Dabur Nepal closes down its factory

May 19, 2006
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Amid huge ‘extortion threat’ by a trade union wing of the CPN (Maoist, Dabur Nepal Pvt. Ltd. (DNPL)—one of the largest joint venture companies in the country—has closed down its manufacturing unit at Rampur Tokani of Bara district in southern Nepal.

Dabur Nepal officials have not said anything regarding the reason behind closure of its factory but reports said Dabur Nepal officials decided to close down their factory after senior pro-Maoist trade union leaders visited the factory, threatened the DNPL managers and placed a number of demands including a “donation” worth millions of rupees.

Talking to reporters in southern town of Birgunj on Friday, president of Birgunj Chamber of Commerce and Industry, Bijay Sarawagi, said the Maoist-affiliated All Nepal Trade Union Federation had given ultimatum to local industries to fulfill their demands by Sunday. But they started threatening the industrial units since early this week, manhandled managers and spread terror.

“We can’t pay taxes both to the government and Maoists. The new government—that is in direct touch with the Maoists—must take immediate measures to resolve this problem,” he added.

Meanwhile, industry sources in Kathmandu said they have invited Maoist leadership for talks within the next 48 hours. “If they don’t stop their extortion and threats by then, all the factories in Bara and Parsa districts will be closed down indefinitely,” a leading industrialist told Nepalnews over phone.

Set up in 1992, Dabur Nepal is an FMCG (Fast Moving Consumer Group) company, which caters to Nepali markets besides exporting its products to India. Dabur Food, Dabur Nepal and Dabur Balsara are owned by Dabur India Ltd. that sells its products in over 50 countries around the world.

Dabur Nepal also deals with medicinal plants and runs its own nursery and bee-keeping programme in Nepal.