--By Sujan Dhungana

‘ Hathi Baliyo Ki Hathi Chhap Chappal Baliyo.’ Does this ring a bell? Yes, it is the age-old slogan of “Hatichaap” slippers from the Universal Group. Being the conglomerate of ‘Modern Slipper Industries Pvt Ltd’ and ‘Kiran Shoes Manufacturers,’ Universal group is shoe-manufacturer for its ever-supporting customers. The manufacturing history dates back to 1980(slippers) and 1985(shoes) under the chairmanship of Noor Pratap Rana. The MD is Amir Pratap Rana.

The company witnessed an unprecedented growth in every sphere, i.e. demand, production and skilled labour force (then 30 employees now 2000). Rajan Shrestha, head Sales and Marketing, explains the problems faced by the company, so far. The foremost being during the Maoists insurgency. Thus, the government did not allow smooth supply of the shoes. “Counterfeiting is our major problem wherein our product is copied illegally,” says Shrestha. According to him, a legal battle was fought to resolve the issue which curbed the practice in Nepal but it still continues in some neighbouring countries. Though domestic production alone caters to 55 per cent of Shoes demand, 45 per cent is still imported from India and China. According to him, this causes taxation problem at a major scale and poses threat to Nepali market.

Shrestha believes that raw material dependency is salt on the wound, as more than 90 per cent of the raw material is imported. He says that the company cannot alter its price structure so frequently despite the instability of dollar therefore, importing of raw material lowers down their profits. Lack of skilled labour force is another hindrance. The company arranges for a 6 month training (by the older staffs) to make its employees learn the art of shoe-making.

In spite of these problems the company has stood strong in the competition. Shrestha confirms, ‘the consistency in quality’ as the pillar behind their undaunted success. At present “Goldstar” does not indulge in any sort of branding and marketing exercise. The brand’s ‘Made In Nepal’ image has helped the company stand firm in their position for years, Shrestha says. 

The Universal Group functions in 5 different units, which carry out different steps of shoe-making. These units produce varieties both in shoes and slippers. For even distribution the products across the country, the company follows a distribution network (dealers-wholesalers, retailers). With a double-digit growth every year the company is planning to capture the international market as well. With this thought Goldstar aims at ten million pairs a production which is around 8 million at present.

Regarding CSR practiced by the company, Shrestha says the company does not believe in publicity of their donations. Providing scholarship to the children of the employees and others, giving computers to the government schools are some of the CSR activities undertaken by the company. Last year the company provided four motorcycles to the police for easy accessibility. Shrestha says, “Our quality is our brand ambassador”, hence the ‘value for money’ proposition makes Goldstar the real star. 

(With help from Shruti Sonthalia)