Sanjiv Puri, Chairman and Managing Director of ITC India. (File Photo)
India's multinational company ITC Group and its subsidiary, Surya Nepal Pvt. Ltd., have committed to continuing their long-term investment plans in Nepal, amidst the new situation created following the Gen Z movement and subsequent government changes.
This assurance comes after an escalation of unrest, particularly the demonstrations on September 8-9, during which property belonging to some multinational companies in Kathmandu, including the Hilton Hotel building and the Ncell corporate office, was vandalized and set on fire. At a time when these attacks have raised concerns about the future of foreign investment in Nepal, ITC and Surya Nepal are the first to publicly confirm they will maintain their investment.
ITC and Surya Nepal's expansion plans
Sanjiv Puri, Chairman and Managing Director of ITC India, confirmed that the company’s plans to expand its fast-moving consumer goods (FMCG) and hotel businesses in Nepal remain on track.
ITC currently manages the Fortune Resort and Wellness Spa (Fortune Park) in Sanga, Bhaktapur, and will take on the management of the upcoming Annapurna Square Hotel in Darbarmarg.
Surya Nepal is moving ahead with its plan to operate an ultra-luxury five-star hotel in Budhanilkantha, Kathmandu. The company secured a Rs 6 billion investment approval from the Department of Industry in October 2021 for this project.
Surya Nepal has already acquired 65 ropanis of land for the site. The total cost of the land and hotel project is estimated to be around Rs 10 billion.
Diversification and long-term commitment
Surya Nepal, best known as a cigarette manufacturer, is actively diversifying its investments in Nepal, expanding into FMCG products such as biscuits, chocolates, incense sticks, and exporting tobacco products.
Established in 1982, Surya Nepal is a joint venture with 59% ownership by ITC Limited India, 39% by Nepali investors, and 2% by British American Tobacco Limited.
Ravi KC, Vice President of Corporate Affairs at Surya Nepal, emphasized that despite being a multinational venture, Surya Nepal is an "original Nepali brand" rooted in the country for four decades, significantly contributing to the economy and job creation.
KC stated that the company views the situation as temporary and remains committed to its original long-term strategy, asserting that Nepal "was, and still is, safe for investment." He noted that the recent Gen-Z protests targeted state corruption and anomalies, not foreign investors.
Focus on FMCG and exports
Surya Nepal is pushing forward with plans to further diversify its product line.
The company launched a full-fledged foods manufacturing center at its former garment industry site in Biratnagar, Morang, starting in the fiscal year 2080/81 BS.
Surya Nepal plans to take its Nepal-produced goods to the international market, with preparations for exporting certain products in the final stages. Its current FMCG line includes Dark Fantasy Biscuits (with plans for product line additions) and Mangaldeep brand incense sticks, which KC stated is currently the largest incense brand in Nepal.
The company has been exporting locally grown tobacco to countries like Turkey and South Korea, with plans to expand its export markets.
The declaration by ITC and Surya Nepal is expected to help maintain the confidence of both domestic and foreign investors in Nepal during this uncertain period.
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