The Red Bull production has started in Nepal from today (Tuesday) four years after the government put a ban on its import.
The production of energy drinks has started with the investment of 2 billion rupees by Khetan Group. Finance Minister Dr Prakash Sharan Mahat inaugurated the multinational company amidst a ceremony held in Nawalparasi .
Earlier, Khetan Group had registered Saras Beverage P. Ltd in agreement with Red Bull Company based in Thailand.
The Department of Industry had issued a license to the group to manufacture energy drinks with a Red Bull trade mark. Prem Prakash Khetan, the younger brother of Rajendra Khetan will take after this company.
In accordance with the Foreign Investment and Technology Transfer Act, 2019, Khetan Group will pay 5 percent of its profits in royalty to the government for using the foreign brand in Nepal.
Dr. Yuba Raj Khatiwada had put a ban on the import of energy drinks including Red Bull four years ago during his tenure as the Finance Minister. The plant of Saras Beverages is in Nawalparasi while its office is based in Dhading.
The company established with the investment of 2 billion rupees has set a target of producing 10,000 kiloliters of energy drinks annually.
Khetan Group managed to get license
With the ban on the import of energy drinks, high-profile entrepreneurs were willing to invest in the production of Red Bull in Nepal. South Asian Beverage P. Ltd owned by Vishal Group and CG Brewery of Chaudhary Group had filed applications for the license of Red Bull. However, Khetan Group managed to get the license, leaving behind CG Group and Vishal Group.
Vishal Group’s South Asian Beverage has been manufacturing energy drinks such as Frooti, Appy, Appy Fizz.
FinMin Mahat hopeful of employment opportunities
Finance Minister Mahat inaugurated the Red Bull company in Nawalparasi on Tuesday. Speaking at the inaugural ceremony, Mahat said that the company of Red Bull has been opened in Nepal after the government put a ban on the imports of Red Bull manufactured in Thailand.
“The Red Bull production has started in Nepal from today. It will generate employment opportunities as well as revenue,” he said, adding, “The private sector should run the industries, not the government.”
