--By Gaurav Aryal
Jyoti Group, one of the leading industrial houses of Nepal is diversifying its investment portfolio. Recently the group has come up with new ventures in the health and agriculture sectors, where the group never had its presence. The group has moved into these sectors through Grande Hospital and MaHa Himal Agriculture.
Diversification
In the Grande Hospital, the Jyoti Group is one of the leading promoters. Saurabh Jyoti, Director of Jyoti Group said that the newly built hospital is a promise of service excellence and use of state of the art medical technology. “This hospital will end the trend of Nepalis going abroad for health treatment,” he said. Jyoti added that this hospital will be established as a model of a high standard hospital to provide world class services to the general public at an affordable cost. The hospital has started its operation but is set to be formally launched within two months.
Similarly, the MaHa Himal Agriculture (MHA) at Parwanipur of Parsa is an attempt of commercial agriculture with the use of Israeli farming technology. The group owns majority of stakes in the company while the group led by comedian duo Madan Krishna Shrestha and Hari Bansha Acharya have contributed the technical expertise. This move has been in line to the group’s belief that agriculture is one of the areas with highest prospects and the way to reduce food insecurity and substitute food imports from India. According to Jyoti, after the energy sector, country’s move towards prosperity would be through agricultural development.
The MHA, located near Birgunj, an industrial town, is spread over 150 ropanis of land. The company employing Israeli technology of farming intensively utilises green houses, tunnels, drip irrigation and temperature controlled environment to farm vegetables and other crops throughout the year. Migrant workers who returned from Israel working in agriculture there are also working in the farm. “We are excited about it as it is a new venture and agriculture is totally a new sector for us,” said Jyoti.
These two ventures came after the group acquired stakes of Butwal Power Company during the privatisation of the company in 2003. Today, the group through its subsidiary, Shangri- La Energy Limited, owns 68.95 per cent stakes in the hydropower company. According to Jyoti, the company is performing well. The company is headed by Padma Jyoti, Chairman of Jyoti Group.
Project Expansions
The Jyoti Group has a strong foothold on the manufacturing sector. One of the group’s flagship companies, Himal Iron and Steel Pvt Ltd has completed 50 years of operation. Jyoti said that it is one of the few industries in Nepal that has such a long history. Himal, the first steel factory of Nepal was established with second hand equipment brought from Japan has been recently upgraded to a fully automated system with a production capacity of 80,000 metric tonnes.
Similarly, Himal Oxygen Pvt Ltd, another major unit of the group that has been in existence for over four decades is also being expanded. The Himal Oxygen with a production unit in Birgunj is expanding its wing at Balaju in Kathmandu. Jyoti revealed that the new plant will begin its operation in two months. Both the plants, having production capacity of 80 cubic metres produce oxygen for medical purpose. He also hinted that the pharmaceutical wing of the group is also in an expansion mode. Jyoti said that the expansion is a constant process to give companies, an extra edge to the competition.
In the service frontier, Bhajuratna Finance and Saving Co Ltd, owned by the group was merged with Vibor Bikas Bank in 2012. Jyoti said that the bank’s further merger with Kist Bank Limited is also in the pipeline. He said, “We are optimistic about the advancement of our involvement in the financial sector.”
Leading the Market
The group has a robust presence also in the trading sector. The group through its subsidiary, Syakar Trading Company Limited is importing automobiles, two wheelers and power equipments from a leading Japanese company - Honda. According to Jyoti who is also the Chairman of Syakar Trading Company, Honda Dream Yuga, an entry segment 110cc motorcycle and Honda Amaze, an entry level premium sedan were recently launched in the market. Similarly, few months back, Honda Brio, an entry segment hatchback was launched, that pushed the market share of Honda cars to a new height. “Recently after the Brio’s launch, we have registered a growth of 500 per cent. In the Japanese car market of Nepal, Honda has become the market leader,” Jyoti claimed, “We have surpassed the Toyota’s dominance for the first time in history.” He said that Honda Amaze has also already gathered overwhelming response and the company has targeted to sell 320 units within a year.
The Syakar Company also imports electronics and home appliances from the Philips brand. Likewise, Bhajuratna Engineering and Sales, an old company established in 1964 has its presence in major cities across Nepal. It is involved in import, sales and distribution of tractors, agricultural equipment, heavy duty vehicles, buses and trucks, electrodes and welding accessories, mechanical power transmission products and also distribution of products produced by the group such as steel and oxygen.
Management Style
Jyoti said that the company has successfully retained employees that have been working with the company since the first foundation stone was laid by Surabh’s grandfather Maniharsha Jyoti, founder of Jyoti Group. Now the group has moved to the hands of his grandchildren. Similarly, among the current employees, many are grand-children of those who were with Maniharsha in the beginning. Saurabh Jyoti said, for that reason, a mixed management strategy is adopted. “There are managers from my grandfather’s time and we have retained them. We also have new generation of professional managers,” he added, “We have delegated responsibilities according to one’s expertise for decision making. However, the decision will be endorsed only after discussion in the board.” He said that the hierarchy is not a top-down one but a mixed model. There are 3000 employees working in all the companies of the group. Jyoti said that the team is an extended family of the Jyoti Group and a warm relationship is maintained at all levels.
CSR Activities
Jyoti Group is actively involved in various Corporate Social Responsibility (CSR) activities. At the group’s Jyoti Farm in Parsa, where a number of group’s factories are located, the group has established a school for employees’ children. Likewise, a health clinic is also established for providing health services to local people.
Jyoti Group is also a partner in Hamri Bahini campaign for women empowerment. Financially backward women are given employment to produce cloth bags that also contributes for creating plastic free environment. Apart from these, the group has supported literary and religious activities as a part of CSR activities.
Syakar Safety Riding Training Centre is one of the socially responsible ventures of the group. Jyoti said that the company does not only import vehicles but also teaches safe driving. The centre is spread over 30 ropanis of land at Gwarko, Lalitpur. Safe riding training is imparted by a team of specialists. Training courses are offered for both children and adults.
Jyoti Group of Companies
Syakar Company Ltd
Established in 1976, the company is the authorised distributor of Honda Motorcycles, Honda Automobiles, Power Products and Philips audio video and home appliances.
Himal Iron and Steel Pvt Ltd
Established in 1961 commenced its operation with production of plain steel bars. It currently produces ribbed plain, cold twisted bars and TMT Steel Bars.
Himal Wires (P) Ltd
Established in 1982, it manufactures galvanised wires, barbed wires, binding wires, deformed wires, annealed wires that are used in infrastructure building projects.
Himal Oxygen (P) Ltd
Company claims it is the first gas plant in Nepal and was established in 1972. It is one of the leading names in producing medical and industrial; high purity Oxygen and Nitrogen gas in both liquid and gas form.
Jyoti Spinning Mills Ltd
Established in 1989, one of the largest textile yarn spinning mills produces cotton, polyester, viscose, polyester/cotton and polyester/viscose blend yarn.
Bhajuratna Pharma (P) Ltd
Established in 1991 and currently being expanded is the distributor and super stockist of pharmaceutical and medicines from Merck Ltd, Karnataka Antibiotics and Pharmaceuticals, Wockhardt Ltd, Sarabhai Piramal, Sarabhai Zydus and Yash Pharma among others.
Bhajuratna Engineering & Sales Ltd
The company is involved in the sales and distribution of products from Massey Ferguson, TAFE, Philips, Ashok Leyland, Usha, Esab and Fenner brands.
Syamukapu International
The oldest company of Jyoti Group was established in 1920s to take advantage of the trading opportunities in the Tibet Region. It traded items such as cloth, Lux soap, Binanca toothpaste, Parker pen, medicine, Horlicks, herbs, woollen textiles etc.
Suruchi Travels and Tours
Established in 1990 provides travel and tour packages for both inbound and outbound tours.
Himal Agencies
Clearing, forwarding and transportation from Kolkata port to different parts of Nepal.
Jyoti Yarn Processing Pvt Ltd
The company involved in dyeing cotton yarn, polyester/cotton yarn and polyester/viscose yarn was established in 1994.
Bagmati Carpets Pvt Ltd
This carpet factory was established in 1997 and produces hand-woven carpets for export.
Jay Spinning (P) Ltd.
Beginning its operation in 2012, it is one of Nepal’s largest textile yarn spinning mills. It specialises in manufacture of cotton, polyester, viscose, polyester/cotton, polyester/viscose and blend yarns.
Vibor Bikas Bank Ltd
Bhajuratna Finance and Saving Co. Ltd, under the ownership of Jyoti Group was merged with the Vibor Bikas Bank on March 2012 and started joint operation from September 2012.
Jyoti Ceramics Pvt Ltd
The company claims that it is the only terra-cotta tile manufacturing company in Nepal.
Shangrila Fashions Pvt Ltd
Established in 1998, produces garments and apparels for export.
Roof of the World Wool Manufacturing Co. Ltd
It has a wool scouring factory in Tibet.
Sagarmatha Insurance Company Ltd
General insurance business.
Grande Hospital
One of the newest ventures of the group promises to offer best health care services in Nepal with state of the art technology.
Butwal Power Company Ltd
BPC is one of the leading companies in Nepal’s power sector with generation and distribution as its core business areas. Incorporated in 1966 as private company and converted into public limited company in 1993.
