FMCG companies like Dabur and Britannia say unrest in Nepal hit production

New Delhi: Leading FMCG companies Dabur and Britannia on Thursday said that production at their manufacturing units in Nepal has been hit due to unrest in the Himalayan kingdom.

Food and bakery company Britannia Industries said it has temporarily halted production.

"Safety of our people is of utmost importance and we have temporarily halted all our operations to ensure the same," said a Britannia spokesperson.

The company, which owns brands such as Good Day, Marie Gold and Tiger, further said: "We are also grateful for the local military who has stepped in today, boosting the confidence in safety among employees." While Dabur, which operates a production unit at Birganj in Nepal, said its production has been partially impacted as many of the workers are not able to reach the plant.

"We are closely monitoring the evolving situation in Nepal. The safety and well-being of our employees, partners, and communities remain our highest priority. We have asked all employees in Kathmandu to operate from home and the sales teams have also been advised to prioritise safety and adhere to local curfew directives," said a Dabur spokesperson Nepal market accounts for under 3 per cent of Dabur's consolidated sales.

"We are actively coordinating with local authorities and internal teams to ensure business continuity. We remain committed to supporting our employees and partners during this challenging time," he said.

In Nepal deadlock over the selection of an interim head to run the government continued on Thursday, even as President Ramchandra Paudel appealed for peace and said he was aiming to find a solution to the political crisis within the constitutional framework.

The army took control of security from Tuesday night after incidents of arson and vandalism across the country.

On Tuesday, Nepal Prime Minister K P Sharma Oli stepped down shortly after hundreds of agitators entered his office shouting slogans, demanding his resignation for the death of at least 19 people in police action during protests on Monday, officials said.

The protesters set on fire several buildings, including the Parliament, Singha Durbar premises, Supreme Court, political party offices, and homes of senior leaders.

Almost a year back, Indian FMCG companies have faced a similar situation in Bangladesh, when student unrest led to the ouster of the Sheikh Hasina government. Companies such as Emami have reported impact on their business.

Indian FMCG firms, including Dabur, Britannia, Marico, Patanjali, ITC, and Reliance Consumer have a significant presence in Nepal. Most of them operate through their local distributors or partnerships.

Some of the firms such as Dabur, ITC (through Surya Nepal), and Britannia have their manufacturing operations in Nepal.