‘Crisis unlikely due to currency depreciation’
Director, RMC group
AT A GLANCE
RMC Pvt Ltd was established on 1993. Prior to that, it was a firm to trade steels by importing from Japan, Korea and India.
Rajesh Agrawal left Rajesh Hardware Pvt Ltd to his partner on 1995 and he owned RMC Pvt Ltd. His partner is still doing the business on hardware. RMC is focusing its business on manufacturing.
Award and Recognition
RMC already has the ISO 9001: 2008 certificate and the company was recently conferred with ISO 14001: 2004 certificate for its environment management system. Also, it has been awarded NS mark by Nepal Bureau of Standards & Metrology (NBSM), a National Standards Body under Government of Nepal, Ministry of Industry, Commerce and Supplies.
Involvement of the RMC group:
1. Rajesh Metal Craft Pvt Ltd
Sister concern of the RMC Group, RMC Pvt Ltd manufactures and supplies MS Black Pipes, Galvanised Iron Pipes, Galvanised Plain and Corrugated Sheets, Tubular and Telescopic Steel Poles and Fabricated Steel Structural, among others.
2. RMC Cement Pvt Ltd
RMC Cement Pvt Ltd, sister concern of RMC group, produces RMC cement from its Simara-based factory.
3. H&B Development Bank
HNB Development Bank is a leading development bank of Nepal that has a “B” class license issued by the Nepal Rastra Bank. RMC group chairperson Shrawan Agrwawal is the chairman of the H & B Development Bank.
4. Prudential Insurance Co Ltd
Prudential Insurance Company was incorporated under the Companies Act on November 30, 2000. With the approval of Beema Samiti, it commenced operation on June 20, 2002. The Chairperson of RMC Group, Shrawan Agrawal, is in the Board of Directors of the Prudential Insurance Co Ltd.
5. Palpa Cement
This is the mine based that will to produce clinker and cement. The factory will come under operation soon.
Details of major products of the RMC group:
The company has a production of RMC Cement from its factory that has a capacity of 2.4 million bags a year. The company has installed the latest PLC controlled closed circuit technology to ensure high quality and strength in the cement along with the installation of latest technology for the pollution control. It has also established fully-equipped modern quality testing laboratory to test the raw materials and finished goods at all stages.
MS Black Pipes
RMC has been manufacturing and supplying MS Black Pipe through its Birgunj based factory. It has the production capacity of 30 thousand tons per annum.
Galvanised Iron Pipes
The RMC Metal Craft Pvt Ltd also manufactures galvanised iron pipes. These are made from steel or iron pipes coated in molten-zinc.
Color Coated Sheets
The RMC Pvt Ltd has begun manufacturing and supplying the color coated sheets from last two weeks and it has the production capacity of 18 thousand ton per annum.
The production capacity of CR sheet is 30 thousand ton per annum.
Following are the SMS keywords for getting our news headlines on mobile. Type the following keywords on your mobile and get the news headline on your mobile as SMS.
Nubiz Publications News Keyword Notification, type ‘nubiznewskeywords’ and send it to 2233
For New Business Age SMS Headlines, type ‘nbanews’ and send it to 2233, The Corporate SMS Headline News, type ‘tcnews’ and send it to 2233
Abhiyan SMS Headline News, type ‘abhinews’ and send it to 2233, you need to install Nepali Unicode on your mobile
‘We are still at the initial stage’
What is your take on the commercial bench?
The judges must be competent to look at all kinds of cases, but frankly, that is not possible all the time because of growing trade issues in the domestic and global markets and because some of the cases are so sophisticated that they require specialised knowledge and high expertise is not available in the country. Smooth functioning of the economy will require a better legal system which will support rapid growth and development. Therefore, the present context demands a commercial bench to go in hand in hand with the pace of development in order to be able to forge a conducive environment for global as well as domestic investors.
Where can we trace the footprints of this system?
This system can be traced to the continental legal system, commonly understood as the French and German legal system. In these systems, we can see the trends of a commercial tribunal, a labour tribunal, an industrial tribunal, among others. In these kinds of tribunals the specialised skills of various sectors are brought for the better understanding of the case. And this system was later followed by Britain and the United States of America. Therefore, this pragmatic approach has led to speedy justice and quick legal remedies in these nations. But in our context, we are still lagging behind. Our judges are still traditional and are only specialised in traditional issues such as cases of land dispute, writ petition, etc. whereas we don’t have expertise on cases like letter of credit, IT law, intellectual property law, cases of trademark and so on.
What could be the possible remedy to such lacunae and paralysis?
Establishing the bench is one thing and effectiveness is another. As judges are frequently transferred to places without access to such knowledge, they will require training, and attending the training once will not make an impact as there has to be periodic training which we are lacking. Therefore the national judicial academy has been training judges but in the same traditional cases only. Not enough training has been provided in the field of modern commercial issues. Another major problem is procedural delay. These kinds of hurdles will further delay justice and so they will have to be reduced to a minimum. Such deficiencies in the system will give a very wrong message to foreign investors.
CEO, KGH Group
Signature Hotels of the KGH Group
Park Village Hotel and Resort
This hotel spreads over 55 ropanis of land and is nestled in the foothills of Shivapuri National Park. Located just seven kilometres away from the heart of Kathmandu city, the hotel is so close to nature that it is regarded as a hotspot for bird watching, gorgeous scenery and harbours over 78 species of 3000 flowering plants. The hotel primarily targets conference clients and has seven conference halls and parking space for 80 vehicles. Similarly, it has 135 rooms, suites and service apartments of five star categories, swimming pool and spa among other luxurious amenities.
Kathmandu Guest House
Kathmandu Guest House is the second largest hotel of the group that also preserves the architectural grandeur of a Rana palace intact along with ultra modern facilities. The hotel named one of the 300 most popular icon hotels in Asia by the Inside Guide in 2003 is famous among adventure tourists, writers, musicians and artists travelling Nepal. The hotel located at the heart of city, Thamel, has 150 rooms that cost from USD 30 to USD160 per night. Recently, the hotel has upgraded its rooms and interiors keeping the elegance and history of its architecture alive.
The resort located on the banks of Fewa Lake in the popular tourist destination, Pokhara, is spread over 15 ropanis of land. The company claims that it is one of the best eco friendly hotels in Pokhara. The resort even has a rain harvesting system and waste water is recycled to be used in its gardens, according to the company. One of the newest ventures of the KGH Group, the resort offers unparalleled views of the lake and mountains. The resort with 60 rooms also offers a peaceful and homely environment.
Buddha Maya Garden Hotel
The hotel is located just five minutes from the birth spot of Lord Buddha in Lumbini. The hotel spreads over nine bighas of land and has its garden full of indigenous Buddha era trees. Founder of the group, Karna Sakya’s expertise in forestry and environment has inspired the landscape of the hotel in marrying art, culture and nature. It is one of the largest hotels in Lumbini with three and four star quality rooms.
Maruni Sanctuary Lodge
Established in 2004 with 11 cottages, the hotel has now expanded into 37 huts. The hotel nestled on the edge of Chitwan National Park and just 10 minutes walk from Sauraha. All rooms are decorated in a unique traditional architecture with bamboo furniture, terra-cotta flooring and colourful ethnic Tharu paintings. The hotel also has its own wetland that attracts migratory birds, making it ideal for bird watching.
–By Sanjeev Sharma & Yagya Banjade
Nepali Microfinance Institutions (MFIs) have been witnessing a sharp inflow of investment in recent months. Since the inception of Nirdhan Utthan Development Bank as the first MFI in the Nepali stock market in 2011, shares of such companies have been following a bullish trend. The continuous rise in the share price of MFIs listed in Nepal Stock Exchange (NEPSE) is seen to be the main causative factor.
The attraction of MFIs among investors is being caused due to various reasons. Experts share mixed viewpoints on this. According to some analysts, the below Rs 500 per share price level of a majority of listed microfinance banks is a main driving factor. Others point out to the loose policy announced by Nepal Rastra Bank (NRB) regarding MFIs in the monetary policy for the current fiscal year.
“Investing in MFIs is considered secure. Microcredit banks can commence their business with small amounts of capital and have less liability compared to larger financial institutions,’ said Dharmaraj Pandey, CEO of Paschimanchal Gramin Bikas Bank. “Due to this, investment in MFIs carries less risk, giving good returns.” Similarly, the fast-paced growth of the microcredit market and increasing investment of microfinance banks is also fuelling investor’s attraction, according to Pandey.
Anjanraj Poudyal, former Chairman of Stock Brokers Association of Nepal (SEBAN) also agreed with Pandey. “The number of MFIs listing in the stock exchange having competent promoters has significantly gone up in recent years which have helped attract more investment in this sector,” Poudyal said. According to Poudyal, investment is coming from individuals as well as institutions. “Some mutual funds are giving high priority to the shares of microfinance banks in their portfolio,” he mentioned.
Investors are looking optimistic about their investments in MFIs. “The directive given by NRB to banks and financial institutions for loan expansion to the impoverished people is ascending the demand of MFIs shares in the market, however the equilibrium of such demand and supply is not well balanced,” mentioned an investor in the condition of anonymity. “The earning per share (EPS) of many microfinance banks is better than some commercial banks,” he added.
According to official data, 31 microfinance banks, 15 microcredit co-operative and 31 microcredit non-government organisations (NGOs) are actively providing services throughout the country. In regard to this, the number of MFIs in stock exchange is gradually rising. The total number of shares of 11 microfinance banks listed in NEPSE reached 273.638 million towards the end of Shrawan. Out of the listed 11 banks, share transactions of three companies have been held back due to various reasons.
‘Different category for MFIs in NEPSE needed’
Microfinance banks are placed in the development bank section of the NEPSE index. However, with the rising number, voices are being raised to separate microfinance banks from development banks in the share index. “As the listing is constantly rising, separate group is needed for effective management of microcredit banks in the share index,” SEBAN’s former chairman Poudyal said.