--By Gaurav Aryal
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| Shyam Kabra Chairman, Kabra Group |
The journey of Kabra Group began with the establishment of Kwality Biscuits Industries Pvt Ltd in 1985. However it was not the first venture for the Kabra family for it has been involved in the business for generations. They were involved in the business of consumer goods before the family decided to set up a factory. When the first biscuit factory performed well, it increased the hunger of the family to go for more. Shyam Kabra, Chairman of Kabra Group says that the Kwality Biscuits was a major success and it encouraged his family to expand this new business.
Eventually, the business house came up with Kwality Diet and Food Processing Pvt Ltd and Kwality Food and Snacks followed up. These additions did not only make the business bigger, but also established the family as an industrial house of Nepal.
Ruling the Roost
Kwality Biscuits Industry was not only the first factory of the group but also one of the earliest companies in Nepal to manufacture biscuits, claims Kabra. “With time we have consistently kept on establishing more companies that helped us diversify our portfolio,” he adds. The group claims itself to be the largest investor in the biscuits industry of Nepal and has the largest production capacity.
The group claims that has been the largest manufacturer of biscuits as well as soaps and confectionery for the past two decades. The mother industry was later gradually expanded into soaps, chocolates, flour and vegetable ghee and oil producing sister concerns. At present, the group has a dozen companies in manufacturing as well as in trading.
The group currently produces almost 35 types of biscuits and Kabra says that half of them are performing pretty well in the market. Tasty Tasty, Bonbon, Butter Cracker, Jackpot, Morning Touch are some of the most popular brands. Tasty-Tasty and a host of other popular brands under the brand umbrella of Kwality are loved by customers not only in Nepal but also in India. Kabra says, “Many of the Kabra Group companies are market leaders in their industries and have won acclaim from the customers, since 1985.” The group is also a source of employment to 100 permanent staff and 300 daily waged labours.
Encouraging Expansion
Like any other business houses, Kabra Group too was hesitant to invest blindly during the conflict era and the unstable politics that followed thereafter. So, the group kept itself on the wait and watch mode and did not make any significant investment for expansion of its businesses. However, the group kept on adding new varieties of confectionaries and biscuits to its existing products range. Kabra says that Gold series Bonbon, Butter Cracker Gold and Coconut Gold are some of the additions made during the turbulent times. Considering Kwality Biscuits as its mother industry, the group has always kept this company in priority and promises it to take it to the next level in the days to come. The latest constituent assembly election has also brought hope and signs of stability and encouraged Kabra Group like other investors to expand its niche.
Humans are never satisfied with what they and therefore yearn for more. The same follows for the Kabras too. Kabra says, “We still have a lot to do. Though the growth rate we currently have is not unsatisfactory, we have seen scope to do better. And, the environment and situation is getting better where our initiatives will pay.” He adds that his group is dedicated to its works and perform the best it can.
Market Position
The group has prioritised the domestic market as its major market for all of its products. Kabra says that local market and local customers, belonging to all the age groups, have been and will remain the target segment of the group’s products. Along with that, Kabra hints that the group has no intentions of limiting itself to the domestic market only. “We have plans to explore export markets too but it will take some time,” Kabra added.
Being the largest producer and investor in the biscuits industry, Kabra says that the confectionary products hold an impressive share in the domestic market. “However, market is an uncertain place. Therefore, marketing strategies need to be revised and updated corresponding to the changing time and situation,” says Kabra. He adds that Nepali companies have their own strategies while the foreign companies have different roadmap to penetrate into the market here. The group believes that if the product is excellent then the customers will remain with it.
Kabra feels that Nepali products are not only facing competition from local products but also from the imported ones. “But competition is natural as the same market is shared by all the players. What I believe is when the competition swells; the scope of market expansion also increases. However, we have to concentrate more on healthy competition than going for mere price wars,” explains Kabra.
Major milestones of Kabra Group
1985 - Established Kwality Biscuits Industries Private Limited
1990 - Established Kwality Soap Industries Private Limited
1994 - Established NEPIND Flexipack Private Limited
1995 - Kwality Biscuits Industries Private limited launched Tasty Tasty which propelled the company as the second largest manufacturer in the Industry
1998 - Established Annapurna Maida Mills Private Limited
2000 - Established Kwality Confectionary Private Limited
2003 - Established a second company of Biscuits Kwality Diet & Food Products Private Limited
2005 - Established a second company of Soaps & Detergents Kwality Soap & Chemical Industries Private Limited
2008 - Established Kwality Oil Refinery Private Limited
2012 - Established Kwality Food & Snacks Industries Pvt Ltd
2012 - Established Siddharth Enterprises
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| Companies under the Group • Kwality Biscuit Industries Pvt Ltd • Kwality Soap & Chemicals Pvt Ltd • Nep - Ind Flexipack Pvt Ltd • Annapurna Maida Mills Pvt Ltd • Kwality Confectionary Pvt Ltd • Kwality Diet & Food Production Pvt Ltd • Kwality Chemicals Pvt Ltd • Kwality Oil Refinery Pvt Ltd • Kwality Food & Snacks Industries Pvt Ltd • Siddharth Enterprises Pvt Ltd • Phoenix International Pvt Ltd Some Companies under Kabra Group Kwality Soap and Chemical Industries Pvt Ltd One of the major companies of Kabra Group, Kwality Soap and Chemical Industries Pvt Ltd, produces a variety of laundry and toilet soaps. According to Shyam Kabra, the company has recently upgraded its production plant for detergent manufacturing. The manufacturing unit at Kathari is upgraded to the latest technology. The group has been involved in soaps ranging from premium products to budget products, for over 15 years. Kabra says that the company utilises the unmatched infrastructure that consists of latest tools and is supervised by qualified professionals. The entire manufacturing process has been streamlined to minimize any manufacturing fault. The company is also utilising internationally approved formulation, raw materials to ensure best quality assurance. The factory also has its own fully equipped laboratory, for new product development and quality testing. Kwality Confectionery Pvt Ltd This is the flagship company of Kabra Group that produces products such as confectionery, chewing-gums, chocolate, coated and plain wafers, among others. The company has established itself as a multi-product, multi-market company and is claimed to be one of the largest manufacturer of confectionery and toffees in Nepal since 2001. This company produces over 60 varieties of candies, toffees and wafers. Kabra says that the company has always endeavoured to satisfy the customers’ changing wants and desires with its special emphasis on quality, range and value for money. The Company is also strictly following the code of good manufacturing practice prescribed by ISO standards though it has not been certified by one yet. Quality confectionary products, produced at the company’s factory located in Duhabi, Sunsari, are supplied to the market through its distribution network in Nepal and India. He says that products are distributed through stockiest within Nepal and reach more than 40,000 outlets throughout the country. Nep-Ind Flexipack Pvt Ltd This company produces eight colour hi-tech rotogravure printing and packaging materials that are being used by the home companies as well as other domestic companies including well known MNCs. According to the company, products have uniform thickness, clear printing in attractive colours. “Because of best design developments and high quality of printing with competitive rates, our print product is widely used by giant companies,” says Kabra. |
