We Need Companies to Come not Donors

India was turned by the mass recruiters and trainers like Infosys, Wipro, TCS, IBM, Satyam and the likes. They pushed India from a third world developing country to become the second important IT Vendor and best outsourcing destination in the world.



Nepal have to declare few areas as SEZ and give tax breaks to attract them and Nepal desperately need companies like them. Entry of one or two of them can change entire Nepal. If someone in the government is hearing I would like them to be proactive and call companies to invest in Nepal. I would like to invite these revolutionary companies to invest in Nepal ....




ICICI Bank

Bharti Airtel

Infosys

Wipro

TCS

IBM

Accenture


Our economy is survived by remittances and aids for long. Now, the time has come when we turn ourselves to business than asking for donation. We need to make coming generation optimistic of their future and the country. They will need to see some development happening in Nepal. Development in the form of investment and business.

The picture is of the Infosys's Mysore Campus. I want to see one in Nepal. Is there any possibility of having it? (question to our ministers and planners, and not to Infosys head)

Nepal as an Off-Sourcing Destination

Many aggressive companies are staying away form Nepal, thanks to poor security situation. The power majors are considering of huge investment in Hydropower sector to export power to the power hungry states of India and China, and this is a good news for Nepal. A country with very high hydro-power potential has one of the costliest energy, which simply is not acceptable. Nepal need to reform the energy sector and prepare the base for development.


While the companies like Samsung, Kodak, LG, Kia etc have entered Nepal, their performance has not been very good in the past. The things are likely to change when Maoist are in the government. Many more companies are likely to follow the investment in this Himalayan country provided the early movers succeed. There are multiple reasons why companies would like to invest in Nepal:


1. Favorable Location:
Nepal is a country bewteen India and China, two fastest growing econonies globally.


2. Power Sufficiency:
Nepal is power rich (hydropower potential is more than enough for any future growth in economy).


3. Pleasent Climate:
Nepal has one of the best climate on the world. The valley cities of Kathmandu, Pokhara, Surkhet and Dang are the front runners for this. Eastern city Dharan and western city Butwal are other places with comfortably moderate climate in the likes of Indian Silicon Valley, Bangalore.


4. Untapped Qualified Manpower:
Nepal has very high unemployed and poorly employed qualified manpower. In terms of salary, the best man power can be got with almost half the amount in India and China. Nepal produces around 10 thousand qualified Engineers and other IT Graduates annually, and due to the lack of opportunity in Nepal most candidates make their way to US, UK, India and Australlia. These candidates can be tapped by the early movers.


5. Extravagant Public:
Nepal is a economy run by remittances. Nepal has poor government (comes in LDC) but the people doesnot seem to be poor. From Pajero to Mercedes, all vehicles are quite common in Nepalese roads. The public of Nepal are so fun loving and extravagent that it has one of the best developed liquor industry.


6. Easy Capital:
Almost all the IPOs have been oversubscribed in Nepal by more than 100 times for last 5 years. It itself justifies the ready cash for the companies looking for expansion. Also, the corporate loan is available at the annual interest rate of 4-5 percent while it cost more than 10 in India. The banks in Nepal are facing excess liquidity while their Indian counterparts are struggling for getting each extra cash as deposit.


7. Hospitable Public:
Nepalese people are regarded as the most hospitable public globally. Due to the emergence as a tourist destination for many decades, the people are Nepal welcome everyone who enter their homeland. They give more love than they charge for the service, the tourist say so. May be you can test it yourself, if you get some leisure before planning next investment project.


8. Everything to enjoy:
Rafting in rivers, boating in lakes, mountaineering in the Himalayas, visiting Buddha's birth place Lumbini or Sita's birth palce Janakpur, having a Helicopter sight-seeing of the Mount Everest, tracking to the Jungles in the National Parks etc., all these are available in Nepal and all these with in a few hundred kilometers. Nepal can just be the home for Nature Lovers to Religion and Culture Scholars.


9. Cheap and Quality High Class Hotels:

Hotels are pretty cheap in Nepal and they have all the facilities that anyone in the World has. From Casino to quality Pubs, from well facilitated rooms to good view, smimming pools to the Billiard boards etc. everything is available in much cheaper rates, thanks to low maintenance cost. The Hotel insiders say they don't have to spend on Air Conditioning (its naturally cool). The occupancy rate is low in Nepal (due to earlier political tension) and the competition is intense, which has too contributed to lower cost.

10. Lower Interest Rate and Flexible Capital Flight Norms:

Nepal has lower tax than China or India, and Nepal government has declared to make the capital flight easier for both National and International companies. This is in discussion in the council of ministry and it is likely to pass soon.

All these calls for the companies to go and invest in Nepal. If they miss, I can only be sorry later.

Some Business Opportunities in Nepal

1. Tea export to Pakistan

Pakistan, one of our closest neighbors is second largest importer of tea (after US) and there is no active tea trade between India and Pakistan. Currently Pakistan imports Tea from China and Kenya. There leaves a room for Nepal to export Tea to Pakistan.

2. Export of Nepali Forest Product to India, China and rest of the world

Bhutan has made good progress in exporting forest products like paper and furniture to two of our giant neighbors. Nepal with huge forest and varied vegetation can tap this opportunity.

3. Back-office Pharmaceutical Production

Indian Pharmaceutical companies are doing too well in the Global Pharmaceutical Market especially in generic segment. There are very few reasons why Nepali companies cannot tap that market. Also, many global giants are focusing more on brand management and marketing outsourcing the production. Nepal, a country between India and China is an ideal production base for multinational targeting these two countries.

4. Business Process Outsourcing from US, EU, ASEAN, India

India is now the most preferred outsourcing destination for most MNCs, but the market is maturing due to the shortage of qualified manpower and high salary rise. This brings Nepal into the outsourcing picture in supplementing India.

5. Travel and Tourism

A country with varied vegetation having as much as 8 National Parks, 6 Forest Reserves, 2 Conservation Area and 1 hunting area is clearly one of the best green tourism destination in the world. To add to it, there are many holy hindu and Buddhist sites like Pashupati Nath, Janaki Temple, Swayambhu, Lumbini etc. Not to forget is Himalayas with Mount Everest.

6. Hotel and Hospitality, and Real Estate

The tourism potential explains the importance and potential of hotel and hospitality, and real estate sector of Nepal. Nepal is sure to become a good economy in the years ahead as a fine tourism destination and a market place with the likes of Mauritius, Switzerland, and Singapore.

7. Financial Institution (IB, Venture Capital, Mutual funds etc)

Retail Banking has survived very hard times in Nepal. Even when many companies were dying, these banks stood strong with the constant liquid flow into the economy in the form of remittances. Now, the market is poised to grow to other types of FIs like Investment Banking, Venture Capital, and Mutual fund.

8. Infrastructure (Power and Transportation)

Nepal has second largest potential for Hydropower after Brazil and both of the neighbors (India and China) are hungry for energy. So, there are the resources and there is the market. It is just about tapping it at the earliest and benefiting that is in waiting.

Also, Nepal has very weak transportation system. It will need private investment in both traditional ways like Road, Railway and Airport, as well as non-traditional ways like Rope ways. Nepal can be one of the biggest market for Rope Way Companies.

9. Apple export

Nepal produces on of the best quality Apple (in Humla and Jumla). They are searching market for centuries and now is the time when world should get chance to taste those sweet apples.

10. Healthcare

Sri Lanka has done much in the field of Ayurveda and now Kerala is following it. Nepal has the cold climate and the herbs. It is the market awaiting investment. Also, there is huge opportunity in other forms of Healthcare services Nepal can provide to the world in far more competitive price than Philippines or India.