Dabur, the Indian company specializing in fast-moving consumer goods, has announced its intention to invest an additional INR 9.68 billion in Nepal.
On Thursday, the Investment Board Nepal and Dabur Nepal Pvt. Ltd. signed a memorandum of understanding to implement capacity building and product diversification projects using the private investment model. The agreement covers the construction, operation, and management of these projects.
While the Investment Board Nepal had granted approval for Dabur’s additional investment in February of last year, the MoU was not signed until Thursday.
According to a press statement released after the signing ceremony, Sushil Bhatt, CEO of the Investment Board Nepal, and Harkirat Singh Bedi, Business Head at Dabur Nepal, signed the MoU on behalf of their respective parties. Nepal’s Minister for Industry, Commerce and Supplies, Ramesh Rijal, was also in attendance.
Prior to the outbreak of the Covid pandemic, the Indian multinational company had expressed its intention to invest further in Nepal. However, due to the prolonged Covid wave in Nepal and India, the investment proposal was put on hold.
According to the proposal, Dabur Nepal, which produces a range of beverages, beauty, and healthcare products in Nepal, plans to expand its capacity and diversify its product offerings.
Following the signing of the MoU, Bedi expressed his satisfaction with the decision to allocate a portion of the company’s accumulated capital towards expanding its capacity and diversifying its product range in Nepal.
The Investment Board Nepal is a special entity established by the government of Nepal with the mandate to approve and facilitate investments above INR 6 billion in the country.
In accordance with this regulation, Dabur Nepal obtained permission from the Investment Board. Based on available data, Dabur Nepal’s contribution to Nepal’s export trade amounts to 5.35%. Dabur International Limited owns 97.5% of the company, while the remaining 2.5% is owned by a Nepali partner.
