Nepalese-Conglomerate-Business-Segments

1. Nepalese Conglomerate Business Segments asha.inc/blogs/nepalese-conglomerate-diversification-similarities The conglomerates of Nepal are diversified businesses that operate in multiple industries and sectors. For example, they may have interests in areas such as manufacturing, trading, banking, hospitality, and real estate, Meaning they have a presence in multiple industries and sectors. The conglomerates of Nepal, including CG, IME Group, Shanker, Bishal Group, Golchha Group, etc., are all involved in various industries and sectors. CG, for instance, has interests in sectors such as FMCG, banking, energy, education, and real estate, while IME Group operates in areas such as remittance, trading, and healthcare. Similarly, Shanker has businesses in trading, manufacturing, and services, while Bishal Group has interests in sectors such as hospitality, real estate, and trading. Lastly, the Golchha Group has businesses in trading, manufacturing, and services but they have several similarities in terms of their business operations in the Automobile & Financial sector. Most of the conglomerates in Nepal are family-owned businesses, and the family members are actively involved in the day-to-day operations of the company & have a significant presence in Nepal's economy, are innovative and entrepreneurial. Conglomerate in Nepal Nepal is a relatively small and agricultural country. On top of being a small nation, Nepal is also a landlocked nation with few natural resources to exploit. That said, Nepal has a high potential for local goods and products. Still, this nation of mountains imports most of its required goods and raw materials. However, despite Nepal being a small nation and being somewhat dependent on imports for most of its products, it is home to a wide range of companies and industries. Within this group of companies and conglomerates, a few have grown and managed to stand above the rest. These conglomerates that stand above the rest are among some of the best conglomerates in Nepal. So, let’s talk about some of the best major conglomerate companies in Nepal. But before we begin, what even is a conglomerate? What is a Conglomerate? In simple words, a conglomerate is a corporation of different business companies that owns a controlling stake in several smaller companies that conduct business separately and independently. In a conglomerate, a larger company owns a controlling stake in smaller companies. The smaller companies operate in their field and are often 1/11

2. independent of each other. The formation of a conglomerate can happen in many ways, but two of the most common methods of formation are the merger of two or smaller companies into one and the acquisition of a smaller company by a larger one. Some of the Major Conglomerates in Nepal Even though Nepal is a landlocked country that is mostly dependent on imports, some big conglomerate companies in Nepal control a wide range of markets. The list of conglomerates in Nepal is indeed long, so here we will talk about five of the major conglomerate companies in Nepal. Chaudhary Group (GG) Chaudhary Group (GC) is one of the most recognizable conglomerate groups in Nepal. Chaudhary Group, publically known as CG Group, is a multinational conglomerate group with over fifteen thousand employees. Established in 1935 with its headquarters in Lalitpur, Nepal, the Chaudhary Group is involved in many sectors of products and services, including FMCG, automobile, financial services, infrastructure, real estate, and hospitals, along with communication and Education. Among its many products, some of its most notable products and services are Wai Wai Noodles and the distribution of Suzuki Motors. Notable Products and Services 2/11

3. Although Chaudhary Group has extended its reach in a wide range of industries, it is most notably known for its production of Wai Wai noodles and distribution of Suzuki Motors. Wai Wai is a leading brown instant noodle in Nepal with over 20 flavors and has the highest share in the noodle market in Nepal. Additionally, CG provides the largest service and spare network for the distribution of Suzuki Motors and is the highest-selling car brand in Nepal. Major Milestones It was first established in 1985 Started first International noodle manufacturing unit expansion in 2002 Achieved a portfolio of over 160 companies in 2020 Notable Product’s/Service’s Key Success Factor Wai Wai Noodles: 1st mover advantage, Nepal’s first instant brown noodles with 20+ flavors Product expansion with predatory pricing Mama, Golmol, Rintin Suzuki Motors: Value for money It has the highest mileage in all price car segments It has the highest resale value among all the brands Affordable maintenance cost and economic spare parts Largest service provider & spare parts network 3/11

4. IME Group IME Group of conglomerate is Nepal’s remit first remittance company with the establishment of international offices in over 25 countries. The IME group of business companies primarily focuses on Commercial Banks and remittances; the IME Group also provides services regarding Automobiles, Tourism, Trading, IT, Energy, and Insurance. Established in 2001, this conglomerate houses over 5 thousand employees in its various sectors. Notable Products and Services As we mentioned earlier, the primary product/ service of IME conglomerate group is in the field of remittance, and as such, it should not be a surprise that one of its most notable services is financial services. The key success factor for its financial service is its coverage and its high global network. This conglomerate of Nepal has around 22% share in Nepali remittance. Besides the financial services, IME group also has its root in the distribution series of IME motors which includes the distribution of products such as School buses and Trucks while providing great after-sales services. Major Milestones Gained its first merger with baking companies on 2012 4/11

5. Started Leyland Distribution in 2016 Achieved over 1 million downloads in the IME pay app in 2020 Notable Product’s/Service’s Key Success Factor IME Remit Ltd A highest global network having an office in 25+ countries 200+ countries' service network The highest payout locations having 35K+ stand out as the largest coverage in Nepal Providing door-to-door transfer services in rural areas IME Motors: School buses Known as a long durable engine Known for defense vehicles which are usually used by Nepal Army The truck supports high-altitude bases/clearance Easy maintenance services & spare parts Mobile services vans and as well a tie-up with Local Mechanic Garage Shankar Group 5/11

6. Established in 1979, the primary focus of Shakar Group is in the field of construction. As a market leader in the steel and Cement industry in Nepal, Shankar Group is undoubtedly one of the major conglomerates in Nepal. With over fifteen thousand employees spread across its numerous sectors and industries, this conglomerate has its hand in industries such as Mining and Manufacturing, distribution of automobiles, financial services, real estate, and hospitality. Regardless, its primary focus remains in the field of construction industries. Shankar Group is Nepal’s biggest investor in the steel and cement industry. Notable Products and Services As a leader in construction and manufacturing, Shanakr Group is home to some of the most well-known products in these service industries. Some of its most notable products are Jadagamba Steels, Jadgadamba Wires, Jagadamba and Subhashree Cements, and Surya and Riddhisiddhi Cement. These are household names in the world of construction materials. Major Milestones Established Jagadamba Steels in 1994 Establishment of Jagadamba Cement in 2001 Gained a Portfolio of over 40 companies in 2021 Notable Product’s/Service’s Key Success Factor Jagadamba Steel: 1st mover advantage, Nepal’s first structural steek & galvalume sheet manufacturer It has reduced the import Nepal’s first and only steel company stands as International Standard Products Honor with BIS (Bureau of Indian Standard) for Fe 500 & Fe 500D Grade rebar Cement: Jagdamba OPC Cement, highest selling in Nepal since 2001 Known for mining the finest quality of limestone (53 Grade) in its plant High production capacity Has the ability to reduce price with a competitive market price 6/11

7. Vishal Group Vishal Group of Conglomerate Company is one of the leading names in the FMCG companies in Nepal. Established in 1949, this group of conglomerate companies in Nepal houses over twenty thousand employees across its many sectors and is one of the largest importers of international FMCG brands in Nepal. Besides being the largest importer of FMCG foods and beverages in Nepal, Vishal Group is also well known for its investment in Automobiles, banking, manufacturing, hospitality, agriculture, education, real estate, and more. That said, the primary focus of this conglomerate still lies in the Fast Moving Consumer Goods sector. Notable Products and Services Vishal Group is most noted for being one of the biggest, if not the biggest, distributors of FMCG foods and beverages in Nepal. Some of the brands of FMCG that Vishal Group of conglomerate imports are P&G, GSK, Godrej, Kellogg’s, Britannia, and Amul. Additionally, Vishal Group is also well known for being the manufacturer of Arna, Yeti, Kingfisher, and Shikhar beers. These beers are among the anticipated rising brands in Nepal. Major Milestone Diversified into imports and distribution in 1960 Started partnerships with International brands in 1990 7/11

8. Became a distribution vertical with over 50 international brands. Notable Product’s/Service’s Key Success Factor FMCG (Fast Moving Consumer Goods): 1st mover advantage, Pioneer distributors of International brand Distributors of more than 40+ Int’l FMCG International brands High-quality products having high numbers of distribution networks Stands as a flagship FMCG company in Nepal Yeti Brewery: Heavily invest & engaged in SMM (Social Media Marketing) Attracted youths through music video marketing, E.g. Video content challenges with a cash prize Golchha Group Established in 1937, the Golchha Group is one of the oldest and most successful conglomerate groups in Nepal. This conglomerate is a leader in two-wheelers distribution in Nepal and is among the leaders in electronics and automobile distribution. With over two thousand employees spread across multiple services industries, Golchha Group is undoubtedly one of those that have both the required quantity and quality of human 8/11

9. resources for it to be among the leaders of conglomerate groups in Nepal. This group of industries has its influence on the Automobile, electronics, finance, and bioscience, among other sectors. Notable Products and Services Golchha Group is among the few authorized dealers of Samsung and Bajaj Motorcycles in Nepal. The two products that this company distributes are among two of the highest- selling brands in their respective field. Major Milestones Established its electronic band named “Himstar” in 1988 Started distribution of Bajaja Two wheelers in 1998 Became an authorized distributor of Samsung Products in 2001 Notable Product’s/Service’s Key Success Factor Samsung: Popularly known as a high-quality & durable products Parts easily available Adequate experience in the home appliances industry Known as one of the best & oldest players in Nepal Best customer service with 40+ service centers Bajaj Motorcycle: Largest Service provider & Spare parts network Having more than 200+ servicing points Known for one of the most easily available economic spares parts & low maintenance cost brands in Nepal 9/11

10. Nevertheless, Nepal is a small nation that relies mostly on imports for most of its modern conveniences. That said, despite being a landlocked nation and relying on imports, this nation is also home to some well-known conglomerate groups. Here we researched five of such well-known and reputable conglomerates in this nation. That said, we understand that this is not an exhaustive list of all the major conglomerates in Nepal. Still, we hope you found this helpful. You can also visit our official LinkedIn Page for more updates, market research firm in Nepal. FAQ Q: What are the top three industries in Nepal? A: The top three industries in Nepal are: Agricultural industry Forestry industry Power and resources industry Q: What type of Company is Chaudhary Group? A: Chaudhary Group is a multinational conglomerate company in Nepal that is involved in many sectors, including financial services, consumer goods, education, hospitality, and more. 10/11

11. Q: Do the conglomerates in Nepal family-owned businesses? A: Yes, Mostly the conglomerates in Nepal are family-owned businesses. 11/11