Nepal agitation affects fruit juice consumption in India

Nepal agitation affects fruit juice consumption in India

NEW DELHI: The Madhesi agitation in Nepal may affect fruit juice drinkers in India. The Nepalese politicians living in the areas along the Indo-Nepal border have stopped the movement of vehicles along it in protest against certain provisions of the new Nepal Constitution. So goods can’t be moved from Nepal to India and vice-versa until this blockade ends.

FMCG multinational Dabur India has indicated that sales of its ‘Real’ brand fruit juices in India may be affected due to blockade of certain Indo-Nepal border crossings.

“Due to the current state of unrest in Nepal, and the resultant blockade of certain border crossings, the supply of products by our subsidiary Dabur Nepal Pvt Ltd has been affected. This may temporarily impact the sales of the our Real Brand fruit juices in India,” Dabur India said in a BSE filing.

Dabur manufactures Real juices in its plants in India, Nepal and Sri Lanka. Due to the India-Nepal border blockade, it cannot import products in India.

It further said: “The financial impact cannot be ascertained accurately due to the ongoing nature of the situation.”

Meanwhile, Dabur India said it has “pro-actively initiated a mitigation strategy involving the ramp-up of production at other manufacturing facilities in India, and at our manufacturing facility in Sri Lanka Dabur Lanka Pvt Ltd. These measures will help in mitigating the potential sales loss due to the Nepal unrest.”

However, there is no impact on sales within Nepal. According to the latest developments, talks are on with the agitators, and there is hope that some sort of compromise may be achieved in the near future.

Shares of Dabur India were trading at Rs 273 apiece, up 0.17 per cent, from their previous close on the BSE.