A Politician Turned Businessman
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Once he worked as the translator with an anthropologist in UK who
was studying about Nepal. Then he also did a stint with the National
Geographic Magazine studying high altitude animal cross-breeding
in Nepali mountains. Then he followed into his father's footsteps
as a politician and rose up to become the zonal level president
of the then Youth Organization during the partyless political system
of Nepal. But while pursuing his political career, he also started
his own business. And now AG Sherpa is the President of Central
Carpet Industries Association (CCIA), the apex chamber of Nepal's
one of the largest export industry, the carpet.
But the Nepali carpet industry today is not the same as it was
in 1984 when Sherpa took it up after about a couple of years of
being in export business. It is far more worse than that of 1992-93.
Comparing the situation today with that of 1992-93, Sherpa reveals
that his exports then used to be around 900 or 1000 sq. mtrs. per
month. But is has now reduced to 300 or 400 sq.mtrs. per month.
However, it is not only the leader's business. The entire Nepali
carpet industry has declined. More than 50% of the factories of
1992-93 are closed down, according to Sherpa.
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Ang Gelbu Sherpa
President: CCIA
Chairman: ACE Carpet Factory
Proprietor: Mountain Carpet Industry
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Regarding the question of originality in Nepali carpets, Sherpa explains,
"though they are originally Tibetan, now we've made the quite a Nepali
product. That's why Indian imitators call their products Indo-Nepal carpets.
Thus hand-made woolen carpets are now Nepali products, no more Tibetan".
The Nepali carpets are selling mainly in Germany and this single market
dependence is generally regarded as adversely affecting the industry.
But this is not a secret to Sherpa and CCIA either. So, they have been
making efforts to diversify the markets, and Sherpa reveals that the initiatives
made in US market since 1989 have started bearing fruits. Only 4% of Nepal's
total carpet exports used to go to USA then, it has now increased to 15%.
Because of the success so far, the fourth of the series in the marketing
drive in USA from Nepali carpet industry is beginning January 17. That
was planned earlier for September 29, but was postponed because of the
September 11 incident. Similar efforts have been made also in Japan and
Sherpa says the efforts have been successful also there.
Analyzing the reasons for the present downfall of the Nepali carpet
industry, Sherpa blames the unprofessional people who plunged into it
after 1990. All sorts of people with some money to invest (e.g. bureaucrats,
technicians) had started carpet business. The result was inefficiency
and overproduction of substandard goods. Then were the Azo-dye issue and
child labour issue. "But we've no child labour in Nepali carpet industry",
Sherpa reiterates. "The reason why the rumour went out was that some people
saw the women workers braining their children to the work place. The government's
releasing data that there is 7% child labour in Nepali carpet industry
made the situation worse. So we've now set up day care centres for such
children. They are placed there at 9 in the morning and taken out at 5
in the evening. The result is that the productivity has improved 10%",
he adds.
One more effort that the carpet sector is making is to expand the domestic
market and the showroom opened in Pulchowk of Lalitpur early 2001 has
been showing good results, claims Sherpa.
When asked about his success in business, Sherpa says, "success is not
related with the wealth one earns or the number of business units one
owns. A businessman is successful if nobody can find flaws in the methods
of his business. I need a healthy return on my investment. And that I've
been getting".
But how is the political career of AG Sherpa now? His reply is that
he is still interested, but not for a position. "I'm interested because
I need to know what's going on". But, is he happy with what is going on?
"No, there has to be an economic revolution. That hasn't happened as yet".
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