Private sector commits to make a ‘Baliyo Nepal’

After President Bidya Devi Bhandari launched the Baliyo Nepal initiative last week, the private sector today took the first step around the common goal of fighting malnutrition.
Baliyo Nepal’s innovative – a non-traditional approach to bring together the whole of Nepali society –relies on many diverse sectors backing the cause; and today the first group of businesses joined the movement, committing their support to Baliyo Nepal’s efforts at reducing chronic malnutrition in the country. This was first of its kind event, where both food and non-food companies have committed to the movement.
The first private sector partners of Baliyo Nepal include major food producers, service sector companies and manufacturers, reads a press note issued by the Baliyo Nepal. “Businesses as diverse as Mega Bank, Nimbus, Thamel Remit and Triveni Group committed to support the movement against hidden hunger, confirming that they saw it as in their interest to jointhe initiative that helps this country to thrive,” the press note reads, adding that
During the programme, the chairman of Baliyo Nepal Dr Swarnim Wagle emphasised that signing these Memorandum of Understandings (MoUs) is one of the landmark steps in the fight against malnutrition. “Nepal has become the pioneer country where private sector has come forward and joined the ongoing government initiatives in the willful fight against malnutrition,” he said, adding that Baliyo Nepal is positive that this partnership will start the new avenue where the private sector can play the role of a true enabler to this movement. “BLC and KL Dugar Group along with Baliyo Nepal will be launching ‘Lito’ for 6months to 24 months children, which will enrich their nutrition intake.”
Likewsie, Avinash Farms and ShrinagarAgroFarm with this partnership will enhance their egg availability across Nepal. Other businesses are giving commitments to directly support Baliyo Nepal nutrition promotional programmes.
On the occasion, chief executive of Nabil Bank Anil Shah, who is also a member of the Baliyo Nepal Board, said, “We have been overwhelmed by the appetite of Nepali businesses, who share our dream to give the next generation the best future possible.”
What could our future hold if every child was as strong as Everest, he said, adding that the movement is not just about malnutrition, it’s about the collective dreams of Nepal. “Of course, everything starts with the right nutrition. We will build a Baliyo Nepal together.”
Likewise, deputy director at the Private Sector Partnership Development for Nutrition at the Bill & Melinda Gates Foundation Kamel Chida, who was present at the signing ceremony said that the vision of Baliyo Nepal is a future where every Nepali child could grow into their full potential and with them the nation too. “That is a big challenge, and a huge opportunity, but we have a team of inspiring and committed partners to make a great start in making the movement a reality,” Chida said, hoping that more partners will join and strengthen that movement with their participation.
Almost a dozen companies including Avinash Farms Pvt Ltd, Bhuramal Lunkarandas Conglomerate (BLC), Himalayan Bank Limited, K L Dugar Group, Mega Bank Nepal Limited, Nabil Bank Limited, Nimbus Pvt Ltd, QFX (Team Quest), ShreenagarAgro Farm Pvt Ltd, Thamel Remit and Triveni Group attended the event and signed individual MoUs with Baliyo Nepal.
Baliyo Nepal is a national movement focused on engaging the nation in the fight against malnutrition. It is led by an independent board of diverse Nepali leaders spanning government, civil society and the private sector.
Former vice chair of the National Planning Commission (NPC) Dr Swarnim Wagle leads Baliyo Nepal, where Global Executive Committee Member of Scaling Up Nutrition (SUN) in Geneva, and President of the Civil Society Alliance for Nutrition, Nepal Dr Uma Koirala , former Captain of National Cricket TeamParas Khadka, , vice president of Confederation of Nepalese Industries (CNI) Nirvana Chaudhary , and chief executive office of Nabil Bank Anil Shah are members.
The Baliyo Nepal Nutrition Initiative’s first programme aims at reducing the risk of nutritional deficiencies among children aged 6 to 23 months by promoting healthy complementary feeding options, partnering with companies to grow the consumption of eggs and fortified porridge. The newly-launched organisation will work with the food industry to increase the supply of affordable and nutritious food. It also works to generate demand for more nutritious food by building a movement through social marketing and behavior change interventions to engage citizens. This initial promotional activity will be focused in selected municipalities before going nationwide.
Partners’ food products must meet a high nutritional standard, either by being naturally rich in nutrients or being fortified to acceptable levels; to verify nutritional standards, Baliyo Nepal will be following the Australian Government’s Health Star Rating system and require all products to have a 3 star rating or higher. Other private sector partners have made commitments to support the initiative with funding and value-in-kind support; with their assistance, the Baliyo Nepal brand will be brought to life in a series of educational and marketing activities, including films, corporate sponsorship and packaging design.
The organisation has been funded by the Bill & Melinda Gates Foundation, who issued a grant to the Chaudhary Foundation to support the set-up of Baliyo Nepal. The Gates Foundation continues to support the organisation by connecting Baliyo Nepal with foundation partners in nutrition science, product development, consumer marketing and behavior change. Baliyo Nepal is now governed by a diverse board of leaders from Nepali civil society.

CG, Nimbus pledge to help start-ups

Chaudhary Group (CG) and Nimbus Group will help the start-ups with capital and other support.
Talking at ‘Finance Your Dreams’ – an interaction with some 450 young entrepreneurs organised by Himalyan Climate Initiative (HCI) – in Kathmandu today, CG Corp managing director Nirvana Chaudhary and Nimbus managing director Anand Bagaria pledged their personal and corporate commitments to help incubate start-ups in Nepal.
They also announced their personal and corporate commitments to help incubate start-ups in the country to boost entrepreneurship.
Speaking at the event, Chaudhary said the Chaudhary Group is always committed to supporting young start-ups with an information technology bent. "We are making a huge chunk of money available for young entrepreneurs and companies,” he said, adding that young entrepreneurs often find it difficult to access finance. "As entrepreneurs ourselves, we feel committed to make entrepreneurs in the society,” he added.
Chaudhary also suggested youths to develop a package of passion, energy, innovation and execution plans before starting any new ventures.
Likewise, Bagaria said core business start-ups come from entrepreneurs and then get supported by investors. "However, sometimes ideas also came from investors and will be picked up by young entrepreneurial talents."
Stressing on the need to develop incubation hubs in the country, Bagaria informed that such hubs would help create an environment where entrepreneurial ideas are exchanged and brought to fruition. “Nimbus is always positive to support start-ups of Nepali youths and develop entrepreneurship in the country,” he added.
A founder of HCI Prashant Singh, on the occasion, said that 500,000 new jobs should be created in the country each year to stop talented youths travelling to foreign countries in the search of work. "One entrepreneur can create three to five jobs,” he said, adding that only entrepreneurship would help in the development of a country’s economy.
He also said the aim of the event was to collect entrepreneurial ideas. "The ideas generated at the event would be further shaped at HCI Incubation Hubs and those which were ready for investment would be presented to potential investors for consideration.
HCI is a not-for-profit organisation that runs 'Social Innovation and Business Incubation Hubs' in Kathmandu and Nepalgunj.

IFC disburses $3.8 million to Probiotech to accelerate post-earthquake recovery, boost farmer incomes

IFC – a member of the World Bank Group – and Private Sector Window of the Global Agriculture and Food Security Programme have disbursed $3.8 million to Probiotech Industries, a commitment announced last year, reaffirming IFC’s and Nepali private sector’s commitment to support the country as it rebuilds itself after the devastating earthquake.
This is IFC’s first investment in Nepal’s agribusiness sector. Probiotech is one of the early organised poultry feed manufacturers that set up the first pellet feed mill in the country.  The company will use the funding to finance manufacturing capacity for high-margin value-added products such as soya flour nuggets, and refined oil, and streamline the food supply chain.
“In the backdrop of the earthquake that devastated the Himalayan country weeks ago, this financing package reaffirms that investors are not shying away from Nepal,” said managing director of Probiotech Anand Bagaria. "Through IFC’s investment and advice, we seek to rebuild this important sector and adopt best practices for production efficiency, environmental and social standards, and to upgrade technology," he added.
The financing will also enable Probiotech to expand its procurement and distribution networks. Currently, the company distributes its products through 100 registered dealers and 500 sub-dealers across 70 districts of Nepal. As a result the company will increase sourcing from over 8,000 farmers and food suppliers, improving food safety standards, and boosting their incomes.
"The project will increase the supply of quality soy-based protein, especially for the low-income people of Nepal where malnutrition is prevalent, and promote food security," said head of Industry, Manufacturing, Agribusiness and Services, IFC Asia Pacific Patrick Leahy.
"IFC remains committed to supporting Nepal as it rebuilds its agribusiness sector that employs 70 per cent of the workforce,” said IFC’s director for Asia-Pacific Vivek Pathak. "This investment will help create jobs, both at the plant and farm level, and have a direct positive impact on farmers’ incomes."
As of March 2015, IFC has a committed portfolio of $3.3 billion across the agricultural value chain globally. IFC‘s agribusiness strategy aims to promote inclusive growth and environmental and social sustainability in agricultural supply chains. A past advisory project of IFC helped small poultry farmers in Nepal make their businesses more productive through better farm management practices that reduce costs, and improve poultry quality.
Likewise, the Global Agriculture and Food Security Programme is a worldwide effort that pools donor resources to fund programs focused on increasing agricultural productivity as a way to reduce poverty and increase food and nutrition security. The programme targets countries with the highest rates of poverty and hunger. The public sector window helps governments with national agriculture and food security plans. The private sector window, managed by IFC, provides long- and short-term loans, credit guarantees, and equity to private sector companies to improve productivity, deepen farmers' links to markets, and increase capacity and technical skills.
Likewise, IFC – a member of the World Bank Group – is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In the fiscal year 2014, IFC provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development.

IFC plans equity investment in Probiotech

Under its strategic agenda to support agribusiness, the International Finance Corporation (IFC) — a lending window of the World Bank Group — is close to making a deal for equity investment in a domestic company, Probiotech Industries.

IFC has principally agreed to buy a stake in Probiotech — a sister company of Nimbus Group — and in a couple of weeks will sign a mandate agreement, according to sources at IFC that has already bought shares worth Rs 30 million of Rural Microfinance Development Corporation (RMDC) at a premium rate of Rs 180 per share making it a total investment of Rs 54 million.

After RMDC, IFC has been interested in buying equity of Probiotech as it is keen to increase its investment in Nepal.

Though both Nimbus and Green Invest — financial consultant of Nimbus — could not be contacted, IFC sources said that Probiotech has a high growth prospect and the agreement with IFC will provide the company financial access to expand its operations.

Earlier, IFC had helped small poultry farmers to increase their productivity through better farm management practices. It had supported Avinash Hatchery and Probiotech Industries to strengthen the technical skills of 3,000 poultry farmers, directly impacting 40 per cent of the industry under its SouthAsia Enterprise Development Facility.

"The poultry industry contributes around three per cent to the gross domestic product with a total investment of $334.26 million," the Sustainable Energy Financing report of IFC on Nepal’s industry stated, adding that the industry’s performance suffers from low productivity despite its contribution to the national economy.

"Probiotech Industries is the leading feed industry and seeing its high growth prospects, IFC has been interested in supporting it," according to IFC that is finalising its stake, amount of capital it will pump in, and time bound exit policy in the agreement.

There are various modalities of exit policies, which the IFC is considering, and will be finalised in the agreement that will also have broad terms and conditions.

After the agreement, the due diligence of Probiotech will finalise the equity per cent and capital the IFC will pump in, the sources claimed, adding that IFC might pump in around $200,000 but it will be finalised only after due diligence that will start from mid-January, if everything goes as planned.

According to IFC norms, it cannot invest more than 25 per cent equity in a company.

IFC has been engaged with private sector players, multilaterals, government, and other stakeholders to implement an integrated development agenda in Nepal. Besides working on a payment reform project, an advisory team is making important progress by building partnerships between the government and private sector through the Nepal Business Forum.

IFC is already investing in Nepal with a committed portfolio of $25 million that includes projects across various sectors like power, air transport, banking, microfinance, and trade finance lines.

Nimbus sets up Bird Flu Relief Fund

Nimbus Holdings has formed a Bird Flu Relief Fund to mitigate not only the risk of poultry farmers by compensating them but also to mitigate the risk on public health, apart from helping government policy to triple per-capita consumption and availability of chicken and eggs in the next 15 years by encouraging commercialisation of poultry sector.

"We have established a Bird Flu Relief Fund of Rs 7.5 million," informed chairman of Nimbus Holdings Jagadish Agrawal, here today.

Though the government also compensates poultry farmers for losses incurred due to bird flu, the government relief comes late and is too little.

"Our initiative will also support the government as farmers will get double benefit," he said, adding that the Bird Flu Relief Fund will compensate poultry farmers within seven days. "Commercial poultry firms have to be, but, registered with Nimbus, as only those farmers using Shakti feed will be compensated, at present, upon the declaration of bird flu outbreak by the government."

Named Shakti Sahayogi Haatharu — the campaign — will help protect farmers and encourage them to report bird flu — Avian influenza — also known informally as avian flu — as soon as possible which will help reduce the risk on public health, said managing director of Nimbus Anand Bagaria.

Repeated instances of bird flu have forced poultry farmers to shift business as they have to bear losses every time it strikes. “Nimbus is planning to collaborate with insurance companies and other domestic and international agencies to safeguard the poultry business in the future,” he said, adding that it will help stop farmers abandoning the business.

The fund, under Nimbus Sahayogi Haatharu — a corporate social responsibility campaign of Nimbus Holdings — will help promote poultry business in the country, said Dr Dinesh Gautam who is the deputy chief executive of Probiotech Industries, an agribusiness wing of Nimbus Holdings.

Probiotech Industries is the first feed industry to receive ISO 9001: 2008 and NS certifications and has the latest pelleting plant with autobatching facility producing 300 metric tonnes of feed every day. 'Shakti' is the largest selling animal feed brand in the country with 25 per cent market share.

It deals with approximately 20 products in animal feed, another 20 in feed supplements, and around 20 more in fine chemicals, vaccines and medicines.

The government has introduced a poultry policy with an aim to triple the per-capita consumption and availability of chicken and eggs in the next 15 years by encouraging the commercialisation of the poultry sector.

The current average per-capita consumption of poultry meat and eggs stands at nine kg chicken and 120 eggs. The poultry policy has also envisaged strategies including prioritising the poultry sector for government supported programmes so as to encourage massive commercialisation of the sector that already has an investment of over Rs 30 billion.

Nimbus, Finaccess join hands to offer mobile financial services

Nimbus Holdings and Finaccess entered into an agreement today to enable various businesses of Nimbus with a ubiquitous distribution network throughout the country — specifically in the rural parts and comprising of over 500 dealers and sub dealers — to offer an end to end mobile financial service provided through the Hello Paisa Network.
"The agreement will enable the dealers and sub dealers of Nimbus Holdings to act as Hello Paisa Operators or Agents," said managing director of Nimbus Holdings Anand Bagaria after signing the Memorandum of Understanding (MoU) with executive chairman of Finaccess Sanjay Bahadur Shah on behalf of their respective institutions.
Finaccess operates and manages Nepal’s first and only shared access 'Hello Paisa' Mobile Financial Services platform that enables banks and financial institutions launch interoperable Mobile Financial Services, which will enable the banks and financial institutions provide 'Access to Finance for All' through Mobile Banking using the Hello Paisa Platform, consistent with central bank's policy of taking financial services to nook and corners of the country.
There are currently five banks and financial institutions — Laxmi Bank, Bank of Kathmandu, Siddhartha Bank, Commerz and Trust Bank Nepal and International Leasing and Finance Company — as partner institutions within the Hello Paisa network, according to Shah. "Current and future customers of all the banks and financial institutions and more in pipeline will be able to transact among each other seamlessly."
The strategic partnership will entail the distribution network of Nimbus to become Hello Paisa Operators (Agents) acting as the customer touch points (branchless banking outlets) on behalf of a specific banks or multiple banks with in the Hello Paisa Network.
The partnership will work in a tripartite conjunction between Nimbus, Hello Paisa and a specific bank or multiple banks within the Hello Paisa Network where by the alliance will focus on enabling financial transactions through the Hello Paisa Operators with a target of 500+outlets across the country by the end of the current fiscal year.
Considering the tremendous challenges and enabling access to finance for all, using alternative delivery channels like mobile banking and branchless banking is going to be a very important step towards enabling access to financial services to serve the underserved and unbanked communities.
The key to expedite the business model is the development of a network and eco system with participation of existing businesses with developed distribution networks. As the Nimbus distribution is already serving the customers in rural parts, it is an important strategic fit for Nimbus to further enable financial services to the rural and agricultural activity based customers that Nimbus dealership interacts with on a daily basis, according to them.

Nimbus Group buys Everest Vinyl

Nimbus Group has bought Everest Vinyl which had been closed since last one year. "We bought the factory for Rs 90 million at an auction," said managing director of Nimbus Group Anand Bagaria.
"Nimbus Group — an agribusiness enterprise with commercial farming,  poly-woven fabric, LPG refilling and agri-input trading businesses — is planning to transform the factory to a liquid chemical handling hub that can manufacture pesticides and other liquid chemicals that need special processing," he said.
"As soon as the factory is handed over, Nimbus Group will start installing new machines," informed the managing director of Nimbus Group that has been in the field of animal health and nutrition since the last decade.
Started as a feed supplement manufacturing unit focusing on exports to India, Nimbus graduated to marketing feed supplements and veterinary medicines in the local market followed by trading in feed grains by creating an effective rural distribution network. It also bought the popular Liquefied Petroleum Gas brand Nepal Gas recently.
Similarly, established in 2008 with a Rs 1 billion investment, Everest Vinyl used to produce carpets and other synthetic materials and export to international markets but due to a financial crisis the industry was closed last April. A consortium of banks led by Himalayan Bank that had lent more than Rs 1.5 billion had to take over the factory after the owners disappeared without repaying their loan.
Based in Hetauda Industrial Estate, the factory's proprietors Bikash Kothari and Raj Kumar Kothari went out of touch forcing the banks to auction the company’s property, its equipment and goods.
The banks had lent Rs 650 million to the factory three years back, but it failed to pay back both the principal and interest and ran away forcing the banks to pay compensation to the factory workers along with their due salaries.