--By Gaurav Aryal and Om Prakash Khanal

 

The Keyal Group has evolved over the years from its humble beginning as a family-owned business. For generations, the founders of the group were involved in the family business of trading. The Keyal family was performing well on trading of garments, hardware and timber products before making a transition into manufacturing construction materials.

 

The first manufacturing unit was established in the mid-90s – a milestone for the family’s journey towards manufacturing. Narayani Rolling Mills Pvt Ltd, the first manufacturing venture of the group, has been producing steel products to meet local needs.

 

According to Satya Narayan Keyal, Chairman of the group, the initial days of entering the manufacturing sector were not easy. In the absence of a robust banking sector, managing large scale funds for investment was not quite the same as it is today. “It was pretty tough to borrow loans as the banking sector was less developed,” recalls Keyal who believes that growing competition in the banking and financial industry in the 2000s has benefitted industrialists at large. However, the challenging environment provided various learning experiences to the group that helped design its next move for the future.

 

Growing Market

While the group was gradually growing, the Nepali market was expanding as well. Keyal says that the market for manufactured goods has increased in recent times due to the growing purchasing power of the general public. He adds that technological advancement has helped the group’s factories produce better quality products that support companies in the increasingly competitive market. The competition is not always healthy and for Keyal Group, it is not an exception. Unhealthy competition has brought about difficult situations time and again, but the group holds on to its promise to deliver quality products, regardless.

 

Focus Areas of the Group 

The Keyal Group has focused on the manufacturing sector with half a dozen industrial units specialised on production of steel rods, angles and flat squares, pipes, MS plates, shutter strips and cement. Steel products produced by Narayani Rolling Mills Pvt Ltd have been certified with Nepal Quality Certification Mark (NS). Likewise, Makalu Axum, a subsidiary company of the group is the authorised distributor for liquor of the Magic Moments brand. 

 

Capturing the Market

The target market for the group’s major products such as steel, cement, rods and pipes, among others, is the central and eastern regions of Nepal. The group does not wish to remain confined to these areas and is planning to explore more market potential within and outside the country. “We have a big market presence in the central and eastern regions and have plans to export our products to India in the near future,” says Keyal. As a part of this plan, the group plans to export pipes manufactured by Shree Krishna Steel to India.

 

The group has adopted a policy to not compromise with the quality it is offering. With state-of-the- art technology and service to produce quality products, Keyals says: “We have understood the needs and demands of our clients and have targeted products accordingly. But our products are by no means expensive.”

 

Structuring Management

According to Keyal, each human resource staff and management unit are attuned to realise the company’s policy of zero compromise in quality, offer products at a relatively lower price, and remain accountable and responsible to the market, customers and promoters. 

 

Similarly, the group has always treated its employees as member of its extended family. When it comes to human resource management, the group has attempted to understand the necessities and aspirations of its employees and motivate them accordingly. For motivation, the group has been using rewards and encouragement while adhering to organisational discipline, culture and responsibilities.

 

The group has 350 employees working in its manufacturing unit and sister companies while another 350 are working along the market value chain. 

 

Addressing Challenges

A key challenge the group is facing at the moment is duplication of products that has tarnished the image of the common market.  Availability of counterfeit products has prohibited market growth and expansion. Additionally, in the absence of major construction and infrastructure projects in the country, the market of construction materials, where the group has expertise, is limited to the consumer market instead of reaching large scale institutional clients. According to Keyal, the slowdown of the housing and real estate industry has affected construction material producing subsidiaries. However, the group has not lost hope. It has held on to the belief that a market can be created and clients can be attracted by offering quality products at reasonable price. With this philosophy, the group has been working to expand its market and attract customers towards its projects.

 

The Constant Hope

Some business and industrial houses have constricted their operation and even closed down their companies citing political instability and a murky business environment. But the Keyal Group chooses to see the light at the end of tunnel. Keyal hopes for political stability to speed up the economic growth of the country which would boost construction and development projects. “It would also create higher demand for our products. We are hopeful and are waiting for that moment to arrive soon,” he says.

 

CSR

The group has been consistently involved in corporate social responsibilities and has believed in giving back to society throughout the years. Similarly, the group has contributed to the construction of temples and funded religious activities in Birgunj and surrounding areas. Alongside this, the group has contributed to post-conflict reconstruction of infrastructure that has benefitted a larger number of people.