Nepal's only billionaire plans India financial push

Nepal's only billionaire and chairman of the $1.16 billion business house Chaudhary Group (CG), Binod K Chaudhary, is looking at a major financial services play in India.

The group is in negotiations with a major financial player in India to pick up a meaningful stake.

Speaking to dna, Chaudhary said the group is one of the largest players in the financial services sector in Nepal and its bank (Nabil Bank) is the largest player in that country.

"We want to bring our bank here (in India). We have been engaging... and our government is engaged with the Reserve Bank of India (RBI). We have already made an application and the two governments have been discussing it. It will be a branch of Nabil that we'll do here once we have entered the financial services sector," he said, adding the group is already in talks for picking up a stake in a major financial sector player in India.

While Chaudhary did not share specific details of the deal in the making, he said the transaction will get concluded in the next 3-4 months. The group's financial services play in Nepal comprises the entire gamut of activities including commercial banking, consumer banking, leasing, insurance, money remittance etc.

According to Chaudhary, Nepal has a very high trade dependence on India and there are just two Indian banks in Nepal. That apart the remittances business is huge as well. "Whenever I meet Indian authorities including businessmen, they tell me that they would like to see a much more smoother, efficient banking system to function. I am confident that they will let Nabil come and operate in India," said Chaudhary.

The group, popular for it Wai Wai noodles which is sold in 32 countries, also has an association with the Tata Group's hospitality vertical Indian Hotels Co Ltd (IHCL) or the Taj group of hotels – hotels under the Taj Safaris brand in India (Madhya Pradesh) and Nepal.

CG's hospitality play also includes a stake in a hotel management consultancy called Concept Hospitality P Ltd that operates 39 hotels under various brands including the 'Ferns' brand.

Among the group's other businesses in India include an infrastructure project in the form of a food and industrial park called Greentech Mega Food Park, currently under development in Ajmer, Rajasthan. To be operational by March-April 2017, the food park is spread over 100 acre and will have 40 different agri- and food processing plants, including one for Wai Wai noodles in addition to warehousing and cold chain facilities for agro producers.

Engineering, procurement, construction (EPC) is another space where CG has a play in India. "We have started a new EPC company in Delhi and are currently building a sewerage system for Indore city. It's a Rs 160 crore contract. We want to grow in power and construction sector as well. Real estate is another sector that we will be looking as well. We will not do a standalone realty projects. We are currently working on a project which will be basically a City around a theme park and include residential township, convention centre etc. Land parcels are being looked at and negotiated in cities like Hyderabad, Andhra Pradesh, Delhi and Maharashtra," said Chaudhary.