: justify;">
		Rather than saying just GHT or SNV, I must also highlight the roles played by the DDC, local NGOs and the local people themselves; the UK Government’s Department for International Development (DFID), who is funding GHTDP – their role is equally important in enhancing the livelihoods of people. With help from these actors, we have identified the needs of people living along the trail and have provided leadership trainings, cook, guide, porter, lodge management, house-keeping, handicraft trainings. We have also invested in infrastructure development – building bridges, micro-hydro extensions, providing solar electrifications, drinking water, investing in trail maintenance and waste management.&nbsp;</div>
	<div style="text-align: justify;">
		On the other hand, we are marketing and promoting these destinations (in the European and American markets) so that there is increase of tourist inflow in these areas. All these activities and involvement is expected to benefit the local mass in some way or the other, most definitely in improving their livelihood.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>SNV’s one of the targets is pro poor sustainable tourism. How do you evaluate Nepal’s progress in this direction?</strong></div>
	<div style="text-align: justify;">
		I can’t speak on behalf of Nepal’s progress overall because there are plenty of players in pro-poor sustainable tourism and I am not the right person to judge others’ progress. But for SNV, I would say we have made good progress with projects like TRPAP, MAST-Nepal in the past, and GHTDP and HITT in the present. All were/are focused on pro-poor sustainable tourism. We were innovative. We are thinking out of the box.</div>
	<div style="text-align: justify;">
		We started with sustainable market projects, which were really about bringing tourism benefits more equally - in particular to the remote and impoverished mountain districts - providing for new business and employment opportunities, and which has also been declared one of the priorities of the Government of Nepal. Our progress has been good and fulfilling.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>How has SNV recognized and incorporated the role of the private sector in tourism?</strong></div>
	<div style="text-align: justify;">
		The private sector has a very important role to play in carrying out any development project. We recognise the importance of their involvement which is why along with having an agreement with the Government of Nepal, and local capacity builders; we also have an agreement with TAAN, Nepal German Chamber of Commerce and Industry (NGCCI) at the central level and District Chamber of Commerce at the local level. This cooperation is necessary to carry out work smoothly. Working in this manner has turned out to be a really positive process. We are all committed to the same objective, which is striving towards poverty reduction in the country, and we all want to make this work.</div>
</div>
<div style="text-align: justify;">
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			'id' => '954',
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			'title' => 'Buddha Air Captures Majority Market Share',
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			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img alt="Buddha Air, New Business Age" height="229" src="http://newbusinessage.com/ckfinder/userfiles/Images/civil_aviation_april2013_buddha_air(1).jpg" width="549" /></p>
<p>
	Buddha Air captured 56 per cent of the aviation market share carrying 881,611 passengers in 2012. According to the Civil Aviation Authority of Nepal Office at Tribhuvan International Airport, Buddha Air’s passenger carriage increased by 12.35 per cent compared to 2011. Paras Jung Pandey, Sales and Marketing Director of the airline claimed, “If airlines flying to only urban destinations are considered, Buddha Air has 65 per cent market share.”</p>
<p>
	Buddha Air is currently operating to only urban destinations. According to Pandey, as the airline is offering competitive fares and operates with larger aircrafts having higher number of seats, its market presence is increasing year by year. &nbsp;Currently, Buddha Air is operating with five 72 seater and three 19 seater aircrafts. In 2011 too, Budha Air was the market leader carrying 691,000 passengers.</p>
<p>
	Pandey said, “Air passengers are constantly increasing and we have been able offer fares that suit their paying capacity. So, airline’s market share is increasing accordingly.” Out of seven regularly operating domestic airlines, remaining six airlines have only 44 per cent market share. Yeti Airlines has second highest market share of 28.74 per cent carrying 452,806 in 2012. All domestic airlines that operate regular flights carried 1.56 million passengers in 2012.&nbsp;</p>',
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			'description' => 'Buddha Air captured 56 per cent of the aviation market share carrying 881,611 passengers in 2012. According to the Civil Aviation Authority of Nepal Office at Tribhuvan International Airport, Buddha Air’s passenger carriage increased by 12.35 per cent compared to 2011.',
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			'title' => 'Nepal’s Airlines Companies In Red: CAAN',
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<p>
	Nepal’s private airlines are bearing the brunt of higher fuel prices, hefty insurance premiums and fluctuation in passengers’ flow, according to regulator Civil Aviation Authority of Nepal (CAAN). Domestic airlines suffered a huge loss of Rs 172.8 million during the last fiscal year, says CAAN. Among the nine fixed-wing airlines, four enjoyed a net profit of Rs 162 million while the rest suffered a net loss of Rs 108.8 million in the last fiscal year.</p>
<p>
	The net profit of the six helicopter companies in the country stood at Rs 30.2 million in 2011-12, up from Rs 27.6 million in the previous fiscal year. Airlines operating on remote sectors are incurring losses while only a few that are flying trunk routes are earning profits, said CAAN, adding that an increase in insurance premium had also become a big headache for airlines. Around Rs 1 billion goes out of the country as insurance premium, according to the authority.&nbsp;</p>
<p>
	Nepal saw a significant growth in air transport after the aviation policy was liberalized in 1992. Aircraft movement jumped four-fold from 24,600 in 1992 to 95,000 in 2012. There are 55 fixed-wing aircraft and 26 helicopters in Nepal at present. Air traveller movement reached 1.03 million in 2008, 1.37 million in 2009 and 1.55 million in 2010. However, the growth rate slipped 2 percent to 1.58 million in 2011. In 2012, passenger movement fell 0.55 percent to 1.575 million, according to CAAN.</p>',
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			'content' => '<p>
	 </p>
<p>
	<strong>By Prof Ujjwal K Chowdhury</strong></p>
<p>
	The tallest leader in the main opposition party of India, Bharatiya Janata Party (BJP), today is undoubtedly Narendra Modi. The pressures of the people at the rank and file of the party has already forced the disconnected national leadership to come scurrying to Modi to lead the party at the centre, and soon he will be its Prime Ministerial candidate for the general elections in 2014. As a New Nepal is expected to emerge from the polls of 2013, Indian General Elections of 2014 (which may be earlier than scheduled) may give rise to a New India under Modi, with implications for Nepal as well in South Asia.</p>
<p>
	<img alt="South Asia, New Business Age" height="317" src="http://newbusinessage.com/ckfinder/userfiles/Images/south_asia_april2013_narendra.jpg" style="float:left; margin:0 10px 0 0;" width="350" /></p>
<p>
	<strong>Modi’s Journey: Version 2.0:</strong></p>
<p>
	The journey of this single resolute man at the top of Gujarat’s affairs started as a Pracharak of Rashtriya Swayamsevak Sangh (RSS) in the first stage of his public life. He was deputed to Gujarat politics to quell the conflict between the Kesubhai Patel and Shankersinh Vaghela factions of BJP some twelve years ago, signalling the start of version 2.0 of his public life.</p>
<p>
	Since then, for a dozen years, he has refrained from going to Delhi much, completely disassociated himself from national politics of BJP and focussed on Gujarat to ensure his third consecutive victory in Gujarat Assembly elections as recently as on December 20, 2012.</p>
<p>
	That he will win the elections for BJP was a foregone conclusion. Question was of the margin. His focus was purely on economic development, and he played it to the hilt, with the glamour of 3D technologies and the force of social media apart from mainstream media.&nbsp;</p>
<p>
	Presently, Gujarat holds around 30 per cent of India’s stock market capitalisation, contributes 22 per cent of the total exports and about 9.5 per cent of the country’s total work force. Gujarat is also a power surplus state, providing electricity even to the villages.The state has registered more than 12% agriculture growth in the last five years against the national average of 2%.</p>
<p>
	The per capita income at constant prices has shown robust growth in the past five years. There is also a major thrust on infrastructure. The development of ports and port-based investment activity is an instance. There is also a plan for shipbuilding parks along the coastline.</p>
<p>
	Hence, the development slogan, soft Hindutva through Vivekananda Yatra and no tickets to minorities, a techno-savvy one person, one agenda focussed campaign paid off yielding a rich dividend of 115 MLAs for BJP in a House of 182 MLAs.</p>
<p>
	<strong>Modi’s Journey: Version 3.0:&nbsp;</strong></p>
<p>
	<strong>The 10-point Road-map:</strong></p>
<p>
	The most interesting now will be to watch the roadmap that Modi takes in his third and most crucial and challenging phase in public and political life.</p>
<p>
	First, managing home. Gujarat is his home-turf. But now to move to the Centre, he has to leave a legacy that symbolizes him in every sense. Significantly, he has kept his Cabinet small, and has at least two favourites in significant positions for grooming a future CM (and if needed, a Deputy CM too): Saurabh Patel and Anandiben Patel.&nbsp;</p>
<p>
	Second, managing the Sangh Pariwar. He cannot afford to alienate Nagpur, which still holds a veto power in the Sangh Parivar. As his popularity soars, RSS under Mohan Bhagwat may be left with no choice but rally behind its extra-ordinary Swayamsevak. But Modi would do well to keep Bhagwat in good humour at this stage.&nbsp;</p>
<p>
	Third, managing the NDA. It is almost certain that JD (United) of Nitish Kumar-Sharad Yadav shall leave NDA if Modi is the front-man. But, Modi has his own dark horses: Jayalalitha led AIADMK, Naveen Patnaik led BJD, Uddhav led Shiv Sena and Raj led MNS in Maharashtra are sure to through their weight behind Modi which will outgrow the strength of JD(U) concentrated in Bihar alone. Interestingly, BS Yediyurappa, the beleaguered rebel BJP leader who has just set up Karnataka Janata Party, may stage a comeback if Modi is the central leader of BJP.&nbsp;</p>
<p>
	Fourth, managing minorities. What Modi needs to guard is not to create an anti-minority image any further, rather focus on non-appeasement anti-votebank all-people development agenda, being silent on minority-focused discourse in Indian politics in his interests.&nbsp;</p>
<p>
	Fifth, managing the riot-image and legal cases. Herein again, silence is golden. One partial statement after Gujarat victory this time was itself a good strategy, “Forgive me if I have done any mistake”. This is the best policy: being humble but not talking about the past and riots. Vengeance is a measure for lesser mortals.</p>
<p>
	Sixth, creating symbolisms. It will be a great move for Modi to seek election to the Parliament from Lucknow, which elected Atal Behari Vajpayee several times. Symbolically strong, this will rejuvenate BJP in Uttar Pradesh, bring in Kalyan Singh at the centre-stage in UP, and lead to soft Hindutva polarization in favour of BJP in most of the Hindi heartland.</p>
<p>
	Seventh, strengthening mass constituencies. In 2014, the dominant section of the electorate shall be young people below 35 years of age. The electorate between 18 and 35 years of age are expected to be above 40% of the voters, and in case of a good franchise, the younger voters are expected to be participating more. Modi has succeeded tremendously with the youth in Gujarat ensuring a hat-trick of victories. If he can put forth a viable plan for Young India, package and communicate it in a techno-savvy way (for which he is well-known), and make it caste and community-neutral, he is assured of a huge support herein.</p>
<p>
	Eighth, harnessing the woman-power. Half the young people are women, and a large part of elder women are dependent emotionally and financially on the younger population. Also, Modi’s personal charisma, single status, and a straight talking image et al go well with the women. He, however, will need to walk the talk on women’s safety issues which is the major concern for a large number of vocal women,both urban and rural.</p>
<p>
	Ninth, envisioning an Alternative India. Herein lies the major creative challenge to Moditva. If he can change the discourse of Indian politics from divisive identity to development issues, from regional parochialism to a uniform Indian-ness, from Western outlook to political language to a pride in everything Indian, he has made a great start to this third phase in his political journey. He has started this through his recent speeches, first in Sriram College in Delhi and more recently in the India Today Conclave.</p>
<p>
	Tenth, and finally, creating a global image and acceptability. While Vibrant Gujarat has given Modi the global image of a productive performing leader, and Indian diaspora looks up to him for a national leadership role now, he still needs to politically cultivate major global forces and global Indians more. Hence, formal and informal channels need to be evolved through visits, use of media, receiving delegations, use of global Indian bodies, et al, which position Modi as the undisputable leader whom the nation has been waiting for long.</p>
<p>
	<span style="font-size:10px;">The author is former Dean of Symbiosis International University and President of the advisory board at Whistling Woods School of Communication, Mumbai.</span></p>',
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			'created' => '2013-04-20',
			'modified' => '2013-06-06',
			'keywords' => 'Narendra Modi: Political Journey 3.0 & Message For Nepal',
			'description' => 'The tallest leader in the main opposition party of India, Bharatiya Janata Party (BJP), today is undoubtedly Narendra Modi. The pressures of the people at the rank and file of the party has already forced the disconnected national leadership to come scurrying to Modi to lead the party at the centre, and soon he will be its Prime Ministerial candidate for the general elections in 2014. As a New Nepal is expected to emerge from the polls of 2013, Indian General Elections of 2014 (which may be earlier than scheduled) may give rise to a New India under Modi, with implications for Nepal as well in South Asia.',
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			'id' => '951',
			'article_category_id' => '42',
			'title' => 'Change The Way We Think Of Stocks',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Hom Nath Gaire</strong></p>
<p>
	 </p>
<p>
	What does it mean to value a stock as a business? How does it differ from the way most investors think about investing in stocks? These are the fundamental questions one should ask while planning to invest in stock market. To answer these questions, let’s start by considering what a stock actually is. In simple terms, a stock of a company represents a share of ownership of an actual business.&nbsp;</p>
<p>
	But as Warren Buffett, prominent American stock investor, often says, most people tend to think of a stock as a ticker symbol with a squiggly line attached. Most people think it is easier to look at a stock chart and try to predict whether its price will go up or down than it is to understand the underlying business and its performance. But the truth is, almost nobody is good at this. It takes an extremely rare individual to do it with enough consistency to make money.</p>
<p>
	Some professional and dedicated part-time traders succeed by buying and selling stocks using short-term strategies. But the overwhelming majority of investors would make a lot more money – and lose a lot less – if they learned to approach stocks in the way they would move toward ownership in a business. However, it is not an easy task to find a business that is simple enough to fully understand than to consistently predict where the price of its stock is going next.</p>
<p>
	Still, there are a number of benefits of this approach about investment. Several of the world’s greatest investors have shown that this approach is one of the simplest, safest, and most consistent ways to make money from the stock market. But perhaps even more important is the peace of mind. Let’s go through an example to clarify the concept. Suppose there are two investors who are buying stock in the same company, say X. &nbsp;Investor A, approaches investing as a business owner and does a little homework on the underlying business. He believes company X is a wonderful business trading at a good price, and he decided to buys a sizeable number of shares. But investor B is like most people and decides to buy share of X without any real understanding of the underlying business. May be he saw the stock X is being advertised on local news paper or television, heard this or that famous investor was buying it, or has a friend who made a lot of money in it.&nbsp;</p>
<p>
	If the share price of company X goes up, both investors will probably be feeling good about their decision. But what if the price was to suddenly fall by 5 percent, 10 percent or even more? Or the market experiences a serious correction that takes most stocks down with it?&nbsp;</p>
<p>
	In this case, the investor A is much more likely to sleep well at night. He knows he bought a quality business and he knows he paid a good price for it. Like wise, he also knows the fluctuations in the share price have nothing to do with the underlying business. In fact, he may actually be happy to see the price fall – as Warren Buffett used to say – because it will allow him to buy more shares or reinvest his dividends at a better price. On the other hand, Investor B would probably be in worry. Because, he has no idea what the underlying business is actually worth or what a fair price for it is. He only knows that he has lost money. He is probably still speculating whether it will be a 5 percent correction or a 30 percent crash and whether he should sell his ownership right now or wait it out.</p>
<p>
	The fact is, one normally can not know those things in any kind of reliable manner. But what he knows is that great businesses consistently make money all the way through good times and bad ones. And he can have a lot of certainty that over the long run, he will be rewarded from that great business as a shareholder. Thus, all should try to take decision like investor A, in our example rather than like B. Then only we can sleep well at night and simultaneously we can make money from the stock market.&nbsp;</p>
<p>
	Just look at the history of the 20th Century in global stock market. What calamity didn’t happen in the 20th Century? There were two world wars and various smaller ones, a great depression, hyperinflation, unemployment and even stagflation. All the productive resources were either seized by the government of destroyed in the wars and calamities; there were 50 percent to 90 percent marginal tax rates for many of those years. Nevertheless over the century, the Dow Jones Industrial Average (DJIA), world’s oldest stock index soared thousands fold. Likewise, the Bombay Stock Exchange’s sensitive index, SENSEX has also gained thousands fold over the same period.</p>
<p>
	These two examples, of course, stand witness that companies would have done better even under the government-created problems, though the business suffered from the politics, wars, the economy and inflation. However, there are never any guarantees in the stock market, betting on great businesses was always the right thing to do over the last 100 years. And there is a very high probability that you’ll do well buying great businesses over the next 100 years. Thus let’s start to think differently about the stock market.</p>
<p>
	<strong>How to Identify a Great Business?</strong></p>
<p>
	The first step for this approach is as simple as changing your thinking. It is nothing but just deciding you won’t buy a stock unless you can understand its business, even if it looks attractive and it’s reasonably priced. Most peoples would intuitively understand this if they were buying an actual business outright, but they seldom make the connection when buying stocks. What one should notice when to begin thinking this way is, very few stocks are likely to meet set criteria. When you really understand what you’re buying, you’ll tend to be much more selective and gravitate toward great businesses.&nbsp;</p>
<p>
	There are a few clues to identify a great business and to leave behind a poor one. The easiest one to identify is a profit margin of consistent thickness over many years, even if it’s a thin profit margin. For example, Wal-Mart’s net profit margin is thin, around 3%. But it is a very consistent and ranges every year like clockwork. Likewise, Microsoft’s gross margin has been around 80% for many years.&nbsp;</p>
<p>
	Consistent margins tell that something special is going on there. That business has been able to extract that profit out of the market because it’s doing something that people really want year after year and it has positioned itself in the marketplace so that it can keep doing it.</p>
<p>
	Another big clue of a great business is consistent free cash flow generation. That is a sign that the business does not require all kinds of expensive reinvestment year after year. It means the business can invest relatively little of that cash profit and put the rest toward things like paying out dividends, buying back shares, or making new investments in the future. A business gains a great deal of flexibility when it is able to generate a lot of free cash flow. A third clue is a history of dividend payments that rise every single year for many years (dividend grower). Not all great businesses have this trait, but many of them do. So it is something to look for. There are obviously more, but these are the big ones that most great businesses share.&nbsp;</p>
<p>
	<strong>How to Value a Business?</strong></p>
<p>
	Once a great business is identified, the next problem is to determine the fair trading price or value of business. There are two primary ways to value a business. One is by net worth, and the other one is by profit generation. Net worth is calculated the same way we would do it for ourselves. If one wants to find out what his net worth is, add up all the cash and all assets, like house, cars, etc. Then he should subtract everything he owes – things like mortgage, credit cards, and car loans – and that difference is his net worth.&nbsp;</p>
<p>
	We can do the same thing with a company. For this, first of all we should look at a company’s balance sheet and assign a value to its cash and other assets, add them all up, subtract what it owes – debt and other liabilities – and get its net worth. This is a simple example. This calculation can get rather complicated, depending on the business. Sometimes, assets have to be revalued, for example, if the company owns a bunch of land that they paid very little for many years ago that’s worth much more now. But the basic idea is the same. This measure of value is best-suited for asset-heavy businesses or strict value investing situations – where one can buy assets in a significant discount and wait for the market to fairly value it. Fair valuations will vary significantly, depending on the industry and the situation.&nbsp;</p>
<p>
	The other way to value a business is based on profit generation, or how much free cash flow the company produces. This tends to be a better measure of value for really great businesses or a business that you’re confident are going to make more money next year, five years from now, and 20 years from now. We can look to history for a benchmark for valuing these great businesses. When companies have bought out or taken over really great businesses in the past they had a tendency to pay right around 30 times of free cash flow. &nbsp;So generally speaking, if you can find one of these really great businesses trading for around 15 or 16 times free cash flow, you are probably getting a really good deal that you should buy and hang on to for a long time.</p>
<p>
	<strong>Conclusion&nbsp;</strong></p>
<p>
	Of course, the valuation of business or valuing companies is not an easy task. But this will get you started. There is a temptation for investors just learning to value businesses to focus on the “net worth”-type companies as mentioned earlier – the so-called “deep value” stocks – because they can appear to be much easier to value correctly. But what one may come to realize is many of those situations don’t work out very well. Oftentimes, what you’re really doing is buying a bad business that may be on its last steps.&nbsp;</p>
<p>
	So, after a while, many value investors may decide they don’t want to buy lousy businesses anymore. They may decide they would rather buy great businesses that are going to maintain and grow their value for a long time. That’s a typical transition for a value investor to make money from stock market. In fact, Warren Buffett himself made this transition over his career, which encourages new value investors to keep that in mind.</p>
<p>
	In our case in Nepal, the present stock market condition is quite favourable to choose the great business. First thing you’ll notice when you begin thinking this way is, very few stocks are likely to meet those criteria. When you really understand what you’re buying, you’ll tend to be much more selective and inclined toward great businesses.&nbsp;</p>
<p>
	<span style="font-size:10px;">The author is the Deputy Director of Confederation of Nepalese Industries and can be contacted via email at gaire_mukunda@hotmail.com. This article is based on an interview with value investor Dan Ferris published in The Daily Crux in December 2012.</span></p>',
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			'description' => 'The present stock market condition is quite favourable to choose this great business.',
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		'Article' => array(
			'id' => '950',
			'article_category_id' => '42',
			'title' => 'NEPSE Declines After Highest Rise In 39 Months',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Bikram Chitrakar</strong></p>
<p>
	<span style="color:#00f;"><strong>(Review for 19 Feb to 21 Mar, 2013)</strong></span></p>
<p>
	<span style="color:#00f;"><strong><img alt="" height="433" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock_taking_april2013_bikram_chitrakar_sectorwise_distribution.jpg" style="float:left;margin:0 10px 0 0;" width="349" /><br />
	</strong></span></p>
<p>
	<strong style="color: rgb(0, 0, 255);"><img alt="Stock Taking, New Business Age" height="353" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock_taking_april2013_bikram_chitrakar_market_trend.jpg" style="float: right; margin-top:10px;" width="370" /></strong></p>
<p>
	The Nepali stock market receded from the green terrain during the review period as the investors gave top priority to political clues. The benchmark Nepse index shed 20.94 points or 3.97% to close at the review period’s low of 527.98 whereas the highest point was 548.92 on 19 Feb, 2013.</p>
<p>
	The index had reached 39 months high of 555.93 on 17 February 2013. The previous high of Nepse was 553.4 on 13 December, 2009.&nbsp;</p>
<p>
	Protests voiced by some political sections on the appointment of Chief Justice Khila Raj Regmi as the chairman of the government is the main reason for the recent decline, say market analysts.&nbsp;</p>
<p>
	Another reason was the profit booking by some investors lured by the new highs made by the Nepse. &nbsp;</p>
<p>
	One major recent development is that Nepal Stock Exchange (Nepse) has started preliminary research to upgrade its current trading system. It was on 24 August, 2007 that Nepse replaced the open-out-cry system by remote trading system using Wide Area Network. That system enables brokers to connect to the Nepse server through remote location and perform the transaction. The new system being tried is to facilitate individual investors to place order from their own home using the broker’s system.</p>
<p>
	As the market has turned down touching a high due to profit booking and political climate, stationary movement is expected for few sessions until some healthy clues are received by the investors.&nbsp;</p>
<p>
	<strong>Performance by Sector</strong></p>
<p>
	During the review period, the “others” sector dropped down by 65.78 points or 9.30% to settle at 707.27. Manufacturing sector posted a heavy loss of 53.88 points or 6.44% to settle at 836.99. Hydropower sector plummeted 37.19 points to rest at 1035.86. The commercial banking sector declined 17.27 points or 3.27% to 528.02. Similarly, finance sector descended 1.56 points or 0.62% to 253.09. However, hotels sector added 5.89 points or 0.88% to reach at 666.97. Insurance sub-index gained 2.28 points or 0.26% to 881.02 while development bank accelerated 1.43 points or 0.57% to close at 252.76&nbsp;</p>
<p>
	Sensitive index that measures the performance of 120 blue chip scrips at the secondary market skid 6.15 points or 4.46% to 137.9 while the float index calculated on the basis of real transaction went downhill 0.35 points or 0.94% to 37.27. Total of Rs. 2,823,647,321 turnover was realized during the review period from 10,267,018 units of share traded via 31,100 transactions.</p>
<p>
	The accompanying figure depicts the sector-wise distribution based on the total volume of trade. As usual commercial banks accounted for the heavy volume of trade with 81.33% of total trade. Hydropower sector occupied 6.50% while insurance sector constituted 3.62% and rest of the sectors covered the remaining.&nbsp;</p>
<p>
	Technically, the Simple Moving Average (SMA) has shown a sluggish movement as Nepse Index has been outcast by 30 Days SMA. Index has shown sideways movement for upcoming sessions for confirming the trend.</p>
<p>
	<img alt="Stock Taking" height="374" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock_taking_april2013_bikram_chitrakar_movement_in_indices.jpg" width="368" /></p>
<p>
	<span style="font-size:10px;">Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.</span></p>',
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			'description' => 'Stationary movement is expected for few sessions until some healthy clues are received by the investors.',
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		'Article' => array(
			'id' => '949',
			'article_category_id' => '57',
			'title' => 'Proudly ‘Made In Nepal’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Sajag Karki</strong></p>
<p style="text-align: justify;">
	<br />
	<img alt="Brand Talk, April 2013" height="186" src="http://newbusinessage.com/ckfinder/userfiles/Images/brand_talk_april2013_made_in_nepal(1).jpg" style="margin:0 0 0 10px; float:right;" width="250" />The recent international trade fair held in Kathmandu showcased a wide range of high quality Nepali products. When we, being Nepali, have just started to be aware of our own products, a significant question triggered in my mind: “How could we brand Nepali products to market them globally?”&nbsp;</p>
<p style="text-align: justify;">
	We are all aware of special Nepali products like Palpali Dhaka ko topi, khukuri, handicrafts along with organic Ilam tea and many more. Along with this, herbal products, linen fabrics, lokta paper are indigenous to Nepal sourced within the country. However, these products &nbsp;haven’t gained popularity in the foreign market and not as expected in the Nepali market as well.&nbsp;</p>
<p style="text-align: justify;">
	The reason behind this is the lack of branding of Nepali products. We have an emotional attachment to these products, which is very good but it is high time to think rationally and start showcasing our products in the international arena. Though armed with an array of high quality Nepali products we seem to be lagging behind and it’s time to step up and change this scenario.</p>
<p style="text-align: justify;">
	&nbsp;If Swiss watches can be world famous for their quality and lineage, &nbsp;why can’t Nepali products? Of course it would be naïve to expect this happening overnight, but we can definitely make a start. For this purpose, we need to create a set of features that can identify our products as a Nepali brand, distinguishing them from other generic products. Instead of building castles in the air, we need to focus on specific and concrete aspects of branding. Going back to the basics: a brand is a name, logo, symbol or design which is intended to identify the goods and services of one seller or a group of sellers and differentiate them from their competition. Branding is more of package built around a product with both tangible and intangible elements associated with it. Anything as such can be branded: goods, services and experiences. Also events, persons or places, and even properties, corporations and &nbsp;ideas.&nbsp;</p>
<p style="text-align: justify;">
	My previous articles explain how Nepal itself is a place brand, &nbsp;attracting tourists because of its unique features (such as birthplace of Lord Gautam Buddha, Mt.Everest or our rich cultural heritage.) This time, I’m focusing on products that are made in Nepal, and how branding is the only way to market them internationally. &nbsp;First and foremost, we need an authentication branding our products as “Made in Nepal” so it can be used in various product lines such as clothing, handicraft, herbal products, tea, coffee or accessories.&nbsp;</p>
<p style="text-align: justify;">
	With a mix of all such unique and easily identifiable products of Nepal, it builds credibility by associating with genuine Nepali products. &nbsp;Now that the products have an authentication, the individual items in the product line can be positioned in different ways, targeting specific audiences. Let’s say linen clothing items like shirts, caps, trousers and coats/jacket can be positioned as “Cool as the Everest air”. This instantly describes the product being cool and light during summer time. Similarly, all our ‘made in Nepal’ products can be positioned accordingly. Along with advertisements of Nepali products telling the unique story of our rich cultural heritage, we need to participate in exhibitions and trade fairs organized in other parts of the world. Spreading good word of mouth about our Nepali brands would also do wonders. In this way, entrepreneurs would be able to get exposure to technologies used in other nations and transfer this knowledge back to Nepal.&nbsp;</p>
<p style="text-align: justify;">
	There is a huge demand for such products worldwide and, with proper market research and segmentation, we can create a niche for them. We are blessed with infinite natural resources that we can use to our advantage when selling Nepali products.&nbsp;</p>
<p style="text-align: justify;">
	With the changing times, we need to adopt a promotional and distribution strategy that suits the needs of today’s dynamic customers. Outlets selling Nepali products must have an atmosphere telling a unique story. It is very important also to have &nbsp;highly trained and knowledgeable sales staff to also depict quality of the products. The international trade fair has opened the gates to take Nepali products to new heights. &nbsp;With tactful branding strategies, there is no wonder we’ll see our products being the world’s best brand.&nbsp;</p>
<p>
	<span style="font-size: 10px;">The Article is based on research and author’s practical experience as a marketing and advertising professional. He can be reached at sajag_karki@hotmail.com</span></p>
<div>
	 </div>',
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			'description' => 'If Swiss watches can be world famous for their quality and lineage, why can’t Nepali products be?',
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			'id' => '948',
			'article_category_id' => '47',
			'title' => 'A Driven Calling',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img alt="Kumud Kumar Dugar, A driven calling, April 2013" height="421" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality_april_2013_kumud_kumar(1).jpg" style="float:right; margin:0 0 0 10px;" width="300" />Kumud Dugar predicts 2013 and 2014 to be the most decisive years for his Group. Numerous projects and products are in the pipeline, making these two years full of equal challenges and opportunities for him, and the Group. “These two years will decide the future of KL Dugar Group. If all goes well, the Group’s turnover will increase three folds within this time,” says Dugar.&nbsp;</p>
<p style="text-align: justify;">
	Dugar has been taking care of the Group since 1991, right after he completed his graduation. More specifically, he looks after the Food Grain Business of KL Dugar Group that includes eight different industries. Dugar had joined the Group as the Director, but recalls working as a cashier. “I kept track of where the money comes from and where it goes. It was very essential for me to know about the exact finances of the Group,” says Dugar.&nbsp;</p>
<p style="text-align: justify;">
	From the moment he joined, he had a dream of professionally managing the group, although at that time he didn’t know what professional management exactly was. To start with, he ordered a customized accounts package from Kolkata, customised for his Group. He brought in new technologies, computerized the systems and set up numerous industries and took the Group where it is today. He says he was driven by a thirst to work and move ahead, with a strong passion of do something novel.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Early Life</strong></p>
<p style="text-align: justify;">
	Born in 1967 in Biratnagar to Krishan Lal Dugar and Jatan Devi Dugar, Dugar’s mind was set to business right from childhood. Most of his childhood was spent in Kolkata as he was there for about 18 years, from kindergarten to graduation. He was in Nepal only for vacations then. Dugar was involved with Dugar Group long before it separated into three groups in 1990. He used to work in the liaison office of the Group in Kolkata since he was in Grade 9. &nbsp;After graduating from St Xavier’s College in Kolkata, he thought of starting a business in India. In the process, he bought a granite mine and a solvent plant in Hyderabad, but wasn’t able to go on with that business. Due to the separation of Dugar Group, he felt he was needed in the newly formed KL Dugar Group, so he returned to Nepal.&nbsp;</p>
<p style="text-align: justify;">
	As soon as he joined KL Dugar Group, he set up a vanaspati factory in Biratnagar. As the Group was newly formed, he felt immensely challenged and pressurized. Driven to prove himself, he says he set up the factory from scratch in just six months. “No one could have done this back then. I set up Swastik Oil Industries at a cost of 22 million rupees. It still is the largest oil industry of the country,” says Dugar with pride. This was his first venture as the MD of the Group, and a lot more industries were about to follow. During his stay in Biratnagar, he set up numerous industries. Saurabh Oil Mill, Vikas Flour Mill, Gyan Food Products, Pratibha Rice Mill and Gyan Herbals Pvt Ltd are among a few of them. Dugar shifted to Kathmandu in the year 1995. &nbsp;</p>
<p style="text-align: justify;">
	Dugar considers the separation to be a major turning point in his life. He first took it as a challenge, but later he figured it out that it was beneficial for him, as it gave him his individuality and helped him grow more. Rather than import export business, he focussed on local materials and set up locally based industries. “I always wanted to do something for the country. Today, I think I have contributed by branding the local products,” says Dugar. At present, the food products of the Group are exported to numerous countries worldwide.&nbsp;</p>
<p style="text-align: justify;">
	As a child, Dugar was not so mischievous, but rather disciplined, a quiet one. He says he was not very good in school and always was mediocre student, but very good in accounts. “I was very interested in accountancy, and was also very good at it,” recalls Dugar. He also possessed leadership in his school but remember being shy around girls.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Personal Side</strong></p>
<p style="text-align: justify;">
	Dugar was married with Namita Dugar in 1991, and the marriage was an arranged one. It was immediately after the formation of his Group, and business was his top priority then. &nbsp;As a result, his personal life was somehow out of balance. He says he went for his honeymoon after three years of his marriage. “Back then, I felt much challenged, and was very busy. I could not give time to my family and children. I didn’t take any holidays either,” says he. But later, when all his businesses went well, he was able to balance both the professional and personal aspects of his life.&nbsp;</p>
<p style="text-align: justify;">
	Dugar likes to takes immediate decisions and doesn’t want to linger on issues. &nbsp;He says he can’t stay idle for even an hour. He remembers him being bored once on a three-day vacation with his family. He says he is very industrious, and is always thinking about his business. He firmly believes in teamwork and says that the system should work, not a person. Regarding his finances, he maintains that the accounts should be updated till the present moment, and not yesterday. Dugar believes in doing fair business, and strictly follows his business ethics.&nbsp;</p>
<p style="text-align: justify;">
	Not at all a party goer, Dugar likes to spend his evenings with his family after a stressful day. He likes to watch TV and spend most of his free time at home, with his children. “I feel more responsible towards my family and children because I couldn’t give much attention to them when I started business. Now I can afford time for them, and I feel I have to make up for the lost time,” says he. Dugar is the proud father of son Saurabh and daughters Bhavika and Drishika. A scrupulous follower of traditions, Dugar strictly abstains from alcohol, tobacco and non-vegetarian food. He loves Indian vegetarian food and is not very fond of trying new dishes.</p>
<p style="text-align: justify;">
	<strong>Hobbies</strong></p>
<p style="text-align: justify;">
	Dugar loves to travel, especially to modern cities in the world. He loves branded stuffs and loves to shop. He has been to Dubai, US and many countries in Europe. His other interests are music and dancing. He loves to listen to Hindi songs, and watches movies once in a while. He says he is quiet brand conscious. “I am very obsessed with being dressed properly. All my outfits are stitched in Mumbai. I am also very fond of clothes,” says Dugar. He also loves branded watches, and carries the latest gadgets though he is not too fond of them. He believes he has to be familiar with technology as it helps in the business too.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Way Ahead</strong></p>
<p style="text-align: justify;">
	According to Dugar, KL Dugar’s future ventures will be in sectors of hydropower and construction. The Groups’ largest project United Cements is all set to start by the end of this year. KL Residency will be handed over in 2013 and Nepal Hydro Developers Pvt Ltd will also commence in 2013. &nbsp;In addition, more than 30 products related to home appliances, automobiles and others are in the pipe line. Dugar says that he has to work even harder now, as the recent times are even more competitive.&nbsp;</p>
<p style="text-align: justify;">
	Nepali entrepreneurs are as capable as any others in the world. “We are doing our best even when faced by worst of situations. We have load shedding and political problem; still Nepali entrepreneurs are doing their job. We can do even more if the government is more supportive,” says he. Dugar wants to be number one in whatever he does, and is always striving for excellence. “Dhara oil and Gyan flour are one of my best products. I want to remain number one, and want my legacy to go with the products,” says Dugar. According to him, his greatest asset is the trust that his customers have put in him and the Group.&nbsp;</p>
<p style="text-align: justify;">
	Dugar believes that three things are very crucial for the success of any business. One has to be loyal and committed towards his business, have knowledge the business, and most importantly, one should be very critical of finances. &nbsp;He says he gives equal importance to one thousand rupees and one million. Moreover, he thinks one should have faith in his staffs and should have frequent interactions as they have more knowledge than the boss. “A good suggestion from them can change your entire perspective and help the business,” says Dugar.&nbsp;</p>',
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			'description' => 'For Kumud Kumar Dugar, MD, KL Dugar Group, failures are as important as success as he believes they keep you striving for success. He says that people need to fail to succeed. “Failures should be analyzed, and then they serve as a lesson. More importantly, one has to learn to be responsible for their failures. Blaming others for your failures is never going to help,” says Dugar.',
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		'Article' => array(
			'id' => '947',
			'article_category_id' => '40',
			'title' => 'New Year Hues: Products, Promises And People',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Siromani Dhungana<br />
	<br />
	<br />
	<br />
	New Year Hues: Products, Promises and People</strong><br />
	<br />
	Outlets of the world&rsquo;s most famous brands have already started doing their business in Kathmandu providing consumers chances of more choices and selections. The powerful combination of sophistication in use of goods, changing lifestyle in the urban area and consumers&rsquo; access to information created by information and technology have brought about an unprecedented shift in the consumers&rsquo; brand use habit. On the other hand, it has created both opportunities and challenges for companies looking for potential buyers. Increased competition among various players has compelled them to lure customers by offering different packages. New Business Age tries to catch-up some existing market phenomenon in Nepal and explores the connection between products and people in the market.<br />
	<br />
	The fastest-growing middle and upper middle-class consumers have created many opportunities for companies in the Nepali market. Earning enough to afford quality brands and quality consumer experiences, the younger generation has become brand-focused and up to date with the latest arrivals. From gadgets, clothing and watches to other personal belongings, the new generation has become brand conscious and choosy.<br />
	&nbsp;<br />
	On the other hand, the increasing competition among different brands has forced companies to lure potential consumers by offering attractive packages. Various companies have been trying to lure consumers using various techniques including bumper offers, appointment of brand ambassadors, advertising campaigns in the media and other packages to ensure the success of their brands. Private business houses have been aggressively putting their effort to get a hold in the market, opines young entrepreneur Meele Shrestha of Maxlee Traders Pvt Ltd. New Year 2070 may not witness a drastic change in the market but it can create a different type of vibration, she adds.<br />
	<br />
	<br />
	<img alt="products" src="/userfiles/images/2070-1.jpg" style="margin: 10px; width: 400px; height: 280px;" /><br />
	<br />
	<strong>Marketing of Products</strong><br />
	<br />
	Marketers always think that if they want a product to catch on, they have to think up a catchy slogan or come up with a slick advertisement to create a buzz. It is really impossible to exactly assess what propels consumers to buy particular products.<br />
	<br />
	Advertising campaigns are not enough. Companies should also think about linking products to the environment and let the environment do the work besides the advertisement and other ways of publicity of products.Consumers&rsquo; behaviour is strongly influenced by subtle environmental cues. In Nepal, most consumers want to follow the wealthy population in terms of products consumption and buying. Availability, price structure and quality of products largely determine whether the product can hold the market.<br />
	<br />
	<br />
	<strong>Consumers&rsquo; Psychology</strong><br />
	<br />
	Even big companies around the world cannot always predict consumers&rsquo; psychology correctly. Sometimes, a simple product can create a trend in the market but other times even meticulously designed and decorated product may fail to attract consumers.<br />
	<br />
	Consumers&rsquo; decisions on products are driven largly by implicit associations with the imagery connected to a brand. And, sometimes their decision may be associated with the subconscious emotional appeal of products. Why and how people buy some products and not others? Consumers&rsquo; psychology is a specialty area that studies how our thoughts, beliefs, feelings and perceptions influence how we buy and how we relate to goods and services.<br />
	<br />
	<img alt="nepali market" src="/userfiles/images/2070-2.jpg" style="width: 400px; height: 266px; margin: 10px;" /><br />
	<br />
	<strong>Diversifying Nepali Market</strong><br />
	<br />
	Markets of various products and brands have a tremendous potential to expand in Nepal. The modern marketing approach is a post 1990 phenomenon, a large section of people is still out of the the modern market system leaving room for new and innovative companies to expand their presence. And that is happening too.<br />
	<br />
	Kathmandu has many outlets and high-end streets to showcase state-of-the-art brands of various products. The trend of opening modern outlets outside the Kathmandu valley is on the rise. Pokhara, Biratnagar, Dharan, Itahari, Birgunj among others are slowly waking up to the modern marketing approach.<br />
	<br />
	The population of Nepal as of June 22, 2011 stands at 26.49 million showing a population growth rate of 1.35 per annum, according to Central Bureau of Statistics. According to the Nepal Demographic and Health Survey, a total of 40 per cent of people are below 15 years of age and another 30 percent are between 15-49 years of age. Clearly, the country has a huge potential for products and brands. because of the large youth population.<br />
	<br />
	All companies need to win the hearts and minds of the consumers to get a foothold in the market. In this issue, New Business Age presents a consumer-focused story looking at various products and brands and they promises to the consumers for the New Year 2070 BS. It also looks at the preferences and opinions of some consumers from various segments of society:<br />
	<br />
	<br />
	<br />
	<strong>Automobile</strong><br />
	<br />
	Nepal has seen the penetration of two- and four-wheelers increase at a rapid pace, thanks to the expansion of road connectivity and increased income of citizens. Expansions of roads throughout the country and a steep rise in the number of migrant workers have played a catalytic role in the growth of automobile sales. So, many automobile brands have been able to establish themselves and automobile has become one of the largest customs duty contributors in the country. Nepali consumers have been using four-wheelers ranging from the most expensive one to the cheapest Nano car. Similarly, Nepal-assembled brands such as Mustang and Sherpa have also been rolling on the Nepali roads.<br />
	<br />
	In fact, the automobile market is all set to open a new avenue in the country. New Business Age has talked with highly popular automobile brands, Volkswagen and Honda, regarding their business prospects in Nepal (keeping the Nepali New Year 2070 BS in mind.)<br />
	<br />
	<br />
	<img alt="watch" src="/userfiles/images/watch.jpg" style="width: 400px; height: 248px; margin: 10px;" /><br />
	<br />
	<strong>Watches and Clocks</strong><br />
	<br />
	The Global Industry Analysts (GIA), Inc predicts that the global market for Watches and Clocks is poised to reach US$46.6 billion and US$5.4 billion, respectively, by the year 2017. In a report &lsquo;Watches and Clocks &ndash; a Global Strategic Business Report&rsquo; released last year, GIA has concluded that the recuperation in demand for luxury watches post recession, robust demand from developing markets especially the Asia-Pacific and rising popularity of fashionable, vintage and innovative models are forecast to drive market growth.<br />
	<br />
	The Nepali market for watches and clocks has been ballooning, say traders. Around 50,000 pieces of branded watches are sold every year in Nepal, according to them. Globally famous watch brands have already started their business in Nepal and are doing well. On the occasion of New Year, New Business Age has approached some top watch brands in the Nepali market. Most famous brands available in Nepal such as Rolex, Rado, Tag Heuer, Omega, Titanic and Esprit will focuse on advertising to attract consumers in the New Year, according to their authorised distributer in Nepal.<br />
	<br />
	<img alt="mobile" src="/userfiles/images/2070-6.jpg" style="width: 400px; height: 269px; margin: 10px;" /><br />
	<strong>Mobile</strong><br />
	<br />
	According to the latest data made available by Nepal Telecommunications Authority (NTA), Nepal&rsquo;s telephone penetration rate reached 70 per cent in mid- December 2012. The mobile handset market will go hand in hand with the mobile penetration rate and the trade in hand-held terminals that<br />
	&nbsp;<br />
	have increased significantly in the last couple of years. The annual transaction of mobile sets in the Nepali market stands at around Rs 13 billion, says president of Mobile Traders Association of Nepal, Purushottam Basnet.<br />
	<br />
	The cheaper series of android phones has created an &lsquo;android revolution&rsquo; in the country, he opines, adding that a mobile set was considered as a sophisticated personal belonging until not long ago, but it has now become an essential commodity.It is obvious the customers who the companies should always take care of, authorised sellers of mobile sets say. According to them, no special package has been developed so far focusing on Nepali New Year but consumers will definitely benefit due to increased competition and presence of many popular brands in the mobile market.<br />
	<br />
	<br />
	<img alt="wear/fashion" src="/userfiles/images/2070-8.jpg" style="margin: 10px;" /><br />
	<strong>Wear/Fashion</strong><br />
	<br />
	The young generation is &lsquo;fashionable&rsquo; and choosy. This generation also tends to emphasize brand value in their spending.It is very smart to follow the latest trends and embrace innovative fashion design. Today, those who can&rsquo;t afford a particular brand, would wait until they can.<br />
	<br />
	Fashion in Nepal is a fast growing industry with increasing events such as fashion weeks or beauty peasants. Now a days, many world famous brands are available in the Nepali market. Lee, Levis, Springwood, Northface, Jeanswest, Pashmina and others brands have succeeded to win the hearts and minds of Nepali consumers in the dress and fashion regime. However, some local designers, too, have made their presence felt.<br />
	<br />
	Dress and fashion-lovers in the town will have reason to cheer in the Nepali New Year because most of the dress brands and outlets are going to offer discount schemes or other packages. But it takes time to know the nature of the offers because brands do not want to reveal their special package in advance, because of competition.<br />
	<br />
	<br />
	&nbsp;<img alt="cosmetic" src="/userfiles/images/2070-11.jpg" style="width: 400px; height: 314px; margin: 10px;" /><br />
	<strong>Cosmetics</strong><br />
	<br />
	The country&rsquo;s cosmetics market has witnessed a rapid growth over the last couple of years. With each passing year, the availability of cosmetic products has increased significantly and the consumption rate has soared. There is no dearth of the world&rsquo;s leading cosmetic brands in the local market. Whatever you want, the market has it. Traders estimate that the country&rsquo;s cosmetic market is worth more than Rs 15 billion annually, and it is growing at the rate of 25-30 percent.<br />
	<br />
	A growing middle class and rising awareness about personal image and hygiene, which has resulted in greater spending on beauty and personal care products, has played a very constructive role on the rise of demand for cosmetic items. From globally recognized brands like Lakme, L&rsquo;Oreal, Garnier, VLCC and Emami to others like Mac&rsquo;s Lavera, Nova, Chase, Astaberry, Lotus and Ayur, the domestic market at current features around 80 brands of cosmetic products. The market is showing continuous growth, says Adhiti Adhikari of Laavanya brand.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>Airlines</strong><br />
	<br />
	Nepal saw a significant growth in air transport after the aviation policy was liberalised in 1992. The annual passenger movement reached around three million in 2012. According to Civil Aviation Authority of Nepal (CAAN), 31 international airlines are operating in Nepal. Similarly, 15 domestic companies, including nine fixed-wing and six helicopter companies, are also in operation.<br />
	<br />
	The prospects look bright with the private sector playing a leading role and investing billions in the industry. Buddha Air and Yeti Airlines have successfully proved their salt in the domestic market while internationally acclaimed companies such as Oman Air, Qatar Air, Jet Airways and Thai Air -- to name a few -- have also served the Nepali travellers well. Domestic airlines are all set to introduce some special packages to customers, international companies will also bring special offers targeting the Nepali New Year. For the time being, keep on guessing what offers domestic and international airlines may bring to attract travelers.<br />
	<br />
	<br />
	<img alt="liquor" height="312" src="/userfiles/images/2070-15.jpg" style="margin: 10px;" width="176" /><br />
	<br />
	<br />
	<strong>Liquor</strong><br />
	<br />
	There is a huge market for alcohol . The demand has been increasing each year due to the rise in household income, which comes from remittance inflows. There have been instances in some districts where most of the remitted money was spent on imported, high premium liquor.<br />
	<br />
	Both domestic and international brands have been doing their business in the Nepali market. Liquor is also a major source of revenue in the country. The overall business of restaurant and bar has decreased due to Mapase (a campaign against drunk-drive launched by Division of Metropolitan Traffic Police); but liquor business is still one of the evergreen sectors in the country.<br />
	<br />
	People had mostly negative perception about liquor in the Nepali society until some years ago. This perception has changed now and alcohol has become a part of daily life now. Whether it is a gathering or a grand party, it is not considered complete without liquor.<br />
	<br />
	Some famous liquor brands such as Antiquity, Ballentine, Royal Stag and Signature have already won the trust of middle class consumers. World-class brands such as Red Label, Black Label and Chivas Regal have also been doing good business in the Nepali market. It is for sure that many of us will be celebrating the occasion sipping of liquor according of our choice.<br />
	<br />
	<br />
	<strong><img alt="paints" height="231" src="/userfiles/images/2070-19.jpg" style="margin: 10px;" width="250" /><br />
	Paints</strong><br />
	<br />
	The paint market has thrived over the years, creating much space for paint companies to expand their market in the country. Rapid urbanisation, construction boom and growing awareness among customers have triggered the demand of paints, giving a leg up to the domestic paint industry, mostly joint ventures and subsidiaries of Indian multinational companies.<br />
	<br />
	The annual domestic demand for paints (including decorative and industrial categories) currently stands at around 40,000 metric tonnes, according to industry sources. The data released by Nepal Rastra Bank, there was a turnover of around Rs 4.10 billion in fiscal year 2011-12.<br />
	<br />
	Despite the slowed demand in the recent days due to recession in the construction sector, m a n u f a c t u r e r s observe that the market is growing. Demand of paint will never go down because a fresh coat of paint is always required even in old houses and people want to change the &nbsp;<br />
	colour to give a different look to their apartments and rooms.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>Housing</strong><br />
	<br />
	Nepal&rsquo;s real estate sector has been in an ailing state for three years now. The real estate and housing industry witnessed a speedy growth (which many say was an unnatural growth) until the Nepal Rastra Bank (NRB), regulator of the country&rsquo;s financial market, suddenly restricted banks&rsquo; lending to the sector in September 2010.<br />
	<br />
	The government planned to purchase houses and apartments for senior civil servants last year. The decision, could give a new lease of life to the cash strapped housing sector, is moving at a snail&rsquo;s pace. However, some positive indication of growth has been seen in the realty sector from the beginning of this year. According to real estate entrepreneurs and housing developers, this business has grown by 33 per cent in the first half of the current fiscal year, compared to the same period in the previous year.<br />
	<br />
	The New Year is expected to bring new hopes and new enthusiasm to the realty sector, opines secretary at Nepal Land ad Housing Developers Association (NLHDA), Bhesh Raj Lohani.<br />
	<br />
	<br />
	<strong>Computers</strong><br />
	<br />
	A study carried out by the Computer Association of Nepal (CAN) last year showed that the computer penetration rate in the country had crossed five per cent. The survey was carried out based on the record of import of computer monitors and branded laptops, according to CAN general secretary Narayan Neupane.The penetration rate at present may have crossed eight percent, he says, adding that the trend of using computers is on the rise since schools, health institutions, clubs and other social groups in the far-flung areas of the country have started using computers for their day-to-day activities.<br />
	<br />
	It is likely that the transaction of overall ICT products will double in the next few years. Internet penetration rate increased to around 23 per cent till mid- December, and the rise of Internet users will have a direct impact on the trade of computers, he claims. High competition among world class brands including HP, Dell, Asus, Compaq, MAC, Sony, Lenovo and Acer have not only contributed to lower the price, due to hard competition, but also have provided quality products to Nepali customers.<br />
	<br />
	&nbsp;</p>
<p>
	&nbsp;</p>
<p>
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;New Year is Definitely a High Season for Passenger Cars&rsquo;<br />
	<br />
	<br />
	<br />
	<img alt="sarik" src="/userfiles/images/SARIK.jpg" style="width: 150px; height: 144px; margin: 10px;" /><br />
	SARIK BOGATI<br />
	<br />
	Head of Marketing, Pooja International (authorised distributer of Volkswagen)</strong><br />
	<br />
	<br />
	<strong>Can you please tell us briefly the overall business scenario of your product in the first quarter of 2013?</strong><br />
	<br />
	The year 2013 seems to be very lucky for Pooja International and the automotive division of Vishal group. Talking about the Volkswagen Brand, we have very good starting with arrivals of fresh 2013 models of Polo and Vento from India. There are many updates in the features like bluetooth in steering control, auto Aircon in Polo, increased leg room, introduction of new colours in cars, new alloys and black headlamps. We have started receiving the New Tiguan, Golf and New Touareg, which are also catching up the market. As a corporate strategy, the automotive division of Vishal Group has expanded its wing in a new segment with acquirement of dealership of &lsquo;Kobelco&rsquo; construction equipment in February 2013.<br />
	<br />
	<br />
	<strong>What possibilities do you see for the business in next quarter, i.e., April- June, 2013 as the Nepali New Year sets in?</strong><br />
	<br />
	New Year and spring season is definitely high seasons for passenger cars. We have so many bankers in queue waiting to upgrade to Volkswagen in this season. Moreover, we will have more cars coming in this quarter from both Germany and India. Now, we can supply the cars to the customers who have been booking and waiting for months. We are very hopeful of the next quarter.<br />
	<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are the main features of your products/brands?</strong><br />
	<br />
	Kobelco construction equipment definitely is an exciting brand and has amazing performance machines which we will offer this year. Moreover, we are expecting some new models and facelifts of Volkswagen coming from India this year.<br />
	<br />
	<br />
	<strong>Can you please provide the price ranges?</strong><br />
	<br />
	We really can&rsquo;t say the price now. But the price would be similar range at what we are offering now.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products/brands more popular especially in the next month: April (Baisakh)?</strong><br />
	<br />
	We would be more focused on branding.</p>
<p>
	&nbsp;</p>
<p>
	&nbsp;</p>
<p>
	<br />
	<br />
	<strong>&lsquo;Toyota Starts to Book New Product Etios Targeting Nepali New Year&rsquo;<br />
	<br />
	<br />
	<img alt="" src="/userfiles/images/SAHARA.jpg" style="width: 150px; height: 151px; margin: 10px;" /><br />
	<br />
	SAHARA KC<br />
	Executive Divisional Manager<br />
	United Traders Syndicate (UTS)<br />
	(authorised dealer of Toyota in Nepal)</strong><br />
	<br />
	<br />
	<strong>Could you please tell briefly the overall business scenario of the produt/brand?</strong><br />
	<br />
	After a hugely successful business year, Toyota now is facing a mild slowdown in terms of sales, which can be ascribed to the recent economic crunch and inability of Toyota to meet the existing demand. The first quarter of this year is almost gone by in the anticipation of launching our new product Etios.<br />
	<br />
	<br />
	<strong>What are the expected returns within the next quarter?</strong><br />
	<br />
	The next quarter is expected to bring a boom in our business with the launch of our highly awaited product Etios. As the Nepali New Year approaches, we will be accepting bookings for the car. Looking at the large number of inquiries about the product, we are expecting a lot of bookings prior to the launch.<br />
	<br />
	<br />
	<img alt="sahara" src="/userfiles/images/sahara1.jpg" style="margin: 10px;" /><br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are the main features of your brands?</strong><br />
	<br />
	As of now, we do not have any new product offering for New Year but we are expecting sales of the product that we have in our offering. Avanza, Hilux, Fortuner, Corolla, Yaris are a few products that we expect to sell more.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products more popular?</strong><br />
	<br />
	Apart from our regular promotional campaigns and promotions for Etios that we will begin from the next month, the launching of Etios will be something the city has never witnessed before. We are focused on making the event an eye catcher for not only our customers and prospects but for anyone who gets a mere glimpse of the event.<br />
	<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;December to January is Considered a Dull Period&rsquo;<br />
	<br />
	<br />
	<img alt="rahul" src="/userfiles/images/RAHUL.jpg" style="width: 150px; height: 143px; margin: 10px;" /><br />
	<br />
	RAHUL DHANUKA<br />
	Brand Manager<br />
	Esprit Watch</strong><br />
	<br />
	<br />
	&nbsp;<br />
	<strong>How do you see the possibility of the business in the next quarter?</strong><br />
	<br />
	With the Nepali New Year approaching, people will certainly start feeling the heat of summer. The watch business is likely to rise because of the change of season. People tend to spend more on watches in summer than in winter. Moreover, the New Year will bring festive mood back. So, people will spend comparatively more than in any other time of the year. We also have the latest collections in store, so watch lovers can try out new collections that will certainly match the latest trend and fashion.<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are main features of your products/ brands?</strong><br />
	<br />
	We have several brands available at all our outlets. Most recently launched brands are Esprit and Pierre Cardin. The brands trendy and casual models. Few most sought other products and brands are: Fossil and Kenith Cole.<br />
	<br />
	<br />
	<strong>Can you please provide price ranges of these brands?</strong><br />
	<br />
	The price ranges from Rs 10000 to Rs15000.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products popular in the next month?</strong><br />
	<br />
	We have three outlets for our products and all of them are located in prime areas like Durbar Marg, City Center and Blue Bird Mall. We are using different branding and promotional strategies. We mainly focus on the print media like different magazines, newspaper, hoarding boards, etc. We have also started targeting our customers through social media like Facebook and Twitter. Fan pages on facebook have helped us a great deal to attract young mass towards our products.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;Today is What Technology Stays on, Tomorrow is Where it Moves Ahead&rsquo;</strong><br />
	&nbsp;</p>
<p>
	<img alt="sachin" src="/userfiles/images/SACHIN.jpg" style="width: 150px; height: 148px; margin: 10px;" /><br />
	<br />
	<strong>SACHIN UDAS<br />
	Marketing Manager, Teletalk (authorised distributer of Colors Mobile)</strong><br />
	<br />
	<br />
	<br />
	Colors is one of the most popular mobile set brands in the country. It has full ranges of mobile phones from basic level to touch-based lifestyle phones, along with CDMA and hi-end smartphones. Colors is a reliable brand with one year of warranty.Colors has the largest network with 18 service centres from East to West. Colors operates after-service follow-ups to assure customers are satisfied with the products.<br />
	<br />
	Colors brand believes in value transferring. We have four major series of Phone: Fighter, Lifestyle and Touch, CDMA and X-factor series. Fighter series consists bar phones with basic features, which can play MP3/ MP4. Fighter series is very popular all over the country. Lifestyle and Touch Series offers multi media facilities like touch screen. Colors&rsquo;s has introduced smartphones under X-factor series. In less than a year, the company has taken good market share of smartphones.We will have entry level android phones, which we want in every teen&rsquo;s hand so that they can explore different apps that are useful in learning languages and also for other purposes. We believe that the android is the key for Nepali teens to experience and explore possibilities of technology.<br />
	<br />
	Colors&rsquo;s X-factor tablets will be soon arriving to the market. It will come in 7 inch and 8 inch screen sizes with 3G SIM compatibility.&nbsp; Colors brand believes that today is what technology stays on, tomorrow is where it moves ahead.<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;New Year is Expected to Bring New rays in Summer Sale&rsquo;<br />
	<br />
	<img alt="achal" src="/userfiles/images/ACHAL.jpg" style="width: 150px; height: 164px; margin: 10px;" /><br />
	ACHAL AGARWAL<br />
	Director<br />
	JeansWest, Nepal</strong><br />
	<br />
	<br />
	<br />
	<strong>Can you tell us briefly the overall business scenario of your products in the first quarter of 2013?</strong><br />
	<br />
	The overall business scenario was very exciting during the first quarter. It has been two years since we introduced our brand in Nepal and people have responded well to the product.<br />
	<br />
	<br />
	<strong>What possibilities do you see for the business in next quarter as the Nepali New Year sets in?</strong><br />
	<br />
	We expect a good sale during April-June since it is summer and people come to buy summer goods.<br />
	<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are their main features?</strong><br />
	<br />
	We have lots of products including T-shirts, half shirts, quarter pants, pants and summer jeans (for men and women) in the New Year.<br />
	<br />
	The main features of our brand are:<br />
	<br />
	a. Company controlled prices: This has become one of the major factors behind our brand to be so successful within such a short span of time. Our products are almost 30 per cent less priced than the similar kind of goods in the market.<br />
	b. Quality: JeansWest is known for its quality in Australia and worldwide markets.<br />
	c. Brand: JeansWest is a very big brand of Australia and so people know about this brand making it very easy for us to get established in the market.<br />
	d. Variety: At JeansWest, we have a very wide range of products.<br />
	e. Size and Fit: JeansWest products have been received well in the Nepali market because of their sizes and fittings for Nepali people.<br />
	<br />
	<br />
	<br />
	<strong>Can you please provide price ranges of the same?</strong><br />
	<br />
	Price ranges from Rs 990 to Rs 4000.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products more popular in the New Year 2070 BS?</strong><br />
	<br />
	Paper media and hoarding boards will be our main marketing strategies in the New Year.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;Customer Satisfaction is a Must to Make Products Popular and Desirable&rsquo;<br />
	<br />
	<br />
	<br />
	<img alt="dilip" src="/userfiles/images/DILIP.jpg" style="width: 150px; height: 168px; margin: 10px;" /><br />
	DILIP KC<br />
	Sports Plaza Pvt Ltd<br />
	(Authorised distributer of Reebok, Rockport and Lee brands)</strong><br />
	<br />
	<br />
	<br />
	&nbsp;<br />
	<strong>Could you please tell us briefly the overall business scenario of products in the first quarter of 2013?</strong><br />
	<br />
	Sports Plaza Pvt Ltd covers Reebok, Rockport and Lee brands, which are one of the best apparel and footwear brands in the world. January 2013 sets in with winter at its peak and as the brand covers an entire range of winter apparels, footwear and accessories, we do not need to worry much about sales and acceptance of our products by our customers. These are world class products with the best designers putting in latest trends in fashion and comfort. They also involve new technologies in footwear and even in fabrics, not available in general.<br />
	<br />
	<br />
	<strong>How do you see the possibility of the business in the next quarter as the Nepali New Year sets in?</strong><br />
	<br />
	We are very optimistic about the business in the next quarter, when we will put our summer arrivals on display, welcoming spring summer with latest and the best in designs and the quality fabrics best suited for our customers. The lightweight footwear and air flow technologies are ultimate in comfort and style. We are sure of high sales volumes in spite of tough competition from other brands.<br />
	<br />
	<br />
	<strong>What are the main features of your products?</strong><br />
	<br />
	As already mentioned, Reebok is a premium sports brand always putting in highest standards of quality and workmanship, both on their footwear and sports apparels. The main features are light weight and best quality fabrics available in the industry with the latest technologies that goes into making them. To mention a few, the fabrics are play dry, which keep our body cool even in peak summer, zig fabrics which are proven to give back the energy dissipated from the body during workouts and exercising and the easy tone range &ndash; helping to tone the body muscles.<br />
	<br />
	Rockport is a trendy leather footwear range for men offering great style and comfort. Also the high technologies that go into Leather processing, The sole, and the workmanship required to make them. Lee is a casual fashion brand with best Denims and cottons available in the market. The designs, quality and price range has been well accepted in the market.<br />
	<br />
	<br />
	<br />
	<strong>Can you please provide the price ranges?</strong><br />
	<br />
	As there are many varieties of products, it would not be possible to cover the prices on this short space. However, if you want prices for some specific product range, we shall be glad to provide the same.<br />
	<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products/brands more popular?</strong><br />
	<br />
	We strongly believe that our customers&rsquo; satisfaction is the most desired strategy that would make our products popular and desirable. However, we can never undervalue the great cooperation and good wishes of our media friends from all publishing houses and advertising agencies, who have worked hard making great designs and offering us the best coverage available.<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;We Want to Strengthen Laavanya Brand in the Coming Year&rsquo;<br />
	<br />
	<br />
	<br />
	<img alt="aditi" src="/userfiles/images/ADITI.jpg" style="width: 150px; height: 143px; margin: 10px;" /><br />
	ADITI BHATTARAI<br />
	Business Development Manager Laavanya Luxury Ayurveda</strong><br />
	<br />
	<br />
	<strong>Can you tell us briefly the overall business scenario of your brand in the first quarter of 2013?</strong><br />
	<br />
	This quarter has been significant for the company as we celebrated our first anniversary in February along with the commercial launch of our sales in the United States. This event has reinforced the strength of Laavanya as both national and international brand. We want to build on this perception and strengthen the brand further for the year.<br />
	<br />
	<br />
	<strong>What possibilities do you see for the business in next quarter, i.e., April- June, 2013 as the Nepali New Year sets in?</strong><br />
	<br />
	April to June is a special season for all our products because we have special events like New Year and wedding season of Baisakh and Asadh. Our products make great gifts for occasions like these. Our cleansing products like the Royal Saffron Ubtan (known as Bukuwa in Nepali) have special significance on wedding rituals and can be used by the brides (and their families) for beautifying as well as religious purposes. Last year, this period brought us the best sales and business prospects in the entire year.<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are their main features?</strong><br />
	<br />
	Taking the season into consideration, we will be promoting our cleanser, face mask and moisturizers this quarter. The cleanser (Royal Saffron Ubtan) and Face Mask (Mukha Kantibarkdhak Powder) are designed for all skin types and are beneficial in windy season, especially in Kathmandu where the effects of dirt from the street impact the skin directly. These products gently remove dirt particles and leftover make up, can be used daily.<br />
	<br />
	<br />
	<strong>Can you please provide price ranges of those products?</strong><br />
	<br />
	Royal Saffron Ubtan-Rs 1250<br />
	Mukha Kantibardhak Powder-Rs 1250<br />
	Radiance Cream-Rs 1650<br />
	Deep Nourishing Cream-Rs 1950<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products/brands more popular especially in the next month?</strong><br />
	<br />
	We mostly focused on personal selling and word-of-mouth publicity this past year. In this quarter, we will be focusing on advertising through the print media and social media. We have used social media effectively in conveying the benefits of Ayurveda and our products and how and when to use them, we want to give continuity to that. We will also offer a special discount offer for New Year.<br />
	<br />
	&nbsp;</p>
<p>
	<br />
	<strong>&lsquo;Overall Business scenario is Good in the First Half of the Current FY&rsquo;</strong></p>
<p>
	&nbsp;</p>
<p>
	<img alt="bhesh raj lohani" src="/userfiles/images/bhesraj.jpg" style="width: 150px; height: 167px; margin: 10px;" /><br />
	<strong>BHESH RAJ LOHANI<br />
	Managing Director<br />
	Green Hill City Pvt Ltd</strong><br />
	<br />
	<br />
	<br />
	<strong>How is overall business of housing sector?</strong><br />
	<br />
	Green Hill City is the largest housing industry in Nepal. It will be developing around 800 units in 320 ropanies of land. As regarding the overall business scenario the product sellings are quite good in the first half of the current fiscal year. Out of 490 units constructed by the company, 130 units have been sold and ownership of 96 units had already been transferred.<br />
	<br />
	<br />
	<strong>What are the main features of Green Hill City&rsquo;s products?</strong><br />
	<br />
	We have two different products: acquiring land and constructing houses by consumers themselves and purchasing completed houses. Green Hill City is committed to providing quality services and best housing products to its customers. We have targeted all types of consumers ranging from the middle class to the upper class.<br />
	<br />
	<br />
	<strong>Can you please provide price ranges?</strong><br />
	<br />
	The price of housing units and colonies constructed by Green Hill City ranges from Rs 6.7 million to 30 million.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products more popular?</strong><br />
	<br />
	Till date we have been promoting our publicity strategies through newspaper advertisements, TV promos and hoarding board. The next campaign consist of a number of sales executive going the various corporate house providing the information about the products through direct marketing by the help of brochure and flyers.<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;Nerolac Produces Many Ranges of Products&rsquo;</strong></p>
<p>
	&nbsp;</p>
<p>
	<br />
	<img alt="rajendra" src="/userfiles/images/rajendra.jpg" style="width: 150px; height: 232px; margin: 10px;" /><br />
	<strong>RAJENDRA DESAI<br />
	Country Head<br />
	Nerolac Paints</strong><br />
	<br />
	<br />
	Considering the market&rsquo;s feedback, the paint market is opening and the season is starting after the winter. Cold weather is almost gone and we see a bright sun every day, which will help to increase the sales of paints and allied products. The construction activities are in full swing, these means an increased demands of paints. Paint sales in the first quarter will be much higher than in the last quarter, and it is expected that the trend will continue in the coming months. We will have 3 per cent more than last year. We have started producing various ranges of Nerolac products, along with existing range of Nepal Shalimar brands. We are keen to market super premium products both for exterior and interior use.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;ICT Market is Always Looking to Give Better and more Suitable technology&rsquo;<br />
	<br />
	<br />
	<img alt="" src="/userfiles/images/nabin.jpg" style="width: 150px; height: 160px; margin: 10px;" /><br />
	NABIN JOSHI<br />
	Assistant General Manager<br />
	Astral Computers Nepal Pvt Ltd</strong><br />
	<br />
	<br />
	<strong>Can you please tell briefly the overall business scenario of the ICT products in the first quarter of 2013?</strong><br />
	<br />
	The first three months seem good in terms of business prospects. Because the CAN InfoTech 2013 was held in the same quarter, the promotion of IT business was better compared to previous quarters. Due to CAN InfoTech, we were able to reach the end user as well as corporate customers. Therefore overall business scenario of ICT products looks bright.<br />
	<br />
	<br />
	<strong>How do you see the possibility of the business in the next quarter?</strong><br />
	<br />
	Along with consumers&rsquo; positive perception, ICT sector needs favorable and appropriate policies to grow. Despite of all above causes, the purchasing trend from organisations has increased. So, we are expecting the same situation, even with better possibilities in the next quarter.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make ICT products more popular?</strong><br />
	<br />
	Nepal&rsquo;s IT market is price driven. However, ICT products do not adapt to a single strategy for better publicity.<br />
	Apart from price, we also educate customers and suggest them the right product to enhance the productivity. Educating customers means building long term relationships, which enables to win their trust. In order to get more publicity about our products, we are trying to reach more and more customers, listening to their requirements and suggesting them the best option.<br />
	<br />
	<br />
	&nbsp;</p>',
			'published' => true,
			'created' => '2013-04-17',
			'modified' => '2013-07-28',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'Outlets of the world’s most famous brands have already started doing their business in Kathmandu providing consumers chances of more choices and selections. The powerful combination of sophistication in use of goods, changing lifestyle in the urban area and consumers’ access to information created by information and technology have brought about an unprecedented shift in the consumers’ brand use habit.',
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	(int) 8 => array(
		'Article' => array(
			'id' => '946',
			'article_category_id' => '38',
			'title' => 'Why Employees Leave An Organization?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<strong>By Nibha Shakya</strong></p>
<p>
	One of the major parts of HR relates to attrition. HR professionals from diverse organization came together on February 27, 2013 for HR Kurakani to discuss why an employee really leaves the organization and how it can be managed and controlled. The programme was organised jointly by Real Solutions and Hotel Annapurna. The major points raised during the programme were as follows:&nbsp;</p>
<p>
	<strong>REASONS:</strong></p>
<p>
	<strong>Relation with boss</strong></p>
<p>
	Employees don’t leave the job, they leave the manager. If employees don’t like the manager’s leadership style, management style or can not tune up with their immediate managers, they prefer leaving the job, despite they are well paid. So, relationship with their boss has been major reason cited for employee leaving the organization.&nbsp;</p>
<p>
	<strong>No Career Progression</strong></p>
<p>
	Most likely, employees leaving the organization are good employees. They would leave if they found that they have no opportunity of growth or career progression or they are not recognized for their performance.</p>
<p>
	<strong>High Stress Level</strong></p>
<p>
	People leave the job because of high stress level. Though remuneration is good, they tend to move because of high work pressure.&nbsp;</p>
<p>
	<strong>Poor Communication</strong></p>
<p>
	Communication plays an important role. The clarity of goal, task, grievances etc if not communicated well between management and employee, there’s chance of HR turnover.&nbsp;</p>
<p>
	<strong>Remuneration and Benefits</strong></p>
<p>
	If the salary paid is not commensurate with the role of the employee, there is tendency of leaving the job. Monotonous job, no clear reporting line, no harmony between old and new employees, &nbsp;lack of clarity in policies etc could be other reasons behind employee leaving the organization.&nbsp;</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>POSSIBLE SOLUTIONS:</strong></p>
<p>
	<strong>Each manager is a HR Manager &nbsp;</strong></p>
<ul>
	<li>
		HR has major role in making One to One Meeting between manager and employee. The instruction should be provided by HR to both the manager and employee before such a meeting as how and what should be discussed. Such meeting can be conduced in a regular basis. It helps to clear communication and solve any problems beforehand.&nbsp;</li>
	<li>
		Patting on the back appreciating employee’s effort, emotional support during their hard time, understanding employee’s perspective are few examples that help create a bond among the employees. This helps in retaining the employees.&nbsp;</li>
	<li>
		The directing quality, inspiring, delegating, communication ability of boss etc matter a lot in employee retention. So, leadership of the manager plays a crucial role. Similarly, the employee also needs to have capability to understand the boss’s perspective. Likewise, the manager need to remain updated.&nbsp;</li>
</ul>
<p>
	<strong>Recruitment and Selection</strong></p>
<p>
	Similarly, right recruitment and selection helps in retaining employees. If right employees are placed in right place, there is less chance of turnover.&nbsp;</p>
<p>
	<strong>Competitive Remuneration and Benefits</strong></p>
<p>
	Salaries should be aligned with the job responsibilities. Likewise, more customized benefits (that would give benefits to the employees as well as to their family) would help in retention.&nbsp;</p>
<p>
	<strong>Tactful and Staff Care</strong></p>
<p>
	HR professional should be tactful in dealing conflict and complaints of employees. They should be proactive in solving any issue before it comes up. Likewise, HR professionals need to work as facilitators in various ways. Proper practice of staff care and stress management helps in minimizing the employee turnover as they would feel valued.&nbsp;</p>
<p>
	<strong>Culture and Environment&nbsp;</strong></p>
<p>
	Also the Culture and environment of &nbsp;the organization play an important role in decision of leaving and staying with the organization. Working environment with good team, handful resources, good behaviour and learning and sharing session help in retaining the employees.&nbsp;</p>
<p>
	<strong>Exit Interview</strong></p>
<p>
	Exit Interview would bring many insights on various issues of the organization from leadership role to operation level discrepancies. Effective exit interview helps identify the reason behind leaving and other improvement factors which would be beneficial for the organization. The findings can be analyzed and improvement can be made as necessary.&nbsp;</p>
<p>
	Attrition upto certain level is healthy but high attrition would hamper overall performance of the organization. Understanding reasons on employee leaving the organization and taking corrective actions from HR and &nbsp;top management would help in minimizing employee turnover in the organization.&nbsp;</p>
<p>
	<img alt="Management, April 2013" height="624" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/management_april2013.jpg" width="317" /></p>
<p>
	<span style="font-size:10px;">Shakya is Sr HR Executive at Real Solutions.</span></p>
<div>
	 </div>',
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			'description' => 'HR professional should be tactful in dealing conflict and complaints of employees. They should be proactive in solving any issue before it comes up.',
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	(int) 9 => array(
		'Article' => array(
			'id' => '945',
			'article_category_id' => '34',
			'title' => 'Financial Literacy Initiative To Kick-off In Mid-April',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img alt="Financial Literacy Initiative, April 2013" height="172" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/biz_news_financial_literacy_initiative.jpg" width="380" /></p>
<p>
	Month-long Financial Literacy Initiative (FLI) will start in mid-April. It is an initiative taken for the first time in Nepal by Center for Economic and Financial Studies (CEFS), says coordinator of the initiative Olin Thakur. New Business Age Pvt Ltd will contribute to the event as an official media partner. “Financial Literacy Month Celebration” is a part of Financial Literacy Initiative, Thakur says, adding that the celebration includes various workshops, quiz/essay competitions, round table discussions, award distributions and various other financial awareness activities in various places across the nation.</p>
<p>
	“Financial literacy is the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/she invests it (turn it into more) and how that person donates it to help others,” according to organiser.Financial literacy encompasses both knowing about money matters and being equipped to utilize that knowledge by applying it across a range of contexts. What a person needs to know to be financially literate will vary depending upon their circumstances and needs.&nbsp;</p>
<p>
	Generally, however, it will involve an understanding of a person’s own values and priorities, budgeting, savings and how to manage money, credit, the importance of insurance and protecting against risk, investment basics and retirement planning along with others.</p>
<p>
	<strong>Why is it Important in context of Nepal?</strong></p>
<p>
	Good financial literacy skills help individuals and families make the most of opportunities, meet their goals and secure their financial wellbeing, as well as contribute to the economic health of society, Thakur claims. “Improved financial literacy can increase economic participation and social inclusion, drive competition and market efficiency in the financial services sector, and potentially reduce regulatory intervention.”</p>
<p>
	Individuals and households must have the tools to cope with the increasingly complex world of financial instruments. Moreover, financial education ensures poverty reduction and economic growth facility. So, financial literacy is becoming more necessary. Nevertheless, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources. Raising interest in personal finance is now a focus program in most countries around the globe, according to organiser.</p>
<p>
	Organiser says that Financial Literacy Initiative is to help Nepali people in understanding and addressing financial matters, and thereby contribute financial wellbeing; to promote and enhance financial capability among each; to enhance the present knowledge base; to manage financial resources effectively; to empower individuals to make informed choices, avoid pitfalls, know where to go for help; and take other actions to improve their present and long-term financial well-being.</p>
<p>
	“We believe that Financial literacy Initiative will be very crucial in helping the Nepali citizens of various age groups of Nepal to understand and adjust to the situation in which they are now to help them acknowledge themselves in a wiser way and find the loopholes and the gaps in their way of doing micro-macro financial transactions in their day to day lives,” Thakur further added.</p>
<p>
	<strong>Bridging Gaps&nbsp;</strong></p>
<p>
	It aims at facilitating them to bridge the gaps in their financial knowledge and understanding as well as enable them to manage their day to day transactions and future planning in a cost-time efficient ways be it the transaction of a rupee or a million. The event page can be found at social network website facebook by clicking: www.facebook.com/flinepal or official website of Center for Economic and Financial Studies (CEFS).</p>',
			'published' => true,
			'created' => '2013-04-17',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Financial literacy encompasses both knowing about money matters and being equipped to utilize that knowledge by applying it across a range of contexts. What a person needs to know to be financially literate will vary depending upon their circumstances and needs.',
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	(int) 10 => array(
		'Article' => array(
			'id' => '943',
			'article_category_id' => '52',
			'title' => 'Private Sector Concerns',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	Nepal’s private sector has been constantly undermined, ignored or often humiliated by the State for long. Even after restoration of peace seven years ago, things hardly changed for better. So much so, the newly installed ‘election’ government too doesn’t seem much concerned about predicaments the business and industry sectors of the country are currently faced with.</p>
<p style="text-align: justify;">
	All communist party literatures, most prominently of the Maoist Party, unrelentingly criticized the form of the government what their jargon said to be of a ‘bourgeois comprador’, the state of the State run by the rent-seeking elites and bureaucrats. But it is the very Maoist Party which played the most crucial role to form the present government comprising of only former bureaucrats. This was a complete anti-thesis to their sworn doctrine. And, it was but natural for ‘bourgeois compradors’ not to listen to the private sector entrepreneurs.&nbsp;</p>
<p style="text-align: justify;">
	In the run up to form new government, headed by incumbent Chief Justice of the Supreme Court, Khil Raj Regmi, four major political parties signed an 11-point agreement. Sadly, that document didn’t incorporate even a single sentence regarding the sorry state of the economy and prescription to reinvigorate it. FNCCI, the umbrella organization of Nepali businesses and industries, however, protested against this apparent apathy of the country’s major political forces and supposedly apolitical government now at the helm of affairs. But materially not much change seems to be in the offing.&nbsp;</p>
<p style="text-align: justify;">
	Similarly, next thing the Maoists after coming to power in 2008 professed was protecting the ‘nationalist’ businesses. But, in practice, it is the only nationalist businessmen and industrialists that they have selectively made to suffer. The business people who had created businesses and had links to other countries, primarily India, have already shifted to their businesses or wealth. Only those who chose to work here and die here, or the most nationalist ones, are subjected to suffer day in and day out. And, nobody cares.</p>
<p style="text-align: justify;">
	Surprisingly, political parties other than the Maoist have also maintained a suspicious silence on economic issues like increased infringement of private property rights and rapidly deteriorating business climate of the country. &nbsp;The present government is also likely to shirk away from responsibility of doing its bit in the guise of just being an election government. The fact is: the economy should be a continuous priority regardless of any nature of government that comes in or goes out, with whatever pretext. But, alas; this has not been the case for Nepal.</p>
<p style="text-align: justify;">
	One of the major concerns of the private sector has been the politically protected, rampant corruption in the financial administration of the country. But, the Maoist Party now seems to have engaged in indirect form of extortion by using highly corrupt bureaucrats. One of the recent media reports suggests that a few notably corrupt officials under political protection of the Party are deliberately inflicting pain on some businesspersons by making them to make rounds to the revenue investigation office, without framing any charges. Maoists’ pick to head the anti-corruption constitutional body-the Commission for the Investigation of Abuse of Authority- has surprised many.</p>
<p style="text-align: justify;">
	These things have longer repercussions in the country’s business environment. &nbsp;Nepal is already in the red area of the ‘doing business’ and ‘private property rights’ indices. According to an estimate by the business community, some 150,000 large or medium level Nepali business households have fled the country to settle and start business abroad during last one decade.&nbsp;</p>
<p style="text-align: justify;">
	These realities must be of concern to the parties that provide leadership to the country. But, now it appears as if improving the country’s businesses climate is not in any party’s agenda. This also implies that the Nepali private sector, at least for some time to come, have to depend on whatever little they can do on their own and contribute to make things better. One of the appropriate medium of such contribution could be the elections themselves where they can advocate and vote for the party which is better in terms of creating a business-friendly climate in Nepal. They can’t just keep complaining and doing nothing meaningful.</p>
<div>
	 </div>',
			'published' => true,
			'created' => '2013-04-17',
			'modified' => '2013-07-05',
			'keywords' => 'new business age  from the editor news & articles, from the editor news & articles from new business age nepal, from the editor headlines from nepal,  current and latest from the editor news from nepal, economic news from nepal, nepali from the editor economic news and events,  ongoing  from the edi',
			'description' => 'Nepal’s private sector has been constantly undermined, ignored or often humiliated by the State for long. Even after restoration of peace seven years ago, things hardly changed for better.',
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	(int) 11 => array(
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			'id' => '942',
			'article_category_id' => '31',
			'title' => '‘I Have Identified Planning As A Major Weakness In Most Companies’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="">
	Volker Kleinn is a management expert with a degree in business administration from a German university that he says is about equivalent to MBA. He has held senior managerial positions in American multinationals such as Digital Equipment Corporation (known as DEC which was acquired by Compaq which in turn merged with HP in 2002), Apollo Computer (a leading manufacturer of network workstations until acquired by HP in 1989 and gradually closed down over the next eight years) and Autodesk (Still a major multinational software manufacturer) in Europe and the Asia-Pacific. Retired from an active career more than a decade ago, Volker, nevertheless, finds time to help companies in the developing world to improve their management. He has been visiting Nepal regularly since the early 2000s through the Senior Expert Corp (SCE) programme of the Swisscontact and has helped more than a dozen Nepali companies from different sectors. Volker talked with New Business Age when he was in Kathmandu recently for a similar purpose.</p>
<p style="">
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	 </p>
<p style="">
	<strong>You have been helping private firms, particularly in the developing world, with management issues. How and when did you start this?</strong></p>
<p style="">
	After I retired, I decided to work on a voluntary basis with entrepreneurs and enterprises in the developing countries. This way I wanted to give something back to society. My idea was to contribute to reduce the migration pressure by helping companies in the developing countries to maintain or create employment. So, I registered with the Senior Expert Corps of Swisscontact and through them I came to Nepal.</p>
<p style="">
	<strong>Could you share with us the common problems faced by companies in the developing world?</strong></p>
<p style="">
	In the industrialized countries with predominantly market economies, business management talent has been developed over a long time and therefore there is an established talent pool for management. In the developing countries (especially in Eastern Europe), market economies did not exist for a long time and therefore there still is not a big enough talent pool for management. Any management role requires creativity, initiative and drive. A manager needs to accept responsibility, accountability and I am glad to note, that there are more and more people here in Nepal who are willing to step up to this requirement.&nbsp;</p>
<p style="">
	<strong>Which Nepali companies have you already helped to improve their management?</strong></p>
<p style="">
	Let me not mention names, but I have been working in several industries, such as IT, Communication, Trading, Media, etc. and I also have been giving management training courses at different organizations.&nbsp;</p>
<p style="">
	<strong>What problems do you find in the Nepali companies which you have already worked with?</strong></p>
<p style="">
	For me management is a continuous cycle of Planning, Organizing, Monitoring and Controlling. I have identified Planning as a major weakness in most companies. Operational plans and budgets often do not exist. Since I am convinced that you can only mange what you measure, it is very difficult to evaluate the success of any business if there is no goal or plan to compare performance to. As a consequence, management is in most cases is re-active rather than pro-active, which means that managers are not rally managing but rather getting managed by their environment and circumstances.</p>
<p style="">
	The second area that needs a lot of improvement in most of the companies I have worked with is Management Information. I think it is common knowledge that you do accounting not only for shareholder or tax purposes, but also for management purposes. I have experienced, that most companies give priority to tax requirements. Also, a lot of record keeping is still done manually. These facts make it often very difficult to use financial information for management purposes.</p>
<p style="">
	In addition, I am very concerned about the sustainability of my efforts to help. I have often observed what I call ‘the rubber band syndrome’. This means changes are initiated while I am here, i.e. when the rubber band is under tension, but as soon as I leave, i.e. the rubber band is released, things flip back to the old position. One has to keep in mind that the human brain is change-resistant. That means it requires a constant flow of energy to make changes sustainable.&nbsp;</p>
<p style="">
	It’s apparently been nearly a decade since you started advising Nepali private sector companies on management issues. What do you think of Nepal’s private sector?</p>
<p style="">
	The private sector has made the economy function under what are not very favourite conditions. Everywhere in the world, you can see that the biggest roadblocks for development are corruption and unreliable legal system. Both factors have an impact on the business opportunities that the private sector can pursue.&nbsp;</p>
<p style="">
	<strong>What are the strengths and weaknesses of the Nepali private sector?</strong></p>
<p style="">
	The private sector is divided into two major categories. On the one hand, there are family-owned businesses, which are mostly hierarchically (or paternalistically) organized. These companies tend to maintain limited transparency. On the other, there are newly founded companies which are trying to be more open, but sometimes lack the courage for the degree of openness as Western companies normally practice. This means that I consider the lack of delegation of authority, i.e. empowerment of senior managers as a weakness of the private sector.&nbsp;</p>
<p style="">
	<strong>What are the areas that the Nepali companies need to work on to improve their overall management?</strong></p>
<p style="">
	I have experienced a big gap between shareholders (owners) who are often also the most senior managers and the managers who are not owners. This is often because of the lack of confidence and trust. It would be helpful if professional managers were trusted more to contribute in terms of planning and execution. Empowerment of people is important throughout the organization, but it is more important with regard to the top professional managers. I believe that the time is over where information was considered as power. I am convinced that information creates responsibility and therefor owners should be encouraged to be more transparent vis-a-vis their managers with regard to information about strategy and performance.</p>
<p style="">
	In almost all companies I have worked in, I was told that it is difficult to find competent mangers. I know that there are a lot of Nepalis working as expatriates abroad and gaining international management experience. It would be helpful in my opinion if a campaign is started to offer senior positions for expats who want to come home. News- and job-portals could create a special section to attract experienced people to return. On the other hand, it is alarming that most of the college graduates aspire to leave the country. This represents a skill drain which will have a long-term negative impact on businesses here in the country.&nbsp;</p>
<p style="">
	<strong>What is your impression of the spirit of entrepreneurship in Nepal and the Nepali entrepreneurs?</strong></p>
<p style="">
	Based on my observation, the environment in Nepal is not very conducive to entrepreneurial behaviour. Starting a business here is still burdened with bureaucratic requirements. I believe that this is one of the major reasons why well-educated and talented people are leaving the country.</p>
<p style="">
	<strong>How do you rate the work culture in the organizations you have worked in? What improvements have you usually suggested?</strong></p>
<p style="">
	Empowerment of employees is not very common. The organizations are mostly very hierarchically organized and people rather ask their superiors for taking a decision than deciding for themselves. This is very often a sign of insecurity and lack of self-confidence, but it could also be caused by the unwillingness to accept responsibility.</p>
<p style="">
	<strong>How can private sector companies incentivize the performance of their marketing folks in Nepali context?</strong></p>
<p style="">
	When you say marketing folks I assume that you mean sales people. Sales people around the world are normally incentivized by an incentive compensation plan that rewards good performance. Good performance means meeting or exceeding your target. In the organizations that I was responsible for during my professional career, I had always implemented a plan that rewarded over goal performance proportionally. I was always proud when the best sales people earned more than I did.</p>
<p style="">
	<strong>What sort of good HR practices need to be evolved in the Nepali private sector? Do these practices differ from sector to sector?&nbsp;</strong></p>
<p style="">
	There are certain basic HR practices that should be common in every company. These practices relate to work ethics, loyalty to your employer, confidentiality and attendance discipline. There are other areas where practices would differ, especially in sectors with shift work or other special requirements like workplace security. Attendance discipline is obviously difficult to implement with the frequent bandhs where a few people hold a whole country hostage. This has an enormous negative impact on the productivity and therefore the competitiveness of the private sector.</p>
<p style="">
	<strong>What sort of socio-political environment you find in Nepal in the context of the growth of enterprises? What are the impediments and how to ameliorate the situation ahead?&nbsp;</strong></p>
<p style="">
	Let me just mention two points that come to mind immediately.</p>
<ul>
	<li style="">
		The lack of a functioning mail system requires hand delivery by messengers of a lot of documents, such as newspapers, letters, invoices, etc.</li>
	<li style="">
		Cashless payment systems are not very efficient or customary. This again employs a lot of messengers, who have to collect often cash and sometimes cheques. This keeps a lot of motor bikes on the roads all day.&nbsp;</li>
</ul>',
			'published' => true,
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			'description' => 'Volker Kleinn is a management expert with a degree in business administration from a German university that he says is about equivalent to MBA. Volker talked with New Business Age when he was in Kathmandu recently for a similar purpose.',
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			'id' => '940',
			'article_category_id' => '37',
			'title' => 'Why Are Most Domestic Airlines Running In Loss?',
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			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Akhilesh Tripathi</strong></p>
<p style="text-align: justify;">
	Leaving a few as exceptions, most domestic private sector airlines in Nepal are not in sound financial health. In fact, a majority of them have always been struggling for survival. The list of Nepali private airlines closed down so far is a long one, carrying well over a dozen names of which a few grounded their fleet and downed their shutters after flying in the Nepali sky for as long as a decade. Examples are Necon Air and Cosmic Air. Their contemporaries &nbsp;such as Skyline Air, Shangril-Lai Air, Mountain Air, Nepal Airways, Lumbini Air, Everest Air – to name a few – were also closed down.&nbsp;</p>
<p style="text-align: justify;">
	Many – five dozen to be exact - haven’t started their operations despite receiving the Airline Operator’s Certificate (AOC) from the Civil Aviation Authority of Nepal (CAAN) many years ago. They are airlines on paper only. Understandably, the biggest deterrent for them is the collapse of several airlines in the past. There is no doubt that the present of the domestic aviation industry has improved, but not enough. A few airlines are really doing well – but they are oonly a few. Others are in the red, according to a highly-placed source at CAAN. Recently, two airlines have been in problems – Agni Air and Guna Air. The latter was acquired by Simirik Air, a helicopter service provider, which rebranded it as Simrik Airlines and launched its domestic flights. &nbsp;</p>
<p style="text-align: justify;">
	The Number One airline (Buddha Air) at present is far ahead the Number Two (Yeti Airlines) in terms of the number of passengers carried as well as the profit made annually. And there is always a stiff competition among a couple of other private airlines for the Number Three position in the domestic aviation market which has all together 15 private airlines (nine fixed-wing and six rotary-wing) in operation at present. Of the total 1.6 million domestic air passengers in 2012, the Number One airline carried more than 800,000 and also made, according to knowledgeable sources, more than Rs 4 billion in profit. The remaining Rs 3 billion of the annual business was shared by the remaining 14 airlines. That speaks volumes about how profitable some of them might just be!</p>
<p style="text-align: justify;">
	Ever since the country adopted a liberal aviation policy in 1992, the number of companies seeking and receiving AOC has been rising year on year. However, sustainability has been a major problem for them. “Four of the nine fixed-wing airlines and three of the six rotary-wing airlines operational at present are in profit. Others are in loss,” reveals the CAAN source.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Why?</strong></p>
<p style="text-align: justify;">
	Why civil aviation is yet to become a profitable business for a majority of the private airlines operational at present? Is the number of airlines more than the market can actually sustain? Why so many airlines have failed? And why do others face the risk of failure? Nubiz sought answers to these questions from four experts of Nepal’s aviation industry: T R Manandhar (Director General of CAAN), Saral Shamser Rana (Deputy Marketing Director of Yeti Airlines), Manoj Karki (Managing Director of Goma Airlines) and Pradeep Shrestha (CEO of Air Kasthamandap). This is how they answered these questions:</p>
<div style="text-align: justify;">
	<strong>‘Airlines should go for mergers’</strong></div>
<div style="text-align: justify;">
	<strong><br />
	</strong></div>
<div>
	<div style="text-align: justify;">
		Yes, it’s true that several airlines have closed down, mainly because of financial reasons, in the past. We have also heard complaints that the number of airlines is more than the market can actually sustain. Therefore, the government has made the Airline Operator’s Certificate Requirements (AOCR) more stringent a couple of months back. Now, no AOC will be issued unless the airline procures the aircraft. Though we have adopted a liberal aviation policy, we don’t encourage companies to enter the aviation industry at the moment, unless they have serious, long-term plans supported by adequate capital base. There are three airlines operating scheduled flights on the trunk routes at present. Two more, Namaste Air and Blue Airways, have applied for scheduled domestic operations on the trunk routes; they are in the process of procuring aircraft.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The main reason why so many domestic airlines collapsed and why many others are incurring a loss is low capital base and lack of long-term planning. Everyone planning an airline company should be clear that it requires huge investments and the operating cost is also very high which means the promoters need deep pockets. The airlines which are operating chartered flights to the remote areas are in loss. That’s why we have started building paved runways at airports in the rural areas. Currently, paved runways are under construction at over half a dozen such airports. Similarly, we are also installing modern aviation tools and technologies such as Tower Console, VOR, CCR, Met equipment, PAPI Light etc at various airports.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		I seriously feel that the existing airlines should go for mergers among themselves. This will increase their capital base and fleet and lower the operational cost to some extent. What the experience shows is many airlines collapsed after they faced accidents. So, they must pay proper attention to all the safety measures in order to avoid accidents. There is lack of skilled technical and expert human resource. For example, there is a limited supply of captains and engineers. So, airlines often ‘hunt’ such human resource from among themselves which ultimately affects the operation of those airlines which lose such human resource. The demand of airline service will not increase by any significant degree unless there is a considerable growth in tourist arrivals.</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		T R Manandhar</div>
	<div style="text-align: right;">
		Director General</div>
	<div style="text-align: right;">
		CAAN</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		<strong>‘Only an aviation expert should run an airline’</strong></div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		Very few investors have grasped the aviation business in Nepal properly. An airline cannot be run like most other businesses. Without the experience and knowledge about the costs involved, the turnaround times and expenses that are actually incurred, one will never see a sustainable business. You need an aviation expert to run an aviation business, not just one with the capital to finance it.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The variables in the market, the trends and patterns are unpredictable. A factor such as weather can make or break a season for an airline. Working with the correct promotions team, at the right prices and focusing on the long run is crucial to succeed. The competition is also fierce, and has in the past brought about the closure of various airlines. Seeking opportunities to work together for mutual benefit is rare; rather it’s the opposite and many are out there to bring others down.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The lack of training and experience amongst the teams within the airline is another cause for the downfall. Crew should not be rushed to senior positions just to fill up spaces or to meet some compliance. It is one of the reasons why the accident rate in Nepal is higher than in most places on earth and that directly leads to my next point - insurance premium: loss of one, borne by many. There might be many variable costs in the running of an airline but a primary fixed cost beside the loan is the insurance premium. Whether you fly or not, you always have to pay it. It’s a cost that can bring a company down and it does not take into account a bad season.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The reasons can be endless, however this is not a struggle only faced in Nepal. Richard Branson, founder of Virgin Airlines, on his advice to become a millionaire, said, “The easiest way to become a millionaire is to first become a billionaire and then start an airline!” However, with the backing of investors and good leadership, Nepali aviation can reach greater heights.&nbsp;</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		Capt Pradeep Shrestha</div>
	<div style="text-align: right;">
		Chief Executive Officer</div>
	<div style="text-align: right;">
		Air Kasthamandap</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		<strong>‘Many airlines enter the market without proper market study’</strong></div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		The airlines have to take huge loans from banks as the investment cost is very high. In the past, some companies entered the aviation market only for the sake of it, making the supply higher than the demand. This caused unhealthy competition leading to sustainability problems at the end. The survival of airlines in Nepal is very challenging, especially for those flying to the remote areas where the runways are really bad; other several airport facilities are simply absent. The operating cost is very high. For example, a single servicing of the engine costs around Rs 700,000 to 1 million. Many airlines enter the market without studying the opportunities available.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Airlines flying to the remote areas have additional challenges. The cost of operating flights in the remote areas is comparatively high. The government should fix the number of flights and the rates for remote areas based on the flow of passengers and the operational cost of the flights. The government can help the airlines flying to the rural areas in terms of fuel costs and VAT and other taxes. However, increasing the tourist arrivals is one sure way to make aviation a profitable business for domestic airlines. More tourists means more opportunities for the airlines to make money. The government should make the issuance of AOC more stringent so that there is a balance between demand and supply. Airlines such as Yeti Airlines, Buddha Air, Simrik Air etc seem to have a profitable business. But they have taken huge loans for which the interest is also quite high. However, they have been able to stand out in the market because of proper planning, professional and efficient service, good market strategy, adequate investment and operating capital.&nbsp;</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		Saral Shamser Rana</div>
	<div style="text-align: right;">
		Deputy Marketing Director</div>
	<div style="text-align: right;">
		Yeti Airlines</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		<strong>‘Airlines fail miserably in financial risk management’</strong></div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		The major reason behind the collapse of most domestic airlines in the past is the failure to manage the financial risks. Managerial shortcomings, lack of aircraft matching the country’s geography, lack of enough support from the government and the then aviation policy could be the other reasons. However, it is commendable that the private sector has continued to support the domestic aviation industry despite these odds.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Aircraft matching the country’s difficult geography are a must for an airline. Skilled manpower is another prerequisite. As there is lack of enough skilled human resource, one airline has to often ‘steal’ talents and experienced human resource from the others. The airfares have not increased according to the hike in the aviation fuel prices in recent times. Operating flights in the remote areas entails even higher costs. Hence, profit becomes even more challenging for these airlines. The operating cost of an airline is very high. And it takes at least a few years before an airline can expect profits. So the promoters need to have deep pockets as well as patience and long-term plans before jumping into the market.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Experience has shown that if someone wants to run an airline, then s/he should focus on the airline only. Diverting the income from the airline to other investments may cause problems, especially in the beginning years. We have already seen the fall of several companies which invested the income from aviation into other sectors. The promoters should have enough capital to meet all financial problems that could crop up in the future.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Also, the government needs to revise the aviation policy. The number of passengers has been on a constant rise in flights to the major urban destinations. However, it is difficult for the airlines flying to the rural areas to get enough passengers while the risks of flying are also high in these areas.</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		Manoj Karki</div>
	<div style="text-align: right;">
		Managing Director</div>
	<div style="text-align: right;">
		Goma Air</div>
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Nepal’s Civil Aviation: Some Facts</strong></div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		The Nepali private sector entered the domestic air transport after the adoption of Liberal Aviation Policy in 1992. Nepal Airways was the first private airline to start scheduled domestic flights in Nepal (1992). It got the Airline Operator’s Certification from the Civil Aviation Authoruty of Nepal (CAAN) in Feb 1992. Necon Air followed suit in September 1992. In 2001 two other local airlines – Shangri-La Air and Karnali Air merged with Necon which operated flights to all major domestic destinations. It also had flights to Patna and Varanasi in India before being closed down in 2003.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Domestic operation by jet aircraft commenced in 2004 by Cosmic Air. Some 75 private airlines have received AOC from CAAN but only 15 of them are operational at present – nine fixed-wing and 6 rotor-wing airlines. Over a dozen which came into operation after 1992 have closed down so far. Nine fixed-wing airlines operational at present - Nepal Airlines (government-owned), Buddha Air, Yeti Airlines, Sita Air, Tara Air, Air Kasthamandap, Makalu Air, Goma Air, Simrik Airlines (Guna Air has been renamed as Simrik Airlines after it was recently acquired by Simrik Air, a helicopter company) and Agni Air (AOC still valid but flights grounded at present). The domestic civil aviation industry is said to be growing at 10-12 per cent per anum.Private investment in civil aviation is estimated above Rs 11 billion.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Six rotor-wing airlines operational at present are:&nbsp;</div>
	<ul>
		<li style="text-align: justify;">
			Buddha, Yeti and Simrik are the three airlines operating mountain flights at present.</li>
		<li style="text-align: justify;">
			NAC, Sita Air and Tara Air are the airlines flying to the rural areas</li>
		<li style="text-align: justify;">
			Air Kasthamandap launched a test flight to the Syangboche Airport, the highest-altitude airport in Nepal (3780m) on March 18, 2013. &nbsp;</li>
		<li style="text-align: justify;">
			Air Kasthamandap, Makalu Air and Goma Air, three new players in the aviation market, have single-engine aircraft and don’t have scheduled flights. They operate chartered and cargo flights, mostly to the rural areas.</li>
		<li style="text-align: justify;">
			Namaste Airlines has applied for permission for domestic flights.</li>
	</ul>
</div>
<div style="text-align: justify;">
	 </div>',
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			'keywords' => 'Why Are Most Domestic Airlines Running In Loss?',
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	(int) 13 => array(
		'Article' => array(
			'id' => '939',
			'article_category_id' => '39',
			'title' => 'NLIC: Becoming Online-friendly',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Sudharson Thapaliya</strong></p>
<p style="text-align: justify;">
	As the numbers of internet users is rising day by day, Nepal Life Insurance Company (NLIC) is planning to go for online friendly operating systems. According to the company officials, the process has been initiated long ago and will be completed very soon. The company claims that ‘Any customer can calculate the payable premium amount through premium calculator present in the website’. Besides this, the company also has full fledged online service through the website and technologically advanced system of inter-connectivity between the head office and all branches spread all over Nepal.&nbsp;</p>
<p style="text-align: justify;">
	“We have to take advantage of technology in every business and insurance is no exception,” said Vivek Jha, Chief Executive Officer of the NLIC. “This is why we have decided to go for website.” He added that this would be helpful for awareness of general public towards insurance.</p>
<p style="text-align: justify;">
	“Life insurance business is a long term business and its growth and prosperity depends on focused strategic planning and proper implementation of it,” said CEO Jha. He added that as per the present scenario of life insurance sector in the country working towards awareness enhancement to general public is the key factor for success and a basic challenge.&nbsp;</p>
<p style="text-align: justify;">
	The company is also in the process of launching a new website which shall be customer friendly with special features like checking one’s policy status online. NLIC has also been creating awareness through social media like facebook, twitter and you tube</p>
<p style="text-align: justify;">
	<strong>Company Background</strong></p>
<p style="text-align: justify;">
	Established under Company Act 2053 and Insurance Act 2049 as a public limited company on 2001, NLIC is the first Nepali owned life insurance Company that provides only life insurance services. Before the incorporation of the company, there were only companies that either both life and non life insurance or had foreign investors. Incorporated by Nepali promoters, the company’s shares are owned 80 percent by major promoters and rest is owned by general punlic. The company has reinsurance treaty with ‘Hannover Re Life Reinsurance Company’, Germany for conventional policies and ‘SCOR Global Life’, France for Term Assurance Foreign Expatriate policies.</p>
<p style="text-align: justify;">
	Nepal Life City Center is the major investment by NLIC. City Center is claimed by the company to be the first proper mall in Nepal. The company has an authorized capital of 100 Crore, issued capital of Rs. 50 Crore and paid up capital of Rs. 37.50 Crore to till date. Presently Nepal Life provides a bonus rate of NPR. 60-80 per thousand sum assured per annum, which the company claims the highest among life insurance companies in Nepal.</p>
<p style="text-align: justify;">
	Also it has presently proposed a dividend of 126.32% to its shareholders of which as 56.32% is cash dividend and 70% bonus shares. “This has given a tremendous boost to its share price in the stock market and increased the investors’ confidence towards the company,” CEO Jha claimed.</p>
<p style="text-align: justify;">
	<strong>Turning Point&nbsp;</strong></p>
<p style="text-align: justify;">
	 </p>
<p>
	<strong><img alt="NLIC" height="260" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_table1.jpg" style="float: left; margin: 0px 5px 0px 0px; text-align: justify;" width="300" /></strong></p>
<p style="text-align: justify;">
	The company believes last year was the major turning point for it, when it rebranded. “New logo and caption provides a better corporate image to the consumers, it was a major turning point for us”, said CEO Jha. “This gave a very vital and positive impact on gaining the confidence of the existing as well as new consumers for us”. The company had started rebranding campaigns with the slogan of “Naya Josh, Naya Soch, Naya Umang, Rato Tika, 10 on 10, Nepali haru ko pahilo rojai Nepal Life” last year.</p>
<p style="text-align: justify;">
	“It was necessary for a wider awareness about the company as well as for life insurance as a whole,” shared Jha. “The campaign was able to provide a better corporate image among the existing and new consumers and gain their confidence. Furthermore, we came up with the caption ‘Kinaki Jeewan Amulya Chha (Because Life is Precious)’ projecting a broader and positive aspect of life.”&nbsp;</p>
<p style="text-align: justify;">
	<strong>Connecting People via Own Branches</strong></p>
<p style="text-align: justify;">
	The company has more than 100 establishments all over the country. It has 20 branches in the major cities of the country to provide services to its customers. The branches are in Kathmandu, Biratnagar, Birgunj, Butwal, Pokhara, Banepa, Narayanghat, Nepalgunj, Birtamod, Lahan, Janakpur, Mahendranagar, Ghorahi, Surkhet, Hetauda, Phidim, Urlabari, Dhangadi, Nuwakot, and Lalitpur.</p>
<p style="text-align: justify;">
	Besides these branches, the company has opened many sales centers. They are spread in Manthali, Barhabishe, Charikot, Bhaktapur, Choutara, Salleri, Damak, Letang, Khandabari, Bhojpur, Chandranigapur, Gaur, Ilam, Bhadrapur, Palpa, Gulmi, Arghakhanchi, Pyuthan, Humla, Rolpa, Mugu, Bajura, Bhairahawa, Taulihawa, Sunwal, Tulsipur ghorahi, Salyan, Rukum, Chourjahari, Bhaluwang, Manahari, Sindhuli, Malangwa, Jaleshwor, Gorkha, Dhading, Bouddha, Katari, Rajbiraj, Siraha, Dadeldhura, Baitadi, Belauli, Dipayal, Lamjung, Kawasoti, Madi, Guleriya, Jumla, Bardiya, Kamdi, Jajarkot, Baglung, Damauli, Waling, Dailekh, Salli, Taplejung,Yashok,Tharpu,Tikapur, Rangeli and Kirtipur.</p>
<p style="text-align: justify;">
	<img alt="Bonus Rate Growth of NLIC" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_bonus_rate_growth.jpg" /></p>
<p style="text-align: justify;">
	<strong>Human Resources</strong></p>
<p style="text-align: justify;">
	“Human Resources is our main asset,” CEO Jha shared “because, they are in direct touch with grass-root consumers.” “Leadership must emerge from people themselves,” he added. “We provide suitable environment to grow leadership in employees.” According to him, the company has participatory style of management for important decisions regarding organizational policies, new product development etc. “We follow CRM 2 where every organizational employee is responsible for developing customer relationship and providing them the best service,” he added. At present the company has around 250 staffs and more than 18000 active insurance agents.&nbsp;</p>
<p style="text-align: justify;">
	<strong><img alt="Investment Portfolio, NLIC" height="241" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_investment_portfolio.jpg" width="582" /></strong></p>
<p style="text-align: justify;">
	<strong>Lo</strong><strong>oking for Bright Future</strong></p>
<p style="text-align: justify;">
	Life Insurance in Nepal is a growing industry. There are 25 insurance companies, 16 non-life and nine life insurance companies. One Rastriya Beema Sansthan has been allowed to provide both life and non-life services. Though insurance was initiated in 1948 in Nepal, mainly due to lack of awareness, it is estimated that only around five percent are insured all over the country. CEO Jha opined that the number of insured people is even lower than five percent as some of the people are insured multiple times while some are under-insured than what they can afford. At present, it is estimated that contribution in Gross Domestic Product from insurance sector is less than two percent in Nepal.</p>
<p style="text-align: justify;">
	“If we are able to spread awareness about the significance of insurance among the peoples, then insurance business has huge potential in Nepal,” he said. “To uplift insurance business, insurance companies, regulatory body and government have to join hands”.Foreign company’s presence through their agents in Nepal and attracting Nepali customers to do insurance out of their nation, which is legally not allowed, is again a major challenge. He said, “Large numbers of people are insuring themselves with foreign companies in the trust of only the agent they do not know what will happen during the time of claim settlement and also unaware about the illegality of such practice.”&nbsp;</p>
<p style="text-align: justify;">
	He believes that if our insurance sector can convince the people then large sum of money could be utilized for the growth of Nepali economy. He concludes, “Also at present the returns provided by Nepal Life is greater than some of the leading companies in neighbouring countries”. “Presently even in such dire situation the investment by insurance sector is around 60 billion. So if Nepal can prioritize this sector, this figure can multiply manifold.”</p>
<p style="text-align: justify;">
	<strong>Products and Marketing</strong></p>
<p style="text-align: justify;">
	NLIC has launched various types of life insurance policies. These includes Surakshit Jeevan Beema Yojana, Keta-Keti-Jeevan Beema (Shiksha and Vivah), Jeevan Laxmi- Triple Benefit with Bonus, Jeevan Sahara, Jeevan Sarathi, New Term Life Insurance, Saral Jeevan and &nbsp;Jeevan Jyoti.&nbsp;</p>
<p style="text-align: justify;">
	Company believes in fair marketing of products. Generally, marketing people sell the policies by manipulating people. CEO Jha termed ‘mis-selling’ to these practice. “We believe in fair marketing strategy”, he added. “We believe in our products rather than pin pointing the loopholes of others; we trained our grass root agents to follow fair marketing practices”.</p>
<p style="text-align: justify;">
	<strong>CSR Activities</strong></p>
<p style="text-align: justify;">
	In the journey of 12 years, NLIC has tried to do Corporate Service Responsibility (CSR) in different ways for instance, NLIC sponsored differently abled poet Biyog Sapkota’s ‘poem collection launch programe’. Besides this, the company has contributed for the renovation of the pond at historically significant landmark, Kamladi Ganesh Mandir. “We are planning to do some CSR activities differently, yet the concept is not finalized yet,” CEO Jha said. “In near future we will come with new and innovative style of CSR activities”.&nbsp;</p>
<p style="text-align: justify;">
	<img alt="Corporate Focus, NLIC" height="154" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_premium_income.jpg" width="580" /></p>',
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			'title' => 'The Great Himalaya Trail: Once Is Not Enough',
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	 </p>
<p style="text-align: justify;">
	<img alt="" height="367" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/development_partner_april2013(1).jpg" width="580" /></p>
<p style="text-align: justify;">
	The Great Himalaya Trail (GHT), one of the longest and highest trekking trails of the world, within two years of its opening, has grabbed attention from around the world. The trail is known as one of the top 20 adventure destinations by the National Geographic Adventure magazine, thanks to the successful marketing and branding of the trail.</p>
<p style="text-align: justify;">
	The Great Himalaya Trail Development Programme (GHTDP), a two-year programme, has become one of the most popular programmes of tourism development in Nepal. The GHTDP is being implemented by the Nepali Government with technical support of SNV and funded by the UK Department for International Development (DFID.) It is being monitored by NGOs and host communities to ensure that GHTDP is living to meet the goals of responsible tourism at its best. Other partners of the programmes are Nepal Tourism Board (NTB) and Trekking Agencies’ Association of Nepal (TAAN).</p>
<p style="text-align: justify;">
	SNV has taken up the role of advisor to successfully implement the GHTDP. Its role in the project is to provide technical advice and capacity building support to the Ministry of Culture, Tourism and Civil Aviation and the GHTDP Steering Committee. The programme is funded by the UKAID.</p>
<p style="text-align: justify;">
	<strong>Branding the GHT</strong></p>
<p style="text-align: justify;">
	According to Mim Hamal, GHTDP Team Leader, marketing has been mostly done through the website, newsletters and optimum use of the social media. Participation in travel fairs such as ITB, WTM and &nbsp;travel fairs organised by NTB and TAAN and familiarisation. The trail has also been listed as a prime product by Hauser Exkursionen, a German tour operator, in its catalogue and website. Hamal is optimistic and thinks that the attention the trail is getting (as one of the best adventure trekking trail to stroll around the majestic mountains of the Himalayas) will attract tourists from all over &nbsp;the world.</p>
<p style="text-align: justify;">
	According to Hamal, who is also SNV Senior Advisor, the trail is divided into ten connecting treks of two to three weeks long treks each. He stated that each section is being branded with the unique selling points. This opens up the opportunity for tourist to come repeatedly to Nepal to complete the trail. “This is the product that fulfils the Nepali tourism slogan: once is not enough,” said Hamal.</p>
<div>
	<div style="text-align: justify;">
		<strong>Prospects</strong></div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Mim Hamal expressed the possibility for the trail to be expanded up to 4500 kilometres. “Countries like Afghanistan and China are interested in extending the trail into their territories,” he revealed. Currently, the GHT is 1700 kilometres long.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The trail, that began as a pilot testing in 2009/10 from Humla and Dolpa, has now touched 16 districts in the Himalayan region. The GHT starts in Taplejung district and ends in Humla and Darchula, in the Far West of Nepal, close to the Indian and the Chinese border. The trail connects popular treks in the Annapurna and Everest regions with exotic and virgin tourist destinations in the Eastern and Western Nepal. The GHT takes the travellers to a fascinating vista of mountains and green forest, along with rustic culture and livelihood of mountain people.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Trekkers have the option to choose from two routes: one passes through the average altitude of 4000 to 5000 metres, the other &nbsp;remains mostly below 4000 metres. The upper route is considered quite challenging but promises breathtaking views of the mountains up-close, while the lower trail takes one to the culturally rich villages in the remote mountains of Nepal. This lower trail also allows the traveller to enjoy the biodiversity of the route. The GHT is not only for foreigner adventure seekers, this could also be the perfect trekking destination for Nepali people wanting to travel through the majestic mountains of the country.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>Impact on Livelihood</strong></div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The GHT has not only brought tourists to the remote mountains but also development opportunities, employment and possibility of improving livelihoods. Hamal states that the awareness programmes carried out in the route have changed the way people treat tourists, “Earlier, people used to offer beer to tourists in the early morning. These days they offer treated and filtered water for drinking.”&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Similarly, the cooking, guiding, porter and handicraft, lodge management and housekeeping trainings among others &nbsp;provided by the GHTDP have secured self employment for local people. Tourist flow has also opened up market for their agro products, skills and locally made products. The opening of the GHT has also contributed to the building of seven suspension and temporary bridges by the GHTDP. These bridges are not only used by trekkers but also have eased transportation for local people, directly benefiting them.&nbsp;</div>
	<div style="text-align: justify;">
		<strong><br />
		</strong></div>
	<div style="text-align: justify;">
		<strong>Bottlenecks</strong></div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		However, Hamal states that the government has not yet finalised the official route of the GHT. He says that the official route for the endorsement by the cabinet was submitted around a year ago but the cabinet has not endorsed it so far. He also complained about the lack of &nbsp;tourism policies. Moreover, the government does not give a visa for more than 90 days. He demands the extension of this permit for at least two to three years in order for travellers to complete the entire route. Hamal also believes that the current charge for getting a trekking route permit that is as high as US $ 10,000 must be reduced.</div>
	<div style="text-align: justify;">
		Inductive Benefits</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Other infrastructure development, such as micro hydropower in Pathivara, has been initiated. Wi-Fi connectivity is being established targeting tourists coming to the trail. Similarly, the GHT has also provided solar panels for lighting facilities to 40 households in Barpak in Gorkha.Hamal claimed that there are around 100 travel companies&nbsp;</div>
	<div style="text-align: justify;">
		operating in the GHT. These companies are also given training courses on sustainable and eco-tourism promotion of the route.</div>
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong><span style="font-size:14px;">‘The GHT Will Play a Vital Role in Improving the Overall Tourism Scenario’</span></strong></div>
<div style="text-align: justify;">
	<strong><span style="font-size:14px;"><br />
	</span></strong></div>
<div style="text-align: justify;">
	<img alt="" height="273" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/development_partner_mim_april2013.jpg" width="200" /></div>
<div>
	<div style="text-align: justify;">
		<strong><span style="font-size:11px;">Mim Hamal</span></strong></div>
	<div style="text-align: justify;">
		<strong><span style="font-size:11px;">GHTDP Team Leader</span></strong></div>
	<div>
		<p style="text-align: justify;">
			<strong><span style="font-size:11px;">and SNV Senior Advisor</span></strong></p>
		<div style="text-align: justify;">
			<strong><br />
			</strong></div>
	</div>
	<div style="text-align: justify;">
		<strong>Excerpts:</strong></div>
	<div style="text-align: justify;">
		<strong><br />
		</strong></div>
	<div style="text-align: justify;">
		<strong>What was the idea behind the development of Great Himalayan Trail (GHT)?</strong></div>
	<div style="text-align: justify;">
		The idea behind the development of the Great Himalaya Trail was to promote remote destinations that have not been explored so far. We foresaw that GHT has a huge potential in providing a significant boost to Nepal’s tourism industry and associated support sectors. We estimated that it could help channel tourist and pro-poor tourism investments to less visited and under-developed districts, thereby spreading tourism benefits more widely and inclusively among impoverished mountain communities. And, I believe that we have been successful in achieving that to an extent.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>The trail is a remarkable adventure package in Nepal. How do you think this trail alone will help to promote other trails and the overall tourism in Nepal?</strong></div>
	<div style="text-align: justify;">
		Trekking and mountaineering has the largest international market when it comes to tourism products in Nepal. And, as you say it yourself, that this is a remarkable adventure package, it will most certainly play a vital role in improving the overall tourism scenario in Nepal by attracting those segment of tourists who are in pursuit of a new tourism product who want to explore newer, off-beat-track destinations. This trail will provide a sublet to other smaller, side trails which trekkers are not yet aware of, thereby also promoting other smaller trails</div>
	<div style="text-align: justify;">
		.</div>
	<div style="text-align: justify;">
		<strong>How has the GHT helped in enhancement of livelihood of people living along the trekking trail?</strong></div>
	<div style="text-align: justify;">
		Rather than saying just GHT or SNV, I must also highlight the roles played by the DDC, local NGOs and the local people themselves; the UK Government’s Department for International Development (DFID), who is funding GHTDP – their role is equally important in enhancing the livelihoods of people. With help from these actors, we have identified the needs of people living along the trail and have provided leadership trainings, cook, guide, porter, lodge management, house-keeping, handicraft trainings. We have also invested in infrastructure development – building bridges, micro-hydro extensions, providing solar electrifications, drinking water, investing in trail maintenance and waste management.&nbsp;</div>
	<div style="text-align: justify;">
		On the other hand, we are marketing and promoting these destinations (in the European and American markets) so that there is increase of tourist inflow in these areas. All these activities and involvement is expected to benefit the local mass in some way or the other, most definitely in improving their livelihood.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>SNV’s one of the targets is pro poor sustainable tourism. How do you evaluate Nepal’s progress in this direction?</strong></div>
	<div style="text-align: justify;">
		I can’t speak on behalf of Nepal’s progress overall because there are plenty of players in pro-poor sustainable tourism and I am not the right person to judge others’ progress. But for SNV, I would say we have made good progress with projects like TRPAP, MAST-Nepal in the past, and GHTDP and HITT in the present. All were/are focused on pro-poor sustainable tourism. We were innovative. We are thinking out of the box.</div>
	<div style="text-align: justify;">
		We started with sustainable market projects, which were really about bringing tourism benefits more equally - in particular to the remote and impoverished mountain districts - providing for new business and employment opportunities, and which has also been declared one of the priorities of the Government of Nepal. Our progress has been good and fulfilling.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>How has SNV recognized and incorporated the role of the private sector in tourism?</strong></div>
	<div style="text-align: justify;">
		The private sector has a very important role to play in carrying out any development project. We recognise the importance of their involvement which is why along with having an agreement with the Government of Nepal, and local capacity builders; we also have an agreement with TAAN, Nepal German Chamber of Commerce and Industry (NGCCI) at the central level and District Chamber of Commerce at the local level. This cooperation is necessary to carry out work smoothly. Working in this manner has turned out to be a really positive process. We are all committed to the same objective, which is striving towards poverty reduction in the country, and we all want to make this work.</div>
</div>
<div style="text-align: justify;">
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	Buddha Air captured 56 per cent of the aviation market share carrying 881,611 passengers in 2012. According to the Civil Aviation Authority of Nepal Office at Tribhuvan International Airport, Buddha Air’s passenger carriage increased by 12.35 per cent compared to 2011. Paras Jung Pandey, Sales and Marketing Director of the airline claimed, “If airlines flying to only urban destinations are considered, Buddha Air has 65 per cent market share.”</p>
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	Buddha Air is currently operating to only urban destinations. According to Pandey, as the airline is offering competitive fares and operates with larger aircrafts having higher number of seats, its market presence is increasing year by year. &nbsp;Currently, Buddha Air is operating with five 72 seater and three 19 seater aircrafts. In 2011 too, Budha Air was the market leader carrying 691,000 passengers.</p>
<p>
	Pandey said, “Air passengers are constantly increasing and we have been able offer fares that suit their paying capacity. So, airline’s market share is increasing accordingly.” Out of seven regularly operating domestic airlines, remaining six airlines have only 44 per cent market share. Yeti Airlines has second highest market share of 28.74 per cent carrying 452,806 in 2012. All domestic airlines that operate regular flights carried 1.56 million passengers in 2012.&nbsp;</p>',
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		'Article' => array(
			'id' => '953',
			'article_category_id' => '60',
			'title' => 'Nepal’s Airlines Companies In Red: CAAN',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Nepal’s private airlines are bearing the brunt of higher fuel prices, hefty insurance premiums and fluctuation in passengers’ flow, according to regulator Civil Aviation Authority of Nepal (CAAN). Domestic airlines suffered a huge loss of Rs 172.8 million during the last fiscal year, says CAAN. Among the nine fixed-wing airlines, four enjoyed a net profit of Rs 162 million while the rest suffered a net loss of Rs 108.8 million in the last fiscal year.</p>
<p>
	The net profit of the six helicopter companies in the country stood at Rs 30.2 million in 2011-12, up from Rs 27.6 million in the previous fiscal year. Airlines operating on remote sectors are incurring losses while only a few that are flying trunk routes are earning profits, said CAAN, adding that an increase in insurance premium had also become a big headache for airlines. Around Rs 1 billion goes out of the country as insurance premium, according to the authority.&nbsp;</p>
<p>
	Nepal saw a significant growth in air transport after the aviation policy was liberalized in 1992. Aircraft movement jumped four-fold from 24,600 in 1992 to 95,000 in 2012. There are 55 fixed-wing aircraft and 26 helicopters in Nepal at present. Air traveller movement reached 1.03 million in 2008, 1.37 million in 2009 and 1.55 million in 2010. However, the growth rate slipped 2 percent to 1.58 million in 2011. In 2012, passenger movement fell 0.55 percent to 1.575 million, according to CAAN.</p>',
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			'description' => 'Nepal’s private airlines are bearing the brunt of higher fuel prices, hefty insurance premiums and fluctuation in passengers’ flow, according to regulator Civil Aviation Authority of Nepal (CAAN).',
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			'id' => '952',
			'article_category_id' => '74',
			'title' => 'Narendra Modi: Political Journey 3.0 & Message For Nepal',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<strong>By Prof Ujjwal K Chowdhury</strong></p>
<p>
	The tallest leader in the main opposition party of India, Bharatiya Janata Party (BJP), today is undoubtedly Narendra Modi. The pressures of the people at the rank and file of the party has already forced the disconnected national leadership to come scurrying to Modi to lead the party at the centre, and soon he will be its Prime Ministerial candidate for the general elections in 2014. As a New Nepal is expected to emerge from the polls of 2013, Indian General Elections of 2014 (which may be earlier than scheduled) may give rise to a New India under Modi, with implications for Nepal as well in South Asia.</p>
<p>
	<img alt="South Asia, New Business Age" height="317" src="http://newbusinessage.com/ckfinder/userfiles/Images/south_asia_april2013_narendra.jpg" style="float:left; margin:0 10px 0 0;" width="350" /></p>
<p>
	<strong>Modi’s Journey: Version 2.0:</strong></p>
<p>
	The journey of this single resolute man at the top of Gujarat’s affairs started as a Pracharak of Rashtriya Swayamsevak Sangh (RSS) in the first stage of his public life. He was deputed to Gujarat politics to quell the conflict between the Kesubhai Patel and Shankersinh Vaghela factions of BJP some twelve years ago, signalling the start of version 2.0 of his public life.</p>
<p>
	Since then, for a dozen years, he has refrained from going to Delhi much, completely disassociated himself from national politics of BJP and focussed on Gujarat to ensure his third consecutive victory in Gujarat Assembly elections as recently as on December 20, 2012.</p>
<p>
	That he will win the elections for BJP was a foregone conclusion. Question was of the margin. His focus was purely on economic development, and he played it to the hilt, with the glamour of 3D technologies and the force of social media apart from mainstream media.&nbsp;</p>
<p>
	Presently, Gujarat holds around 30 per cent of India’s stock market capitalisation, contributes 22 per cent of the total exports and about 9.5 per cent of the country’s total work force. Gujarat is also a power surplus state, providing electricity even to the villages.The state has registered more than 12% agriculture growth in the last five years against the national average of 2%.</p>
<p>
	The per capita income at constant prices has shown robust growth in the past five years. There is also a major thrust on infrastructure. The development of ports and port-based investment activity is an instance. There is also a plan for shipbuilding parks along the coastline.</p>
<p>
	Hence, the development slogan, soft Hindutva through Vivekananda Yatra and no tickets to minorities, a techno-savvy one person, one agenda focussed campaign paid off yielding a rich dividend of 115 MLAs for BJP in a House of 182 MLAs.</p>
<p>
	<strong>Modi’s Journey: Version 3.0:&nbsp;</strong></p>
<p>
	<strong>The 10-point Road-map:</strong></p>
<p>
	The most interesting now will be to watch the roadmap that Modi takes in his third and most crucial and challenging phase in public and political life.</p>
<p>
	First, managing home. Gujarat is his home-turf. But now to move to the Centre, he has to leave a legacy that symbolizes him in every sense. Significantly, he has kept his Cabinet small, and has at least two favourites in significant positions for grooming a future CM (and if needed, a Deputy CM too): Saurabh Patel and Anandiben Patel.&nbsp;</p>
<p>
	Second, managing the Sangh Pariwar. He cannot afford to alienate Nagpur, which still holds a veto power in the Sangh Parivar. As his popularity soars, RSS under Mohan Bhagwat may be left with no choice but rally behind its extra-ordinary Swayamsevak. But Modi would do well to keep Bhagwat in good humour at this stage.&nbsp;</p>
<p>
	Third, managing the NDA. It is almost certain that JD (United) of Nitish Kumar-Sharad Yadav shall leave NDA if Modi is the front-man. But, Modi has his own dark horses: Jayalalitha led AIADMK, Naveen Patnaik led BJD, Uddhav led Shiv Sena and Raj led MNS in Maharashtra are sure to through their weight behind Modi which will outgrow the strength of JD(U) concentrated in Bihar alone. Interestingly, BS Yediyurappa, the beleaguered rebel BJP leader who has just set up Karnataka Janata Party, may stage a comeback if Modi is the central leader of BJP.&nbsp;</p>
<p>
	Fourth, managing minorities. What Modi needs to guard is not to create an anti-minority image any further, rather focus on non-appeasement anti-votebank all-people development agenda, being silent on minority-focused discourse in Indian politics in his interests.&nbsp;</p>
<p>
	Fifth, managing the riot-image and legal cases. Herein again, silence is golden. One partial statement after Gujarat victory this time was itself a good strategy, “Forgive me if I have done any mistake”. This is the best policy: being humble but not talking about the past and riots. Vengeance is a measure for lesser mortals.</p>
<p>
	Sixth, creating symbolisms. It will be a great move for Modi to seek election to the Parliament from Lucknow, which elected Atal Behari Vajpayee several times. Symbolically strong, this will rejuvenate BJP in Uttar Pradesh, bring in Kalyan Singh at the centre-stage in UP, and lead to soft Hindutva polarization in favour of BJP in most of the Hindi heartland.</p>
<p>
	Seventh, strengthening mass constituencies. In 2014, the dominant section of the electorate shall be young people below 35 years of age. The electorate between 18 and 35 years of age are expected to be above 40% of the voters, and in case of a good franchise, the younger voters are expected to be participating more. Modi has succeeded tremendously with the youth in Gujarat ensuring a hat-trick of victories. If he can put forth a viable plan for Young India, package and communicate it in a techno-savvy way (for which he is well-known), and make it caste and community-neutral, he is assured of a huge support herein.</p>
<p>
	Eighth, harnessing the woman-power. Half the young people are women, and a large part of elder women are dependent emotionally and financially on the younger population. Also, Modi’s personal charisma, single status, and a straight talking image et al go well with the women. He, however, will need to walk the talk on women’s safety issues which is the major concern for a large number of vocal women,both urban and rural.</p>
<p>
	Ninth, envisioning an Alternative India. Herein lies the major creative challenge to Moditva. If he can change the discourse of Indian politics from divisive identity to development issues, from regional parochialism to a uniform Indian-ness, from Western outlook to political language to a pride in everything Indian, he has made a great start to this third phase in his political journey. He has started this through his recent speeches, first in Sriram College in Delhi and more recently in the India Today Conclave.</p>
<p>
	Tenth, and finally, creating a global image and acceptability. While Vibrant Gujarat has given Modi the global image of a productive performing leader, and Indian diaspora looks up to him for a national leadership role now, he still needs to politically cultivate major global forces and global Indians more. Hence, formal and informal channels need to be evolved through visits, use of media, receiving delegations, use of global Indian bodies, et al, which position Modi as the undisputable leader whom the nation has been waiting for long.</p>
<p>
	<span style="font-size:10px;">The author is former Dean of Symbiosis International University and President of the advisory board at Whistling Woods School of Communication, Mumbai.</span></p>',
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			'description' => 'The tallest leader in the main opposition party of India, Bharatiya Janata Party (BJP), today is undoubtedly Narendra Modi. The pressures of the people at the rank and file of the party has already forced the disconnected national leadership to come scurrying to Modi to lead the party at the centre, and soon he will be its Prime Ministerial candidate for the general elections in 2014. As a New Nepal is expected to emerge from the polls of 2013, Indian General Elections of 2014 (which may be earlier than scheduled) may give rise to a New India under Modi, with implications for Nepal as well in South Asia.',
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			'id' => '951',
			'article_category_id' => '42',
			'title' => 'Change The Way We Think Of Stocks',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Hom Nath Gaire</strong></p>
<p>
	 </p>
<p>
	What does it mean to value a stock as a business? How does it differ from the way most investors think about investing in stocks? These are the fundamental questions one should ask while planning to invest in stock market. To answer these questions, let’s start by considering what a stock actually is. In simple terms, a stock of a company represents a share of ownership of an actual business.&nbsp;</p>
<p>
	But as Warren Buffett, prominent American stock investor, often says, most people tend to think of a stock as a ticker symbol with a squiggly line attached. Most people think it is easier to look at a stock chart and try to predict whether its price will go up or down than it is to understand the underlying business and its performance. But the truth is, almost nobody is good at this. It takes an extremely rare individual to do it with enough consistency to make money.</p>
<p>
	Some professional and dedicated part-time traders succeed by buying and selling stocks using short-term strategies. But the overwhelming majority of investors would make a lot more money – and lose a lot less – if they learned to approach stocks in the way they would move toward ownership in a business. However, it is not an easy task to find a business that is simple enough to fully understand than to consistently predict where the price of its stock is going next.</p>
<p>
	Still, there are a number of benefits of this approach about investment. Several of the world’s greatest investors have shown that this approach is one of the simplest, safest, and most consistent ways to make money from the stock market. But perhaps even more important is the peace of mind. Let’s go through an example to clarify the concept. Suppose there are two investors who are buying stock in the same company, say X. &nbsp;Investor A, approaches investing as a business owner and does a little homework on the underlying business. He believes company X is a wonderful business trading at a good price, and he decided to buys a sizeable number of shares. But investor B is like most people and decides to buy share of X without any real understanding of the underlying business. May be he saw the stock X is being advertised on local news paper or television, heard this or that famous investor was buying it, or has a friend who made a lot of money in it.&nbsp;</p>
<p>
	If the share price of company X goes up, both investors will probably be feeling good about their decision. But what if the price was to suddenly fall by 5 percent, 10 percent or even more? Or the market experiences a serious correction that takes most stocks down with it?&nbsp;</p>
<p>
	In this case, the investor A is much more likely to sleep well at night. He knows he bought a quality business and he knows he paid a good price for it. Like wise, he also knows the fluctuations in the share price have nothing to do with the underlying business. In fact, he may actually be happy to see the price fall – as Warren Buffett used to say – because it will allow him to buy more shares or reinvest his dividends at a better price. On the other hand, Investor B would probably be in worry. Because, he has no idea what the underlying business is actually worth or what a fair price for it is. He only knows that he has lost money. He is probably still speculating whether it will be a 5 percent correction or a 30 percent crash and whether he should sell his ownership right now or wait it out.</p>
<p>
	The fact is, one normally can not know those things in any kind of reliable manner. But what he knows is that great businesses consistently make money all the way through good times and bad ones. And he can have a lot of certainty that over the long run, he will be rewarded from that great business as a shareholder. Thus, all should try to take decision like investor A, in our example rather than like B. Then only we can sleep well at night and simultaneously we can make money from the stock market.&nbsp;</p>
<p>
	Just look at the history of the 20th Century in global stock market. What calamity didn’t happen in the 20th Century? There were two world wars and various smaller ones, a great depression, hyperinflation, unemployment and even stagflation. All the productive resources were either seized by the government of destroyed in the wars and calamities; there were 50 percent to 90 percent marginal tax rates for many of those years. Nevertheless over the century, the Dow Jones Industrial Average (DJIA), world’s oldest stock index soared thousands fold. Likewise, the Bombay Stock Exchange’s sensitive index, SENSEX has also gained thousands fold over the same period.</p>
<p>
	These two examples, of course, stand witness that companies would have done better even under the government-created problems, though the business suffered from the politics, wars, the economy and inflation. However, there are never any guarantees in the stock market, betting on great businesses was always the right thing to do over the last 100 years. And there is a very high probability that you’ll do well buying great businesses over the next 100 years. Thus let’s start to think differently about the stock market.</p>
<p>
	<strong>How to Identify a Great Business?</strong></p>
<p>
	The first step for this approach is as simple as changing your thinking. It is nothing but just deciding you won’t buy a stock unless you can understand its business, even if it looks attractive and it’s reasonably priced. Most peoples would intuitively understand this if they were buying an actual business outright, but they seldom make the connection when buying stocks. What one should notice when to begin thinking this way is, very few stocks are likely to meet set criteria. When you really understand what you’re buying, you’ll tend to be much more selective and gravitate toward great businesses.&nbsp;</p>
<p>
	There are a few clues to identify a great business and to leave behind a poor one. The easiest one to identify is a profit margin of consistent thickness over many years, even if it’s a thin profit margin. For example, Wal-Mart’s net profit margin is thin, around 3%. But it is a very consistent and ranges every year like clockwork. Likewise, Microsoft’s gross margin has been around 80% for many years.&nbsp;</p>
<p>
	Consistent margins tell that something special is going on there. That business has been able to extract that profit out of the market because it’s doing something that people really want year after year and it has positioned itself in the marketplace so that it can keep doing it.</p>
<p>
	Another big clue of a great business is consistent free cash flow generation. That is a sign that the business does not require all kinds of expensive reinvestment year after year. It means the business can invest relatively little of that cash profit and put the rest toward things like paying out dividends, buying back shares, or making new investments in the future. A business gains a great deal of flexibility when it is able to generate a lot of free cash flow. A third clue is a history of dividend payments that rise every single year for many years (dividend grower). Not all great businesses have this trait, but many of them do. So it is something to look for. There are obviously more, but these are the big ones that most great businesses share.&nbsp;</p>
<p>
	<strong>How to Value a Business?</strong></p>
<p>
	Once a great business is identified, the next problem is to determine the fair trading price or value of business. There are two primary ways to value a business. One is by net worth, and the other one is by profit generation. Net worth is calculated the same way we would do it for ourselves. If one wants to find out what his net worth is, add up all the cash and all assets, like house, cars, etc. Then he should subtract everything he owes – things like mortgage, credit cards, and car loans – and that difference is his net worth.&nbsp;</p>
<p>
	We can do the same thing with a company. For this, first of all we should look at a company’s balance sheet and assign a value to its cash and other assets, add them all up, subtract what it owes – debt and other liabilities – and get its net worth. This is a simple example. This calculation can get rather complicated, depending on the business. Sometimes, assets have to be revalued, for example, if the company owns a bunch of land that they paid very little for many years ago that’s worth much more now. But the basic idea is the same. This measure of value is best-suited for asset-heavy businesses or strict value investing situations – where one can buy assets in a significant discount and wait for the market to fairly value it. Fair valuations will vary significantly, depending on the industry and the situation.&nbsp;</p>
<p>
	The other way to value a business is based on profit generation, or how much free cash flow the company produces. This tends to be a better measure of value for really great businesses or a business that you’re confident are going to make more money next year, five years from now, and 20 years from now. We can look to history for a benchmark for valuing these great businesses. When companies have bought out or taken over really great businesses in the past they had a tendency to pay right around 30 times of free cash flow. &nbsp;So generally speaking, if you can find one of these really great businesses trading for around 15 or 16 times free cash flow, you are probably getting a really good deal that you should buy and hang on to for a long time.</p>
<p>
	<strong>Conclusion&nbsp;</strong></p>
<p>
	Of course, the valuation of business or valuing companies is not an easy task. But this will get you started. There is a temptation for investors just learning to value businesses to focus on the “net worth”-type companies as mentioned earlier – the so-called “deep value” stocks – because they can appear to be much easier to value correctly. But what one may come to realize is many of those situations don’t work out very well. Oftentimes, what you’re really doing is buying a bad business that may be on its last steps.&nbsp;</p>
<p>
	So, after a while, many value investors may decide they don’t want to buy lousy businesses anymore. They may decide they would rather buy great businesses that are going to maintain and grow their value for a long time. That’s a typical transition for a value investor to make money from stock market. In fact, Warren Buffett himself made this transition over his career, which encourages new value investors to keep that in mind.</p>
<p>
	In our case in Nepal, the present stock market condition is quite favourable to choose the great business. First thing you’ll notice when you begin thinking this way is, very few stocks are likely to meet those criteria. When you really understand what you’re buying, you’ll tend to be much more selective and inclined toward great businesses.&nbsp;</p>
<p>
	<span style="font-size:10px;">The author is the Deputy Director of Confederation of Nepalese Industries and can be contacted via email at gaire_mukunda@hotmail.com. This article is based on an interview with value investor Dan Ferris published in The Daily Crux in December 2012.</span></p>',
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			'description' => 'The present stock market condition is quite favourable to choose this great business.',
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			'article_category_id' => '42',
			'title' => 'NEPSE Declines After Highest Rise In 39 Months',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Bikram Chitrakar</strong></p>
<p>
	<span style="color:#00f;"><strong>(Review for 19 Feb to 21 Mar, 2013)</strong></span></p>
<p>
	<span style="color:#00f;"><strong><img alt="" height="433" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock_taking_april2013_bikram_chitrakar_sectorwise_distribution.jpg" style="float:left;margin:0 10px 0 0;" width="349" /><br />
	</strong></span></p>
<p>
	<strong style="color: rgb(0, 0, 255);"><img alt="Stock Taking, New Business Age" height="353" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock_taking_april2013_bikram_chitrakar_market_trend.jpg" style="float: right; margin-top:10px;" width="370" /></strong></p>
<p>
	The Nepali stock market receded from the green terrain during the review period as the investors gave top priority to political clues. The benchmark Nepse index shed 20.94 points or 3.97% to close at the review period’s low of 527.98 whereas the highest point was 548.92 on 19 Feb, 2013.</p>
<p>
	The index had reached 39 months high of 555.93 on 17 February 2013. The previous high of Nepse was 553.4 on 13 December, 2009.&nbsp;</p>
<p>
	Protests voiced by some political sections on the appointment of Chief Justice Khila Raj Regmi as the chairman of the government is the main reason for the recent decline, say market analysts.&nbsp;</p>
<p>
	Another reason was the profit booking by some investors lured by the new highs made by the Nepse. &nbsp;</p>
<p>
	One major recent development is that Nepal Stock Exchange (Nepse) has started preliminary research to upgrade its current trading system. It was on 24 August, 2007 that Nepse replaced the open-out-cry system by remote trading system using Wide Area Network. That system enables brokers to connect to the Nepse server through remote location and perform the transaction. The new system being tried is to facilitate individual investors to place order from their own home using the broker’s system.</p>
<p>
	As the market has turned down touching a high due to profit booking and political climate, stationary movement is expected for few sessions until some healthy clues are received by the investors.&nbsp;</p>
<p>
	<strong>Performance by Sector</strong></p>
<p>
	During the review period, the “others” sector dropped down by 65.78 points or 9.30% to settle at 707.27. Manufacturing sector posted a heavy loss of 53.88 points or 6.44% to settle at 836.99. Hydropower sector plummeted 37.19 points to rest at 1035.86. The commercial banking sector declined 17.27 points or 3.27% to 528.02. Similarly, finance sector descended 1.56 points or 0.62% to 253.09. However, hotels sector added 5.89 points or 0.88% to reach at 666.97. Insurance sub-index gained 2.28 points or 0.26% to 881.02 while development bank accelerated 1.43 points or 0.57% to close at 252.76&nbsp;</p>
<p>
	Sensitive index that measures the performance of 120 blue chip scrips at the secondary market skid 6.15 points or 4.46% to 137.9 while the float index calculated on the basis of real transaction went downhill 0.35 points or 0.94% to 37.27. Total of Rs. 2,823,647,321 turnover was realized during the review period from 10,267,018 units of share traded via 31,100 transactions.</p>
<p>
	The accompanying figure depicts the sector-wise distribution based on the total volume of trade. As usual commercial banks accounted for the heavy volume of trade with 81.33% of total trade. Hydropower sector occupied 6.50% while insurance sector constituted 3.62% and rest of the sectors covered the remaining.&nbsp;</p>
<p>
	Technically, the Simple Moving Average (SMA) has shown a sluggish movement as Nepse Index has been outcast by 30 Days SMA. Index has shown sideways movement for upcoming sessions for confirming the trend.</p>
<p>
	<img alt="Stock Taking" height="374" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock_taking_april2013_bikram_chitrakar_movement_in_indices.jpg" width="368" /></p>
<p>
	<span style="font-size:10px;">Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.</span></p>',
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			'description' => 'Stationary movement is expected for few sessions until some healthy clues are received by the investors.',
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			'id' => '949',
			'article_category_id' => '57',
			'title' => 'Proudly ‘Made In Nepal’',
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			'content' => '<p style="text-align: justify;">
	<strong>By Sajag Karki</strong></p>
<p style="text-align: justify;">
	<br />
	<img alt="Brand Talk, April 2013" height="186" src="http://newbusinessage.com/ckfinder/userfiles/Images/brand_talk_april2013_made_in_nepal(1).jpg" style="margin:0 0 0 10px; float:right;" width="250" />The recent international trade fair held in Kathmandu showcased a wide range of high quality Nepali products. When we, being Nepali, have just started to be aware of our own products, a significant question triggered in my mind: “How could we brand Nepali products to market them globally?”&nbsp;</p>
<p style="text-align: justify;">
	We are all aware of special Nepali products like Palpali Dhaka ko topi, khukuri, handicrafts along with organic Ilam tea and many more. Along with this, herbal products, linen fabrics, lokta paper are indigenous to Nepal sourced within the country. However, these products &nbsp;haven’t gained popularity in the foreign market and not as expected in the Nepali market as well.&nbsp;</p>
<p style="text-align: justify;">
	The reason behind this is the lack of branding of Nepali products. We have an emotional attachment to these products, which is very good but it is high time to think rationally and start showcasing our products in the international arena. Though armed with an array of high quality Nepali products we seem to be lagging behind and it’s time to step up and change this scenario.</p>
<p style="text-align: justify;">
	&nbsp;If Swiss watches can be world famous for their quality and lineage, &nbsp;why can’t Nepali products? Of course it would be naïve to expect this happening overnight, but we can definitely make a start. For this purpose, we need to create a set of features that can identify our products as a Nepali brand, distinguishing them from other generic products. Instead of building castles in the air, we need to focus on specific and concrete aspects of branding. Going back to the basics: a brand is a name, logo, symbol or design which is intended to identify the goods and services of one seller or a group of sellers and differentiate them from their competition. Branding is more of package built around a product with both tangible and intangible elements associated with it. Anything as such can be branded: goods, services and experiences. Also events, persons or places, and even properties, corporations and &nbsp;ideas.&nbsp;</p>
<p style="text-align: justify;">
	My previous articles explain how Nepal itself is a place brand, &nbsp;attracting tourists because of its unique features (such as birthplace of Lord Gautam Buddha, Mt.Everest or our rich cultural heritage.) This time, I’m focusing on products that are made in Nepal, and how branding is the only way to market them internationally. &nbsp;First and foremost, we need an authentication branding our products as “Made in Nepal” so it can be used in various product lines such as clothing, handicraft, herbal products, tea, coffee or accessories.&nbsp;</p>
<p style="text-align: justify;">
	With a mix of all such unique and easily identifiable products of Nepal, it builds credibility by associating with genuine Nepali products. &nbsp;Now that the products have an authentication, the individual items in the product line can be positioned in different ways, targeting specific audiences. Let’s say linen clothing items like shirts, caps, trousers and coats/jacket can be positioned as “Cool as the Everest air”. This instantly describes the product being cool and light during summer time. Similarly, all our ‘made in Nepal’ products can be positioned accordingly. Along with advertisements of Nepali products telling the unique story of our rich cultural heritage, we need to participate in exhibitions and trade fairs organized in other parts of the world. Spreading good word of mouth about our Nepali brands would also do wonders. In this way, entrepreneurs would be able to get exposure to technologies used in other nations and transfer this knowledge back to Nepal.&nbsp;</p>
<p style="text-align: justify;">
	There is a huge demand for such products worldwide and, with proper market research and segmentation, we can create a niche for them. We are blessed with infinite natural resources that we can use to our advantage when selling Nepali products.&nbsp;</p>
<p style="text-align: justify;">
	With the changing times, we need to adopt a promotional and distribution strategy that suits the needs of today’s dynamic customers. Outlets selling Nepali products must have an atmosphere telling a unique story. It is very important also to have &nbsp;highly trained and knowledgeable sales staff to also depict quality of the products. The international trade fair has opened the gates to take Nepali products to new heights. &nbsp;With tactful branding strategies, there is no wonder we’ll see our products being the world’s best brand.&nbsp;</p>
<p>
	<span style="font-size: 10px;">The Article is based on research and author’s practical experience as a marketing and advertising professional. He can be reached at sajag_karki@hotmail.com</span></p>
<div>
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			'id' => '948',
			'article_category_id' => '47',
			'title' => 'A Driven Calling',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img alt="Kumud Kumar Dugar, A driven calling, April 2013" height="421" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality_april_2013_kumud_kumar(1).jpg" style="float:right; margin:0 0 0 10px;" width="300" />Kumud Dugar predicts 2013 and 2014 to be the most decisive years for his Group. Numerous projects and products are in the pipeline, making these two years full of equal challenges and opportunities for him, and the Group. “These two years will decide the future of KL Dugar Group. If all goes well, the Group’s turnover will increase three folds within this time,” says Dugar.&nbsp;</p>
<p style="text-align: justify;">
	Dugar has been taking care of the Group since 1991, right after he completed his graduation. More specifically, he looks after the Food Grain Business of KL Dugar Group that includes eight different industries. Dugar had joined the Group as the Director, but recalls working as a cashier. “I kept track of where the money comes from and where it goes. It was very essential for me to know about the exact finances of the Group,” says Dugar.&nbsp;</p>
<p style="text-align: justify;">
	From the moment he joined, he had a dream of professionally managing the group, although at that time he didn’t know what professional management exactly was. To start with, he ordered a customized accounts package from Kolkata, customised for his Group. He brought in new technologies, computerized the systems and set up numerous industries and took the Group where it is today. He says he was driven by a thirst to work and move ahead, with a strong passion of do something novel.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Early Life</strong></p>
<p style="text-align: justify;">
	Born in 1967 in Biratnagar to Krishan Lal Dugar and Jatan Devi Dugar, Dugar’s mind was set to business right from childhood. Most of his childhood was spent in Kolkata as he was there for about 18 years, from kindergarten to graduation. He was in Nepal only for vacations then. Dugar was involved with Dugar Group long before it separated into three groups in 1990. He used to work in the liaison office of the Group in Kolkata since he was in Grade 9. &nbsp;After graduating from St Xavier’s College in Kolkata, he thought of starting a business in India. In the process, he bought a granite mine and a solvent plant in Hyderabad, but wasn’t able to go on with that business. Due to the separation of Dugar Group, he felt he was needed in the newly formed KL Dugar Group, so he returned to Nepal.&nbsp;</p>
<p style="text-align: justify;">
	As soon as he joined KL Dugar Group, he set up a vanaspati factory in Biratnagar. As the Group was newly formed, he felt immensely challenged and pressurized. Driven to prove himself, he says he set up the factory from scratch in just six months. “No one could have done this back then. I set up Swastik Oil Industries at a cost of 22 million rupees. It still is the largest oil industry of the country,” says Dugar with pride. This was his first venture as the MD of the Group, and a lot more industries were about to follow. During his stay in Biratnagar, he set up numerous industries. Saurabh Oil Mill, Vikas Flour Mill, Gyan Food Products, Pratibha Rice Mill and Gyan Herbals Pvt Ltd are among a few of them. Dugar shifted to Kathmandu in the year 1995. &nbsp;</p>
<p style="text-align: justify;">
	Dugar considers the separation to be a major turning point in his life. He first took it as a challenge, but later he figured it out that it was beneficial for him, as it gave him his individuality and helped him grow more. Rather than import export business, he focussed on local materials and set up locally based industries. “I always wanted to do something for the country. Today, I think I have contributed by branding the local products,” says Dugar. At present, the food products of the Group are exported to numerous countries worldwide.&nbsp;</p>
<p style="text-align: justify;">
	As a child, Dugar was not so mischievous, but rather disciplined, a quiet one. He says he was not very good in school and always was mediocre student, but very good in accounts. “I was very interested in accountancy, and was also very good at it,” recalls Dugar. He also possessed leadership in his school but remember being shy around girls.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Personal Side</strong></p>
<p style="text-align: justify;">
	Dugar was married with Namita Dugar in 1991, and the marriage was an arranged one. It was immediately after the formation of his Group, and business was his top priority then. &nbsp;As a result, his personal life was somehow out of balance. He says he went for his honeymoon after three years of his marriage. “Back then, I felt much challenged, and was very busy. I could not give time to my family and children. I didn’t take any holidays either,” says he. But later, when all his businesses went well, he was able to balance both the professional and personal aspects of his life.&nbsp;</p>
<p style="text-align: justify;">
	Dugar likes to takes immediate decisions and doesn’t want to linger on issues. &nbsp;He says he can’t stay idle for even an hour. He remembers him being bored once on a three-day vacation with his family. He says he is very industrious, and is always thinking about his business. He firmly believes in teamwork and says that the system should work, not a person. Regarding his finances, he maintains that the accounts should be updated till the present moment, and not yesterday. Dugar believes in doing fair business, and strictly follows his business ethics.&nbsp;</p>
<p style="text-align: justify;">
	Not at all a party goer, Dugar likes to spend his evenings with his family after a stressful day. He likes to watch TV and spend most of his free time at home, with his children. “I feel more responsible towards my family and children because I couldn’t give much attention to them when I started business. Now I can afford time for them, and I feel I have to make up for the lost time,” says he. Dugar is the proud father of son Saurabh and daughters Bhavika and Drishika. A scrupulous follower of traditions, Dugar strictly abstains from alcohol, tobacco and non-vegetarian food. He loves Indian vegetarian food and is not very fond of trying new dishes.</p>
<p style="text-align: justify;">
	<strong>Hobbies</strong></p>
<p style="text-align: justify;">
	Dugar loves to travel, especially to modern cities in the world. He loves branded stuffs and loves to shop. He has been to Dubai, US and many countries in Europe. His other interests are music and dancing. He loves to listen to Hindi songs, and watches movies once in a while. He says he is quiet brand conscious. “I am very obsessed with being dressed properly. All my outfits are stitched in Mumbai. I am also very fond of clothes,” says Dugar. He also loves branded watches, and carries the latest gadgets though he is not too fond of them. He believes he has to be familiar with technology as it helps in the business too.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Way Ahead</strong></p>
<p style="text-align: justify;">
	According to Dugar, KL Dugar’s future ventures will be in sectors of hydropower and construction. The Groups’ largest project United Cements is all set to start by the end of this year. KL Residency will be handed over in 2013 and Nepal Hydro Developers Pvt Ltd will also commence in 2013. &nbsp;In addition, more than 30 products related to home appliances, automobiles and others are in the pipe line. Dugar says that he has to work even harder now, as the recent times are even more competitive.&nbsp;</p>
<p style="text-align: justify;">
	Nepali entrepreneurs are as capable as any others in the world. “We are doing our best even when faced by worst of situations. We have load shedding and political problem; still Nepali entrepreneurs are doing their job. We can do even more if the government is more supportive,” says he. Dugar wants to be number one in whatever he does, and is always striving for excellence. “Dhara oil and Gyan flour are one of my best products. I want to remain number one, and want my legacy to go with the products,” says Dugar. According to him, his greatest asset is the trust that his customers have put in him and the Group.&nbsp;</p>
<p style="text-align: justify;">
	Dugar believes that three things are very crucial for the success of any business. One has to be loyal and committed towards his business, have knowledge the business, and most importantly, one should be very critical of finances. &nbsp;He says he gives equal importance to one thousand rupees and one million. Moreover, he thinks one should have faith in his staffs and should have frequent interactions as they have more knowledge than the boss. “A good suggestion from them can change your entire perspective and help the business,” says Dugar.&nbsp;</p>',
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			'description' => 'For Kumud Kumar Dugar, MD, KL Dugar Group, failures are as important as success as he believes they keep you striving for success. He says that people need to fail to succeed. “Failures should be analyzed, and then they serve as a lesson. More importantly, one has to learn to be responsible for their failures. Blaming others for your failures is never going to help,” says Dugar.',
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			'id' => '947',
			'article_category_id' => '40',
			'title' => 'New Year Hues: Products, Promises And People',
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	<strong>By Siromani Dhungana<br />
	<br />
	<br />
	<br />
	New Year Hues: Products, Promises and People</strong><br />
	<br />
	Outlets of the world&rsquo;s most famous brands have already started doing their business in Kathmandu providing consumers chances of more choices and selections. The powerful combination of sophistication in use of goods, changing lifestyle in the urban area and consumers&rsquo; access to information created by information and technology have brought about an unprecedented shift in the consumers&rsquo; brand use habit. On the other hand, it has created both opportunities and challenges for companies looking for potential buyers. Increased competition among various players has compelled them to lure customers by offering different packages. New Business Age tries to catch-up some existing market phenomenon in Nepal and explores the connection between products and people in the market.<br />
	<br />
	The fastest-growing middle and upper middle-class consumers have created many opportunities for companies in the Nepali market. Earning enough to afford quality brands and quality consumer experiences, the younger generation has become brand-focused and up to date with the latest arrivals. From gadgets, clothing and watches to other personal belongings, the new generation has become brand conscious and choosy.<br />
	&nbsp;<br />
	On the other hand, the increasing competition among different brands has forced companies to lure potential consumers by offering attractive packages. Various companies have been trying to lure consumers using various techniques including bumper offers, appointment of brand ambassadors, advertising campaigns in the media and other packages to ensure the success of their brands. Private business houses have been aggressively putting their effort to get a hold in the market, opines young entrepreneur Meele Shrestha of Maxlee Traders Pvt Ltd. New Year 2070 may not witness a drastic change in the market but it can create a different type of vibration, she adds.<br />
	<br />
	<br />
	<img alt="products" src="/userfiles/images/2070-1.jpg" style="margin: 10px; width: 400px; height: 280px;" /><br />
	<br />
	<strong>Marketing of Products</strong><br />
	<br />
	Marketers always think that if they want a product to catch on, they have to think up a catchy slogan or come up with a slick advertisement to create a buzz. It is really impossible to exactly assess what propels consumers to buy particular products.<br />
	<br />
	Advertising campaigns are not enough. Companies should also think about linking products to the environment and let the environment do the work besides the advertisement and other ways of publicity of products.Consumers&rsquo; behaviour is strongly influenced by subtle environmental cues. In Nepal, most consumers want to follow the wealthy population in terms of products consumption and buying. Availability, price structure and quality of products largely determine whether the product can hold the market.<br />
	<br />
	<br />
	<strong>Consumers&rsquo; Psychology</strong><br />
	<br />
	Even big companies around the world cannot always predict consumers&rsquo; psychology correctly. Sometimes, a simple product can create a trend in the market but other times even meticulously designed and decorated product may fail to attract consumers.<br />
	<br />
	Consumers&rsquo; decisions on products are driven largly by implicit associations with the imagery connected to a brand. And, sometimes their decision may be associated with the subconscious emotional appeal of products. Why and how people buy some products and not others? Consumers&rsquo; psychology is a specialty area that studies how our thoughts, beliefs, feelings and perceptions influence how we buy and how we relate to goods and services.<br />
	<br />
	<img alt="nepali market" src="/userfiles/images/2070-2.jpg" style="width: 400px; height: 266px; margin: 10px;" /><br />
	<br />
	<strong>Diversifying Nepali Market</strong><br />
	<br />
	Markets of various products and brands have a tremendous potential to expand in Nepal. The modern marketing approach is a post 1990 phenomenon, a large section of people is still out of the the modern market system leaving room for new and innovative companies to expand their presence. And that is happening too.<br />
	<br />
	Kathmandu has many outlets and high-end streets to showcase state-of-the-art brands of various products. The trend of opening modern outlets outside the Kathmandu valley is on the rise. Pokhara, Biratnagar, Dharan, Itahari, Birgunj among others are slowly waking up to the modern marketing approach.<br />
	<br />
	The population of Nepal as of June 22, 2011 stands at 26.49 million showing a population growth rate of 1.35 per annum, according to Central Bureau of Statistics. According to the Nepal Demographic and Health Survey, a total of 40 per cent of people are below 15 years of age and another 30 percent are between 15-49 years of age. Clearly, the country has a huge potential for products and brands. because of the large youth population.<br />
	<br />
	All companies need to win the hearts and minds of the consumers to get a foothold in the market. In this issue, New Business Age presents a consumer-focused story looking at various products and brands and they promises to the consumers for the New Year 2070 BS. It also looks at the preferences and opinions of some consumers from various segments of society:<br />
	<br />
	<br />
	<br />
	<strong>Automobile</strong><br />
	<br />
	Nepal has seen the penetration of two- and four-wheelers increase at a rapid pace, thanks to the expansion of road connectivity and increased income of citizens. Expansions of roads throughout the country and a steep rise in the number of migrant workers have played a catalytic role in the growth of automobile sales. So, many automobile brands have been able to establish themselves and automobile has become one of the largest customs duty contributors in the country. Nepali consumers have been using four-wheelers ranging from the most expensive one to the cheapest Nano car. Similarly, Nepal-assembled brands such as Mustang and Sherpa have also been rolling on the Nepali roads.<br />
	<br />
	In fact, the automobile market is all set to open a new avenue in the country. New Business Age has talked with highly popular automobile brands, Volkswagen and Honda, regarding their business prospects in Nepal (keeping the Nepali New Year 2070 BS in mind.)<br />
	<br />
	<br />
	<img alt="watch" src="/userfiles/images/watch.jpg" style="width: 400px; height: 248px; margin: 10px;" /><br />
	<br />
	<strong>Watches and Clocks</strong><br />
	<br />
	The Global Industry Analysts (GIA), Inc predicts that the global market for Watches and Clocks is poised to reach US$46.6 billion and US$5.4 billion, respectively, by the year 2017. In a report &lsquo;Watches and Clocks &ndash; a Global Strategic Business Report&rsquo; released last year, GIA has concluded that the recuperation in demand for luxury watches post recession, robust demand from developing markets especially the Asia-Pacific and rising popularity of fashionable, vintage and innovative models are forecast to drive market growth.<br />
	<br />
	The Nepali market for watches and clocks has been ballooning, say traders. Around 50,000 pieces of branded watches are sold every year in Nepal, according to them. Globally famous watch brands have already started their business in Nepal and are doing well. On the occasion of New Year, New Business Age has approached some top watch brands in the Nepali market. Most famous brands available in Nepal such as Rolex, Rado, Tag Heuer, Omega, Titanic and Esprit will focuse on advertising to attract consumers in the New Year, according to their authorised distributer in Nepal.<br />
	<br />
	<img alt="mobile" src="/userfiles/images/2070-6.jpg" style="width: 400px; height: 269px; margin: 10px;" /><br />
	<strong>Mobile</strong><br />
	<br />
	According to the latest data made available by Nepal Telecommunications Authority (NTA), Nepal&rsquo;s telephone penetration rate reached 70 per cent in mid- December 2012. The mobile handset market will go hand in hand with the mobile penetration rate and the trade in hand-held terminals that<br />
	&nbsp;<br />
	have increased significantly in the last couple of years. The annual transaction of mobile sets in the Nepali market stands at around Rs 13 billion, says president of Mobile Traders Association of Nepal, Purushottam Basnet.<br />
	<br />
	The cheaper series of android phones has created an &lsquo;android revolution&rsquo; in the country, he opines, adding that a mobile set was considered as a sophisticated personal belonging until not long ago, but it has now become an essential commodity.It is obvious the customers who the companies should always take care of, authorised sellers of mobile sets say. According to them, no special package has been developed so far focusing on Nepali New Year but consumers will definitely benefit due to increased competition and presence of many popular brands in the mobile market.<br />
	<br />
	<br />
	<img alt="wear/fashion" src="/userfiles/images/2070-8.jpg" style="margin: 10px;" /><br />
	<strong>Wear/Fashion</strong><br />
	<br />
	The young generation is &lsquo;fashionable&rsquo; and choosy. This generation also tends to emphasize brand value in their spending.It is very smart to follow the latest trends and embrace innovative fashion design. Today, those who can&rsquo;t afford a particular brand, would wait until they can.<br />
	<br />
	Fashion in Nepal is a fast growing industry with increasing events such as fashion weeks or beauty peasants. Now a days, many world famous brands are available in the Nepali market. Lee, Levis, Springwood, Northface, Jeanswest, Pashmina and others brands have succeeded to win the hearts and minds of Nepali consumers in the dress and fashion regime. However, some local designers, too, have made their presence felt.<br />
	<br />
	Dress and fashion-lovers in the town will have reason to cheer in the Nepali New Year because most of the dress brands and outlets are going to offer discount schemes or other packages. But it takes time to know the nature of the offers because brands do not want to reveal their special package in advance, because of competition.<br />
	<br />
	<br />
	&nbsp;<img alt="cosmetic" src="/userfiles/images/2070-11.jpg" style="width: 400px; height: 314px; margin: 10px;" /><br />
	<strong>Cosmetics</strong><br />
	<br />
	The country&rsquo;s cosmetics market has witnessed a rapid growth over the last couple of years. With each passing year, the availability of cosmetic products has increased significantly and the consumption rate has soared. There is no dearth of the world&rsquo;s leading cosmetic brands in the local market. Whatever you want, the market has it. Traders estimate that the country&rsquo;s cosmetic market is worth more than Rs 15 billion annually, and it is growing at the rate of 25-30 percent.<br />
	<br />
	A growing middle class and rising awareness about personal image and hygiene, which has resulted in greater spending on beauty and personal care products, has played a very constructive role on the rise of demand for cosmetic items. From globally recognized brands like Lakme, L&rsquo;Oreal, Garnier, VLCC and Emami to others like Mac&rsquo;s Lavera, Nova, Chase, Astaberry, Lotus and Ayur, the domestic market at current features around 80 brands of cosmetic products. The market is showing continuous growth, says Adhiti Adhikari of Laavanya brand.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>Airlines</strong><br />
	<br />
	Nepal saw a significant growth in air transport after the aviation policy was liberalised in 1992. The annual passenger movement reached around three million in 2012. According to Civil Aviation Authority of Nepal (CAAN), 31 international airlines are operating in Nepal. Similarly, 15 domestic companies, including nine fixed-wing and six helicopter companies, are also in operation.<br />
	<br />
	The prospects look bright with the private sector playing a leading role and investing billions in the industry. Buddha Air and Yeti Airlines have successfully proved their salt in the domestic market while internationally acclaimed companies such as Oman Air, Qatar Air, Jet Airways and Thai Air -- to name a few -- have also served the Nepali travellers well. Domestic airlines are all set to introduce some special packages to customers, international companies will also bring special offers targeting the Nepali New Year. For the time being, keep on guessing what offers domestic and international airlines may bring to attract travelers.<br />
	<br />
	<br />
	<img alt="liquor" height="312" src="/userfiles/images/2070-15.jpg" style="margin: 10px;" width="176" /><br />
	<br />
	<br />
	<strong>Liquor</strong><br />
	<br />
	There is a huge market for alcohol . The demand has been increasing each year due to the rise in household income, which comes from remittance inflows. There have been instances in some districts where most of the remitted money was spent on imported, high premium liquor.<br />
	<br />
	Both domestic and international brands have been doing their business in the Nepali market. Liquor is also a major source of revenue in the country. The overall business of restaurant and bar has decreased due to Mapase (a campaign against drunk-drive launched by Division of Metropolitan Traffic Police); but liquor business is still one of the evergreen sectors in the country.<br />
	<br />
	People had mostly negative perception about liquor in the Nepali society until some years ago. This perception has changed now and alcohol has become a part of daily life now. Whether it is a gathering or a grand party, it is not considered complete without liquor.<br />
	<br />
	Some famous liquor brands such as Antiquity, Ballentine, Royal Stag and Signature have already won the trust of middle class consumers. World-class brands such as Red Label, Black Label and Chivas Regal have also been doing good business in the Nepali market. It is for sure that many of us will be celebrating the occasion sipping of liquor according of our choice.<br />
	<br />
	<br />
	<strong><img alt="paints" height="231" src="/userfiles/images/2070-19.jpg" style="margin: 10px;" width="250" /><br />
	Paints</strong><br />
	<br />
	The paint market has thrived over the years, creating much space for paint companies to expand their market in the country. Rapid urbanisation, construction boom and growing awareness among customers have triggered the demand of paints, giving a leg up to the domestic paint industry, mostly joint ventures and subsidiaries of Indian multinational companies.<br />
	<br />
	The annual domestic demand for paints (including decorative and industrial categories) currently stands at around 40,000 metric tonnes, according to industry sources. The data released by Nepal Rastra Bank, there was a turnover of around Rs 4.10 billion in fiscal year 2011-12.<br />
	<br />
	Despite the slowed demand in the recent days due to recession in the construction sector, m a n u f a c t u r e r s observe that the market is growing. Demand of paint will never go down because a fresh coat of paint is always required even in old houses and people want to change the &nbsp;<br />
	colour to give a different look to their apartments and rooms.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>Housing</strong><br />
	<br />
	Nepal&rsquo;s real estate sector has been in an ailing state for three years now. The real estate and housing industry witnessed a speedy growth (which many say was an unnatural growth) until the Nepal Rastra Bank (NRB), regulator of the country&rsquo;s financial market, suddenly restricted banks&rsquo; lending to the sector in September 2010.<br />
	<br />
	The government planned to purchase houses and apartments for senior civil servants last year. The decision, could give a new lease of life to the cash strapped housing sector, is moving at a snail&rsquo;s pace. However, some positive indication of growth has been seen in the realty sector from the beginning of this year. According to real estate entrepreneurs and housing developers, this business has grown by 33 per cent in the first half of the current fiscal year, compared to the same period in the previous year.<br />
	<br />
	The New Year is expected to bring new hopes and new enthusiasm to the realty sector, opines secretary at Nepal Land ad Housing Developers Association (NLHDA), Bhesh Raj Lohani.<br />
	<br />
	<br />
	<strong>Computers</strong><br />
	<br />
	A study carried out by the Computer Association of Nepal (CAN) last year showed that the computer penetration rate in the country had crossed five per cent. The survey was carried out based on the record of import of computer monitors and branded laptops, according to CAN general secretary Narayan Neupane.The penetration rate at present may have crossed eight percent, he says, adding that the trend of using computers is on the rise since schools, health institutions, clubs and other social groups in the far-flung areas of the country have started using computers for their day-to-day activities.<br />
	<br />
	It is likely that the transaction of overall ICT products will double in the next few years. Internet penetration rate increased to around 23 per cent till mid- December, and the rise of Internet users will have a direct impact on the trade of computers, he claims. High competition among world class brands including HP, Dell, Asus, Compaq, MAC, Sony, Lenovo and Acer have not only contributed to lower the price, due to hard competition, but also have provided quality products to Nepali customers.<br />
	<br />
	&nbsp;</p>
<p>
	&nbsp;</p>
<p>
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;New Year is Definitely a High Season for Passenger Cars&rsquo;<br />
	<br />
	<br />
	<br />
	<img alt="sarik" src="/userfiles/images/SARIK.jpg" style="width: 150px; height: 144px; margin: 10px;" /><br />
	SARIK BOGATI<br />
	<br />
	Head of Marketing, Pooja International (authorised distributer of Volkswagen)</strong><br />
	<br />
	<br />
	<strong>Can you please tell us briefly the overall business scenario of your product in the first quarter of 2013?</strong><br />
	<br />
	The year 2013 seems to be very lucky for Pooja International and the automotive division of Vishal group. Talking about the Volkswagen Brand, we have very good starting with arrivals of fresh 2013 models of Polo and Vento from India. There are many updates in the features like bluetooth in steering control, auto Aircon in Polo, increased leg room, introduction of new colours in cars, new alloys and black headlamps. We have started receiving the New Tiguan, Golf and New Touareg, which are also catching up the market. As a corporate strategy, the automotive division of Vishal Group has expanded its wing in a new segment with acquirement of dealership of &lsquo;Kobelco&rsquo; construction equipment in February 2013.<br />
	<br />
	<br />
	<strong>What possibilities do you see for the business in next quarter, i.e., April- June, 2013 as the Nepali New Year sets in?</strong><br />
	<br />
	New Year and spring season is definitely high seasons for passenger cars. We have so many bankers in queue waiting to upgrade to Volkswagen in this season. Moreover, we will have more cars coming in this quarter from both Germany and India. Now, we can supply the cars to the customers who have been booking and waiting for months. We are very hopeful of the next quarter.<br />
	<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are the main features of your products/brands?</strong><br />
	<br />
	Kobelco construction equipment definitely is an exciting brand and has amazing performance machines which we will offer this year. Moreover, we are expecting some new models and facelifts of Volkswagen coming from India this year.<br />
	<br />
	<br />
	<strong>Can you please provide the price ranges?</strong><br />
	<br />
	We really can&rsquo;t say the price now. But the price would be similar range at what we are offering now.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products/brands more popular especially in the next month: April (Baisakh)?</strong><br />
	<br />
	We would be more focused on branding.</p>
<p>
	&nbsp;</p>
<p>
	&nbsp;</p>
<p>
	<br />
	<br />
	<strong>&lsquo;Toyota Starts to Book New Product Etios Targeting Nepali New Year&rsquo;<br />
	<br />
	<br />
	<img alt="" src="/userfiles/images/SAHARA.jpg" style="width: 150px; height: 151px; margin: 10px;" /><br />
	<br />
	SAHARA KC<br />
	Executive Divisional Manager<br />
	United Traders Syndicate (UTS)<br />
	(authorised dealer of Toyota in Nepal)</strong><br />
	<br />
	<br />
	<strong>Could you please tell briefly the overall business scenario of the produt/brand?</strong><br />
	<br />
	After a hugely successful business year, Toyota now is facing a mild slowdown in terms of sales, which can be ascribed to the recent economic crunch and inability of Toyota to meet the existing demand. The first quarter of this year is almost gone by in the anticipation of launching our new product Etios.<br />
	<br />
	<br />
	<strong>What are the expected returns within the next quarter?</strong><br />
	<br />
	The next quarter is expected to bring a boom in our business with the launch of our highly awaited product Etios. As the Nepali New Year approaches, we will be accepting bookings for the car. Looking at the large number of inquiries about the product, we are expecting a lot of bookings prior to the launch.<br />
	<br />
	<br />
	<img alt="sahara" src="/userfiles/images/sahara1.jpg" style="margin: 10px;" /><br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are the main features of your brands?</strong><br />
	<br />
	As of now, we do not have any new product offering for New Year but we are expecting sales of the product that we have in our offering. Avanza, Hilux, Fortuner, Corolla, Yaris are a few products that we expect to sell more.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products more popular?</strong><br />
	<br />
	Apart from our regular promotional campaigns and promotions for Etios that we will begin from the next month, the launching of Etios will be something the city has never witnessed before. We are focused on making the event an eye catcher for not only our customers and prospects but for anyone who gets a mere glimpse of the event.<br />
	<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;December to January is Considered a Dull Period&rsquo;<br />
	<br />
	<br />
	<img alt="rahul" src="/userfiles/images/RAHUL.jpg" style="width: 150px; height: 143px; margin: 10px;" /><br />
	<br />
	RAHUL DHANUKA<br />
	Brand Manager<br />
	Esprit Watch</strong><br />
	<br />
	<br />
	&nbsp;<br />
	<strong>How do you see the possibility of the business in the next quarter?</strong><br />
	<br />
	With the Nepali New Year approaching, people will certainly start feeling the heat of summer. The watch business is likely to rise because of the change of season. People tend to spend more on watches in summer than in winter. Moreover, the New Year will bring festive mood back. So, people will spend comparatively more than in any other time of the year. We also have the latest collections in store, so watch lovers can try out new collections that will certainly match the latest trend and fashion.<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are main features of your products/ brands?</strong><br />
	<br />
	We have several brands available at all our outlets. Most recently launched brands are Esprit and Pierre Cardin. The brands trendy and casual models. Few most sought other products and brands are: Fossil and Kenith Cole.<br />
	<br />
	<br />
	<strong>Can you please provide price ranges of these brands?</strong><br />
	<br />
	The price ranges from Rs 10000 to Rs15000.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products popular in the next month?</strong><br />
	<br />
	We have three outlets for our products and all of them are located in prime areas like Durbar Marg, City Center and Blue Bird Mall. We are using different branding and promotional strategies. We mainly focus on the print media like different magazines, newspaper, hoarding boards, etc. We have also started targeting our customers through social media like Facebook and Twitter. Fan pages on facebook have helped us a great deal to attract young mass towards our products.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;Today is What Technology Stays on, Tomorrow is Where it Moves Ahead&rsquo;</strong><br />
	&nbsp;</p>
<p>
	<img alt="sachin" src="/userfiles/images/SACHIN.jpg" style="width: 150px; height: 148px; margin: 10px;" /><br />
	<br />
	<strong>SACHIN UDAS<br />
	Marketing Manager, Teletalk (authorised distributer of Colors Mobile)</strong><br />
	<br />
	<br />
	<br />
	Colors is one of the most popular mobile set brands in the country. It has full ranges of mobile phones from basic level to touch-based lifestyle phones, along with CDMA and hi-end smartphones. Colors is a reliable brand with one year of warranty.Colors has the largest network with 18 service centres from East to West. Colors operates after-service follow-ups to assure customers are satisfied with the products.<br />
	<br />
	Colors brand believes in value transferring. We have four major series of Phone: Fighter, Lifestyle and Touch, CDMA and X-factor series. Fighter series consists bar phones with basic features, which can play MP3/ MP4. Fighter series is very popular all over the country. Lifestyle and Touch Series offers multi media facilities like touch screen. Colors&rsquo;s has introduced smartphones under X-factor series. In less than a year, the company has taken good market share of smartphones.We will have entry level android phones, which we want in every teen&rsquo;s hand so that they can explore different apps that are useful in learning languages and also for other purposes. We believe that the android is the key for Nepali teens to experience and explore possibilities of technology.<br />
	<br />
	Colors&rsquo;s X-factor tablets will be soon arriving to the market. It will come in 7 inch and 8 inch screen sizes with 3G SIM compatibility.&nbsp; Colors brand believes that today is what technology stays on, tomorrow is where it moves ahead.<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;New Year is Expected to Bring New rays in Summer Sale&rsquo;<br />
	<br />
	<img alt="achal" src="/userfiles/images/ACHAL.jpg" style="width: 150px; height: 164px; margin: 10px;" /><br />
	ACHAL AGARWAL<br />
	Director<br />
	JeansWest, Nepal</strong><br />
	<br />
	<br />
	<br />
	<strong>Can you tell us briefly the overall business scenario of your products in the first quarter of 2013?</strong><br />
	<br />
	The overall business scenario was very exciting during the first quarter. It has been two years since we introduced our brand in Nepal and people have responded well to the product.<br />
	<br />
	<br />
	<strong>What possibilities do you see for the business in next quarter as the Nepali New Year sets in?</strong><br />
	<br />
	We expect a good sale during April-June since it is summer and people come to buy summer goods.<br />
	<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are their main features?</strong><br />
	<br />
	We have lots of products including T-shirts, half shirts, quarter pants, pants and summer jeans (for men and women) in the New Year.<br />
	<br />
	The main features of our brand are:<br />
	<br />
	a. Company controlled prices: This has become one of the major factors behind our brand to be so successful within such a short span of time. Our products are almost 30 per cent less priced than the similar kind of goods in the market.<br />
	b. Quality: JeansWest is known for its quality in Australia and worldwide markets.<br />
	c. Brand: JeansWest is a very big brand of Australia and so people know about this brand making it very easy for us to get established in the market.<br />
	d. Variety: At JeansWest, we have a very wide range of products.<br />
	e. Size and Fit: JeansWest products have been received well in the Nepali market because of their sizes and fittings for Nepali people.<br />
	<br />
	<br />
	<br />
	<strong>Can you please provide price ranges of the same?</strong><br />
	<br />
	Price ranges from Rs 990 to Rs 4000.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products more popular in the New Year 2070 BS?</strong><br />
	<br />
	Paper media and hoarding boards will be our main marketing strategies in the New Year.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;Customer Satisfaction is a Must to Make Products Popular and Desirable&rsquo;<br />
	<br />
	<br />
	<br />
	<img alt="dilip" src="/userfiles/images/DILIP.jpg" style="width: 150px; height: 168px; margin: 10px;" /><br />
	DILIP KC<br />
	Sports Plaza Pvt Ltd<br />
	(Authorised distributer of Reebok, Rockport and Lee brands)</strong><br />
	<br />
	<br />
	<br />
	&nbsp;<br />
	<strong>Could you please tell us briefly the overall business scenario of products in the first quarter of 2013?</strong><br />
	<br />
	Sports Plaza Pvt Ltd covers Reebok, Rockport and Lee brands, which are one of the best apparel and footwear brands in the world. January 2013 sets in with winter at its peak and as the brand covers an entire range of winter apparels, footwear and accessories, we do not need to worry much about sales and acceptance of our products by our customers. These are world class products with the best designers putting in latest trends in fashion and comfort. They also involve new technologies in footwear and even in fabrics, not available in general.<br />
	<br />
	<br />
	<strong>How do you see the possibility of the business in the next quarter as the Nepali New Year sets in?</strong><br />
	<br />
	We are very optimistic about the business in the next quarter, when we will put our summer arrivals on display, welcoming spring summer with latest and the best in designs and the quality fabrics best suited for our customers. The lightweight footwear and air flow technologies are ultimate in comfort and style. We are sure of high sales volumes in spite of tough competition from other brands.<br />
	<br />
	<br />
	<strong>What are the main features of your products?</strong><br />
	<br />
	As already mentioned, Reebok is a premium sports brand always putting in highest standards of quality and workmanship, both on their footwear and sports apparels. The main features are light weight and best quality fabrics available in the industry with the latest technologies that goes into making them. To mention a few, the fabrics are play dry, which keep our body cool even in peak summer, zig fabrics which are proven to give back the energy dissipated from the body during workouts and exercising and the easy tone range &ndash; helping to tone the body muscles.<br />
	<br />
	Rockport is a trendy leather footwear range for men offering great style and comfort. Also the high technologies that go into Leather processing, The sole, and the workmanship required to make them. Lee is a casual fashion brand with best Denims and cottons available in the market. The designs, quality and price range has been well accepted in the market.<br />
	<br />
	<br />
	<br />
	<strong>Can you please provide the price ranges?</strong><br />
	<br />
	As there are many varieties of products, it would not be possible to cover the prices on this short space. However, if you want prices for some specific product range, we shall be glad to provide the same.<br />
	<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products/brands more popular?</strong><br />
	<br />
	We strongly believe that our customers&rsquo; satisfaction is the most desired strategy that would make our products popular and desirable. However, we can never undervalue the great cooperation and good wishes of our media friends from all publishing houses and advertising agencies, who have worked hard making great designs and offering us the best coverage available.<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;We Want to Strengthen Laavanya Brand in the Coming Year&rsquo;<br />
	<br />
	<br />
	<br />
	<img alt="aditi" src="/userfiles/images/ADITI.jpg" style="width: 150px; height: 143px; margin: 10px;" /><br />
	ADITI BHATTARAI<br />
	Business Development Manager Laavanya Luxury Ayurveda</strong><br />
	<br />
	<br />
	<strong>Can you tell us briefly the overall business scenario of your brand in the first quarter of 2013?</strong><br />
	<br />
	This quarter has been significant for the company as we celebrated our first anniversary in February along with the commercial launch of our sales in the United States. This event has reinforced the strength of Laavanya as both national and international brand. We want to build on this perception and strengthen the brand further for the year.<br />
	<br />
	<br />
	<strong>What possibilities do you see for the business in next quarter, i.e., April- June, 2013 as the Nepali New Year sets in?</strong><br />
	<br />
	April to June is a special season for all our products because we have special events like New Year and wedding season of Baisakh and Asadh. Our products make great gifts for occasions like these. Our cleansing products like the Royal Saffron Ubtan (known as Bukuwa in Nepali) have special significance on wedding rituals and can be used by the brides (and their families) for beautifying as well as religious purposes. Last year, this period brought us the best sales and business prospects in the entire year.<br />
	<br />
	<br />
	<strong>What are your best products and brands to offer this New Year? What are their main features?</strong><br />
	<br />
	Taking the season into consideration, we will be promoting our cleanser, face mask and moisturizers this quarter. The cleanser (Royal Saffron Ubtan) and Face Mask (Mukha Kantibarkdhak Powder) are designed for all skin types and are beneficial in windy season, especially in Kathmandu where the effects of dirt from the street impact the skin directly. These products gently remove dirt particles and leftover make up, can be used daily.<br />
	<br />
	<br />
	<strong>Can you please provide price ranges of those products?</strong><br />
	<br />
	Royal Saffron Ubtan-Rs 1250<br />
	Mukha Kantibardhak Powder-Rs 1250<br />
	Radiance Cream-Rs 1650<br />
	Deep Nourishing Cream-Rs 1950<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products/brands more popular especially in the next month?</strong><br />
	<br />
	We mostly focused on personal selling and word-of-mouth publicity this past year. In this quarter, we will be focusing on advertising through the print media and social media. We have used social media effectively in conveying the benefits of Ayurveda and our products and how and when to use them, we want to give continuity to that. We will also offer a special discount offer for New Year.<br />
	<br />
	&nbsp;</p>
<p>
	<br />
	<strong>&lsquo;Overall Business scenario is Good in the First Half of the Current FY&rsquo;</strong></p>
<p>
	&nbsp;</p>
<p>
	<img alt="bhesh raj lohani" src="/userfiles/images/bhesraj.jpg" style="width: 150px; height: 167px; margin: 10px;" /><br />
	<strong>BHESH RAJ LOHANI<br />
	Managing Director<br />
	Green Hill City Pvt Ltd</strong><br />
	<br />
	<br />
	<br />
	<strong>How is overall business of housing sector?</strong><br />
	<br />
	Green Hill City is the largest housing industry in Nepal. It will be developing around 800 units in 320 ropanies of land. As regarding the overall business scenario the product sellings are quite good in the first half of the current fiscal year. Out of 490 units constructed by the company, 130 units have been sold and ownership of 96 units had already been transferred.<br />
	<br />
	<br />
	<strong>What are the main features of Green Hill City&rsquo;s products?</strong><br />
	<br />
	We have two different products: acquiring land and constructing houses by consumers themselves and purchasing completed houses. Green Hill City is committed to providing quality services and best housing products to its customers. We have targeted all types of consumers ranging from the middle class to the upper class.<br />
	<br />
	<br />
	<strong>Can you please provide price ranges?</strong><br />
	<br />
	The price of housing units and colonies constructed by Green Hill City ranges from Rs 6.7 million to 30 million.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make your products more popular?</strong><br />
	<br />
	Till date we have been promoting our publicity strategies through newspaper advertisements, TV promos and hoarding board. The next campaign consist of a number of sales executive going the various corporate house providing the information about the products through direct marketing by the help of brochure and flyers.<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;Nerolac Produces Many Ranges of Products&rsquo;</strong></p>
<p>
	&nbsp;</p>
<p>
	<br />
	<img alt="rajendra" src="/userfiles/images/rajendra.jpg" style="width: 150px; height: 232px; margin: 10px;" /><br />
	<strong>RAJENDRA DESAI<br />
	Country Head<br />
	Nerolac Paints</strong><br />
	<br />
	<br />
	Considering the market&rsquo;s feedback, the paint market is opening and the season is starting after the winter. Cold weather is almost gone and we see a bright sun every day, which will help to increase the sales of paints and allied products. The construction activities are in full swing, these means an increased demands of paints. Paint sales in the first quarter will be much higher than in the last quarter, and it is expected that the trend will continue in the coming months. We will have 3 per cent more than last year. We have started producing various ranges of Nerolac products, along with existing range of Nepal Shalimar brands. We are keen to market super premium products both for exterior and interior use.<br />
	<br />
	<br />
	<br />
	<br />
	<strong>&lsquo;ICT Market is Always Looking to Give Better and more Suitable technology&rsquo;<br />
	<br />
	<br />
	<img alt="" src="/userfiles/images/nabin.jpg" style="width: 150px; height: 160px; margin: 10px;" /><br />
	NABIN JOSHI<br />
	Assistant General Manager<br />
	Astral Computers Nepal Pvt Ltd</strong><br />
	<br />
	<br />
	<strong>Can you please tell briefly the overall business scenario of the ICT products in the first quarter of 2013?</strong><br />
	<br />
	The first three months seem good in terms of business prospects. Because the CAN InfoTech 2013 was held in the same quarter, the promotion of IT business was better compared to previous quarters. Due to CAN InfoTech, we were able to reach the end user as well as corporate customers. Therefore overall business scenario of ICT products looks bright.<br />
	<br />
	<br />
	<strong>How do you see the possibility of the business in the next quarter?</strong><br />
	<br />
	Along with consumers&rsquo; positive perception, ICT sector needs favorable and appropriate policies to grow. Despite of all above causes, the purchasing trend from organisations has increased. So, we are expecting the same situation, even with better possibilities in the next quarter.<br />
	<br />
	<br />
	<strong>What are your publicity strategies to make ICT products more popular?</strong><br />
	<br />
	Nepal&rsquo;s IT market is price driven. However, ICT products do not adapt to a single strategy for better publicity.<br />
	Apart from price, we also educate customers and suggest them the right product to enhance the productivity. Educating customers means building long term relationships, which enables to win their trust. In order to get more publicity about our products, we are trying to reach more and more customers, listening to their requirements and suggesting them the best option.<br />
	<br />
	<br />
	&nbsp;</p>',
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			'description' => 'Outlets of the world’s most famous brands have already started doing their business in Kathmandu providing consumers chances of more choices and selections. The powerful combination of sophistication in use of goods, changing lifestyle in the urban area and consumers’ access to information created by information and technology have brought about an unprecedented shift in the consumers’ brand use habit.',
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			'id' => '946',
			'article_category_id' => '38',
			'title' => 'Why Employees Leave An Organization?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<strong>By Nibha Shakya</strong></p>
<p>
	One of the major parts of HR relates to attrition. HR professionals from diverse organization came together on February 27, 2013 for HR Kurakani to discuss why an employee really leaves the organization and how it can be managed and controlled. The programme was organised jointly by Real Solutions and Hotel Annapurna. The major points raised during the programme were as follows:&nbsp;</p>
<p>
	<strong>REASONS:</strong></p>
<p>
	<strong>Relation with boss</strong></p>
<p>
	Employees don’t leave the job, they leave the manager. If employees don’t like the manager’s leadership style, management style or can not tune up with their immediate managers, they prefer leaving the job, despite they are well paid. So, relationship with their boss has been major reason cited for employee leaving the organization.&nbsp;</p>
<p>
	<strong>No Career Progression</strong></p>
<p>
	Most likely, employees leaving the organization are good employees. They would leave if they found that they have no opportunity of growth or career progression or they are not recognized for their performance.</p>
<p>
	<strong>High Stress Level</strong></p>
<p>
	People leave the job because of high stress level. Though remuneration is good, they tend to move because of high work pressure.&nbsp;</p>
<p>
	<strong>Poor Communication</strong></p>
<p>
	Communication plays an important role. The clarity of goal, task, grievances etc if not communicated well between management and employee, there’s chance of HR turnover.&nbsp;</p>
<p>
	<strong>Remuneration and Benefits</strong></p>
<p>
	If the salary paid is not commensurate with the role of the employee, there is tendency of leaving the job. Monotonous job, no clear reporting line, no harmony between old and new employees, &nbsp;lack of clarity in policies etc could be other reasons behind employee leaving the organization.&nbsp;</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>POSSIBLE SOLUTIONS:</strong></p>
<p>
	<strong>Each manager is a HR Manager &nbsp;</strong></p>
<ul>
	<li>
		HR has major role in making One to One Meeting between manager and employee. The instruction should be provided by HR to both the manager and employee before such a meeting as how and what should be discussed. Such meeting can be conduced in a regular basis. It helps to clear communication and solve any problems beforehand.&nbsp;</li>
	<li>
		Patting on the back appreciating employee’s effort, emotional support during their hard time, understanding employee’s perspective are few examples that help create a bond among the employees. This helps in retaining the employees.&nbsp;</li>
	<li>
		The directing quality, inspiring, delegating, communication ability of boss etc matter a lot in employee retention. So, leadership of the manager plays a crucial role. Similarly, the employee also needs to have capability to understand the boss’s perspective. Likewise, the manager need to remain updated.&nbsp;</li>
</ul>
<p>
	<strong>Recruitment and Selection</strong></p>
<p>
	Similarly, right recruitment and selection helps in retaining employees. If right employees are placed in right place, there is less chance of turnover.&nbsp;</p>
<p>
	<strong>Competitive Remuneration and Benefits</strong></p>
<p>
	Salaries should be aligned with the job responsibilities. Likewise, more customized benefits (that would give benefits to the employees as well as to their family) would help in retention.&nbsp;</p>
<p>
	<strong>Tactful and Staff Care</strong></p>
<p>
	HR professional should be tactful in dealing conflict and complaints of employees. They should be proactive in solving any issue before it comes up. Likewise, HR professionals need to work as facilitators in various ways. Proper practice of staff care and stress management helps in minimizing the employee turnover as they would feel valued.&nbsp;</p>
<p>
	<strong>Culture and Environment&nbsp;</strong></p>
<p>
	Also the Culture and environment of &nbsp;the organization play an important role in decision of leaving and staying with the organization. Working environment with good team, handful resources, good behaviour and learning and sharing session help in retaining the employees.&nbsp;</p>
<p>
	<strong>Exit Interview</strong></p>
<p>
	Exit Interview would bring many insights on various issues of the organization from leadership role to operation level discrepancies. Effective exit interview helps identify the reason behind leaving and other improvement factors which would be beneficial for the organization. The findings can be analyzed and improvement can be made as necessary.&nbsp;</p>
<p>
	Attrition upto certain level is healthy but high attrition would hamper overall performance of the organization. Understanding reasons on employee leaving the organization and taking corrective actions from HR and &nbsp;top management would help in minimizing employee turnover in the organization.&nbsp;</p>
<p>
	<img alt="Management, April 2013" height="624" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/management_april2013.jpg" width="317" /></p>
<p>
	<span style="font-size:10px;">Shakya is Sr HR Executive at Real Solutions.</span></p>
<div>
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			'description' => 'HR professional should be tactful in dealing conflict and complaints of employees. They should be proactive in solving any issue before it comes up.',
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		'Article' => array(
			'id' => '945',
			'article_category_id' => '34',
			'title' => 'Financial Literacy Initiative To Kick-off In Mid-April',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img alt="Financial Literacy Initiative, April 2013" height="172" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/biz_news_financial_literacy_initiative.jpg" width="380" /></p>
<p>
	Month-long Financial Literacy Initiative (FLI) will start in mid-April. It is an initiative taken for the first time in Nepal by Center for Economic and Financial Studies (CEFS), says coordinator of the initiative Olin Thakur. New Business Age Pvt Ltd will contribute to the event as an official media partner. “Financial Literacy Month Celebration” is a part of Financial Literacy Initiative, Thakur says, adding that the celebration includes various workshops, quiz/essay competitions, round table discussions, award distributions and various other financial awareness activities in various places across the nation.</p>
<p>
	“Financial literacy is the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/she invests it (turn it into more) and how that person donates it to help others,” according to organiser.Financial literacy encompasses both knowing about money matters and being equipped to utilize that knowledge by applying it across a range of contexts. What a person needs to know to be financially literate will vary depending upon their circumstances and needs.&nbsp;</p>
<p>
	Generally, however, it will involve an understanding of a person’s own values and priorities, budgeting, savings and how to manage money, credit, the importance of insurance and protecting against risk, investment basics and retirement planning along with others.</p>
<p>
	<strong>Why is it Important in context of Nepal?</strong></p>
<p>
	Good financial literacy skills help individuals and families make the most of opportunities, meet their goals and secure their financial wellbeing, as well as contribute to the economic health of society, Thakur claims. “Improved financial literacy can increase economic participation and social inclusion, drive competition and market efficiency in the financial services sector, and potentially reduce regulatory intervention.”</p>
<p>
	Individuals and households must have the tools to cope with the increasingly complex world of financial instruments. Moreover, financial education ensures poverty reduction and economic growth facility. So, financial literacy is becoming more necessary. Nevertheless, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources. Raising interest in personal finance is now a focus program in most countries around the globe, according to organiser.</p>
<p>
	Organiser says that Financial Literacy Initiative is to help Nepali people in understanding and addressing financial matters, and thereby contribute financial wellbeing; to promote and enhance financial capability among each; to enhance the present knowledge base; to manage financial resources effectively; to empower individuals to make informed choices, avoid pitfalls, know where to go for help; and take other actions to improve their present and long-term financial well-being.</p>
<p>
	“We believe that Financial literacy Initiative will be very crucial in helping the Nepali citizens of various age groups of Nepal to understand and adjust to the situation in which they are now to help them acknowledge themselves in a wiser way and find the loopholes and the gaps in their way of doing micro-macro financial transactions in their day to day lives,” Thakur further added.</p>
<p>
	<strong>Bridging Gaps&nbsp;</strong></p>
<p>
	It aims at facilitating them to bridge the gaps in their financial knowledge and understanding as well as enable them to manage their day to day transactions and future planning in a cost-time efficient ways be it the transaction of a rupee or a million. The event page can be found at social network website facebook by clicking: www.facebook.com/flinepal or official website of Center for Economic and Financial Studies (CEFS).</p>',
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			'description' => 'Financial literacy encompasses both knowing about money matters and being equipped to utilize that knowledge by applying it across a range of contexts. What a person needs to know to be financially literate will vary depending upon their circumstances and needs.',
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	(int) 10 => array(
		'Article' => array(
			'id' => '943',
			'article_category_id' => '52',
			'title' => 'Private Sector Concerns',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	Nepal’s private sector has been constantly undermined, ignored or often humiliated by the State for long. Even after restoration of peace seven years ago, things hardly changed for better. So much so, the newly installed ‘election’ government too doesn’t seem much concerned about predicaments the business and industry sectors of the country are currently faced with.</p>
<p style="text-align: justify;">
	All communist party literatures, most prominently of the Maoist Party, unrelentingly criticized the form of the government what their jargon said to be of a ‘bourgeois comprador’, the state of the State run by the rent-seeking elites and bureaucrats. But it is the very Maoist Party which played the most crucial role to form the present government comprising of only former bureaucrats. This was a complete anti-thesis to their sworn doctrine. And, it was but natural for ‘bourgeois compradors’ not to listen to the private sector entrepreneurs.&nbsp;</p>
<p style="text-align: justify;">
	In the run up to form new government, headed by incumbent Chief Justice of the Supreme Court, Khil Raj Regmi, four major political parties signed an 11-point agreement. Sadly, that document didn’t incorporate even a single sentence regarding the sorry state of the economy and prescription to reinvigorate it. FNCCI, the umbrella organization of Nepali businesses and industries, however, protested against this apparent apathy of the country’s major political forces and supposedly apolitical government now at the helm of affairs. But materially not much change seems to be in the offing.&nbsp;</p>
<p style="text-align: justify;">
	Similarly, next thing the Maoists after coming to power in 2008 professed was protecting the ‘nationalist’ businesses. But, in practice, it is the only nationalist businessmen and industrialists that they have selectively made to suffer. The business people who had created businesses and had links to other countries, primarily India, have already shifted to their businesses or wealth. Only those who chose to work here and die here, or the most nationalist ones, are subjected to suffer day in and day out. And, nobody cares.</p>
<p style="text-align: justify;">
	Surprisingly, political parties other than the Maoist have also maintained a suspicious silence on economic issues like increased infringement of private property rights and rapidly deteriorating business climate of the country. &nbsp;The present government is also likely to shirk away from responsibility of doing its bit in the guise of just being an election government. The fact is: the economy should be a continuous priority regardless of any nature of government that comes in or goes out, with whatever pretext. But, alas; this has not been the case for Nepal.</p>
<p style="text-align: justify;">
	One of the major concerns of the private sector has been the politically protected, rampant corruption in the financial administration of the country. But, the Maoist Party now seems to have engaged in indirect form of extortion by using highly corrupt bureaucrats. One of the recent media reports suggests that a few notably corrupt officials under political protection of the Party are deliberately inflicting pain on some businesspersons by making them to make rounds to the revenue investigation office, without framing any charges. Maoists’ pick to head the anti-corruption constitutional body-the Commission for the Investigation of Abuse of Authority- has surprised many.</p>
<p style="text-align: justify;">
	These things have longer repercussions in the country’s business environment. &nbsp;Nepal is already in the red area of the ‘doing business’ and ‘private property rights’ indices. According to an estimate by the business community, some 150,000 large or medium level Nepali business households have fled the country to settle and start business abroad during last one decade.&nbsp;</p>
<p style="text-align: justify;">
	These realities must be of concern to the parties that provide leadership to the country. But, now it appears as if improving the country’s businesses climate is not in any party’s agenda. This also implies that the Nepali private sector, at least for some time to come, have to depend on whatever little they can do on their own and contribute to make things better. One of the appropriate medium of such contribution could be the elections themselves where they can advocate and vote for the party which is better in terms of creating a business-friendly climate in Nepal. They can’t just keep complaining and doing nothing meaningful.</p>
<div>
	 </div>',
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			'description' => 'Nepal’s private sector has been constantly undermined, ignored or often humiliated by the State for long. Even after restoration of peace seven years ago, things hardly changed for better.',
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	(int) 11 => array(
		'Article' => array(
			'id' => '942',
			'article_category_id' => '31',
			'title' => '‘I Have Identified Planning As A Major Weakness In Most Companies’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="">
	Volker Kleinn is a management expert with a degree in business administration from a German university that he says is about equivalent to MBA. He has held senior managerial positions in American multinationals such as Digital Equipment Corporation (known as DEC which was acquired by Compaq which in turn merged with HP in 2002), Apollo Computer (a leading manufacturer of network workstations until acquired by HP in 1989 and gradually closed down over the next eight years) and Autodesk (Still a major multinational software manufacturer) in Europe and the Asia-Pacific. Retired from an active career more than a decade ago, Volker, nevertheless, finds time to help companies in the developing world to improve their management. He has been visiting Nepal regularly since the early 2000s through the Senior Expert Corp (SCE) programme of the Swisscontact and has helped more than a dozen Nepali companies from different sectors. Volker talked with New Business Age when he was in Kathmandu recently for a similar purpose.</p>
<p style="">
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	 </p>
<p style="">
	<strong>You have been helping private firms, particularly in the developing world, with management issues. How and when did you start this?</strong></p>
<p style="">
	After I retired, I decided to work on a voluntary basis with entrepreneurs and enterprises in the developing countries. This way I wanted to give something back to society. My idea was to contribute to reduce the migration pressure by helping companies in the developing countries to maintain or create employment. So, I registered with the Senior Expert Corps of Swisscontact and through them I came to Nepal.</p>
<p style="">
	<strong>Could you share with us the common problems faced by companies in the developing world?</strong></p>
<p style="">
	In the industrialized countries with predominantly market economies, business management talent has been developed over a long time and therefore there is an established talent pool for management. In the developing countries (especially in Eastern Europe), market economies did not exist for a long time and therefore there still is not a big enough talent pool for management. Any management role requires creativity, initiative and drive. A manager needs to accept responsibility, accountability and I am glad to note, that there are more and more people here in Nepal who are willing to step up to this requirement.&nbsp;</p>
<p style="">
	<strong>Which Nepali companies have you already helped to improve their management?</strong></p>
<p style="">
	Let me not mention names, but I have been working in several industries, such as IT, Communication, Trading, Media, etc. and I also have been giving management training courses at different organizations.&nbsp;</p>
<p style="">
	<strong>What problems do you find in the Nepali companies which you have already worked with?</strong></p>
<p style="">
	For me management is a continuous cycle of Planning, Organizing, Monitoring and Controlling. I have identified Planning as a major weakness in most companies. Operational plans and budgets often do not exist. Since I am convinced that you can only mange what you measure, it is very difficult to evaluate the success of any business if there is no goal or plan to compare performance to. As a consequence, management is in most cases is re-active rather than pro-active, which means that managers are not rally managing but rather getting managed by their environment and circumstances.</p>
<p style="">
	The second area that needs a lot of improvement in most of the companies I have worked with is Management Information. I think it is common knowledge that you do accounting not only for shareholder or tax purposes, but also for management purposes. I have experienced, that most companies give priority to tax requirements. Also, a lot of record keeping is still done manually. These facts make it often very difficult to use financial information for management purposes.</p>
<p style="">
	In addition, I am very concerned about the sustainability of my efforts to help. I have often observed what I call ‘the rubber band syndrome’. This means changes are initiated while I am here, i.e. when the rubber band is under tension, but as soon as I leave, i.e. the rubber band is released, things flip back to the old position. One has to keep in mind that the human brain is change-resistant. That means it requires a constant flow of energy to make changes sustainable.&nbsp;</p>
<p style="">
	It’s apparently been nearly a decade since you started advising Nepali private sector companies on management issues. What do you think of Nepal’s private sector?</p>
<p style="">
	The private sector has made the economy function under what are not very favourite conditions. Everywhere in the world, you can see that the biggest roadblocks for development are corruption and unreliable legal system. Both factors have an impact on the business opportunities that the private sector can pursue.&nbsp;</p>
<p style="">
	<strong>What are the strengths and weaknesses of the Nepali private sector?</strong></p>
<p style="">
	The private sector is divided into two major categories. On the one hand, there are family-owned businesses, which are mostly hierarchically (or paternalistically) organized. These companies tend to maintain limited transparency. On the other, there are newly founded companies which are trying to be more open, but sometimes lack the courage for the degree of openness as Western companies normally practice. This means that I consider the lack of delegation of authority, i.e. empowerment of senior managers as a weakness of the private sector.&nbsp;</p>
<p style="">
	<strong>What are the areas that the Nepali companies need to work on to improve their overall management?</strong></p>
<p style="">
	I have experienced a big gap between shareholders (owners) who are often also the most senior managers and the managers who are not owners. This is often because of the lack of confidence and trust. It would be helpful if professional managers were trusted more to contribute in terms of planning and execution. Empowerment of people is important throughout the organization, but it is more important with regard to the top professional managers. I believe that the time is over where information was considered as power. I am convinced that information creates responsibility and therefor owners should be encouraged to be more transparent vis-a-vis their managers with regard to information about strategy and performance.</p>
<p style="">
	In almost all companies I have worked in, I was told that it is difficult to find competent mangers. I know that there are a lot of Nepalis working as expatriates abroad and gaining international management experience. It would be helpful in my opinion if a campaign is started to offer senior positions for expats who want to come home. News- and job-portals could create a special section to attract experienced people to return. On the other hand, it is alarming that most of the college graduates aspire to leave the country. This represents a skill drain which will have a long-term negative impact on businesses here in the country.&nbsp;</p>
<p style="">
	<strong>What is your impression of the spirit of entrepreneurship in Nepal and the Nepali entrepreneurs?</strong></p>
<p style="">
	Based on my observation, the environment in Nepal is not very conducive to entrepreneurial behaviour. Starting a business here is still burdened with bureaucratic requirements. I believe that this is one of the major reasons why well-educated and talented people are leaving the country.</p>
<p style="">
	<strong>How do you rate the work culture in the organizations you have worked in? What improvements have you usually suggested?</strong></p>
<p style="">
	Empowerment of employees is not very common. The organizations are mostly very hierarchically organized and people rather ask their superiors for taking a decision than deciding for themselves. This is very often a sign of insecurity and lack of self-confidence, but it could also be caused by the unwillingness to accept responsibility.</p>
<p style="">
	<strong>How can private sector companies incentivize the performance of their marketing folks in Nepali context?</strong></p>
<p style="">
	When you say marketing folks I assume that you mean sales people. Sales people around the world are normally incentivized by an incentive compensation plan that rewards good performance. Good performance means meeting or exceeding your target. In the organizations that I was responsible for during my professional career, I had always implemented a plan that rewarded over goal performance proportionally. I was always proud when the best sales people earned more than I did.</p>
<p style="">
	<strong>What sort of good HR practices need to be evolved in the Nepali private sector? Do these practices differ from sector to sector?&nbsp;</strong></p>
<p style="">
	There are certain basic HR practices that should be common in every company. These practices relate to work ethics, loyalty to your employer, confidentiality and attendance discipline. There are other areas where practices would differ, especially in sectors with shift work or other special requirements like workplace security. Attendance discipline is obviously difficult to implement with the frequent bandhs where a few people hold a whole country hostage. This has an enormous negative impact on the productivity and therefore the competitiveness of the private sector.</p>
<p style="">
	<strong>What sort of socio-political environment you find in Nepal in the context of the growth of enterprises? What are the impediments and how to ameliorate the situation ahead?&nbsp;</strong></p>
<p style="">
	Let me just mention two points that come to mind immediately.</p>
<ul>
	<li style="">
		The lack of a functioning mail system requires hand delivery by messengers of a lot of documents, such as newspapers, letters, invoices, etc.</li>
	<li style="">
		Cashless payment systems are not very efficient or customary. This again employs a lot of messengers, who have to collect often cash and sometimes cheques. This keeps a lot of motor bikes on the roads all day.&nbsp;</li>
</ul>',
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			'description' => 'Volker Kleinn is a management expert with a degree in business administration from a German university that he says is about equivalent to MBA. Volker talked with New Business Age when he was in Kathmandu recently for a similar purpose.',
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	(int) 12 => array(
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			'id' => '940',
			'article_category_id' => '37',
			'title' => 'Why Are Most Domestic Airlines Running In Loss?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Akhilesh Tripathi</strong></p>
<p style="text-align: justify;">
	Leaving a few as exceptions, most domestic private sector airlines in Nepal are not in sound financial health. In fact, a majority of them have always been struggling for survival. The list of Nepali private airlines closed down so far is a long one, carrying well over a dozen names of which a few grounded their fleet and downed their shutters after flying in the Nepali sky for as long as a decade. Examples are Necon Air and Cosmic Air. Their contemporaries &nbsp;such as Skyline Air, Shangril-Lai Air, Mountain Air, Nepal Airways, Lumbini Air, Everest Air – to name a few – were also closed down.&nbsp;</p>
<p style="text-align: justify;">
	Many – five dozen to be exact - haven’t started their operations despite receiving the Airline Operator’s Certificate (AOC) from the Civil Aviation Authority of Nepal (CAAN) many years ago. They are airlines on paper only. Understandably, the biggest deterrent for them is the collapse of several airlines in the past. There is no doubt that the present of the domestic aviation industry has improved, but not enough. A few airlines are really doing well – but they are oonly a few. Others are in the red, according to a highly-placed source at CAAN. Recently, two airlines have been in problems – Agni Air and Guna Air. The latter was acquired by Simirik Air, a helicopter service provider, which rebranded it as Simrik Airlines and launched its domestic flights. &nbsp;</p>
<p style="text-align: justify;">
	The Number One airline (Buddha Air) at present is far ahead the Number Two (Yeti Airlines) in terms of the number of passengers carried as well as the profit made annually. And there is always a stiff competition among a couple of other private airlines for the Number Three position in the domestic aviation market which has all together 15 private airlines (nine fixed-wing and six rotary-wing) in operation at present. Of the total 1.6 million domestic air passengers in 2012, the Number One airline carried more than 800,000 and also made, according to knowledgeable sources, more than Rs 4 billion in profit. The remaining Rs 3 billion of the annual business was shared by the remaining 14 airlines. That speaks volumes about how profitable some of them might just be!</p>
<p style="text-align: justify;">
	Ever since the country adopted a liberal aviation policy in 1992, the number of companies seeking and receiving AOC has been rising year on year. However, sustainability has been a major problem for them. “Four of the nine fixed-wing airlines and three of the six rotary-wing airlines operational at present are in profit. Others are in loss,” reveals the CAAN source.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Why?</strong></p>
<p style="text-align: justify;">
	Why civil aviation is yet to become a profitable business for a majority of the private airlines operational at present? Is the number of airlines more than the market can actually sustain? Why so many airlines have failed? And why do others face the risk of failure? Nubiz sought answers to these questions from four experts of Nepal’s aviation industry: T R Manandhar (Director General of CAAN), Saral Shamser Rana (Deputy Marketing Director of Yeti Airlines), Manoj Karki (Managing Director of Goma Airlines) and Pradeep Shrestha (CEO of Air Kasthamandap). This is how they answered these questions:</p>
<div style="text-align: justify;">
	<strong>‘Airlines should go for mergers’</strong></div>
<div style="text-align: justify;">
	<strong><br />
	</strong></div>
<div>
	<div style="text-align: justify;">
		Yes, it’s true that several airlines have closed down, mainly because of financial reasons, in the past. We have also heard complaints that the number of airlines is more than the market can actually sustain. Therefore, the government has made the Airline Operator’s Certificate Requirements (AOCR) more stringent a couple of months back. Now, no AOC will be issued unless the airline procures the aircraft. Though we have adopted a liberal aviation policy, we don’t encourage companies to enter the aviation industry at the moment, unless they have serious, long-term plans supported by adequate capital base. There are three airlines operating scheduled flights on the trunk routes at present. Two more, Namaste Air and Blue Airways, have applied for scheduled domestic operations on the trunk routes; they are in the process of procuring aircraft.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The main reason why so many domestic airlines collapsed and why many others are incurring a loss is low capital base and lack of long-term planning. Everyone planning an airline company should be clear that it requires huge investments and the operating cost is also very high which means the promoters need deep pockets. The airlines which are operating chartered flights to the remote areas are in loss. That’s why we have started building paved runways at airports in the rural areas. Currently, paved runways are under construction at over half a dozen such airports. Similarly, we are also installing modern aviation tools and technologies such as Tower Console, VOR, CCR, Met equipment, PAPI Light etc at various airports.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		I seriously feel that the existing airlines should go for mergers among themselves. This will increase their capital base and fleet and lower the operational cost to some extent. What the experience shows is many airlines collapsed after they faced accidents. So, they must pay proper attention to all the safety measures in order to avoid accidents. There is lack of skilled technical and expert human resource. For example, there is a limited supply of captains and engineers. So, airlines often ‘hunt’ such human resource from among themselves which ultimately affects the operation of those airlines which lose such human resource. The demand of airline service will not increase by any significant degree unless there is a considerable growth in tourist arrivals.</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		T R Manandhar</div>
	<div style="text-align: right;">
		Director General</div>
	<div style="text-align: right;">
		CAAN</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		<strong>‘Only an aviation expert should run an airline’</strong></div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		Very few investors have grasped the aviation business in Nepal properly. An airline cannot be run like most other businesses. Without the experience and knowledge about the costs involved, the turnaround times and expenses that are actually incurred, one will never see a sustainable business. You need an aviation expert to run an aviation business, not just one with the capital to finance it.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The variables in the market, the trends and patterns are unpredictable. A factor such as weather can make or break a season for an airline. Working with the correct promotions team, at the right prices and focusing on the long run is crucial to succeed. The competition is also fierce, and has in the past brought about the closure of various airlines. Seeking opportunities to work together for mutual benefit is rare; rather it’s the opposite and many are out there to bring others down.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The lack of training and experience amongst the teams within the airline is another cause for the downfall. Crew should not be rushed to senior positions just to fill up spaces or to meet some compliance. It is one of the reasons why the accident rate in Nepal is higher than in most places on earth and that directly leads to my next point - insurance premium: loss of one, borne by many. There might be many variable costs in the running of an airline but a primary fixed cost beside the loan is the insurance premium. Whether you fly or not, you always have to pay it. It’s a cost that can bring a company down and it does not take into account a bad season.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The reasons can be endless, however this is not a struggle only faced in Nepal. Richard Branson, founder of Virgin Airlines, on his advice to become a millionaire, said, “The easiest way to become a millionaire is to first become a billionaire and then start an airline!” However, with the backing of investors and good leadership, Nepali aviation can reach greater heights.&nbsp;</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		Capt Pradeep Shrestha</div>
	<div style="text-align: right;">
		Chief Executive Officer</div>
	<div style="text-align: right;">
		Air Kasthamandap</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		<strong>‘Many airlines enter the market without proper market study’</strong></div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		The airlines have to take huge loans from banks as the investment cost is very high. In the past, some companies entered the aviation market only for the sake of it, making the supply higher than the demand. This caused unhealthy competition leading to sustainability problems at the end. The survival of airlines in Nepal is very challenging, especially for those flying to the remote areas where the runways are really bad; other several airport facilities are simply absent. The operating cost is very high. For example, a single servicing of the engine costs around Rs 700,000 to 1 million. Many airlines enter the market without studying the opportunities available.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Airlines flying to the remote areas have additional challenges. The cost of operating flights in the remote areas is comparatively high. The government should fix the number of flights and the rates for remote areas based on the flow of passengers and the operational cost of the flights. The government can help the airlines flying to the rural areas in terms of fuel costs and VAT and other taxes. However, increasing the tourist arrivals is one sure way to make aviation a profitable business for domestic airlines. More tourists means more opportunities for the airlines to make money. The government should make the issuance of AOC more stringent so that there is a balance between demand and supply. Airlines such as Yeti Airlines, Buddha Air, Simrik Air etc seem to have a profitable business. But they have taken huge loans for which the interest is also quite high. However, they have been able to stand out in the market because of proper planning, professional and efficient service, good market strategy, adequate investment and operating capital.&nbsp;</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		Saral Shamser Rana</div>
	<div style="text-align: right;">
		Deputy Marketing Director</div>
	<div style="text-align: right;">
		Yeti Airlines</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		<strong>‘Airlines fail miserably in financial risk management’</strong></div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		The major reason behind the collapse of most domestic airlines in the past is the failure to manage the financial risks. Managerial shortcomings, lack of aircraft matching the country’s geography, lack of enough support from the government and the then aviation policy could be the other reasons. However, it is commendable that the private sector has continued to support the domestic aviation industry despite these odds.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Aircraft matching the country’s difficult geography are a must for an airline. Skilled manpower is another prerequisite. As there is lack of enough skilled human resource, one airline has to often ‘steal’ talents and experienced human resource from the others. The airfares have not increased according to the hike in the aviation fuel prices in recent times. Operating flights in the remote areas entails even higher costs. Hence, profit becomes even more challenging for these airlines. The operating cost of an airline is very high. And it takes at least a few years before an airline can expect profits. So the promoters need to have deep pockets as well as patience and long-term plans before jumping into the market.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Experience has shown that if someone wants to run an airline, then s/he should focus on the airline only. Diverting the income from the airline to other investments may cause problems, especially in the beginning years. We have already seen the fall of several companies which invested the income from aviation into other sectors. The promoters should have enough capital to meet all financial problems that could crop up in the future.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Also, the government needs to revise the aviation policy. The number of passengers has been on a constant rise in flights to the major urban destinations. However, it is difficult for the airlines flying to the rural areas to get enough passengers while the risks of flying are also high in these areas.</div>
</div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: right;">
		Manoj Karki</div>
	<div style="text-align: right;">
		Managing Director</div>
	<div style="text-align: right;">
		Goma Air</div>
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Nepal’s Civil Aviation: Some Facts</strong></div>
<div style="text-align: justify;">
	 </div>
<div>
	<div style="text-align: justify;">
		The Nepali private sector entered the domestic air transport after the adoption of Liberal Aviation Policy in 1992. Nepal Airways was the first private airline to start scheduled domestic flights in Nepal (1992). It got the Airline Operator’s Certification from the Civil Aviation Authoruty of Nepal (CAAN) in Feb 1992. Necon Air followed suit in September 1992. In 2001 two other local airlines – Shangri-La Air and Karnali Air merged with Necon which operated flights to all major domestic destinations. It also had flights to Patna and Varanasi in India before being closed down in 2003.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Domestic operation by jet aircraft commenced in 2004 by Cosmic Air. Some 75 private airlines have received AOC from CAAN but only 15 of them are operational at present – nine fixed-wing and 6 rotor-wing airlines. Over a dozen which came into operation after 1992 have closed down so far. Nine fixed-wing airlines operational at present - Nepal Airlines (government-owned), Buddha Air, Yeti Airlines, Sita Air, Tara Air, Air Kasthamandap, Makalu Air, Goma Air, Simrik Airlines (Guna Air has been renamed as Simrik Airlines after it was recently acquired by Simrik Air, a helicopter company) and Agni Air (AOC still valid but flights grounded at present). The domestic civil aviation industry is said to be growing at 10-12 per cent per anum.Private investment in civil aviation is estimated above Rs 11 billion.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Six rotor-wing airlines operational at present are:&nbsp;</div>
	<ul>
		<li style="text-align: justify;">
			Buddha, Yeti and Simrik are the three airlines operating mountain flights at present.</li>
		<li style="text-align: justify;">
			NAC, Sita Air and Tara Air are the airlines flying to the rural areas</li>
		<li style="text-align: justify;">
			Air Kasthamandap launched a test flight to the Syangboche Airport, the highest-altitude airport in Nepal (3780m) on March 18, 2013. &nbsp;</li>
		<li style="text-align: justify;">
			Air Kasthamandap, Makalu Air and Goma Air, three new players in the aviation market, have single-engine aircraft and don’t have scheduled flights. They operate chartered and cargo flights, mostly to the rural areas.</li>
		<li style="text-align: justify;">
			Namaste Airlines has applied for permission for domestic flights.</li>
	</ul>
</div>
<div style="text-align: justify;">
	 </div>',
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			'created' => '2013-04-17',
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			'keywords' => 'Why Are Most Domestic Airlines Running In Loss?',
			'description' => 'Leaving a few as exceptions, most domestic private sector airlines in Nepal are not in sound financial health. In fact, a majority of them have always been struggling for survival.',
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		'Article' => array(
			'id' => '939',
			'article_category_id' => '39',
			'title' => 'NLIC: Becoming Online-friendly',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Sudharson Thapaliya</strong></p>
<p style="text-align: justify;">
	As the numbers of internet users is rising day by day, Nepal Life Insurance Company (NLIC) is planning to go for online friendly operating systems. According to the company officials, the process has been initiated long ago and will be completed very soon. The company claims that ‘Any customer can calculate the payable premium amount through premium calculator present in the website’. Besides this, the company also has full fledged online service through the website and technologically advanced system of inter-connectivity between the head office and all branches spread all over Nepal.&nbsp;</p>
<p style="text-align: justify;">
	“We have to take advantage of technology in every business and insurance is no exception,” said Vivek Jha, Chief Executive Officer of the NLIC. “This is why we have decided to go for website.” He added that this would be helpful for awareness of general public towards insurance.</p>
<p style="text-align: justify;">
	“Life insurance business is a long term business and its growth and prosperity depends on focused strategic planning and proper implementation of it,” said CEO Jha. He added that as per the present scenario of life insurance sector in the country working towards awareness enhancement to general public is the key factor for success and a basic challenge.&nbsp;</p>
<p style="text-align: justify;">
	The company is also in the process of launching a new website which shall be customer friendly with special features like checking one’s policy status online. NLIC has also been creating awareness through social media like facebook, twitter and you tube</p>
<p style="text-align: justify;">
	<strong>Company Background</strong></p>
<p style="text-align: justify;">
	Established under Company Act 2053 and Insurance Act 2049 as a public limited company on 2001, NLIC is the first Nepali owned life insurance Company that provides only life insurance services. Before the incorporation of the company, there were only companies that either both life and non life insurance or had foreign investors. Incorporated by Nepali promoters, the company’s shares are owned 80 percent by major promoters and rest is owned by general punlic. The company has reinsurance treaty with ‘Hannover Re Life Reinsurance Company’, Germany for conventional policies and ‘SCOR Global Life’, France for Term Assurance Foreign Expatriate policies.</p>
<p style="text-align: justify;">
	Nepal Life City Center is the major investment by NLIC. City Center is claimed by the company to be the first proper mall in Nepal. The company has an authorized capital of 100 Crore, issued capital of Rs. 50 Crore and paid up capital of Rs. 37.50 Crore to till date. Presently Nepal Life provides a bonus rate of NPR. 60-80 per thousand sum assured per annum, which the company claims the highest among life insurance companies in Nepal.</p>
<p style="text-align: justify;">
	Also it has presently proposed a dividend of 126.32% to its shareholders of which as 56.32% is cash dividend and 70% bonus shares. “This has given a tremendous boost to its share price in the stock market and increased the investors’ confidence towards the company,” CEO Jha claimed.</p>
<p style="text-align: justify;">
	<strong>Turning Point&nbsp;</strong></p>
<p style="text-align: justify;">
	 </p>
<p>
	<strong><img alt="NLIC" height="260" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_table1.jpg" style="float: left; margin: 0px 5px 0px 0px; text-align: justify;" width="300" /></strong></p>
<p style="text-align: justify;">
	The company believes last year was the major turning point for it, when it rebranded. “New logo and caption provides a better corporate image to the consumers, it was a major turning point for us”, said CEO Jha. “This gave a very vital and positive impact on gaining the confidence of the existing as well as new consumers for us”. The company had started rebranding campaigns with the slogan of “Naya Josh, Naya Soch, Naya Umang, Rato Tika, 10 on 10, Nepali haru ko pahilo rojai Nepal Life” last year.</p>
<p style="text-align: justify;">
	“It was necessary for a wider awareness about the company as well as for life insurance as a whole,” shared Jha. “The campaign was able to provide a better corporate image among the existing and new consumers and gain their confidence. Furthermore, we came up with the caption ‘Kinaki Jeewan Amulya Chha (Because Life is Precious)’ projecting a broader and positive aspect of life.”&nbsp;</p>
<p style="text-align: justify;">
	<strong>Connecting People via Own Branches</strong></p>
<p style="text-align: justify;">
	The company has more than 100 establishments all over the country. It has 20 branches in the major cities of the country to provide services to its customers. The branches are in Kathmandu, Biratnagar, Birgunj, Butwal, Pokhara, Banepa, Narayanghat, Nepalgunj, Birtamod, Lahan, Janakpur, Mahendranagar, Ghorahi, Surkhet, Hetauda, Phidim, Urlabari, Dhangadi, Nuwakot, and Lalitpur.</p>
<p style="text-align: justify;">
	Besides these branches, the company has opened many sales centers. They are spread in Manthali, Barhabishe, Charikot, Bhaktapur, Choutara, Salleri, Damak, Letang, Khandabari, Bhojpur, Chandranigapur, Gaur, Ilam, Bhadrapur, Palpa, Gulmi, Arghakhanchi, Pyuthan, Humla, Rolpa, Mugu, Bajura, Bhairahawa, Taulihawa, Sunwal, Tulsipur ghorahi, Salyan, Rukum, Chourjahari, Bhaluwang, Manahari, Sindhuli, Malangwa, Jaleshwor, Gorkha, Dhading, Bouddha, Katari, Rajbiraj, Siraha, Dadeldhura, Baitadi, Belauli, Dipayal, Lamjung, Kawasoti, Madi, Guleriya, Jumla, Bardiya, Kamdi, Jajarkot, Baglung, Damauli, Waling, Dailekh, Salli, Taplejung,Yashok,Tharpu,Tikapur, Rangeli and Kirtipur.</p>
<p style="text-align: justify;">
	<img alt="Bonus Rate Growth of NLIC" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_bonus_rate_growth.jpg" /></p>
<p style="text-align: justify;">
	<strong>Human Resources</strong></p>
<p style="text-align: justify;">
	“Human Resources is our main asset,” CEO Jha shared “because, they are in direct touch with grass-root consumers.” “Leadership must emerge from people themselves,” he added. “We provide suitable environment to grow leadership in employees.” According to him, the company has participatory style of management for important decisions regarding organizational policies, new product development etc. “We follow CRM 2 where every organizational employee is responsible for developing customer relationship and providing them the best service,” he added. At present the company has around 250 staffs and more than 18000 active insurance agents.&nbsp;</p>
<p style="text-align: justify;">
	<strong><img alt="Investment Portfolio, NLIC" height="241" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_investment_portfolio.jpg" width="582" /></strong></p>
<p style="text-align: justify;">
	<strong>Lo</strong><strong>oking for Bright Future</strong></p>
<p style="text-align: justify;">
	Life Insurance in Nepal is a growing industry. There are 25 insurance companies, 16 non-life and nine life insurance companies. One Rastriya Beema Sansthan has been allowed to provide both life and non-life services. Though insurance was initiated in 1948 in Nepal, mainly due to lack of awareness, it is estimated that only around five percent are insured all over the country. CEO Jha opined that the number of insured people is even lower than five percent as some of the people are insured multiple times while some are under-insured than what they can afford. At present, it is estimated that contribution in Gross Domestic Product from insurance sector is less than two percent in Nepal.</p>
<p style="text-align: justify;">
	“If we are able to spread awareness about the significance of insurance among the peoples, then insurance business has huge potential in Nepal,” he said. “To uplift insurance business, insurance companies, regulatory body and government have to join hands”.Foreign company’s presence through their agents in Nepal and attracting Nepali customers to do insurance out of their nation, which is legally not allowed, is again a major challenge. He said, “Large numbers of people are insuring themselves with foreign companies in the trust of only the agent they do not know what will happen during the time of claim settlement and also unaware about the illegality of such practice.”&nbsp;</p>
<p style="text-align: justify;">
	He believes that if our insurance sector can convince the people then large sum of money could be utilized for the growth of Nepali economy. He concludes, “Also at present the returns provided by Nepal Life is greater than some of the leading companies in neighbouring countries”. “Presently even in such dire situation the investment by insurance sector is around 60 billion. So if Nepal can prioritize this sector, this figure can multiply manifold.”</p>
<p style="text-align: justify;">
	<strong>Products and Marketing</strong></p>
<p style="text-align: justify;">
	NLIC has launched various types of life insurance policies. These includes Surakshit Jeevan Beema Yojana, Keta-Keti-Jeevan Beema (Shiksha and Vivah), Jeevan Laxmi- Triple Benefit with Bonus, Jeevan Sahara, Jeevan Sarathi, New Term Life Insurance, Saral Jeevan and &nbsp;Jeevan Jyoti.&nbsp;</p>
<p style="text-align: justify;">
	Company believes in fair marketing of products. Generally, marketing people sell the policies by manipulating people. CEO Jha termed ‘mis-selling’ to these practice. “We believe in fair marketing strategy”, he added. “We believe in our products rather than pin pointing the loopholes of others; we trained our grass root agents to follow fair marketing practices”.</p>
<p style="text-align: justify;">
	<strong>CSR Activities</strong></p>
<p style="text-align: justify;">
	In the journey of 12 years, NLIC has tried to do Corporate Service Responsibility (CSR) in different ways for instance, NLIC sponsored differently abled poet Biyog Sapkota’s ‘poem collection launch programe’. Besides this, the company has contributed for the renovation of the pond at historically significant landmark, Kamladi Ganesh Mandir. “We are planning to do some CSR activities differently, yet the concept is not finalized yet,” CEO Jha said. “In near future we will come with new and innovative style of CSR activities”.&nbsp;</p>
<p style="text-align: justify;">
	<img alt="Corporate Focus, NLIC" height="154" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/corporate_focus_nlic_april2013_premium_income.jpg" width="580" /></p>',
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			'description' => '“Life insurance business is a long term business and its growth and prosperity depends on focused strategic planning and proper implementation of it” - Vivek Jha',
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	(int) 14 => array(
		'Article' => array(
			'id' => '938',
			'article_category_id' => '73',
			'title' => 'The Great Himalaya Trail: Once Is Not Enough',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<img alt="" height="367" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/development_partner_april2013(1).jpg" width="580" /></p>
<p style="text-align: justify;">
	The Great Himalaya Trail (GHT), one of the longest and highest trekking trails of the world, within two years of its opening, has grabbed attention from around the world. The trail is known as one of the top 20 adventure destinations by the National Geographic Adventure magazine, thanks to the successful marketing and branding of the trail.</p>
<p style="text-align: justify;">
	The Great Himalaya Trail Development Programme (GHTDP), a two-year programme, has become one of the most popular programmes of tourism development in Nepal. The GHTDP is being implemented by the Nepali Government with technical support of SNV and funded by the UK Department for International Development (DFID.) It is being monitored by NGOs and host communities to ensure that GHTDP is living to meet the goals of responsible tourism at its best. Other partners of the programmes are Nepal Tourism Board (NTB) and Trekking Agencies’ Association of Nepal (TAAN).</p>
<p style="text-align: justify;">
	SNV has taken up the role of advisor to successfully implement the GHTDP. Its role in the project is to provide technical advice and capacity building support to the Ministry of Culture, Tourism and Civil Aviation and the GHTDP Steering Committee. The programme is funded by the UKAID.</p>
<p style="text-align: justify;">
	<strong>Branding the GHT</strong></p>
<p style="text-align: justify;">
	According to Mim Hamal, GHTDP Team Leader, marketing has been mostly done through the website, newsletters and optimum use of the social media. Participation in travel fairs such as ITB, WTM and &nbsp;travel fairs organised by NTB and TAAN and familiarisation. The trail has also been listed as a prime product by Hauser Exkursionen, a German tour operator, in its catalogue and website. Hamal is optimistic and thinks that the attention the trail is getting (as one of the best adventure trekking trail to stroll around the majestic mountains of the Himalayas) will attract tourists from all over &nbsp;the world.</p>
<p style="text-align: justify;">
	According to Hamal, who is also SNV Senior Advisor, the trail is divided into ten connecting treks of two to three weeks long treks each. He stated that each section is being branded with the unique selling points. This opens up the opportunity for tourist to come repeatedly to Nepal to complete the trail. “This is the product that fulfils the Nepali tourism slogan: once is not enough,” said Hamal.</p>
<div>
	<div style="text-align: justify;">
		<strong>Prospects</strong></div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Mim Hamal expressed the possibility for the trail to be expanded up to 4500 kilometres. “Countries like Afghanistan and China are interested in extending the trail into their territories,” he revealed. Currently, the GHT is 1700 kilometres long.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The trail, that began as a pilot testing in 2009/10 from Humla and Dolpa, has now touched 16 districts in the Himalayan region. The GHT starts in Taplejung district and ends in Humla and Darchula, in the Far West of Nepal, close to the Indian and the Chinese border. The trail connects popular treks in the Annapurna and Everest regions with exotic and virgin tourist destinations in the Eastern and Western Nepal. The GHT takes the travellers to a fascinating vista of mountains and green forest, along with rustic culture and livelihood of mountain people.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Trekkers have the option to choose from two routes: one passes through the average altitude of 4000 to 5000 metres, the other &nbsp;remains mostly below 4000 metres. The upper route is considered quite challenging but promises breathtaking views of the mountains up-close, while the lower trail takes one to the culturally rich villages in the remote mountains of Nepal. This lower trail also allows the traveller to enjoy the biodiversity of the route. The GHT is not only for foreigner adventure seekers, this could also be the perfect trekking destination for Nepali people wanting to travel through the majestic mountains of the country.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>Impact on Livelihood</strong></div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		The GHT has not only brought tourists to the remote mountains but also development opportunities, employment and possibility of improving livelihoods. Hamal states that the awareness programmes carried out in the route have changed the way people treat tourists, “Earlier, people used to offer beer to tourists in the early morning. These days they offer treated and filtered water for drinking.”&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Similarly, the cooking, guiding, porter and handicraft, lodge management and housekeeping trainings among others &nbsp;provided by the GHTDP have secured self employment for local people. Tourist flow has also opened up market for their agro products, skills and locally made products. The opening of the GHT has also contributed to the building of seven suspension and temporary bridges by the GHTDP. These bridges are not only used by trekkers but also have eased transportation for local people, directly benefiting them.&nbsp;</div>
	<div style="text-align: justify;">
		<strong><br />
		</strong></div>
	<div style="text-align: justify;">
		<strong>Bottlenecks</strong></div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		However, Hamal states that the government has not yet finalised the official route of the GHT. He says that the official route for the endorsement by the cabinet was submitted around a year ago but the cabinet has not endorsed it so far. He also complained about the lack of &nbsp;tourism policies. Moreover, the government does not give a visa for more than 90 days. He demands the extension of this permit for at least two to three years in order for travellers to complete the entire route. Hamal also believes that the current charge for getting a trekking route permit that is as high as US $ 10,000 must be reduced.</div>
	<div style="text-align: justify;">
		Inductive Benefits</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Other infrastructure development, such as micro hydropower in Pathivara, has been initiated. Wi-Fi connectivity is being established targeting tourists coming to the trail. Similarly, the GHT has also provided solar panels for lighting facilities to 40 households in Barpak in Gorkha.Hamal claimed that there are around 100 travel companies&nbsp;</div>
	<div style="text-align: justify;">
		operating in the GHT. These companies are also given training courses on sustainable and eco-tourism promotion of the route.</div>
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong><span style="font-size:14px;">‘The GHT Will Play a Vital Role in Improving the Overall Tourism Scenario’</span></strong></div>
<div style="text-align: justify;">
	<strong><span style="font-size:14px;"><br />
	</span></strong></div>
<div style="text-align: justify;">
	<img alt="" height="273" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/development_partner_mim_april2013.jpg" width="200" /></div>
<div>
	<div style="text-align: justify;">
		<strong><span style="font-size:11px;">Mim Hamal</span></strong></div>
	<div style="text-align: justify;">
		<strong><span style="font-size:11px;">GHTDP Team Leader</span></strong></div>
	<div>
		<p style="text-align: justify;">
			<strong><span style="font-size:11px;">and SNV Senior Advisor</span></strong></p>
		<div style="text-align: justify;">
			<strong><br />
			</strong></div>
	</div>
	<div style="text-align: justify;">
		<strong>Excerpts:</strong></div>
	<div style="text-align: justify;">
		<strong><br />
		</strong></div>
	<div style="text-align: justify;">
		<strong>What was the idea behind the development of Great Himalayan Trail (GHT)?</strong></div>
	<div style="text-align: justify;">
		The idea behind the development of the Great Himalaya Trail was to promote remote destinations that have not been explored so far. We foresaw that GHT has a huge potential in providing a significant boost to Nepal’s tourism industry and associated support sectors. We estimated that it could help channel tourist and pro-poor tourism investments to less visited and under-developed districts, thereby spreading tourism benefits more widely and inclusively among impoverished mountain communities. And, I believe that we have been successful in achieving that to an extent.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>The trail is a remarkable adventure package in Nepal. How do you think this trail alone will help to promote other trails and the overall tourism in Nepal?</strong></div>
	<div style="text-align: justify;">
		Trekking and mountaineering has the largest international market when it comes to tourism products in Nepal. And, as you say it yourself, that this is a remarkable adventure package, it will most certainly play a vital role in improving the overall tourism scenario in Nepal by attracting those segment of tourists who are in pursuit of a new tourism product who want to explore newer, off-beat-track destinations. This trail will provide a sublet to other smaller, side trails which trekkers are not yet aware of, thereby also promoting other smaller trails</div>
	<div style="text-align: justify;">
		.</div>
	<div style="text-align: justify;">
		<strong>How has the GHT helped in enhancement of livelihood of people living along the trekking trail?</strong></div>
	<div style="text-align: justify;">
		Rather than saying just GHT or SNV, I must also highlight the roles played by the DDC, local NGOs and the local people themselves; the UK Government’s Department for International Development (DFID), who is funding GHTDP – their role is equally important in enhancing the livelihoods of people. With help from these actors, we have identified the needs of people living along the trail and have provided leadership trainings, cook, guide, porter, lodge management, house-keeping, handicraft trainings. We have also invested in infrastructure development – building bridges, micro-hydro extensions, providing solar electrifications, drinking water, investing in trail maintenance and waste management.&nbsp;</div>
	<div style="text-align: justify;">
		On the other hand, we are marketing and promoting these destinations (in the European and American markets) so that there is increase of tourist inflow in these areas. All these activities and involvement is expected to benefit the local mass in some way or the other, most definitely in improving their livelihood.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>SNV’s one of the targets is pro poor sustainable tourism. How do you evaluate Nepal’s progress in this direction?</strong></div>
	<div style="text-align: justify;">
		I can’t speak on behalf of Nepal’s progress overall because there are plenty of players in pro-poor sustainable tourism and I am not the right person to judge others’ progress. But for SNV, I would say we have made good progress with projects like TRPAP, MAST-Nepal in the past, and GHTDP and HITT in the present. All were/are focused on pro-poor sustainable tourism. We were innovative. We are thinking out of the box.</div>
	<div style="text-align: justify;">
		We started with sustainable market projects, which were really about bringing tourism benefits more equally - in particular to the remote and impoverished mountain districts - providing for new business and employment opportunities, and which has also been declared one of the priorities of the Government of Nepal. Our progress has been good and fulfilling.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>How has SNV recognized and incorporated the role of the private sector in tourism?</strong></div>
	<div style="text-align: justify;">
		The private sector has a very important role to play in carrying out any development project. We recognise the importance of their involvement which is why along with having an agreement with the Government of Nepal, and local capacity builders; we also have an agreement with TAAN, Nepal German Chamber of Commerce and Industry (NGCCI) at the central level and District Chamber of Commerce at the local level. This cooperation is necessary to carry out work smoothly. Working in this manner has turned out to be a really positive process. We are all committed to the same objective, which is striving towards poverty reduction in the country, and we all want to make this work.</div>
</div>
<div style="text-align: justify;">
	 </div>',
			'published' => true,
			'created' => '2013-04-17',
			'modified' => '2013-05-18',
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			'description' => 'The trail is known as one of the top 20 adventure destinations 
by the National Geographic Adventure magazine.',
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