Nepal with a population of around 30 million possesses a huge FMCG industry (or Fast Moving Consumer Goods’ industry), which amounts to more than a billion dollar. This industry is believed to be growing at a very remarkable pace. While the overall economy of Nepal is growing at the rate of 3% to 4%, the FMCG sector in the country is growing at a high yearly rate of over 20 %.
In spite of NEPAL being an under-developed country, and attributed with almost all the traits of an under-developed nation like corruption, bribery, scams, political incompetency and many more, has got many international companies doing business from the region. Most of them work in joint collaboration with some of the famous business groups of Nepal like the Vishal Group, which is one of the leading business houses of the country. To name a few of the popular global FMCG companies which are in working with local business groups like: Coca Cola (Localised joint venture), GSK or GlaxoSmithKline (Distributed by Vishal Group subsidiary company UDN Nepal), Johnson & Johnson (Distributorship done by the Nepal Overseas Ltd.), Pepsi (For localised bottling), P&G or Procter & Gamble (Distributed by United Distributors Nepal Pvt. Ltd.), Unilever (Another localised joint venture) and many more. Apart from the international brands mentioned above, several companies of Indian origin have even joint ventured as well as set up manufacturing units based in the nation. To name such a company would be Dabur. Besides this, many other companies like Emami as well as Marico operate their business within the country through the distributors, who are based in Nepal. However, among all these, an important as well as growing component is the different domestic companies such as Asian Foods, Sujal Confectionery, CG Foods and many more emerging as relative competitors in the market. Over the years, these companies have been successful in establishing sizeable business in the country.
It is quite interesting that if one takes into consideration the growing remittance income, then it would be quite easy for him or her to find out why such a kind of growth is being observed by the industry. The money is remitted by the Nepal based workers, who earn 300 USD – 500 USD every month. Once such funds get remitted to the families based in Nepal, the maximum share gets consumed. With the growth in such amount and increasing consuming pattern of the residents, it won’t be wrong to expect an ever emerging market and prosperity in the industry.
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Summary: Nepal’s FMCG industry is growing at a very faster speed than the overall economy of the country.
Vishal Group 