The corporate world of India is also worried about the ongoing political crisis in Nepal. Due to political instability, some questions have been raised in front of Indian companies that are doing business there. Experts say that there are a direct contact with 4 FMCG companies listed in India. In such cases, their business is likely to be affected until Nepal is calm. These include names like ITC, Hindustan Unilever, Dabur, Britannia Industries, Varun Bevereges, Mario and Bikaji Foods.
These companies are produced directly to Nepal or exported by Indian departments. If the situation in Nepal is worse, the supply chains of these companies are likely to be disrupted and their production units are also at risk of damage.
The new ‘Hire’ bill of the United States will affect companies in tensions of $ 2 billion in Indian IT sector
Dabur products are very popular in Nepal. In Nepal, their exports were huge. In Nepal, their food products and Ayurvedic drug production factories. In addition, ITC has a large exposure to Nepal. In Nepal, Surya Nepal has a subsidiary. In the financial year of 2, Nepal’s share of ITC’s income was Rs 2 crore. At the same time, Nepal’s share of the company’s profit was Rs 5 crore.
Britannia Industries has a production factory in Nepal. Varun Bevereges has a Pepsico bottleing unit in Nepal. Nepal’s share of the company’s combined income is about 5 percent. Similarly, about 5 % of the profits of Hindustan Universe (HUL) also comes from Nepal.
What does experts say?
The Brokerage Firm Nuwama Institutional Equity says that after the recent news of happiness, FMCG companies are now facing two problems. The first is the crisis in Nepal and the second is the flood in Punjab and Rajasthan. However, both of these problems are short -lived. The Brokerage said that Nepal’s share in the sale of ITC, Dabbar and Varun Bevereges is only 5 to 8 percent. In such cases, the crisis does not expect any major impact on the quarterly results of these companies.
The Brokerage Firm said that a similar situation was seen in Bangladesh before Nepal. However, despite the political instability there, Marrico did well with some pressure on the growth of Imami.
Trade between India and Nepal
Talking about trade between India and Nepal, India exports about $ 1.8 billion to Nepal every year. On the other hand, India imports only $ 1.8 billion from Nepal. Of the total Nepal’s total trade, 3-5 percent of the percentage is with India. This means that Nepal depends on India a lot for his business.