Unilever Nepal (UNL) and Bottlers Nepal Limited (BNT) are the two highest return providing listed multinational companies in NEPSE. Besides, UNL and BNT, there are Everest Bank, Himalayan Bank, Standard Chartered Bank Nepal, Nepal Bangladesh Bank and Nepal SBI Bank which are listed and have been providing decent return over the period of time to its shareholders.
Unilever Nepal Limited (UNL) is a blue chip public company, a subsidiary company of Hindustan Unilever Company in Nepal. Unilever Nepal manufactures personal care and hygiene fast moving consumer products like soaps, shampoo, toothpaste and detergents for domestic market as well as for export.
UNL is a subsidiary company of Hindustan Unilever Company which owns 80% stake in the company and rest 20% is owned by the general public of Nepal. Of the total stake of general public, Ravi Bhakta Shrestha is a local partner of the multinational company. Unilever Nepal has posted impressive profit figures in FY 2072/73 and hence announced Rs 1020 cash dividend per share to its shareholders which is the highest ever dividend by any company in Nepal, so far.
Unilever Nepal, as one of the listed companies of Nepal, has been demonstrating outstanding performance through its unaudited financial reports. The multinational company with paid up capital of Rs 9.21 crore has been showing impressive growth in its reserve for the past five fiscal years. The company’s reserve stood at Rs 1.02 arba in the FY 2068/69. Later in the preceding fiscal years 2069/70 and 2070/71, its reserve increased to Rs 1.20 arba and Rs 1.41 arba respectively. Similarly, the reserve surged alike in FY 2071/72 and FY 2072/73. The reserve amount hiked to Rs 1.65 arba and Rs 1.95 arba respectively. In the span of 5 years, the company has managed to increase its reserve by 90.87%.
Alike the outstanding accumulation of reserve, the multinational company has managed to increase its net profit in the past continuous five fiscal years. UNL had earned a net profit of Rs 1.02 arba in FY 2068/69. Likewise, the company earned net profit of Rs 1.20 arba and Rs 1.41 arba in FY 2069/70 and FY 2070/71.The company continued to enlarge its profit structure in FY 2071/72. Its net profit increased to Rs 1.65 arba in FY 2071/72. However the net profit decreased in FY 2072/73. Amid the fiscal year, the entire country faced Indo-Nepal border blockade. Almost all the industries of Terai were highly affected by the blockade. The company’s net profit was Rs 1.23 arba in FY 2072/73. Despite the decrement in net profit in FY 2072/73, the company’s preceding FY financial report show impressive growth in terms of its net profit.
Bottlers Nepal Limited (BNL) is the only bottler company of Coca-Cola products in Nepal. It has two bottling plants; namely Kathmandu (Bottlers Nepal Limited – BNL) and Bharatpur (Bottlers Nepal (Terai) Limited, which is 160 km from Kathmandu. It is also public listed multinational company which is a subsidiary company of Bottlers Nepal Limited (BNL). Bottlers Nepal holds 90.78 percent and the remaining 9.22 percent shares of general public. Gorkha Brewery owns 22% stake in Bottlers Nepal. BNT is currently producing Coke, Fanta, Sprite and Kinley Soda.
Among the top companies of Nepal, Unilever Nepal and Bottlers Nepal as public companies are providing outstanding return to its stakeholders. The record of Unilever Nepal and Bottlers Nepal as listed companies is demonstrating outstanding report to its investors. Share price of Unilever Nepal per unit share is approx Rs 35,000. UNL shares have always been the highest priced share in the stock market. The share price of UNL was Rs 10,000 in December 17, 2012 and the price doubled to Rs 20,000 in 2015. At present UNL share price stands at Rs 35,000 which is the highest share price among all the listed companies in NEPSE.
There are other multinational companies like Ncell, Gorkha Brewery and Surya Nepal which have also been successful to fit in the list of top ten highest tax payer companies in FY 2072/73 in Nepal. Trio of them are private multinational companies of Nepal. Besides these multinational companies there are Spiradi Trading, Chaudhary Group, Golchha Group, Nepal Oil Corporation etc to name a few local companies which again holds a strong position in paying the high taxes in the government coffer each year in Nepal.
Highest Tax Paying Company in Nepal
Ncell, the largest profit making company in the country, is the leading company in the top ten list. Ncell became the highest taxpayer with the payment of taxes which was due in sales transactions in the FY 2072/73. In the last fiscal year Ncell paid total taxes of Rs 28.50 arba to the Inland Revenue Department (IRD). The income tax of the company alone was Rs 20.85 arba. In the FY 2071/72 Ncell had paid tax of Rs 17.05 arba.
Nepal Telecom (NTC) remained in the second position with the difference of 15 arba than leader Ncell. The company paid Rs 13.75 arba tax to the government. In the FY 2071/72, Ncell had paid Rs 5 arba more than Nepal Telecom.
Surya Nepal Private Limited ranks in the third position in the list of highest tax Payer Company in Nepal. Surya Nepal Private Limited is one of the largest private sector enterprises in Nepal and a subsidiary of ITC Limited, India. The balance shares are held by Local Nepalese individuals & Corporate shareholders and British American Tobacco (Investment) Limited, UK. The company has Pravakar and Siddhartha Rana of Sipradi Group as its local partners.
In the FY 2072/73, the company has paid a total of Rs 5.70 arba tax including Rs 3.18 arba as income tax to the IRD.
Similarly, Gorkha Brewery remains in the fourth position.
Gorkha Brewery (P) Ltd. is a joint collaboration between Danish Multinational Company Carlsberg Breweries, Copenhagen, Denmark and leading Nepalese Business House-Khetan Group. In 2010, Carlsberg Group took over the management. Today Gorkha Brewery encompasses Carlsberg Beer, Tuborg Beer, San Miguel Beer, Tuborg Strong Beer and Gorkha Beer in its portfolio.
The company paid Rs 3.21 arba tax including Rs 1.56 arba income tax in the last fiscal year. The company has Rajendra Khetan’s Group as its local partner. The beverage company is local partner for Bottlers Nepal with its 22% stake in the company. Gorkha Brewery has posted 1: 605 times i.e. more than 600% as profit to its investors.
The multinational companies’ performance is outstanding every year. These multinational companies can issue IPO to become public company. The company will not turn into public company unless government does bargaining in some cases and provide subsidy to issue shares in public. If these private company turn into public one, they will get better position in the share market and investors flow will also be high in these companies’ shares. So government should also offer different packages to make these companies turn into public limited companies.
In the context of Nepal, capital market is highly dominated by commercial banks. Hence government’s step to make new sectors enter into the capital market is a need of time. If government allocates some facilities to private companies they may eventually turn into public company. Entry of new sectors in the capital market will help the market prosper in totality.
If there are abundant sectors and companies in stock market, then there will be comparatively lean chances of share shortage as in present context. Irrelevant price fluctuation will come to halt. This will bring transparency, credibility and portfolio diversification in the stock market.
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