Pepsi Scheme Winners

The two lucky winners of this week under the ‘Make Your Dream Team’ sequel campaign of Pepsi — to win an all expenses paid three-night and four-day trip to Bangkok and Pattaya are Deepak Kumar Bohara from Chitwan and Surendra Bajracharya from Tansen, Palpa. Customers can make their Dream Team — collecting the crowns featuring top notch International footballers like Thierry Henry, Cesc Fabregas, Kaka, Lionel Messi, Fernando Torres and Frank Lampard. “There are other exciting prizes like i-Pods, Reebok branded footballs and Tshirts to be won every week,” said the company.

Global Bank's New Branch at Kuleshwor

Global Bank started its new branch along with a new ATM at Kuleshwor from Monday July 6, 2009. Within two years, the bank has 20 ATMs. Apart from existing branches, it has targetted to start branches in Nepalgunj, Kailali, Dadeldura, Udaypur, Lagankhel, Dhapasi and Jhapa and add four more ATM counters in different parts of the country.

Govt Flops at Price Hike Control

The government has completely failed to control the price hike in food commodities and the overall price hike that still hovers close to 13 per cent. “The year-on-year (y-o-y) consumer price index rose to 12.9 per cent in mid-May 2009 compared to 9.2 per cent in the same period last year,” according to the current macroeconomic situation based on the first 10 months’ data of current fiscal year published by Nepal Rastra bank (NRB).

The inflation, in the review period, was driven mainly by 16.5 per cent price rise in food and beverages group. However, the price index of non-food and service group also increased by 8.8 per cent. “In food and beverage group, sugar and sugar-related products played a key role in pushing the price hike up so that it ops at pr increased by a whopping 66.9 per cent, the report said. This is in sharp contrast to last year’s decline of 0.5 per cent. Similarly, the price indices of vegetables and fruits as well as meat, fish and eggs sub-groups increased by 33.5 per cent and 27.5 per cent respectively in the review period compared to an increase of 1.8 per cent and 10.2 per cent respectively in the same period last year.

The wholesale price inflation increased to 15.5 per cent compared to 10.1 per cent a year ago. Indian price hike plays a key role in the Nepali market. Though India’s wholesale price index has posted a negative growth by the end of May, the Indian month-on-month price hike in May is also at 10.3 per cent. The central bank’s report reveals that the government budget on cash basis remained at a surplus of Rs 6 billion in contrast to a deficit of Rs 6 billion in the same period last year. “The government has significant cash surplus of Rs 21.6 billion — including Rs 3.9 billion of previous year — with Nepal Rastra Bank,” according to the report, thought the total government expenditure on cash flow basis, increased by 25.7 per cent to Rs 127.6 billion compared to an increase of 28.2 per cent in the corresponding period of the previous year. Low growth rate of capital expenditure accounted for such a deceleration of total government expenditure

Revenue mobilisation also grew by 39.9 per cent to Rs 110.5 billion compared to an increase of 24 per cent in the corresponding period the previous year. “The government’s firm commitment to revenue leakage control, revenue administration reforms, Voluntary Disclosure of Income Scheme and significant growth of non-tax revenue contributed control to such an impressive growth of revenue mobilisation in the review period,” said NRB.

However, exports shot up by 19.8 per cent in the first ten months of the current fiscal year in contrast to a decline by 2.4 per cent in the same period last year. The rise in exports is contributed to readymade garments, textiles, GI pipe, catechu, toothpaste, pulses followed by pashmina, woollen carpets, readymade garments and handicraft.

Total imports also went up by 25.4 per cent compared to an increase of 16.8 per cent in the same period last year. Imports from India rose by 11.5 per cent and imports from other nations surged by 50.4 per cent compared to last year’s nominal import.

Overall Balance of Payment (BoP) posted a significant surplus of Rs 43.1 billion compared to a surplus of Rs 19.9 billion last year.

SOTTO’s demand

The newly-established organization of travel enterprenuers — Society of Travel and Tours Operaters Nepal (SOTTONepal) has demanded ticket booking system (GDS) to every registered travel agency. SOTTO has also demanded to stop the system of paying back the immigration penalty and return ticket of deported foreigners. “The ongoing talks between the travel agencies and airlines have resulted in further complications,” said SOTTO-NEPAL.

The travel enterpreneurs have demanded a stop to discrimination on the basis of IATA and non-IATA. A series of protest programmes will be held by the society to get its demands fulfilled.

IME Financial opened its 10th Branch

IME Financial Institution Ltd (IMEFIL) opened its 10th branch at Chabahil on Monday June 29, 2009 targeting the eastern portion of Kathmandu district. IMEFIL is a popular name in Nepali remittance industry since the last four years. The financial institution has a deposit base of Rs 1.82 billion from 26,000 depositors. IMEFIL distributed 25 per cent bonus shares last fiscal year

Laxmi Bank's Second Branch in Chitwan

Laxmi Bank opened its second branch in Chitwan, making it a total of 19 branches and 15 ATMs in addition to around 400 payment agents across the country. Laxmi Bank is already a major player in the Narayani region with branches in Birgunj and Narayanghat. Chitwan is a very economically active region.

“The branch will play an active role in increasing our business in Chitwan and offer a range of personal banking services such as various savings and derivative deposit schemes that pay interest up to seven per cent per annum, life insurance and remittances,” said the bank.

Siddhartha Bank Expansion in Rupandehi

Siddharth Bank Ltd (SBL) has expanded its service to Butwal and Bhairahawa of Rupandehi district. The bank opened its Butwal branch on Wednesday July 1, 2009 and Bhairahawa branch on Thursday. “We earned a profit of Rs 350.28 million in the last 11 months of the current fiscal year on an investment of Rs 13.30 billion,” said the bank that has total deposit of Rs 15.22 billion.

Ace's New Branch

Ace Development Bank opened three branches — at Lalitpur’s Jawalakhel, Chitwan’s Parsa Bazaar and Morang’s Urlabari — on Thursday July 3, 2009. Bank chairman Yogendra Shakya inaugurated the Jawalakhel branch. Ace now has a total of six branches in operation. After the successful rights issue that closed last week Ace’s paid-up capital has reached Rs 750.4 million, making it the highest capitalised national level development bank in Nepal. On the occasion, bank also unveiled a new deposit product ‘Ace Rhino Super’ which yields minimum nine per cent per annum interest.

Handicraft Export in Growth Mode

Handicraft goods export until now this fisacl year increased by 28 per cent compared to 11-months’ data of the fiscal year 2007-08. According to the Federation of Handicraft Association of Nepal (FHAN), 24 per cent increase was seen in total textile products exported while there was an increase of five per cent in the export of non-textile products.

In case of textile products, ex- port of Dhaka cloth item increased by 69 per cent while felt products grew by 41 per cent, woolen goods rose by 29 per cent, pashmina products rose by 21 per cent and hemp products grew by 20 per cent. The 11-months’ comparative data of FHAN show the total textile products exported during 2007-08 were worth Rs 1,259,338,225, which increased to Rs 1,557,768,731 in 2008-09, with textile products contributing 58 per cent to the total handicraft products export.

Meanwhile, non-textile products contributed 42 per cent to the total handicraft products export, a five per cent increase compared to the same period last year. Beads items increased by 102 per cent, stone craft by 58 per cent, ceramic products by 39 per cent, leather goods by 34 per cent. plastic items by 22 per cent and handmade paper products by 11 per cent.

Though there was some de- crease in the case of some non-textile products such as metal craft export whose export decreased by four per cent, a 31 per cent fall was observed in bamboo products export and one per cent in incense items, according to FHAN. Export of miscellaneous goods in terms of non-textile products decreased by 42 per cent.

Third Branch of RK Jewellers at CITY CENTRE

The third branch of RK Jewellers opened at City Centre in Kamalpokhari on Saturday. The branch will deal exclusively in diamonds.

RK’s other branches deal in gold, silver and diamonds and other gems. “Different diamond items made in Taiwan, Hong Kong, Italy and Dubai are available at the showroom,” said Rajendra Shakya of RK jewellers. Customers will get 20 per cent discount till the first week of the opening.

Pepsi' New Winner

Bimala Pandey of Kathmandu and Ratna Kaji Suwal of Bhaktapur have won an all-expenses paid three-night/four-day trip to Bangkok and Pattaya under Pepsi’s new campaign ‘Make Your Dream Team’, which is a sequel to Pepsi Meet the Dream Team Campaign. The new Pepsi campaign features international football stars like Thierry Henry, Cesc Fabregas, Kaka, Lionel Messi, Fernando Torres and Frank Lampard. Together, they make the Dream Team. Consumers will have to collect crowns featuring these four football stars and win exciting prizes. At the end of every week, through a lucky draw two lucky winners will be entitled to an all-expenses paid trip to Bangkok and Pattaya. There are other exciting prizes like i-Pods, Reebok branded footballs and T- shirts to be won every week.

Japan Nod to NPIA for Pashmina Brand

In its quest to get Nepali pashmina registered internationally, Nepali Pashmina Industries’ Association (NPIA) has notched up yet another success: It has got the approval from Japan in this regard. Norway and Australia have already registered the brand.

An elated NPIA president Shanker Prasad Pandey said, “Australia was the first country that gave us confirmation regarding our application for brand registration there. A month later, we succeeded in getting Norway to become the first country to get our pashmina brand registered there and now, Japan is the third country to give the nod.” The total value of pashmina exported to Japan in the fiscal year 2007-08 was Rs 6,976,072.8. In 2006-07, it was Rs 27,343,015.27 and in 2005-06 it was Rs 25,069,120.17. “Pashmina export to Japan was satisfactory earlier but due to fake pashmina and lack of a brand in the international market, export started falling. Now, export will revive,” Pandey said adding that they have targeted to register the Chyangra Pash mina brand with the EU and 11 other countries amongst nine are left

Brand registration being an expensive procedure, NPIA till date is moving on with its internal resources for the process. Pandey said NPIA is paying through the nose for processes like legal fees, registration charges, advocate charges and brand registration charges to fulfill minimum criteria.

NPIA recently got budget allocation of Rs 1.24 million from the government as assistance for the brand registration process abroad.

According to the scheme, of the Rs 12.4 million the government will initially provide Rs 25 lakh in two instalments as the reimbursement for expenses incurred during the trademark registration process by the NPIA. NPIA has set a brand logo of Nepali Pashmina with the name, ‘Chyangra Pashmina’ for its brand registration in both the international and national market.

The association has started its brand registration in the EU along with Australia, Norway, Switzerland, Korea, Japan, America, United States, Canada, and Russia.

NPIA has succeeded in its registration in Norway with confirmation from Australia and Japan. According to 11months’ export data of the Federation of Handicraft Association of Nepal (FHAN), the total contribution of pashmina to the nationa’s total export was 23 per cent with total export value of Rs 632711289.3268, The total pashmina exported during the same period last year was worth Rs 525057907.2271.

Samsung’s New Chirpies

Samsung Mobile — represented in Nepal by IMS Tele Trade P Ltd since 2001 — has introduced new models of cell phones for the year 2009.

The new models highlight the touch-screen category at affordable prices. “S5233 (STAR) is one of the lowest priced touch screen phones in the market,” said the company. The affordable price of this model will enable those with small pockets to gain access to Touch Screen (TS) technology, enhancing user feel and experience. Two other 2 TS phones S5603 and S8003 are targted at all segments of customers. Samsung Mobile has also introduced low-end phones — E1110 and E1125 — designed to satisfy the basic connectivity needs of consumers. The new models in this category are durable and easy on the eye.

Meanwhile, the M3510 model has already ing contender in the mid-range category of phones

With its classy looks and outstanding features, this model has become very popular among the masses, especially in the Music Edition series.

Samsung Mobile has also introduced a full year warranty on all its mobile sets from the beginning of 2009. Under the warranty programme one is fully protected.

Fifth Player in the Domestic Telecom

Smart Telecom is launching basic telephony services before the end of 2009. It will be the fifth player in the domestic telecom sector as four others — Nepal Telecom, Spice Nepal, UTL and STM Telecom Sanchar — are already operational. Smart Telecom is a joint venture between Nepali, Singaporean and Israeli companies.

Nepal Promoted in Hong Kong

Consulate General of Nepal in Hong Kong organised ‘Visit Nepal: An interaction in Hong Kong’ yesterday to woo tourists from Hong Kong. A large number of outbound tour operators who sell Nepal took part in the interaction.

Addressing the function, Paul Tse, member of Legislative Council, Hong Kong SAR who looks after tourism praised the beauty of Nepal and stressed that the political stability is a must for tourism development. Lauding the efforts made by Consulate to promote Nepal’s tourism, he said that he would be visiting Nepal soon.

Ronnie Ho, chairman of Travel Industry Council of Hong Kong recalled his visit to Nepal 10 years ago and said that Nepal has everything that a tourism destination should have. Keshav Prasad Bhattarai, Consul General of Nepal outlined the tourism products that Nepal has been offering.

“Nepal is a safe destination to travel to. Tourists are treated well and no tourist has been harmed so far,” he said requesting the tour operators to sell Nepal package as Nepal is a unique destination.

‘Focus On Security, Investment’

The economists during a pre-budget interaction organised by Nepal Economic Association (NEA) suggested the government to focus on increasing security and investment in the budget. However, finance minister Surendra Pandey assured them that the budget will concentrate on helping check price hike, generate more employment, increase competitiveness and spending on infrastructure. He also accepted that the culture of bandh has bleed the economy white.

Prof Dr Madan Kumar Dahal, president of NEA suggested to bring the budget based on Three Year Interim Plan and Common Minimum Pro gramme. “The budget should guarantee employment for a member of the poorest of the poor family for atleast 100 minimum days in a year,” he said adding that the people should feel the change.

“Without infrastructure development growth is not possible and private sector should be encouraged to invest on infrastructure,” he suggested, “however, Nepal’s development is hit by non-financial causes.” “If the government brings budget focusing on increasing investment, growth rate can be fuelled,” said Prof Dr Bishwambher Pyakuryal. He was of the opinion that Nepal could achieve five per cent growth next fiscal year, provided the situation does not deteriorate. “Though the growth rate at present is at 3.8 per cent,” he said adding that cartelling has pushed the prices up to double digit. However,the effective monitoring and supervision could bring the price down, suggested Prof Dahal. “Quality of products imported should be taken seriously as our import has been increasing but the quality has not been maintained,” he added.

Pyakuryal also suggested to utilise the surplus budget from this year and invest on storage-based hydel projects as the country is reeling under a power shortage. Apart from hydropower, they also stressed on giving priority to agriculture sector by providing subsidy on seeds and fertilizers to fuel growth.

Promoting Dairy

Chilling vats have been distributed in five dairy pocket areas collecting milk in Tanahu district. The centres getting one chilling vat each are Chintutar, Purkot, Barahi, Rishing Patan, and Dhorfirdi, the District Livestock Services Office Tanahu said. The chilling vats are worth Rs 1 million. The farmers have felt a relief after getting the chilling vat. It will be easier to collect milk and sell in Dulegauda Bazaar now, said a Dhorfirdi farmer Govind KC.

Investors Lose Confidence

Investors are not yet confident as this week too transaction amount at Nepse decreased by 1.76 per cent to Rs 226.91 million. Except shareholders of hydropower companies, all others lost pulling the Nepse down by 13.10 points to 670.61 points from last week’s closing of 683.71 points. The hydropower sub-group gained 14.18 points to close at 897.71 points. Three sub-groups — manufacturing, others and trading — didnot see any changes in their indices.

Arun Valley IPO Oversubscribed

Arun Valley Hydropower Company’s primary issue has been oversubscribed by over 21 per cent to Rs 2 billion.

“Though, it will take a couple of days to find the actual amount and applicants, by the end of third day — Thursday — a total of 43,787 applications worth Rs 1.26 billion have been received,” said Niraj Giri, director at the Securities Board of Nepal (Sebon).

According to the primary estimation, on the last day — Friday — the amount should cross Rs 2 billion

Arun Valley had floated its 5,15,000-unit primary shares (worth Rs 94.76 million) from June 23 after adding a premium of Rs 84 to the face value of Rs 100, making it Rs 184 per unit share that closed on June 26. According to the regulation, if the primary issue is oversubscribed, the it would be closed on the fourth day

Similarly, a company can add premium equal to its net worth, if it is in profit and has distributed cash dividend for three consecutive years, according to the new Securities Board of Nepal (Sebon) regulation

Arun Valley has distributed cash dividend for the last successive three years and it has distributed 20 per cent cash dividend last fiscal year. Arun Valley Hydropower — that constructed Piluwakhola Hydropower in Chainpur of Sankhuwasabha district — has been providing 20 per cent cash dividend from the profit over three successive fiscal years.

NMB Bank is the sales and issue manager for Arun Valley’s primary issue while the issue and sales managers of Chilime’s primary issue are NIDC Capital Market and Citizen Investment Trust (CIT)

Arun Valley — established in 1997 aims to develop, build, own and operate hydropower projects and has formed joint ventures with companies to build medium and large hydropower projects and develop entrepreneurship for the promotion of the hydropower sector’s currently-owned Piluwakhola Hydro Project (3MW).

Currently, there are only three listed hydropower companies — National Hydropower, Butwal Hydropower and Chilime Hydropower — at Nepal Stock Exchange (Nepse). After Arun Valley’s listing, there will be four hydropower companies.

NDB’s Small Depositors Ask Deposit Back

Nepal Development Bank (NDB) Victims’ Group has asked the Nepal Rastra Bank (NRB) to return deposits of small depositors and amount of the rights shares of some shareholders as soon as possible as the court procedure will take a long time.

“If the liquidation is the last resort, we urge NRB to immediately get permission from the court and return small depositors money and the amount of rights shares,” said Kirti Madan Joshi, president of ad-hoc committee of NDB-Victims Group during a press meet here today.

They also urged to give a last chance to revive the ill-fated bank. “It should be given a last chance to revive,” he said suggesting three options - indirect intervention, and strict supervision, taking control of its management or appointment of new management team to revive the first development bank of the country. “NRB could form a new board of directors includ ing promoters like Nepal Army, Employees’ Provident Fund and investors,” he added.

The victims demanded to punish the existing management team, directors and senior officers of the bank for mismanaging the people’s deposit. “A bank cannot misuse public deposit,” the victims said warning that if their demands are not met they will go on strike.

“The liquidation of NDB is not the solution,” said Joshi adding that it would affect the entire financial sector.