Ongoing violence in Nepal continues to disrupt daily life, with sporadic incidents reported across the country, particularly in Kathmandu. The army has taken control, leading to a slight improvement in the situation. However, the unrest has significantly impacted businesses. Major FMCG companies, including Dabur and Britannia, have experienced production setbacks.
Britannia has halted production due to the violence, while Dabur’s operations have been partially affected. Both companies have cited employee safety as the primary reason for the temporary suspension of activities. The presence of FMCG companies in Nepal suggests that the unrest could also influence demand.
Britannia Industries has halted production in Nepal due to the ongoing violence. The company’s plant is located in the Bara district of Nepal. The company’s priority is the safety of its employees. Britannia, the owner of brands like Good Day, Marie Gold, and Tiger, stated its gratitude to the local army for intervening and increasing employees’ confidence in security.
Dabur India’s production has come to a halt at its plant in Birgunj, Nepal. The company reported that many employees are unable to reach the plant due to the violence, severely impacting operations. Nepal contributes approximately 3% to Dabur’s total sales.
The company has been closely monitoring the changing situation in Nepal. It has instructed all employees in Kathmandu to work from home and advised sales teams to prioritize safety and follow local curfew instructions.
The violence in Nepal has caused widespread chaos. Protesters targeted the homes and government residences of political figures, and set fire to the country’s parliament. Several people have lost their lives in the violence. Following incidents of arson and vandalism, the army took control of security starting Tuesday night, which has led to a partial calming of the situation. The army is deployed throughout the country.
Similar to the current situation in Nepal, Indian FMCG companies faced a similar scenario in Bangladesh a year ago when student unrest led to the removal of the Sheikh Hasina government. Companies like Emami reported impacts on their business. Indian FMCG companies like Dabur, Britannia, Marico, Patanjali, ITC, and Reliance Consumer have a presence in Nepal. Most of them operate through local distributors or partnerships.