India’s largest consumer goods players are bracing for potential disruptions in Nepal, where political unrest has raised concerns over supply chains, distribution networks and employee safety.
PepsiCo’s bottling partner Varun Beverages, which earns nearly 3% of its consolidated revenue from Nepal, is among the companies most exposed. Dabur, ITC, Marico, and Hindustan Unilever also run significant operations in the Himalayan nation through their Indian listed entities. Industry executives say the immediate priority is ensuring the security of partner teams operating in border districts.
Reliance Consumer Products, which only in July this year launched Campa soft drinks in Nepal in collaboration with Wai Wai-maker Chaudhary Group, is also assessing risks. “We see the Nepal issue to be a slight overhang for most consumer staples,” noted Abneesh Roy, executive director at Nuvama Institutional Equities, in a client advisory.
Close to a dozen Indian companies across packaged food, soft drinks, and hospitality sectors are active in Nepal, underscoring the scale of exposure. Jaipur-based Bikaji Foods International entered the market just two months ago through a 50:50 joint venture with Chaudhary Group for manufacturing, marketing and distribution of its snacks portfolio.
Executives point out that Nepal’s geographic closeness to India magnifies the concern. “Our partner teams are on high alert, and their safety is the top priority,” said a senior executive at a listed FMCG company, who requested anonymity.
While most firms have not yet reported operational disruptions, analysts caution that prolonged instability could affect supply chains and consumer demand in Nepal, which has become a growth market for Indian FMCG players in recent years.
