Unilever Nepal to introduce new vision of beauty

A multinational company is going to change the traditional definition of beauty and dropping the word ‘fair’ from their product ‘Fair & Lovely’ to support global campaign.
Unilever Nepal Limited (UNL) announced today the next step in the evolution of its skin care portfolio, with the rebranding of its brand Fair & Lovely, according to a press note issued by the company. “Taking forward the brand’s journey towards a more inclusive vision of beauty, the company will stop using the word ‘Fair’ in the brand name ‘Fair & Lovely’,” the press note reads, adding that the new name of ‘Fair & Lovely’ will be announced after the necessary regulatory approvals. “Over the last decade, Fair & Lovely’s advertising has evolved to communicate a message of women empowerment.”
In early 2019, the brand’s communication moved away from benefits of fairness, whitening and skin lightening, towards glow, even tone, skin clarity and radiance which are holistic measures of healthy skin, it adds. “UNL also removed any visuals or words on Fair & Lovely’s packaging that could indicate a fairness-led transformation – including the removal of two-faced cameo showing shade transformation, as well as the shade guides.”
UNL upholds principles that no association should be made between skin tone and a person’s achievement, potential or worth.
“We are making our skin care portfolio more inclusive and want to lead the celebration of a more diverse portrayal of beauty,” president for South Asia, Unilever Sanjiv Mehta said. “In 2019, we removed the two faced cameo as well as the shade guides from the packaging of Fair & Lovely and the brand communication progressed from fairness to glow which is a more holistic and inclusive measure of healthy skin,” he said, adding that the company now announce that it will remove the word ‘Fair’ from its brand name Fair & Lovely. “The new name is awaiting regulatory approvals, and the pack with the revised name will be available in the market in the next few months.”
Fair & Lovely is a pioneering technology that has made multiple skin health benefits available to millions of consumers at an affordable price. The brand has a combination of vitamin B3, B6, C & E, glycerine, UVA and UVB sunscreens and allantoin, which are known to improve skin health and protect the skin from external aggressors and environmental pollution. The product works to improve skin barrier function, boost the skin’s microbiome, improve skin firmness and smoothen skin texture to enhance radiance and glow holistically, the company claims. “In addition to the changes to Fair & Lovely, the rest of our skincare portfolio will also reflect the new vision of positive beauty.”

FNCCI, Qatar Chamber to work jointly for bilateral trade and investment promotion

Nepali and Qatari private sector have vowed to explore business and trade potentials between the two countries.
Discussing on various trade potentials in Doha of Qatar high level business leaders of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Qatar Chambers of Commerce and Industry (QCCI) today said that they are all set to move ahead in exploring business and trade potentials between the two countries in the areas of agriculture, tourism, hydropower, infrastructure, among others.
Though, the FNCCI and QCCI had signed Memorandum of Understanding (MoU) back in 2005, the trade and investment between the two countries have not picked as expected.
Welcoming the Nepali delegation led by FNCCI president Bhawani Rana, vice chairman of the QCCI Mohammed Ahmed Twar Al-Kawari expressed interests to enhance bilateral trade and business opportunities in joint collaboration with FNCCI. He said that that for more trade and investment, both the chambers have to exchange delegations and invest in potential sectors.
Rana, on the occasion, also made presentation on Nepal-Qatar investment potentials in the meeting. The FNCCI delegation is in Qatar in the entourage of President Bidya Devi Bhandari.  FNCCI vice president Chandra Prasad Dhakal also, on the occasion, spoke on enhancing investment in the areas of tourism, banking, insurance and other sectors. 
Nepal and Qatar shares the historic and cultural ties since long. The diplomatic relations between Nepal and Qatar was established on January 21, 1977.  The issue of promoting business and trade, FNCCI and QCCI can organise B2B meetings, trade fairs, exchange trade delegations and initiate joint ventures.
Qatar investors have invested in Nepal in tourism and service sector totaling $1.48 million, so far which is very minimal. Nepal-based multinational companies like Unilever, Ncell, among others, are registering huge profits.

Nepse plans new categorisation for listed companies

Nepal Stock Exchange (Nepse) has proposed new categories 'G' and 'Z' in the existing classification system — that has only two categories elite 'A' class and the rest into general 'B' class — of the listed companies.
The draft of Nepse's bylaws that is up for amendment and is seeking the approval of the capital market regulator, has included the new categorisation. According to the proposed plan, Nepse will include only those companies that are generating continuous profit, following good corporate governance, and regularly distributing dividends in class 'A'.
Likewise, 'B' class will comprise of companies that are doing well enough but slow on distributing dividends. Class 'Z' will include those companies that are doing poorly both in terms of financials and corporate governance, and keep getting into trouble with regulatory requirements.
Class 'G', which stands for 'General', will have companies that are newly listed and are not yet inducted into any other class. "We have submitted the proposed amendment to the bylaws to Securities Board of Nepal and this system will come into existence if it gives a green signal," said managing director of Nepse Shanker Man Singh.
There are 133 companies listed under class 'A'. Their shares are considered blue chip stocks at present based on classification as per Nepse's bylaws dating back to 1996. "The existing categories are very traditional and needs to be revised based on performance and corporate governance, if the stock exchange wants to really help investors take an informed decision," pointed out share analyst Rabindra Bhattarai.
To be inducted into the elite group, the current regulation requires the listed company to be in net profit for the last three years, have a net worth exceeding face value, have a minimum paid up capital of Rs 2 million, and be prompt with submitting annual reports.
The A-listers in the stock exchange mostly include financial institutions along with insurance companies, while there are only three real sector companies –– Chilime Hydropower, Nepal Telecom and Unilever Nepal.
Of late, trading of shares of class 'A' companies has been taking up a major portion of the total transactions at Nepse, exceeding 70 per cent of total trading per day.
"In the absence of credit rating agencies in the country and low financial awareness among investors, Nepse needs to classify the companies in such a way that a layman can easily assess the risks and benefits based on the company's standing and prospects," said Bhattarai.
Moreover, a more detailed categorisation will also keep pressure on the listed companies to be in the best group and improve performance to maintain good share prices, he added.

Unilever Nepal gets new managing director

SrikanthSrinivasamadhavan has replaced Kamran Bakr as the managing director of Unilever Nepal.
Kamran Bakr has moved to Unilever Bangladesh as its chairman and managing director.
Unilever Nepal is one of the largest Fast Moving Consumer Goods (FMCG) company in Nepal, touching the lives of two out of three Nepali with different categories in home and personal care products. A part of Unilever group of companies, Unilever Nepal is listed at the Nepal Stock Exchange. It has listed its 920,700 units of shares at a face value of Rs 100 per unit, which was last traded at Rs 6,310.
Unilever Nepal — the blue chip company in the domestic capital market which is dominated by banks and financial instituitions — has posted 47 per cent increase in its profits after tax in the second quarter of the current fiscal year compared to the same period last fiscal year.
"Company's turnover for the second quarter of the current fiscal year has increased by 18 per cent over the same period of last fiscal year," according to the financial statement of the company that is one of the highest dividend payers.
The new managing director SrikanthSrinivasamadhavan is a chemical engineer from Indian Institute of Technology Chennai and has a PGDM from Indian Institute of Management, Ahmedabad. He has worked in various institutions like Brooke Bond Lipton India and Dragoco (Simrise) in his early part of career primarily in various positions.
Srikanth then spent nearly 15 years at Hindustan Unilever. He has held various roles in the company, including Media Director for Unilever South Asia, Category Head of Skin Cleansing at Hindustan Unilever, Insight Director (South Asia/South East Asia) and head-Sales and Marketing, Kimberly Clark Lever, the joint venture between Unilever and Kimberly Clark. Before joining this role, Srikanth was
the Head Marketing of HSBC bank in India and was part of the HSBC EXCO.
Srikanth is married and with two children and he enjoys movies, sports and music. He is also interested in sharing his learning over the years in many business and educational forums.

Investors shift to higher dividend payers

Investors are, unlike previous years, gradually shifting their focus on hydropower sector as it is becoming more lucrative in terms of dividends compared to the banks and financial institutions.
Due to decreasing dividends of banks and financial sector compared to previous years, investors are shifting their portfolio to other growing sectors like hydropower, according to market experts.
Out of 25 listed commercial banks, some 20 banks paid cash or stock dividend from the last year's profit. The average dividend of the listed banks has declined to 31.96 per cent from last fiscal year's (2010-11) profits from 38.93 per cent a fiscal year ago.
Banks and financial institutions are not only dominant players occupying around 90 per cent of total traded shares but also considered high dividend payers. But the declining dividend percentage has forced the investors to choose stocks that pay more dividends as it is the yardstick of a company's prospects for investors.
Though, companies that do not pay dividends are not necessarily without profits. If a company thinks that its own growth opportunities are better than investment opportunities available to shareholders elsewhere, it should keep the profits and reinvest them into the business. On the other hand the companies, while much of their profits may be distributed as dividends, still need to retain enough cash to cushion the market risk.
"The market itself has started to shift from banks and financial institutions to hydropower sector," according to share market analyst Rabindra Bhattarai. "Taking a cue from the trend, if the government gives a little policy push, the share market as a whole could start looking up."
The manufacturing industries dominated the share market initially when the Nepal Stock Exchange (Nepse) started transactions formally on January 13, 1994. The domination continued for about seven years to 2001, but the attraction started fading with the poor performances of the listed manufacturing companies. The investors then shifted to banks and financial institutions that have started distributing higher returns.
At one point of time, investors used to queue up for hours for banks and financial institutions shares. But their focus seems to shift again and may be for better this time. The latest attraction seems hydropower companies that are paying handsome returns, though there are only four listed hydropower companies. Chilime Hydropower distributed a total of 70 per cent dividend including cash and stock, Arun Valley distributed 15 per cent cash dividend and Butwal Power Company distributed 15 per cent cash dividend from the profits of last fiscal year.
Securities Board of Nepal (Sebon) has amended Securities Registration and Issuance Regulation – 2065 including mandatory primary issue by the hydropower companies for the locals. "A company has to float a minimum of 30 per cent shares of its issued capital, unless otherwise directed by the company’s regulatory body," according to the amendment. "Of the 30 per cent, five per cent has to be separated to the company’s staff; 10 per cent to the locals and remaining 15 per cent to the general public," according to the regulation.
But chairman of the Sebon Babu Ram Shrestha opined that any of the real sector company can help boost the market, let alone hydropower. "If more hydropower companies are listed not only the share market, the overall economy will get a boost," he said, adding that energy is an engine to the economic growth as it can attract more manufacturing industries apart from creating employment.
Currently, there are 25 listed banks, 63 development banks and 73 finance companies making a total of 162 listed banks and finance companies, which have around 90 per cent of the market share. But only 18 manufacturing industries are listed and out of them only three — Unilever, Bottlers Nepal and Bottlers Nepal (Terai) — are the active players.
If the government can encourage the hydropower companies to list in the market and mobilise the small savings of the common people in the hydel projects that will not only give boost to the share market by diversifying the market but also help economic growth.

Unilever resumes operations after 11 days

Unilever Nepal — the Hetauda-based multinational company — resumed operations from today following a 11-day long wage and benefit dispute between workers and the management.
"The gates at Unilever opened at 8am today," said company secretary at Labour, Transport, Industry, Commerce and Supply Sub-committee of Legislative Parliament Ambar Bahadur Thapa, today.
"Unilever's management is positive about the development and issues will be settled at the negotiation table," he assured, adding that their application to the Ministry of Industry to close down the factory was just a formality. "We don’t have any intention to close down the company and escape from the genuine demands of the workers."
Lawmaker Jip Chhiring urged the company to look into the demands put forth by workers and to fulfil them according to existing laws. "Workers should get good wages and benefits and the management has to fulfil their legitimate demands. A loss or recession should not be the cause for not hiking salaries," he said.
However, he assured that the committee would pressure the government to revise the salary of workers. He added that subsidies should be provided by the government to companies that provide better salaries to workers. "I know Rs 6,200 is not enough for a family today," he said.
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) director Hansh Raj Pandey urged the sub-committee to solve the labour dispute through a long-term programme and strategy. "Labour disputes are the major obstacles for the development of the industrial sector in Nepal, so it needs a comprehensive focus from the government," he said.
Ministry of Labour and Transport Management secretary Som Lal Subedi said that the workers' demands was a genuine collective bargaining framework. "The management's irresponsible behaviour was the problem because workers had submitted their demands a month ago according to the labour laws," he said, explaining that it was a matter of low motivation and absence of dialogue with workers that led to the shutdown of Unilever. He urged the management of Unilever to be transparent and flexible for a better relation with workers.
"The company is open. Workers are ready to settle their demands through talks, so Unilever should be more flexible to retain their confidence," he said. Lawmakers participating in the discussion urged Unilever to evaluate their salary and benefits according to other multinationals rather than the minimum wage of the country.
"Ministry of Industry and Ministry of Labour and Transport Management should start a fresh round of talks for a sustainable solution to the conflict," said president of the sub-committee Shanti Basnet Adhikari. The committee directed the government to amend the labour laws to make them compatible with the current situation.
Likewise, the committee decided to inspect Unilever to explore the root cause of the situation. "We also want to listen to the workers before arriving at any conclusion," she said.

Workers, management at loggerhead in Unilever

The Hetauda-based multinational company that is closed due to labour unrest has been incurring Rs 4 million loss every day since last one week.
Efforts to open the Unilever Nepal that is one of the listed multinational company has not been successful since last eight days as the workers have shut down the company putting forth various demands including salary increment.
The Industrial and Labour Committee including local political parties and their leaders have not taken any substantial initiative to settle the prolonged industrial dispute.
Issuing a press release today, different parties and their respective local leaders have requested the agitating workers and company management to sit for talks to seek an amicable solution.
Unilever Nepal is incurring a staggering loss of Rs 4 million per day due to the closure, according to the company that is listed in the share market and paying the investors' good return every year.
The company's management has been refusing to sit for talks claiming that the demands put forth by the workers are irrelevant. It has said that it will sit for talks only after the factory is allowed to function, first.
Due to the increasing labour problems and unnecessary tussles between workers and management, the cabinet had taken a decision to establish the Industrial and Labour Committee with the participation of various stakeholders a month ago.
Earlier, talks held between the management and agitating workers, which was mediated by Labour Office Hetauda's chief Arjun Kumar Chaudhary, had failed to yield any concrete outcome.

Workers close Unilever factory

Workers closed the Basamadi-based factory of Unilever Nepal since today morning over wage settlement dispute.
The workers demanded increase in both salary and allowances by 50 per cent, interest free housing loan of Rs 1 million per person and Rs 100,000 house maintenance allowances per person per annum.
Today, the agitating workers staged a sit-in at the main gate of the industry.
However, Unilever Nepal — listed in the share market — said that the management had offered handsome packages after a series of negotiations with the representatives of the workers. "The additional benefit was offered over and above the increases, which has increased workers' remuneration by 69 per cent since 2009 till 2011, during which period the profits of the company has increased by only 37.3 per cent," the company said, adding that the representatives of the workers, however, were intransigent and unwilling to negotiate.
"They have irrationally and unreasonably demanded high salary of around Rs 21,000 monthly and closed the factory," said the Unilever Nepal that has been paying the workers already handsomely with an average of total remuneration above that of a qualified gazetted first class government officer.
The closure has affected 115 workers, who were engaged in producing toilet soaps like Lux and Lifebuoy and toothpastes like Pepsodent and Close Up in Nepal.
Aprt from generating employment, Unilever Nepal has contributed Rs 764 million to the government in the fiscal year 2010-2011.
Jayaram Dhital, unit chairman of All Nepal Industrialist Workers' Union said they were forced to close the industry after management did not raise workers' salary, allowance and insurance for the past three years, though it used to increase the facilities every two years.
Issuing a joint press release Makawanpur chapter of Federation of Nepalese Chamber of Commerce and Industry, Industry Organisation Hetauda, Narayani Transport Entrepreneurs' Union, Makawanpur Construction Entrepreneurs' Union urged the company management and workers to resolve the dispute through negotiations.

Nepse plunge to almost four year low

Banks and financial institutions pulled the Nepse today to a three year low to 404.43 points from the morning's opening of 407.2 points.

The share holders of the Standard Chartered Bank Nepal and Nabil lost today heavily as the former lost Rs 95 per unit share and latter lost Rs 35 per unit share to bring the banking index down by 3.32 points.

On April 28 this year, Nepse had dipped to 405.45 points but has bounced back to touch 506.35 points on May 30.

The bonus declaration of the banks and finance companies and overflooded securities in the secondary market has pulled the prices of the shares.

Meanwhile, Unilever Nepal's Board of Director yesterday recommended distribution of Rs 560 per unit share as final dividend out of the profit available for appropriation during the year. The Board has also approved distribution of Rs 500 as Interim Dividend per unit share out of the aforementioned final dividend of Rs 560 per share for the year 2009-10, post certification of the audited annual accounts for the year by the statutory auditors.

Similarly, Sanima Bikas Bank's board has also decided to give 10 per cent cash dividend from the profit of 2009-10, which is subject to approval from NRB and its upcoming annual general meeting.

The NMB Bank has also today decided to give 10 per cent bonus share which is subject to approval from NRB and 10 pe rcent cash dividend. It jas posted a profit (before Tax) of Rs 225.9 million and operating profit of Rs 241.5 million -- recording a impressive growth of 154 per cent and 253 per cent, respectively -- compared to a fiscal ago.

Everest Bank, Bank of Kathmandu, Nabil Bank and Standard Chartered Bank Nepal have already declared their cash dividends and bonus shares.

Secondary market index at its lowest

As expected, the books closing of a bank and a finance company dragged Nepse down to the lowest yet in recent months.
All market propellors -- commercial banks, development banks, financial institutions and hydropower companies -- lost this week to pull Nepse by a whopping 55.61 points to 614.79 points from Sunday morning's opening of 660.40 points.
The hotels sub-group that did not see its shares traded while manufacturing sub-group gained by 4.41 points to reach 438.35 points from Sunday morning's opening of 433.94 points. Unilever Nepal Ltd's 10-unit shares that were traded at Rs 4,346 per unit -- making it dearer by Rs 85 per unit -- pushed up the manufacturing sub-group by 4.41 points.
Unilever Nepal has recommended Rs 450 cash dividend -- Rs 400 normal dividend and Rs 50 as commemorative dividend on the occasion of the completion of its 15 years of commercial production in Nepal -- from the profit of the last fiscal year when it registered a RS 2625.8 million turnover. The company also posted Rs 444 million net profit (after tax). It registered Rs 482.29 Earning Per Share (EPS) and 64 per cent Return on Equity (RoE) in the fiscal year 2008-09.
Though the week started in the green, gaining 2.17 points to 662.57 points on Sunday, it plunged by a whopping 55.61 points during the week.
Currently, banks and financial instituions dominate the secondary market and two institutions -- Standard Chartered bank Nepal and Nabil Bank -- are dominant players in the movement of Nepse, putting the secondary market under 'concentration' risk.
Nabil Bank's books closing -- on Tuesday -- dragged Nepse down by 27.42 points but the bank topped the chart in terms of transaction amount with Rs 67.83 million. Standard Chartered Bank Nepal followed with Rs 58.42 million, and Bank of Kathmandu (with Rs 36.49 million), Standard Finance (with Rs 34.99 million) and Nepal SBI Bank (with Rs 18.36 million) managed to come in the top five slot, respectively.
In terms of number of share units traded, Standard Finance topped the chart with 1,35,000-unit shares changing hands while in terms of number of transactions Citizens' Bank International topped the chart with 407 transactions.
The transaction amount increased by 40.08 per cent to Rs 483.89 million against last week's fall of 32.63 per cent. Group-A companies contributed 70.71 per cent as against last week's 67.75 per cent whereas the 78-scrip sensitive index -- a barometer of Group-A companies -- lost a hefty 16.20 points to drop to 157.42 points. The float index -- calculated on the basis of real transactions -- also slid down by 5.14 points to drop to 58.53 points from Sunday morning's opening of 63.67 points.

Unilever Nepal's dividends couldnot bring cheer to investors, Nabil Bank drags Nepse

The cash dividends of Unilever Nepal Ltd could not spread cheer in the domestic market as the banking sub-group dragged Nepse down by 27.42 points today to 630.11 points.
The banking sub-group lost 47.2 points to drop to 626.31 points due to major banks -- especially Nabil Bank losing heavily. Due to its books closure Nabil Bank shares dropped by Rs 1,599 per unit or over 38 per cent, forcing Nepse to suspended its transaction.
Nabil bank's 340-unit shares were traded today between Rs 2,652 and Rs 2,600. Yesterday the bank's shares closed at Rs 4,251 per unit.
"This is a market price correction to reflect the dividend and bonus shares that Nabil has proposed following the delivery of an unprecedented profit of Rs 1.03 billion in the last fiscal year," said Anil Shah, chief executive officer of Nabil Bank. Every investor, who owned shares of Nabil till that closing will receive 50 per cent bonus shares (one share for every two) and a cash dividend of 35 per cent (Rs 35 per share).
"When the market opened this morning, it was known that those who purchased shares from today forward would not receive the bonus shares or cash dividend," he said adding that therefore the market to a large extent adjusted the price of the shares.He also promised to continue to deliver unprecedented shareholder value in the years ahead in order to protect blue chip investment in Nepse.
Currently, banks and financial instituions dominate the secondary market and two institutions -- Standard Chartered bank Nepal and Nabil Bank -- with the highest share prices are playing a determining role in the movement of Nepse. "However, with the increase in the number of listed financial institutions and the depth of trading in the market this 'concentration' risk will diminish over time," Shah hoped.
Meanwhile, Unilever Nepal Ltd's 96th Board of Directors (BoD) meeting recommended Rs 450 cash dividend -- Rs 400 normal dividend and Rs 50 as commemorative dividend on the occasion of completion of its 15 years of commercial production in Nepal -- from the profit of the last fiscal year.
The company had a turnover of Rs 2625.8 million in 2008-09. It has posted Rs 444 million net profit (after tax).Unilever's BoD meeting -- held at the company head office in Mumbai yesterday -- approved the audited annual accounts of the company for the fiscal year 2008-09. It also approved distibution of Rs 325 as Interim Dividend per share out of the cash dividend of Rs 450 per share post certification of the audited annual accounts for the fiscal year by statutory auditors.