This Dutch-originated company first came into Nepal in 1997 and now it has four Nepali subsidiaries doing a very good business in helping Nepalis and foreigners to cope with the problem of hair loss.

Ask Reinhart Van Rooy, how he finds the environment here to do business. In response this Dutch entrepreneur specializing in hair transplant technology goes on listing down a number of problems including the under-the-table payments demanded and weak policing against theft. "Still I’m satisfied", he says, "because it is worse than this in many other countries where I’ve tried".

Unlike other foreign investors, Rooy does not mention only the economy in labor expenses as the reason for selecting Nepal to locate his business. He selected it because "there would be no competitor breathing down your shoulder and there would be no risk of the employees running out on you and setting up their own businesses with the technology learned from K33 association". For this matter, Rooy is all praises when it comes to evaluating the Nepali people. Some of the adjectives he uses to describe the Nepali people are: friendly, smiling, humorous and hard working. "You can trust them. There has been no incidence of stealing so far." Rooy visits Nepal four times a year in general.

Rooy’s first arrival in Nepal was in the course of his search for a location where it would be cheaper for his hair transplant technology to operate as a business. And his itinerary then did not include Nepal. Rather he was going around Indonesia, Vietnam and India. But when he was talking to an Indian businessman who was giving him the details of making investment in India, the Nepali secretary of that Indian businessman suggested Rooy to consider Nepal as well. And within a week, Rooy was in Nepal. And in the next ten days, there was K33 Maintenance set up as the first K33 establishment in the country.

That was way back in 1997. Now there are three additional K33 establishments in Nepal: K33 Hair Factory, K33 Europe Hair and K33 Hairhotel. Another factory is coming up very soon, informs Rooy. While K33 Europe Hair is for marketing across Asia dealing with the dealers, K33 Hairhotel is for marketing within Nepal (direct client services as a retail outlet). K33 Hair Factory manufactures the new hair units, which are either sold in Nepal or exported to Europe and other countries. It is only in Nepal that the manufacturing operation of K33 is carried out.

Rooy’s initial plan was to have the Hair Factory within five years of K33 Maintenance being set up. But it was within three years only that the factory was operational and was officially declared open in September 2000.

The reason for the factory being opened so fast is equally interesting. Rooy used to get the hair units manufactured in Hong Kong, but his designs were copied pretty quickly and spread over the whole world from there. Concentrating all the manufacturing and designing operations here, Rooy has solved the problem of his designs being copied.

According to Rooy there are two Nepali directors and two Nepali managers running the businesses with a total staff strength exceeding 50. But the business is providing job to about 150 other people as well who work on contract at their respective homes producing hair units for K33.

Rooy says he has already invested over US $ 250,000 in these subsidiaries, which are owned 100% by him. Still he is planning to increase the investment and to make a big factory so as to increase export to Europe and also to Asia.

Though Rooy and company sources do not reveal the exact figures, some data already published in one of their in house publication show that the K33 business in Nepal incurred a loss of US $ 12,000 in 1998, the first year of its operation. But the losses reduced to US $ 700 only the next year and there was a US $ 35,000 profit in 2000.

K33 has operations also in Greece, Belgium, Turkey, Germany and Cyprus. The operations are headquartered in Cyprus, but 80% of the business is through Holland, and 100% of the production is in Nepal, says Rooy.

Regarding the marketing aspects, Rooy says that looking at the income level of the local people the response to K33 products is very impressive. However, the major groups of clients are from the business, the civil service and the entertainment industry. Since it is not possible to reduce the price any further without compromising on the quality, K33 is now concentrating in developing new technologies to address this market segment as well. "However, that is not going to be at the cost of the quality", says van Rooy.

Beijing Ducks on Nepali Plates

While the traditional tourist originating markets have almost deserted Nepal, the Nepali tourism industry is now looking towards China for relief. As the formalities are still being sorted out between the two governments to facilitate easy travel for the Chinese into and out of Nepal, the Nepali entrepreneurs have started significant investments in setting up facilities targeted to cater the Chinese tourists.

However, Beijing Roast Duck Restaurant (BJRD), which opened on January 28th by the side of Birendra International Convention Centre (BICC) complex as a Nepali-Chinese joint venture, is targeted also on local clients, say the company sources. The specific target groups include diplomats, business people and other middle and upper class persons. The prices too have been fixed at levels slightly below the 5-star hotel restaurants to suit the target group. And as the Chinese Ambassador himself was quoted as testifying to the authenticity of the food in BJRD, the doubts if any about the success of the restaurant are minimal.

Unlike other Chinese food facilities in Kathmandu that are either local brands or franchises of some other foreign brands, BJRD is the first franchise from mainland China itself. Bian Yi Fang Roast Duck Restaurant was founded in Beijing in 1855 and specializes in "stew-roasted" duck.

One more advantage with the new restaurant is the parking space that it has while its competitors, particularly those not associated with four or five star hotels, lack. In addition to it is the security aspect as BJRD is located in the middle of the busy thoroughfare where the public security is far better compared to other places in the city.

But restaurants like this have their own problems in Nepal. For example, BJRD has to depend almost entirely on imports for the supplies. The ducks and also the spices are to be imported all the way from Beijing itself.

Why not Nepali duck? Because, they are smaller in size. The standard Beijing duck should weigh at least 2.5 Kg. And in Nepal it is only the Rajhans that is likely to meet the standard. But they too are not easily available, say the company sources.

Second, the preparation time for the duck is 45 minutes. Many of the guests may not be aware of this and can start getting fidgety over the delay in serving the order.

BJRD is the second major joint venture of ace garment entrepreneur Chandi Dhakal with investors from across the Himalayas. His earlier joint venture with Chinese investors is in Pashmina industry.

According to the company sources BJRD is now planning to open facilities also in Pokhara and Chitwan, the two other major tourist destination in Nepal.

Nearly Rs. 15 million has already been invested in BJRD's Kathmandu facility. Still it is to increase, the sources say, as they have not yet implemented all that is planned.

For Example, the next facility to come up is a roof-top restaurant in the same premise.

Web-Park Nepal Luring by Job Offers

When Web-Park Nepal started business about one and half years ago it was looked at as only "one more company in IT". But now with its MIET course and Web-card concept, the observers are having different thoughts.

With 30 persons now enrolled in its course called Master in Internet & E-commerce Technology (MIET) under which the company provides a 100% job guarantee to the trainee upon joining the course, Web-Park Nepal (WPN) has already created a bang in the market. In exchange for about Rs. 130,000 fee for the course, the person gets appointment letter on the day of admission provided he or she fulfils the entrance criteria.

Then the next bang is the web-card that the company launched during the CAN Info Tech 2002 recently (NBA, February 2002). While the banks are still complaining of the lack of legal provisions for e-commerce as payment through credit cards is not yet legalized, WPN has stepped in with its Web-card which if marketed properly is likely to take up a large share of the potential market in on line shopping in Nepal.

The background to WPN is equally interesting. For example, it was initially set-up by Mrs. Sarswati Pant (housewife) in Gyaneshwor. Then Udaya Mohan Shrestha, and Rajan Pant joined hands to transform it in to the present shape. Shrestha belongs to Nepali Congress Party, but lost in the last election to the parliament. But his explanation of being in politics is again equally interesting. "I went to politics because the politicians don’t understand the problems of the business people". In business, his other involvements are in hospitality industry (he runs Pension Vasana, which is targeted particularly to the Japanese) and consultancy services.

His hospitality business helped him to develop some connections in Japan which further led him to invest in IT sector. And the result is Web-Park Nepal set up in association with Rajan Pant, an IT expert. The company runs training programs with 100% guarantee of employment in Japan, USA or Nepal.

Pant has 17 years experience in IT sector, working as IT consultant in Nepal and India. According to him, there is tremendous scope of IT business in Nepal.

Regarding other differences that his company has from the competitors, Shrestha says his company’s business is still at infancy. Hence, there is no question of another company as competitor rights now. However, Shrestha says, his company’s forte in training lies in providing the trainees the opportunity to work on real projects during the training period itself. Such hands on approach puts the company on different plane altogether from the other institutions.

Though company has already enrolled 30 persons for its MIET course, but it is still far short the capacity of 200 persons that the company's facilities can accommodate.

The promoters say, they have invested about Rs. 3.0 million in the WPN.

CORPORATE MOVEMENTS

Taking over Rastriya Banijya Bank (RBB) management, the international accounting firm Deloite Touche Tohamatsu has absorbed a large group of banking and accounting professionals as members of its Nepali counterpart team. The list is headed by Ram Krishna Neupane, Partner in BRS-Neupane & Co., the Nepali accounting firm that represents Deloite Touche Tohamatsu in Nepal. Neupane is to be the co-project Director in RBB management. Shovan Dev Panta, Anup Shrestha and Shasin Joshi are to be the co-team members. While Panta was earlier GM in Nabil Bank, Shrestha is a partner in BRS-Neupane & Co. and Joshi was Head of Corporate & Institutional Banking in Standard Chartered Bank Nepal Ltd. Moreover, Gyanendra Bahadur Bhari (partner, BRS), Hom Nath Gurung (Company Secretary, Everest Bank Ltd.), Parakram Nath Sharma (Deputy Director of Institute of CA, Nepal) Surendra Bhusan Shrestha (Deputy Manager, Nepal Bangladesh Bank), Sanjeev Manandhar (Assistant Manager, Internal Audit, Nepal Indosuez Bank) are also to join in as support team. Other in the support team are Prakash Jung Thapa, Sunir Kumar Dhungel and Mahesh Khanal. While Thapa was Manager, Credit Control, and Board Secretary, in Nepal Bank of Ceylon, Dhungel was Chief of Accounts in the same bank and Khanal was with BB Rajbhandari & Co.

Dr. Thakur Nath Pant, President of Bank of Kathmandu Ltd., passed away of heart attack on January 26, 2002. We pray for eternal peace to the departed soul.

Dr. Gopal Prasad Shrestha has joined Beijing Roast Duck Restaurant (BJRD) as CEO. He was earlier with United Insurance Company (Nepal) Ltd. as the General Manager.

Pradeep Das Shrestha also has joined BJRD where he holds the position of General Manager. Earlier he was General Manager of Hotel Central Point till March 2000.

Pankaj Malla, Director (Sales & Marketing) of Sigma Resources Pvt. Ltd. has left the company after working there for about three years.

Awadhesh K. Das, Senior Sales Manager of Himal Media Pvt. Ltd. has joined Jagadamba Press as its Marketing Manager. Das was with the Himal Media for last 5 years. Meanwhile, Anup Adhikari has left Himal Media where he was working as the Marketing Executive for the last one year. He has joined British Council as Information & Personnel Manager.

Biswajit Ghosh has been appointed Chief Operating Officer of Amravati International (P) Ltd., a Soaltee Group Company. Bhusan Shah who was General Manager in Amravati International has left the company. Ghosh is with Soaltee Group for the last 18 years and was financial controller of Soaltee Crowne Plaza before taking up as CEO of Amravati International.

K. Dharmasiri has joined Nepal Bank of Ceylon Ltd. as the CEO replacing D. Weerasinghe who goes back to the parent company, Bank of Ceylon, upon the completion of his five-month long tenure here.

Bikash Subba, a Chartered Accountant, has been promoted as Manager (Internal Management Consulting-IMC) in Soaltee Group. Meanwhile Naresh Chandra Pradhan has joined the company as Assistant Manager, IMC.

Devraj K.C. has joined Nepal Overseas Marketing Co. (P) Ltd., as National Sales Manager is its Gillette Division. Earlier, he was with the Chaudhary Group as its Senior Manager-Sales.

Pratap Rawal has joined Himalayan Distillery Ltd. as Vice President (Marketing). He was earlier General Manager with Sitaram Gokul Milks (Kath) Ltd. where he had joined after leaving Singha Brewery (Nepal) Ltd.

Satish Kumar Karn has joined HImalayan Distillery Ltd. as Chief of Finance. Earlier he was Finance Manager in the corporate office of Taragaon Regency Hotels Ltd.

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