Khetan Group is the business house which officially started the formal business culture in here.
It’s always difficult to keep up with the legacy that took 170 years to build but Khetan Group has succeeded to not only to defend the legacy but also to take it even further through sheer hard work and perseverance. Let’s know about the first business house of Nepal which has engaged in some of the most interesting and exciting ventures in Nepal.
The foundation of Khetan Group was laid by Kishun Ram Khetan some 170 years ago during the Nepal-Tibet War of 1855-1856. Kishun Ram Khetan supplied Nepal army with provisions( rations) and salt which was essential since Nepalese were fighting in difficult territory where provisions were hard to come by. he must have done a terrific job since then their business and family are entrenched in Nepalese heartland.
Despite starting so far back they were officially registered according to the then company act in 1937 by Purna Mal Bihari Lal Khetan. Back then they were in the textile importing business and trading jute as well along with money lending. This experience later on went on to serve them well while opening up new industries and finance companies.
Mohan Gopal Khetan, son of Purna Mal Bihari Lal Khetan was put in the helm of company after his father. He took the company to new heights ushering in the new era of trading and industrialization. Building up the close relations with the ruling elite he ushered in the era of soft drinks and liquor (primarily beer). It was in his time the name Khetan became synonymous with wealth in Nepal.
Introduction of Coca-Cola:
The credit of bringing in the world famous soft drink in Nepal goes to Khetan Group. Opening up the Bottlers Nepal they firstly imported Coca-Cola from India later on they established the plant here in Nepal allowing Nepalese populace to taste the world famous soft drink produced in their own company.
Khetan Group ventured in the liquor industry by establishing Gorkha Brewery which is the another milestone for the group established in 1989. It was established as a joint venture with Danish multinational company Carlsberg Breweries. In 1990, the launch of Tuborg Beer by Gorkha Brewery marked the first international beer brand produced in Nepal. Carlsberg started production in 1995.
The company since 2004 has been brewing and marketing the Filipino beer brand San Miguel Beer by acquiring Mount Everest Brewery. This has allowed to diversify the taste of Nepalese beer enthusiasts.
Banking: Back to The Roots:
Before venturing into industries and trading Khetans were into money lending. So when the economy opened in 1990’s they immediately ventured into Banking and Finance sector. Himalayan Bank and Laxmi Bank are prominent commercial banks established by the group.
They also have Laxmi Micro-finance company to facilitate the banking services to the under privileged parts of society who are not usually catered by the commercial banks for their banking needs and services. They also have Laxmi Corp an investment company for investment purpose.
Khetan group also stepped into the insurance market in 1994 with the establishment of the Everest Insurance Company. In 2007, Khetan Group initiated Prime Life Insurance Company. Both of these company are in the fore front of the insurance business.
FMCG stands for Fast Moving Consumer Goods also known as consumer packaged goods, are products that are sold quickly and at a relatively low cost. Examples include non-durable household goods such as packaged foods, beverages, toiletries, candies, cosmetics, over-the-counter drugs, dry goods, and other consumables.
Khetan Group has also ventured into FMCG by establishing Himalayan Snax & Noodles Company in a joint venture with Thai Presidents Foods. The company has been manufacturing various brands of instant noodles such as Mayos, Mayos Shangri-La, Shaka Laka Boom, Ru-Chee, Lekali, J-mee, Hurray, Humpty Dumpty, Doharee Tayari ChauChau, Doodle InstaMix, Max Instant Noodles, Munchy and Jhilke.
Despite trying the new ideas in this field Khetan Group has not tasted success in this field. It established the Nepal Air Charter Service which is the first private sector airline in Nepal. In 1992, the group commenced Everest Air which was among the major domestic airliners in the early and mid 1990s. Both of these airlines have ceased to operate.
Worth and Legacy: Where is Khetan Group Headed ?
It is well estimated that the Khetan Group is worth NRS 50 billion. They have successfully carried out the legacy of their ancestors and carried on even more. So we can safely and surely say that they are headed in right direction and we wish them good luck.