South Asian Business news and information

Dabur Nepal has seen impressive growth in the last 15 years. Dabur Nepal is highly successful in Nepalese market and now it is targeting the juice market of Bangladesh. Bangladesh is one of the most populous countries in the world. It has a population of more than 140 million and thus, it is a huge market for any company. Dabur Nepal officials want to enter in to the Bangladeshi market but they want Bangladesh government to reduce the duty on juice.

NDTV reported:

Since 1998-99, due to a conflict between two acts, Nepal had stopped refunding manufacturers the customs duty they had to pay on imported packaging material though it was used to export finished goods.

Dabur Nepal's duty drawback dues grew to Rs 450 million. However, this year, Finance Minister Ram Dharan Mahat pledged in his budget speech to refund the duty and since last month, eligible exporters have begun to get the first instalment of the refund.

But there is little incentive for foreign companies in Bangladesh, where four local manufacturers dominate the juice market.

A whopping 80 per cent customs duty on fruit juice imports has blocked the entry of foreign brands, including Dabur Nepal.

The juice market has seen healthy growth in Bangladesh in the recent years. Its size is increasing every year. Right now, local companies are meeting the demands in this market. So, the local companies will not feel too good at the prospect of the entrance of a large foreign player in the market.

The New Nation reported:

One of the top 10 manufacturers of fruit juices in the world, the Dabur Nepal, is eyeing Bangladesh as its potential market posing a threat to the local players.

Currently the Tk 90 crore Bangladeshi juice market is being dominated by Pran Group, which accounts for 44 per cent of the total sales. Partex Group and Abul Khair Group, two other manufacturers are holding 22 per cent each. Acme Laboratories is in the fourth place, which controls from eight to 10 per cent of the market.

Bangladesh's juice market is growing at the rate of about five per cent. Local manufacturers said entering of the giant player in Bangladesh may put them at risk.