Shrestha: From penniless to millionaire

Post Report

KATHMANDU, Dec 31 - Pushpa Man Shrestha, who began producing acrylic shawls with a single handloom in 1986, has won the Top Exporter’s Award, twice within a span of one and half decade of his business career.

Those who taught him the basics of the business do not have as high a business profile as Shrestha, yet his modesty knows no bounds. Shrestha, however, did not have a steady rise in his business. His has had a chequered career, to be frank.

Pushpa’s father, who deserted him in his infancy, died in 1964 when he was 14. Immediately after his father’s death, his grandfather also died and after four years his youngest uncle too passed away. The series of deaths compounded by hand to mouth existence marred his adolescence.

Despite extreme hardships, Pushpa did manage to study and graduated in two disciplines and became a headmaster in a high school in Burtibang of Baglung district, his native village.

He quit teaching and came to Kathmandu in 1979. He met Bhimsen Thapa, his teacher and a well-wisher, who employed Shrestha as a salesman in his curio shop in Thamel. Later, Thapa switched to pashmina business and made Shrestha managing director of Oriental Pashmina and Wool Industry in 1983.

Unfortunately, after one and a half year, the factory closed down but those were the great learning days. Pushpa came to terms with the economics of business. However, it was a hard blow to him. "It was one of the greatest problem in my life as I had nothing to feed my wife and two children", he recalls bitterly.

It was Bhimsen Thapa who taught him the basics of business that he is currently doing: pashmina weaving and export. In 1985, Pushpa began knitting acrylic shawls after borrowing Rs two thousand from Prem Singh Thapa and a single handloom, that too borrowed from an acquaintance. "Without my wife Lalu’s support, I could not have achieved what I have now today," says Shrestha rating his life partner high. He installed powerlooms in 1997.

Emboldened by the success of acrylic shawls, they began knitting pashmina. Helmut, a German national and the captain of Thai Airways had contributed a lot in the promotion of his business. He used to bring his friends to their modest outlet to buy shawls, remembers Shrestha. Their business recorded a steady rise making him financially strong, which allowed him to construct a three-storey building near Hotel Soaltee, a prime location in the capital.

Nowadays, he rides a sleek Japanese car and owns a pashmina factory including land worth over Rs 60 million plus other moveable and immovable property. However, his business suffered a set back in 1995 due to political unrest but it bounced back to form in 1997 further strengthening his financial condition.

Handicrafts’ Association gave away him the Top Exporter’s Award in 1998 and Nepal Chamber of Commerce (NCC) gave him the Top Exporter’s Award in 1999. He exported pashmina products worth over Rs 35 million in 1998 and Rs 60 million in 1999.

Shrestha is happier with his international repute than the volume of transactions he has made over the years. He says it is honesty and the honesty alone that rescued him from serious financial crises in his business.

The humble businessman now exports shawls, scarves, throws, blankets, sweaters, mufflers and various other pashmina products to foreign countries mainly to the United Kingdom, Switzerland, Italy, Germany, Japan and the United States. The UK tops the list of his buyers.

Recalling his difficult days, he says, "In 1995, my liability was greater than my possession but I could not inform my wife about it fearing she would be shocked. But, to my great surprise, she asked me to hand over all transaction to her. She injected Rs 1.2 million out of her nest-egg to the business and revived it". Her undying patience and encouragement inspired him to endure his struggle against adversity. "She shared every bit of my hardships and happiness throughout the difficult days," he credits his beloved wife.

Shrestha who upholds honesty as the secret of success, believes that lying is the beginning of the end. He prophesies that Nepali pashmina products enjoys good reputation in the international market thus has a very good future. He has also contributed to the social development and says he certainly has some obligations to the society.

Economy, finance and market

By Supa Upadhyay

Domestic money market:

The Average Weighted Discount Rate (AWDR) of 91-day Treasury Bills (TBs) dipped marginally to 5.26 percent from 5.29 percent of previous week. Likewise, the AWDR of 364-day TBs also nose-dive to 5.57 percent from its previous week’s close of 5.88 percent. The rupee was traded between 98.72-98.69 for 91-day TBs and at 94.75-94.66 for 364-day TBs. The NRB had received 25 bids worth NPR 1180 million against the notified amount NPR 600 million for 91-day TBs and 22 bids worth NPR 1180 million against the notified amount NPR 500 million for 364-day TBs. In the regular weekly auction, the NRB is going to issue 91-day TBs worth NPR 600 million on January 02, 2001.

Domestic capital market:

A weakening trend prevailed on the NEPSE. Trading was featured by extremely narrow movement with low volume of business due to Bandh and Holiday. The NEPSE Index-100 opened higher at 494.71 from the previous week close of 489.07 slipped in the consecutive days and eventually closed at 488.01 for the week, netting a loss of 1.06 points. This week, trading was estimated at 35425 shares valued NPR 27.2 million compared to 93684 shares valued NPR 57.2 million of previous week. Commercial Banks alone shared 84.52 percent of total traded amount. This week, the Index of Commercial Banks, Production Sector, Hotel Sector, Other Sector and Finance/Insurance Sector lost. Business Sector remains unchanged at previous week’s prices. This week, brokers had quoted the prices of 50 companies on the on the trading board but 36 companies were traded. Out of thirty-six traded companies, fifteen companies improved, fifteen companies lost and other six traded companies remained unchanged at their previous prices. General Finance, Nepal Bank Ltd. and Bank of Kathmandu registered the first, the second and the third most traded companies trading 5985, 3714 and 3280 shares respectively. Shares of Nepal SBI Bank, Nepal B’desh Bank, Bank of Kathmandu and NIC Bank were able to trade in all four working days. Likewise, Nepal Bank Ltd., Nabil Bank, Indosuez Bank, Nepal Grindlays Bank, Everest Bank, National Life & General Insurance and Kathmandu Finance were only able to trade in four working days.

Forex round-up:

The USD weakened against Sterling and Euro over the week while the dollar rally against the Yen. Sterling rose to four-month highs against the dollar for the third straight day, threatening a major psychological and technical barrier at 1.50. Meanwhile, the British economy had surprised many analysts with its resilience in recent weeks, boasting a string of strong indicators.

The JPY fell sharply against the dollar amid pessimism over the Japanese economy and official tolerance of the currency’s weakness. Furthermore, recent Japanese data has been disappointing, leading analysts to revised down their expectations for recovery and even contemplate a return to recession.