Panchakanya Group, one of the prominent business houses of Nepal was established when Prem Bahadur Shrestha, Chairman of the group, sowed the very first seeds of his business in Ilam. With bigger ambitions and the zeal to explore greater possibilities, he first moved to Fikkal and then to Jhapa in 1970s. He was in his teenage days when he started with potato trading in Fikkal. 

 

Moving to a new place brought new ideas and opportunities to the company. As a result, Panchakanya Rice Mill was established in 1971 in Jhapa which proved to be a milestone for the development of Panchakanya Group that everybody knows today. Panchakanya group hasn’t looked back since then and now, it has forayed into more than a dozen industries. In the initial ventures like rice mill and timber production, there were trials and consecutive successes. But that was not where he stopped. Eventually, he moved to Bhairahawa in the west where his company fostered as a group. 

 

The year 1981 saw the establishment of Panchakanya Iron Industries at Kotihawa, and today, the area houses the prominent manufacturing units of the group – steel, iron, polythene and PVC pipes. His further ambition was similar to that of any other growing business- to have their presence felt and to establish Panchakanya in the valley of opportunities- Kathmandu. Therefore, with dreams of success and the will to make it large, the group stepped in the capital. And the rest is history. Today, Panchakanya group has five factories in the Kathmandu valley including RMC Readymix Concrete, Stainless Steel Tank, aggregates and furniture. There are around a dozen companies under its ownership and few more in partnership. 

 

Gaining Momentum 

During four decades of its journey, Panchakanya Group moved from Mechi to Bhairahawa, to ultimately settling in Kathmandu. The brand “Panchakanya” has carved an unforgettable imprint in the minds of many Nepali consumers. Pradeep Kumar Shrestha, Managing Director, said that from a turnover in millions till a decade ago, the group now has a sizeable turnover counted in billions. The group, through a dozen companies, is creating direct employment for thousands of people. 

 

However, Shrestha feels that the group has not yet reached a target landmark, which by now should’ve been arrived at. “Had we been able to work wholeheartedly, we would’ve reached further. A major challenge for us has been the overall business and investment climate of the economy. Therefore, wait and watch policy is what we have been following for long now. While for others Panchakanya may be a fast paced, growing company; in my opinion, we are just walking,” he said. 

 

New Ventures 

When asked about where the group would be in the next four decades, Shrestha, who has high regards for foreign investment, envisions expansion of his group by investing in other countries. “If the government allows, we will definitely go beyond borders. The role of Nepalis in foreign lands should change from the ones that go abroad seeking employment opportunities to that of big-time investors; from chasing dreams to creating dreams,” he opined. 

 

Recently, there has been an addition to the group’s portfolio. With mobile banking service named Pay Bill that offers service to pay utility bills and money transfer through a mobile phone, they have now ventured into the IT sector. Education, health, banking, insurance, housing and hydropower are some other sectors the group has invested in. With a focus on the construction sector, considered a growing business at present, the group is planning to establish a cement factory soon. 

 

Making the First Move 

The group has always lived up to its slogan, ‘Always first, always ahead.’ Shrestha said that his group is always first and ahead of the competition in introducing something new in the market and giving an innovative and a creative edge to its products. “We focus on being the pioneers and doing something new. Among all the competitors, we are perhaps the first company to have made the first move and that applies to almost all the ventures we have undertaken,” he claimed. 

 

According to Shrestha, Panchakanya was the first company in Nepal to acquire the license to produce stainless steel tank launched recently. He added with pride that the group was also first to receive quality certification in Nepal. The company has been awarded with NS Quality Awards in 2012, 2008 and 1999. Likewise, the group has various ISO quality certificates. He was quick to add that the group has always introduced products in Nepal that are new to the market catering to consumer demands. 

 

Shrestha said that the group launches something in the market every one and a half year. “The new launches are always something new in the market and are presented in a creative way. Within a year or two, we are also planning to add new industries despite poor investment environment in the country,” he said. He refused to reveal the details of the products but said, “Those products will help in import substitution, will be eco-friendly and need based.” He also said that they will be related to construction. Since three years, the group has consecutively launched readymix concrete, profiles and stainless steel tank. Most of these products were new to the market when Panchakanya launched them. 

 

The Panchakanya Brand 

“Panchakanya” has become a well known brand in the construction material business. The name Panchakanya in itself is enough to describe the quality of the products, says Pradeep Kumar Shrestha, MD of Panchakanya Group. He said that consumers prefer Panchakanya products to other products. “We don’t feel the need to showcase a particular product. A sign board is enough to describe a product from Panchakanya. The confidence was not gained overnight and it is not easy to achieve such position,” he explained. The brand Panchakanya is not used for those companies of which the group does not have full ownership. 

 

The group provides one stop solution to all the construction needs of the consumers. Around 80 per cent of the group’s concentration is in the construction material production. Steel is one of the major products of the group. The installed production capacity of steel is 80 thousand metric tonnes and the group is utilising up to 70 percent of the total capacity. Shrestha claims that their market share of steel is around 20 percent among 15 to 18 steel industries in Nepal. He said that the company has been able to hold stability in market share for the last three to four years. Products of the group are marketed and traded through a single dealership. The group has around 150 dealers across the country. 

 

CSR Activities 

The Panchakanya Group says it has always believed in giving back to the society. So, as a part of its Corporate Social Responsibility (CSR) activities, the group has been contributing to various social causes. Recently, to mark its 40th anniversary, the group’s 40th Anniversary Banner was hoisted atop Mount Kilimanjaro, highest peak of Africa, by 7 Summits Women Team, the team of seven women ascendants. Similarly, on the occasion of International Women’s Day, the group also promised a continuous support to empower and encourage Nepali women. Likewise the group has carried out cleanliness and sanitation programmes, ‘Paint a School’ campaign, construction of schools, hospital floors, ‘Sattals’, temples, tree plantations along with providing support for numerous programmes for social causes.