Indian consumer goods firms brace for Nepal unrest impact

Indian consumer goods companies with direct operations in Nepal said they are "closely monitoring the impact on business amid the ongoing political unrest in Nepal." PepsiCo's bottler Varun Beverages, Dabur, ITC, Marico and HUL are among the companies that operate in Nepal via their Indian listed entities.

While Varun Beverages' Nepal business contributes 3% of its consolidated revenue, Reliance Consumer Products too entered the Nepal market with Campa soft drinks in July this year in partnership with Wai-Wai noodles maker Chaudhary Group.

"We see the Nepal issue to be a slight overhang for most consumer staples," Abneesh Roy, executive director at brokerage firm Nuvama Institutional Equities, wrote in a note late Tuesday.


Close to a dozen Indian companies have operations in Nepal across the packaged goods and hospitality sectors.

"Our concern is also Nepal's geographical proximity with India. Our partner teams are on alert, and their safety is our main concern," said a senior executive at a listed packaged goods company requesting anonymity.

In July this year, Bikaji Foods International too had signed a strategic JV with Chaudhary Group. The 50:50 JV between the two entities would facilitate manufacturing, trading and marketing Bikaji Foods' portfolio.