Business News

While lobbying by Indian business organisations to plug imports there from Nepal is intensifying, a seemingly Indian party has issued an advertisement calling for proposals from Nepali parties for a joint venture to set up a plant in Nepal to manufacture vanaspati (vegetable ghee) and refined oils as well as international trading.

The advertizer claims to be a well-known soyabean processor having a turnover of Rs. 500 crores and intends to set up a 250 TPD plant in Nepal.

UFL Gives Dividend

The 6th AGM of United Finance Ltd. has announced 25 percent dividend to the company's shareholders.

It was made known at the AGM that UFL made profit of Rs. 1,05,68,470 in the FY 1999-2000. While the company's deposits reached Rs. 21,21,91,734, its investments as loans stood at Rs. 19,23,84,152 and other investments, Rs. 2,89,16,520, the AGM was informed.

A press release from UFL reveals that it is making arrangements to go to the public soon.

United Finance, that started its activities from 1994-95, had begun distributing dividend since its third year of operation.

Big Drop in Tourist Arrival

Tourist arrival by air dipped almost 11 percent in 2000, according to a statistical analysis of Nepal Tourism Board (NTB) based on the number of tourists by air.

In comparison to 4,21,188 arrivals in 1999, this year saw just 3,76,503 tourists coming in by air, says NTB. What is significant is the fact that the number of visitors from India has gone down from 1,40,000 a year ago to 96,000 in 2000 – a drop by an incredible 31 percent.

In contrast, NTB's statistics show a rise in arrivals from third world countries, the rate of growth, however, declining.

NTB has also tried to explain the reasons for slowdown in tourist arrivals. The non-operation or suspension of IC flights for five months following the hijack is one of the causative factors NTB has put forward. It has also cited the new frontier formalities introduced by the Indian government as one of the major reasons for the dip in Indian tourist arrivals.

NTB also views that the hotel and restaurant workers' crisis and the violent incidents fueled by anti-Nepal remarks allegedly made by Hindi cine artist Hritik Roshan, have contributed to dwindling number of Indian tourists coming into the country.

Tourism analysts however find it difficult to understand how incidents occurring only a couple of weeks back can be blamed for dismal tourist arrivals for the entire year.

Necon Adds ATR

Necon Air, the only private sector airline till date to operate flights to India, has added a second ATR aircraft to its fleet. The inclusion, according to the airline, will bolster its air services.

Manufactured by the ATR Company, a consortium of Aerospatiale Matra of France and Italy's Alenia Aerospazio, the 45–seater craft, claims Necon, is a state–of–the–art, new generation turbo prop aircraft equipped with modern flight equipment.

Also said to be operated by a horde of international airlines, Necon Air boasts of being the only aviation company in Nepal to fly the ATR aircraft. The airline also plans to modernize its fleet by operating all flights by the ATR.

Mach Speed Bank

Breaking the barrier with MACH Bank Speed", says the recently opened regional commercial bank, Machhapuchhre Bank Ltd., advertising about its Royal Saving Deposit promising higher interest rate and better service.

Soon after starting business the bank has installed ‘Globus’, a brand of banking software, said to be the market leader worldwide.

Globus has more than 270 users worldwide, according to Kim Goodall, Vice Chairman of Temenos, the company that owns the brand. "Nepal is the 90th country in the world and third in South Asia where Globus is installed", he added. Other two South Asian countries using Globus are Sri Lanka and Pakistan.

Comparing his company's product with other banking softwares, Goodall says, whereas all other software offer localised solutions needing the software to be installed at each branch of the bank, Globus offers a centralised solution.

IBM has stopped developing banking software and has become a distributor of Globus, informs Goodall.

Nepali Firms Win Awards

An over-crowded market of players, rampant unprofessionalism and an utter lack of ethics. This is how the Nepali ad world is commonly described. But even in this gloom, Prisma Advertisement has managed to excel in its performance and has been recognized with the Bell Ringer Award 2000 by Johnson & Johnson School of Advertising based in New Brunswick, New Jersey, USA.

The Bell Ringer Award is presented every year by Johnson & Johnson to their agencies worldwide in recognition of the most creative and innovative work. The award is believed to be the first ever international award to be won by a Nepali advertising agency.

National Safety Award to STC

Surya Tobacco Company (P) Ltd (STC) has been declared the safest working place of Nepal following safety audit conducted by a panel of experts on the occasion of National Safety Week observed during December 3 - 9, 2000.

With this the company became the first in Nepal to win the National Safety Award, 2000. The panel of experts constituted by the Ministry of Labour and Transport Management was comprised of B.B. Kshetri (Chief, Occupational Safety and Health Project), S.N. Vaidya (Director, Department of Labour and Dr. C. Pinnagoda (ILO / Occupational Health and Safety International Expert). The team had evaluated 65 industrial units nominated for the award. According to the team, STC strictly adheres to European EHS standards.

Arun in Limbo Again

After creating much hype by announcing its entry into Nepal, EurOrient of USA has created another uproar- this time by refusing to pay the performance guarantee for the survey licence of the much talked - about 402 MW Arun III hydel project.

EuroOrient's refusal to cough up the money comes even as other companies that had applied alongside EurOrient for the survey licence in relation to other hydel projects have already deposited required sums of money.

It is learnt from the Electricity Development Board, the authority on the matter, that after acquiring the survey licence, EurOrient will then have to obtain the licence for construction for which it will have to sign a Power Purchase Agreement (PPA) with India. Experts view that EuroOrient might not be too confident on this aspect since some foreign companies licenced for other projects are known to be unable to sign a PPA even after much efforts.

MBA Course for Working Managers

The Kathmandu University (KU) has begun a two - year MBA course for executives (EMBA Program) catering to meet career aspirations of managers of various organisations. The course is so structured that while continuing their full time professional roles, the executives can pursue their studies.

The aim of the course, according to the university, is to impart managers with a wide range of management skills, enhance their analytical abilities, and develop professionalism and expertise in the field of management.

The university also informs that it has entered into a collaboration with the Western Kentucky University of USA for the EMBA Program.

Send your feedback to the editor: bizage@ecomail.com.np
1999 © Mercantile Communications Pvt. Ltd. P.O. Box 876, Durbar Marg, Kathmandu, NEPAL. Tel : 977 1 220 773, 243 566 . Fax: 977 1 225 407. Reproduction in any form is prohibited without prior permission. No part of the articles which appear in the internet version on BUSINESSAGE may be reproduced without the permission of Mercantile Communications Pvt. Ltd. For reprinting rights, please write to us. Send us your feedback:contact us . CLICK HERE FOR PAST ISSUE. This site is best viewed at : 800 X 600 resolution

Veg Ghee JV