Indian FMCG companies halt operations in Nepal amid civil unrest
Britannia Industries has indefinitely shut down all manufacturing at its Simara plant in Nepal’s Bara district. Bikaji Foods International, which had approved a joint venture and shareholders’ agreement with Nepal’s Chaudhary Group (CG) in July, is now expected to delay the project due to the unrest.
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Indian fast-moving consumer goods (FMCG) companies have suspended operations in Nepal amid rising civil unrest and violent youth-led protests, according to a report by The Economic Times. Several companies have also paused upcoming projects in the region due to the deteriorating situation.
Britannia Industries has indefinitely shut down all manufacturing at its Simara plant in Nepal’s Bara district. Established in 2017, the plant employs around 350 workers and produces nearly 80% of Britannia’s products sold in Nepal. The company’s Nepal unit generates annual revenues of approximately ₹170–180 crore, the report added.
Bikaji Foods International, which had approved a joint venture and shareholders’ agreement with Nepal’s Chaudhary Group (CG) in July, is now expected to delay the project due to the unrest.
Dabur, which operates a subsidiary in Nepal, has asked its employees in Kathmandu to work from home as a precaution. Other Indian FMCG players are closely monitoring the situation and remain on high alert.
Companies including PepsiCo’s bottling partner Varun Beverages, Marico, ITC, and Hindustan Unilever (HUL) operate in Nepal through their Indian-listed entities. Varun Beverages, for example, derives roughly 3% of its consolidated revenue from Nepal.
Meanwhile, Reliance Consumer Products only recently entered the Nepal market in July, launching Campa soft drinks in partnership with CG, the maker of Wai Wai noodles.
