Financial Daily from THE HINDU group of publications
Friday, Feb 25, 2005
Financial Daily from THE HINDU group of publications Friday, Feb 25, 2005 |
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Corporate
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Trends Nepal situation hurts Indian jt ventures
Sindhu J. Bhattacharya
New Delhi , Feb. 24 THE political situation in Nepal appears to be hurting Indian ventures in that country. Unilever Nepal Ltd, the 80-per-cent subsidiary of Hindustan Lever Ltd (HLL), is facing shortage of raw materials due to the current situation. A HLL spokesperson told Business Line, "As of today, production is going on in Unilever Nepal but the company is running out of raw material stocks and its stockists and retailers are carrying finished product inventory of up to eight weeks old. In case the present situation continues, Unilever Nepal may have to halt production." Unilever Nepal has a manufacturing facility at Hetauda, about 250 km from Kathmandu. United Telecom, another Indian venture in Nepal, is also facing problems. While international long distance calls from the Kingdom have been restored, its mobile services remain suspended. United Telecom is a joint venture between Mahanagar Telephone Nigam Ltd (MTNL), Videsh Sanchar Nigam Ltd (VSNL), Telecommunications Consultants India Ltd (TCIL) and Nepal Venture Private Ltd, offering telecom services in Nepal. Senior company officials said the joint venture has invested Nepali Rupees 300 crore and is evaluating the revenue loss from suspension of mobile services since the unrest began last month. While VSNL and TCIL hold 26.6 per cent each in United Telecom, MTNL has a 26.8 per cent stake, with the remaining 20 per cent held by the Nepalese company. The firm is administered by India's Department of Telecommunications and has a 10-year extendable licence to provide basic telephone service using wireless technology. However, Dabur India Ltd appears unaffected by the goings in Nepal. A company spokesperson brushed aside any adverse impact from the political situation in the Kingdom, and said its greenhouse operations at Banepa as well as production of fruit juices and oral care products at Birgunj are "proceeding on schedule".
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