Dabur Nepal will not move out: Minister

By Rajeev Ranjan Roy, IANS,

New Delhi : The Nepal government is making all “possible efforts” to iron out differences between the management of Dabur Nepal and its employees over payment of of bonus, the country’s Commerce and Supply Minister Rajendra Mahato said here.


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“There are some complications, and the government is working out modalities acceptable to the employees and the Dabur Nepal management. It is being done on a priority basis,” Mahato told IANS on the sidelines of a business summit here.

“I do not think Dabur Nepal is moving out for any reason. It is a highly unlikely proposition,” he said.

The Dabur Nepal management has sought action against certain employees for a 13-day stoppage of work, and peace agreement with workers, who have asked for 10 percent bonus as per the labour laws.

Dabur employees, on their part, have accused the management of fudging actual profit figures, which is now being looked into by a committee headed by a joint secretary in Nepal’s labour and transport ministry.

Dabur India was the key sponsor to India Inc.’s business interaction with Nepal’s visiting Prime Minister Pushpa Kamal Dahal Prachanda here Monday.

In his address, Prachanda promised “peace, stability, security, industrial reforms” to the industry captains and urged them to invest in building the Himalayan nation’s fledgling economy.

“After our prime minister’s speech, I do not think one should still think in terms of Dabur Nepal wrapping up their activities, which they have been carrying out successfully for nearly two decades,” said Surendra Bir Malakar, president, Nepal Chamber of Commerce (NCC), a Kathmandu-based industry lobby.

“The government of Nepal has recognised Dabur’s contribution to the economic development of the country and always provided constant support and encouragement,” said Dabur India in an official statement at the business summit.

An industry source close to Dabur India, which clocked revenues to the tune of $600 million in 2007-08, said the company wanted an end to the impasse at its Nepal unit.

“It will be sorted out without hurting the interests of Dabur or its employees. There are genuine concerns on both sides,” said the source, who did not wish to be identified.

Dabur Nepal, established in 1989, currently employs over 1,200 persons directly and generates over 40,000 indirect jobs. It is spread over nearly 100 acres in Bara district on the India-Nepal border.

Dabur Nepal, which produces and markets a wide range of herbal, health, beauty care products and ayurvedic specialities, logged a turnover of Nepali Rs.4,000 million.

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