A Few Important Facts about the FMCG Industry in Nepal

Though Nepal being an under developed country and a population of around 30 million possesses a huge industry for FMCG business (or Fast Moving Consumer Goods). This industry is believed to be growing at a very remarkable pace. While the overall economy of Nepal is growing at the rate of 3% to 4%, the FMCG sector in the country is growing at the rate of over 20 %.

Nepal is the hub of many international FMCG brands and this business sector is the most popular.  Several global companies carry on their businesses from Nepal. To name a few of the popular global FMCG companies which are working with local business groups like: Coca Cola (Localised joint venture), GSK or GlaxoSmithKline (Distributed by United Distributors Nepal Pvt. Ltd.), Johnson & Johnson (Distributorship done by the Nepal Overseas Ltd.), Pepsi (For localised bottling), P&G and Mars (Distributed and Marketed by United Distributors Nepal Pvt. Ltd.), Unilever (local company) and many more. Apart from the international brands mentioned above, several companies of Indian origin have even ventured as a manufacturing units based in the nation. To name such a company would be Dabur Nepal. Besides this, many other companies like Emami, Marico operate their business through distributors in Nepal. However, among all these, an important as well as growing component is the fact that different domestic companies such as Asian Foods, Sujal Confectionery, CG Foods and many more emerging as relative competitors in the market. Over the years, these companies have been successful in establishing a sizeable business in the country.

FMCG Companies of Nepal Enjoys Outstanding Growth

With 30 million population and USD 4 Billion of remittance makes Nepal an attractive destination for FMCG companies to trade in. There is a 20% increase in the FMCG sector yoy as compared the economic growth of 3%-4%.

The likes of world famous FMCG companies are targeting Nepal to have their footprint and a share in this sector.   The reason behind this is the good taste of Nepalese towards FMCG products and their like for Quality and Brand. Whether it is P&G, Unilever or the cola giants Pepsi and Coca-Cola, or Confectionery leader Mars, Kraft, or Health Food drink leader GlaxoSmithKline they all have a remarkable share in their categories. They operate in Nepal either in form of Distribution, or Local joint venture manufacturing. Among the distribution United Distributors Nepal Pvt. Ltd. comes on the top. It has world famous companies like P&G, Mars, GSK, Orion and many more in its belt. It is also the biggest FMCG distribution company in Nepal with a turnover of over USD35million. It has an extensive channel of distributors which they have filtered over the years. In the local joint venture manufacturing comes, Pepsi, Unilever, Dabur etc. Other companies in the distribution like Emami, Marico, Johnson & Johnson, and Cadbury are also doing a reasonable business in their respective categories.   

Though the country has many global brands operating in but the contribution of the local companies is also noteworthy. To name a few of the domestic companies are Asian Foods, CG Foods, Sujal Confectionery and many more. A ‘Wai Wai’ noodle which is manufactured and marketed by the CG Foods is presently one of the favourite local brands in Nepal.

United Distributors Nepal Pvt. Ltd.: A premier FMCG Distribution Company based in Nepal

United Distributors Nepal Pvt. Ltd. or popularly known as ‘UDN’ is a leading Fast Moving Consumer Goods distribution company in Nepal. UDN is working successfully with approx 10 well known FMCG companies across the world. They deal in the categories such as Food items, health food drinks, confectionery, personal care, female hygiene, household and many more.

Today United Distributors Nepal Pvt. Ltd. has emerged as one of the largest FMCG distribution companies of Nepal all because of their excellent performance on the field. With a turnover of USD 35 million they stand amongst the top 5 FMCG distribution companies of the country.

What makes UDN a trustworthy brand is the amount of dedication and commitment towards their principal agents and to the nation. Apart from being recognised by the principle agents even the Government of Nepal has recognised their sincere efforts time and again.

Established in the year 2000 UDN has experience of working with P&G, GlaxoSmithKline, Ferrero, Mars etc. and are pioneers in promoting, distributing and importing international consumer goods in Nepal.

UDN takes pride in having a large network of dealers and distributors which they have filtered over the years. They render effective job in working with different branches for reaching the diverse segments of consumers across the country in the best possible way.

To name a few brands which UDN deals with are Gillette, Oral B, Ariel, Pantene, Olay, Duracell, Pampers, Vicks, Whisper, Horlicks, Boost Twix, Pedigree, Snickers, Galaxy, Mars, Goodknight and many more.        

VAT Scam is no roadblock for United Distributors Nepal Pvt. Ltd from being the Leading Distributor in the FMCG Sector

United Distributors Nepal Private Limited, is one of the famous companies of Nepal, and is popularly known as ‘UDN’. Over a period of time, they have successfully brought in some of the world popular as well as favourite brands from across the globe to the consumers of Nepal. At present, UDN is working with around 10 famous and leading global companies. Their product portfolio ranges from personal care, confectionery, female hygiene, health drinks and many more.

Apart from being one of the largest companies in the distribution, they are one of the best 5 companies in this sector. The company is believed to have an annual turnover of approximately USD 35 million. Around 300 people (employed directly or indirectly), who are highly committed as well as dedicated towards their job, work as a team. All of them contribute towards the success of the business and has outstanding record of delivery. Their consistent track record of performance has been regularly recognised by different Agencies and Organisations as well as by the Government of Nepal. Though recently their name has been involved in the VAT scam but that could not stop them from being awarded for the highest tax payer in the country in its category. They carry their work with equal amount of commitment, dedication and reliability and have been recognised by different organisations from time to time.

UDN is working with some of the top most global FMCG companies such as P&G, Ferrero, Mars, GSK or GlaxoSmithKline Consumer Healthcare Ltd., Orion and many more. They have a wide spread of branches located in different parts of the country. Their wide network of dealers and distributors helps them reach the most remote and bottom most segments of the consumers as well.  

United Distributors Nepal Pvt. Ltd. Operating at the Bottom of the Pyramid

Nepal, like other under-developed countries of the world, is facing many issues such as poverty, bribery, corruption, incompetent politics, scams, non-payment of taxes and many more. However, United Distributors Nepal Pvt. Ltd., which is amongst the famous business groups in the country, has made the entire country proud in several ways. It does not really matter to them what is the economic scenario, and from where they are operating their business from. It just showcases their efficiency in what they do.

The overall economy of the country appears to have got divided in two entirely different as well as distinct layers; each of them seems to challenge each other. One part of the economy portrays that the country is facing many issues, as mentioned earlier. A number of industries, which are based in and operate from Nepal, apparently, are suffering from a bunch of factors like labour unrest, shortage of electricity & water and many more. Various banks, have been found to be witnessing increasing NPAs with the passage of time and is resulting in many complains being lodged by different sectors. Most of concerns are regarding the sinking of banks under huge amount of debt, particularly, in the real estate sector. Besides this, NEPSE (Nepal Stock Exchange’s Stock Market Index) has gone down by about 70% since it reached the peak around 2 years ago.

Even in such a scenario Macro Economic Indicators is believed to have improved than earlier. Balance of payments has reached surplus of Nrs.120 billion. Apart from that, revenue collections as well as foreign exchange reserves are, in present context, at quite high level. In fact, this country is considered to have outshined its glorified neighbours on a number of Macro Economic Indicators.       

        

Now, in case, someone looks at these contradicting scenarios separately, he or she is bound to get confused, on the grounds that these scenarios refer to the same country. Hence, for understanding this, it would be better to look for sustainable value at the most bottom level.

Nepal has been witnessing the development of phenomenal buying power at the basic level owing to the fact that the country has got above 3 million migrant labours working across the globe. Its earning amounts to approximately USD 4 billion from the foreign exchanges in the form of remittance. Now, the consumption of USD 4 billion, as a result, is creating an economic cycle, which is quite strong. Many companies that are amongst the notable Fast Moving Consumer Goods have realised huge volume for serving something, which is sustainable as well as profitable. UDN (United Distributors Nepal Pvt. Ltd.) is one such company. 

UDN Leads the FMCG Distribution Companies in Nepal

UDN or United Distributors Nepal P. Ltd. is one of the leading FMCG distribution companies in the country Nepal. Over a period of around 15 years, this company has been successfully bringing the world leading and favourite brands for the consumers in Nepal. By doing so, they have surely rendered a noteworthy service to the nation. At present the company is working with about 10 world famous FMCG companies. Their range of goods includes personal care, health food drinks, confectionery, female hygiene, household etc.     

Today, UDN is one of Nepal’s biggest FMCG distribution company and has positioned itself in the 5 best companies in this sector. The annual turnover of the company exceeds USD 35 Million. They have got a team of more than 300 people (directly or indirectly), whom they have engaged in all facets of distribution. Their commitment and dedication towards distributing different brands in FMCG across Nepal has made them a trustworthy partner. The company has got an excellent and consistent track record of delivery and commitment which has been recognized not only by Principal companies, but by competitors, government and different agencies as well.    

UDN is one of the pioneers in importing, distributing & promoting international trade in the country. Established in the year 2000, UDN has been working in close association with some of the world leading FMCG companies like P&G (Procter & Gamble), Mars, Orion, Ferrero, GSK (GlaxoSmithKline Consumer Healthcare Ltd.) and many more. A widespread network of dealers, distributors and different branches work effectively so as to reach each and every possible segment of consumers and distribute as well as supply various brands to major population clusters across Nepal.

For many of the Principals that United Distributors Nepal Pvt. Ltd represents, they not only handle Distribution, but operate as a full service distributor services like designing, carrying on promotional activities, designs and local production of POSM materials, complete local roll out and work on Joint Business Plans with Modern Retail etc in the local market so as to bring in a more positive sales return. The unparalleled sales and marketing team of UDN helps them in effective promotion of brands in the localized market. This complete 360^o approach has helped the brands handled by UDN grow at much faster rates than the industry or competition, and in many cases UDN Nepal has delivered 40% + CAGR for the past 10 years.

UDN boasts a very good track record of paying taxes and VAT. The company was felicitated by the Honourable Prime Minister - Madhav Kumar Nepal as being the highest tax payer in Nepal in the category of trading companies.  In a developing country such as Nepal which has a poor track record of companies not paying taxes, frequent reports of scams, bribery and corruption, it is quite good to see a company being recognized for paying all rightful taxes to the Government.

Nepalese Companies rolling out Anti-Corruption Policies

In a country traditionally battling with issues such as Tax Evasion, Bribery, Corruption, Scams etc. a few companies are learning from their global peers and rolling out Anti-Corruption and Anti-Tax Evasion policies.  These policies are shared with the employees of the company and center into full compliance with the law of the land.  It is understood that many of the major business houses of Nepal including Chaudhary Group, Vishal Group, Golccha Organization etc have all rolled out their Anti-Corruption Policies or are in the process of finalizing them.

Besides the central theme, different companies follow very different scopes of what their Anti-Corruption Policies cover.  For example United Distributors Nepal (UDN) a leading consumer distribution company in Nepal asks its employees firstly to ensure that UDN is fully compliant and to report any non compliance to the Compliance Officer and or the Leadership.  But going beyond that they also ask that the employee should ensure that all vendors, suppliers, and sub distributors should also be compliant to the law atleast in relation to UDN Business. 

While such anti-corruption policies are standard in the western countries it is refreshing to see that even in a Under Developed country such as Nepal, Nepalese Corporates have matured and evolved where they emulate best practises from the more developed countries.  Slowly but surely such initial movements catch on and then become the mainstream, and companies who don’t have such policies become the exception.