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Success Stories in Nepal
A man of many abilities

Dr Heramba B. Rajbandari the man we are looking for was born in 1933 in a family where the father was a small government official with little education and the mother was a dedicated Hindu, not much more educated but strongly believing in the virtues of education. While he liked his parents he loved his younger brother and both are near still today.

He was lucky, as in his time government schools were good and free. In 1951 he made his S.L.C. Must have been a shaking event as this was also the year of the first revolution in Nepal in this century.

While the private sector in that period was weak he made his natural choice by working in the government. After two years he left the service and went to Poona where he passed his B.Sc. in 1958. Again he came back to Nepal and applied for a government job being lucky enough to belong to a small group selected from 100s of applicants.
But there was something in him, which didn't allow him to rest. So shortly thereafter he went to the Philippines to study with the help of a scholarship M.Sc which he passed in 1963. Again he went back to government.

Between his government activities and his studies he continued to try private activities as he was always attracted to business without government interference. But it took time to become successful.

Due to his M.Sc Thesis on Dairy Science he got a second scholarship for his Ph.D. So three years after his return to Nepal he left again, this time to make his PHD in the Philippines in 1970 again on the same topic..
After 1970 he started to work in Dairy Development Corporation where he became general manager in 1972 and stayed the course for 7 years. From 1979 onwards he turned to the inside track and became in the end secretary in 1990, immediately after the second revolution in Nepal in this century. Looks he was a revolutionary man who was always unable to sit still and always ambitious. But the secretary position was the last station in government.

In the mean time he was too much fond of the private sector and in 1980 he created together with friends Nepal Dairy in Mahaboudha with a total investment of NRs 60000 (comparable to now NRs 4mio)
Following the creation of a private company his bosses in government weren't too happy with him as they believed that government and private were unsuitable shoes. But somehow he managed to convince them that private sector activities could supplement government activities and were not creating conflicts of interest. The only obligation left for him was that he had to do his job outside office hours. Interestingly a lot of people seemed to have watched the scene as immediately after the creation of Nepal Dairy other private dairies like Bhaktapur Dairy, Himal Dairy and many others started in a short period.

While until leaving the government position he was only consulting the management of Nepal Dairy he became executive chairman after his retirement in 1990 and from then on the company started to shoot up.
Nepal Dairy's impressive growth was possible as farmers got the clear feeling, that milk was an easy income, making it possible for Nepal Dairy nowadays to produce not only drinking milk but cheese, ice cream, yogurt, cream, milk based bakery products and other related items at cost effective prices.
The capacity of the dairy which started with 100 ltr/day increased to 8000 ltr/day nowadays and ND which was created 1996 to add other food items became a booming business, as new food products and activities were introduced based on results of its own Research and Development center.

Following the expansion and diversification of Nepal Dairy and ND the group started to expand in Franchise business as well. These activities actually cover Kathmandu valley, Pokhara, Biratnagar and Hetauda. New towns to go are in the planning Even though up to now the group had to learn first how to handle Franchise systems it proved to be an enormous marketing instrument, increasing the turnover in the last fiscal year to NRs100mio. Sure international not yet much but in the Nepali context impressive especially if one looks at the growth rates. After having analyzed the problems of franchise he now insists in Franchise not only on management contracts but on majorities as well.
The original investment has grown over the last 25 years around 833 times. Not too bad.

Our friend is still very active and despite his age of now 72 doesn't think on retirement. According to him the group will go on growing with the speed as it did in the last 15 years. In addition he right now thinks in the direction of establishing a food factory, focused on frozen food.
Helping are friends who joined him earlier and his children, which are taking over more and more responsibilities and help to expand the business with new ideas and momentum..
As far as his staff is concerned he is focused on the motto "You give me I give you!" If his staff delivers good results they are getting immediately bonus and incentives. He is not waiting a year, but that is on daily basis. Thus the staff is encouraged to try continuously to be better.

If the staff including highly experienced one wants to leave he lets them easily go. For him there is no interest to hold who wants to go, but if they want to come back they are welcome. And astonishingly enough that helps the efficiency.
His business ethics have been in the past to help farmers to earn. Main teaching point for him is "learn to earn".
He is not only a man of government (secretary) or industry (chief executive) he is also a man of publishing and research. No wonder that his activities have brought him quite a few awards not only from government but also from private organizations and universities. As mentioned above. He is a man of many abilities.

What to learn out of it?

Poverty in childhood is not a hindrance to become successful

Education is an important tool if you stay an independent thinker.

If you study try to concentrate on something you can use later on
Don't be discouraged by failures they happen to everyone.
Use the chance to experience as much as possible
While partnerships in this country are often vulnerable, with a strong leadership they can succeed.
Whatever you do, somebody will be against it. Have the courage to stand for your ideas.
Luck is always part of your success. Be grateful not proud if you succeed.
The natural expansion of business is both horizontal and vertical. But it might be better normally not to touch things, which are not related with each other.
You need always help. Your family and friends are a valuable source, don't loose them.
The advantage for your suppliers may be your own advantage.
Try to stay multi optional. Open your eyes to developments in other sectors and continue to research and develop if you want to stay successful.


 
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