The Herbal Product Manufacturing Company, Targeted During the Monarchist Movement, Prepares for Restart

Nepal Health News, Kathmandu: During the monarchist movement, a factory that was opened during the reign of the king and was set on fire, causing severe damage, is now in the process of restarting operations and beginning production, according to relevant officials. However, they mentioned that the exact time for the full-scale operation to commence is currently uncertain.

The factory, which is government-owned, was set on fire during a violent demonstration by monarchist supporters last Friday, near Koteshwar.

Officials stated that the fire caused significant damage to the company's laboratory, automated machines used in production, vehicles, and buildings. According to them, the initial estimate suggests the damage could be in the millions, and production at the factory has been halted. The work of collecting and verifying damage details is ongoing, and the preliminary report may be made public by Monday.

This government-owned company, known for producing herbal oil, Sanchol, is considered a successful example of indigenous production in Nepal.

Many have expressed doubts about whether the company will be able to return to its original state of production and distribution after the devastation. The company's General Manager, Dr. Sangeeta Yadav, however, assured that regular production would resume soon, and necessary measures have already been initiated.

She mentioned in an interview with BBC on Sunday, "Although our newly installed automated machines and laboratory have been completely destroyed, fortunately, our old manual machines remain intact. Therefore, we are working towards starting production again within a few days."

"The company has been heavily impacted by the attack, but we will revive it. We will not let it shut down," she said. She also explained that when the automated machines were not operational, manual machines were used, so it would be possible to run them as normal.

"We also have machines in our branch offices, and we can produce from there as well. We have already begun that process."

According to the company’s website, it has branches in Sunsari, Bara, and Kailali, and a recent branch was also inaugurated in Jajarkot.

Search for a Laboratory

Officials have mentioned that the company primarily produces herbal oils. Sanchol, a popular oil used for colds, headaches, and body pain, is made from such oils.

Since the laboratory, which tests the products, was destroyed in the fire, the company is taking steps to manage the situation. Dr. Buddhi Sagar Poudel, the Chairman of the company and Deputy Secretary at the Ministry of Forests and Environment, said the company is already in talks to use the environment department's laboratory, and if that’s not feasible, other laboratories will be considered. Efforts are still ongoing.

Poudel also mentioned that despite a high demand for Sanchol oil, they are working to prevent any shortage in the market. "Currently, we have some stock remaining, which will be sent to the market, and we will start operating the manual machines soon. We are following that formula. Although production will be slightly less, it will continue soon, ensuring there is no shortage in the market," he said.

A Company Established During the Monarchy

The herbal product manufacturing company, which became the target of arson during the movement for the restoration of the monarchy, was established over four decades ago during the reign of the king.

According to government records, the company was founded on 17th Poush 2037 BS (1980 AD). At that time, Nepal had a non-partisan Panchayat system where the king had significant authority in governance.

According to annual reports issued by the Ministry of Finance, the company was established under the Herbal Product Factory Act. It is now under the Ministry of Forests and Environment.

Profits in the Past, Losses Last Year

In the past, the herbal product company was considered one of Nepal's successful public enterprises, with consistent profits. However, it reported a loss in the last fiscal year, as noted in the Ministry of Finance’s annual report on public enterprises (2081 BS).

The report mentions that the company incurred a loss of NPR 28.4 million in the last fiscal year.

Regarding the reasons behind the loss, General Manager Yadav explained, "Sometimes the market fluctuates. We don’t only produce Sanchol. We also produce essential oils, and we are the largest producer of such oils in Nepal. When there is less demand abroad, the demand for such oils in Nepal decreases, which also contributed to the loss last year."

She added that the company’s products are sold both in Nepal and abroad.

According to Yadav, the company has been exporting its products to Sweden for the past four years. Additionally, their products are informally distributed in nearly all countries with a significant Nepali population.

Although the company is in a position to restart production with its old machines, Yadav mentioned that rebuilding the automated machines and laboratory with internal budget resources is not feasible.

She said, "Ministers visited the site on Saturday, and on Sunday, I briefed them. They have assured us that the budget will be arranged, and they have promised to help us keep this domestic production company running. We are optimistic that the automated machines will be installed soon."