Nepal is currently grappling with ongoing violence, with sporadic incidents reported, especially in Kathmandu. The army has taken control of the country, leading to a slight stabilization. However, the unrest is having a direct impact on businesses. Production at major FMCG companies, including Dabur and Britannia, has been negatively affected.
Britannia has suspended production due to the violence, prioritizing the safety of its workforce. Dabur’s production has also been partially impacted. The companies have temporarily halted operations to protect their employees. The presence of FMCG companies in Nepal highlights how the unrest could influence consumer demand.
Britannia Industries has stopped production in Nepal, citing the ongoing violence as the reason. The company, which has a plant in the Bara district, has stated that employee safety is its top priority. The company made the decision based on the current situation.
The company, known for brands such as Good Day, Marie Gold, and Tiger, also expressed gratitude to the local army for their involvement in ensuring the employees’ safety.
Dabur India has halted production at its plant in Birgunj, Nepal. The company reported that many employees are unable to reach the plant due to the violence, causing significant operational disruptions. Nepal contributes about 3% to Dabur’s total sales.
The company stated that it is closely monitoring the changing conditions in Nepal and has directed its Kathmandu-based employees to work from home. Sales teams have been instructed to prioritize safety and adhere to local curfew directives.
The violence in Nepal has led to widespread chaos, with protesters targeting the homes and government buildings of political leaders, as well as setting fire to the parliament. Several deaths have occurred. The army took over security on Tuesday night, which has brought some degree of calm. The army has been deployed throughout the country.
A year ago, Indian FMCG companies faced similar difficulties in Bangladesh, where student unrest led to the ousting of the Sheikh Hasina government. Companies like Emami experienced impacts on their businesses. Indian FMCG companies such as Dabur, Britannia, Marico, Patanjali, ITC, and Reliance Consumer have a presence in Nepal, most of them working through local distributors or partnerships.