Sunday, April 15, 2012

Surya Nepal injects Rs 4b

KATHMANDU, April 9, 2012

Surya Nepal is all set to add 250 jobs in the domestic labor market, as the subsidiary of the Indian tobacco major ITC Ltd has injected additional investment of Rs 4 billon to establish a new tobacco factory in Tanahu, a hilly region of the country.

The company, which has been going through a rough phase due to labor-related problems, has already started construction of the factory in 130 ropanis of land in Tanahu.

"We have the same business plan as we have for our existing factory in Simara," Rabi KC, corporate vice-president of the company, shared with Republica on Sunday.

Surya Nepal, one of the largest enterprises in the country, which started its operation in 1986, annually pays around Rs 7 billion in taxes and is one of the largest tax-payers.

Surya Nepal, which closed down its garment factory last year -- leaving around 700 workers jobless -- will create job opportunity for 250 people after production kicks off in the new factory.

"We will not reduce production ," KC said, "But we will not need a huge manpower strength due to high-tech equipment in the new factory."

The factory, while hiring the workers will focus on quality.

However, locals will be in a priority list if they are qualified enough and meet the company´s standard. The existing factory in Simara has around 350 workers.

Surya Nepal has a plan to make this factory, which is under construction, a number one production factory in terms of environmental aspects. "We have a plan to use an environment friendly technology that gives us recognition worldwide," KC said with vigor.

The new factory will be a backup for the existing factory in Simara. "Now, the factory produces 3 million sticks of cigarette per day," KC said, "After the new factory starts production, we will halve the production in Simara and move it to Tanahu for the time being. In the long-run, we are planning to run all the units in full phase."

"There would be completely new labor force," KC said when asked whether the company would hire those who lost jobs after the closure of garment factory in Biratnagar. "We have already cleared our deal with workers in the garment factory."

According to KC, the company has granted Rs 1.3 billion to upgrade the physical infrastructure of a school in the locality. "We will start production within the next 14 months," KC said.

Surya Nepal, which produces four brands of cigarette, however, has no plans to introduce a new brand.

Source: Republica

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