--By Gaurav Aryal
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| Amit Kumar Begani CEO, Begani Group |
Begani Group’s business seeds were sowed two decades ago with the launch of trading company by the first generation businessperson of the family. This trading company imported goods from China based on market and customer needs. Though initially small in quantity, later on the trade volume expanded. The company imported products ranging from shoes, umbrella to cars.
However, presently the trading wing is not as active as it was in the past. At present, the group has shed the trader identity and is trying to develop ‘manufacturing house’ identity for itself. The company started the manufacturing industry around one and a half decades ago. Amit Kumar Begani, CEO of the Group, who is the second generation businessperson in the family, says that his group produces vegetable ghee, vegetable oils in the food industry and woven fabrics in the plastic segment.
Manufacturing Shift
Food items were one of the major imports from China of the group’s trading wing. While importing food items and sellingthem in the local market, Beganis comprehended the potential market for food products and decided to manufacture their own products instead of just trading. Considering the potential and prospects, the group started manufacturing vegetable ghee. In the days thereafter, the group gradually decreased the volume of imports of goods from China and started concentrating in the newly established venture.
At present, the group is fully committed to the manufacturing sector though it has only two manufacturing companies, Nandan Ghee and Oil Industries and Nekon-KB Plasto Engineering Industries Pvt Ltd, in its portfolio.The oil factory produces soyabean oil, sunflower oil and vegetable ghee under Nandan and Suruchi brands. Similarly, the plastic manufacturing unit produces packaging woven sacks for sugar, rice and other similar products.
Elaborating on the factors for which the group invested in oil industry, Begani pointed that as a daily consumer product, the products have a stable and high demand. Similarly, he said that they invested in the plastic industry considering the need for supportive industry like theirs. He finds both of these industries essential for industrial development.
Market Positioning
Terai and hilly regions are the niche market for the company’s product. Though the company does not considers urban centres like Kathmandu as its target market, Begani informed that the Nandan and Suruchi oil brands do hold a small share of these markets. Likewise, the plastic factory has found its majority market abroad. Begani shares that 80 percent of woven fabrics and sacks are exported to India while 20 per cent is supplied to industrial customers within Nepal.
The group has plans to improve its current market positioning. It is planning to expand its product portfolio and improve the quality of its existing products to gain competitive advantage in urban markets, where it looks forward to enter with a strongbranding and marketing campaign very soon.
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New Activities Begani feels that the investment climate is yet to become favourable for investing in new ventures. One of the reasons, he finds acute in feeling so, is power shortage. Considering this feeling, he says that his company is working towards consolidating its existing market along with extending marketing for the company’s product to reach new regions and new customers. With reduced focus on the trading business, the company is focused on strengthening its manufacturing business while keeping itself open to start new ventures once the overall investment scenario, including power cut, improves in the country.
Strengthening the Network
Begani shares that company’s products are doing fairly well in the targeted market segment. As targeted, the products are popular in the Terai and hilly region markets. The sale graph in this market has been steadily growing up. However, the focus in urban areas is missing, which the group is willing to rectify in the days to come.
For increasing the performance and visibility of the products in all parts of the country, the group is strengthening its distribution network. Begani says that one of the immediate plans of the company is to expedite branding and promotion activities. As of now, the group has expanded its network into around 40 towns and villages across the nation. Stating that within a year the company will meet its new marketing target, Begani says, “a strong network is must for stronger branding and effective promotional campaigns.”
Managing the Group
As of now, the group is a family business and is managedby the father-son duo. All of its factories are located in Birgunj industrial town while its corporate office that looks after financial, marketing and other management responsibilities is in Kathmandu.
The group, employees 1500 people in all of its companies. To keep them motivated the company organises various recreational programmes such as annual picnic along with other motivational packages. The HR department looks after the need of the company’s human resource while making time induced and demand based amendments to company’s HR policy.
| Begani Group’s Competitive Advantages Facing steep competition from national and international competitors that continue adding, the group has remained constantly on its toes for carve its own niche market and remain ahead of its competitors. According to the group, some of the factors instrumental for its growth and market rankings are: Strategic Location The group says that all of its factories and offices boast of an excellent infrastructure whether in physical network connectivity or human resource. Furthermore, this strategic location has allowed the group to enjoy quick access to every major markets in Nepal while maintaining quality standards in its chain of operation. Quality Products Begani Group claims that its brands like Nandan and Suruchi and other products have been well established in the target markets for their quality and high performance reliability. Harnessing latest technical advancement Moving in tandem with its customer needs, which is constantly increasing, Begani Group and its companies are not only equipped with competent laboratory but also have been using the latest technical advances. Production Facilities Group’s production plants is managed and operated bya team of quality oriented and competent personals. The reliability of the facilities is translated into action through continuity in the supply of high quality products to its customers, says Begani. The group aims to manufacture high quality products with the most efficient facilities, satisfying all safety standards and regulations. “Our plants are built based on the latest technology and equipped with advanced engineering control and safety devices to ensure the protection of our employees, environment, and the community,” he adds. Group’s Strengths Begani says that the group is flexible to innovate and launch new products that cater to the changing needs and demands of the market. “We started with vegetable ghee and then added sunflower and soybean and mustard oil in our product range,” says Begani. The company initially used to sell them in the packages of 15 kilograms but later adopted smaller packaging sizes to cater to general public’s needs. “Flexibility and making quick decisions is one of our strengths,” boasts Begani. Market opportunities The group sees numerous opportunities developing in the market. The growing demand because of increased purchasing capacity of customers is one of the opportunities the group sees. Begani says that Nepali consumers have become more brand conscious these days because of increased international exposure. He adds that the demand for premium and quality products is increasing along with demand for new range of products such as olive oil. Competition Begani says the market competition is constantly increasing along with the swelling market size. He says that presence of 16 vegetable oil companies is making the competition tougher. Therefore, to overcome the competition, the group is focusing on branding to win over the competitors. He adds that the company is willing to bring its products to larger cities like Kathmandu and Pokhara through stronger branding and higher quality promises. He reveals that within two to three years, these products will be making inroads in these cities. |
