Operations halted, work from home orders…How Nepal’s Gen Z-led protests have hit Indian companies

Nepal’s Gen Z-led protests appear to be cooling down. Reports indicate that shops are reopening in Kathmandu, and vehicles have returned to the streets. Although soldiers still patrol the capital, their numbers have noticeably dwindled.

However, signs of disquiet remain. A bus carrying Indian pilgrims was attacked in the capital. Though the Nepal Army intervened to rescue the passengers, several were injured. The overall toll from the protests has reached at least 34 deaths, with around 1,300 injured.

Beyond the humanitarian cost, the protests are also disrupting Indian trade . Several major Fast-Moving Consumer Goods (FMCG) firms have confirmed that the unrest has affected their operations in Nepal.

What happened?

Indian companies such as Hindustan Unilever, Britannia, Dabur, Marico, and Bikaji have all reported varying levels of disruption due to the Gen Z-led protests.

Some firms have suspended their activities, while others have asked employees to work from home due to curfews and the lack of public transport.

Britannia, which owns brands such as Good Day, Marie Gold, and Tiger, has paused operations at its Simara plant in Bara district. The plant, which manufactures around 14,000 tonnes of goods and employs approximately 350 workers, produces around 80 per cent of the company’s products sold in Nepal.

“Safety of our people is of utmost importance, and we have temporarily halted all our operations to ensure the same,” a company spokesperson said. They added that the army had stepped in to ensure the safety of employees.

Meanwhile, Dabur stated that its operations in Nepal have been partially affected. Many employees have been unable to reach its plant in Birgunj.

Dabur, one of the oldest Indian firms operating in Nepal , set up a state-of-the-art manufacturing facility in 1989. It has now asked employees in Kathmandu to work from home and has directed its sales teams to adhere strictly to curfew guidelines.

“We are closely monitoring the evolving situation in Nepal. The safety and well-being of our employees, partners, and communities remain our highest priority,” a Dabur spokesperson said.

“We are actively coordinating with local authorities and internal teams to ensure business continuity.”

Bikaji, which is planning a joint-venture project with Nepal’s Chaudhary Group (CG), has said the factory project has been delayed because of the protests.

“The CG–JV agreement was signed a few months ago, and zero investments have been made thus far. The project was expected to take 10–12 months to complete. Given the current unrest and disturbances, the project will be delayed by that much, with no other impact on our operations.

Given the current unrest and truck movement closures, the supplies are on hold,” said Manoj Verma, Chief Operating Officer at Bikaji Foods.

Reliance Consumer also has ties with the Chaudhary Group, while ITC has a local presence through Surya Nepal.

Hindustan Unilever, operating in Nepal via its subsidiary Unilever Nepal (UNL), said, “We are closely monitoring the situation and have temporarily paused operations in Nepal. Our employees have been asked to work from home. The safety and well-being of our teams remain our top priority, and we are taking all the necessary precautions.”

Unilever Nepal, established in 1992, manufactures a wide range of FMCG products.

Marico, which has a smaller footprint in Nepal, functions through local partners and distributors.

“Our foremost priority is the safety and well-being of our local partners, distributors, and extended sales teams. We have advised them to stay safe until the situation improves,” a Marico spokesperson said.

What could be the potential impact?

Fortunately, Nepal does not constitute a major portion of these companies’ revenue streams.

Dabur says Nepal contributes less than three per cent of its consolidated sales. Dabur Nepal reported revenue of Rs 810 crore, compared to Dabur India’s overall revenue of Rs 12,400 crore, which works out to around 6.5 per cent.

Britannia reports yearly revenue in Nepal of between Rs 170 crore and Rs 180 crore, whereas its consolidated revenue in FY25 was Rs 17,942.67 crore, meaning only around 1 per cent of its revenue is potentially affected.

Marico states that its business in Nepal is “relatively small.”

Thus, companies maintain that this will not be a revenue shock, as their financial exposure is limited.

“We are confident that sooner or later, the situation will normalise and demand–supply will stabilise,” said Verma of Bikaji.
However, experts warn that the two countries share key trade points at the border – such as Raxaul–Birgunj and Sunauli–Bhairahawa. Protests, curfews, and instability could delay the movement of goods.

India has also been planning cross-border energy and hydropower projects in Nepal. These investments may now be postponed or scrapped. The political instability may also allow China to expand its influence in Nepal.

Additional risks include a potential rise in smuggling and cross-border crime. Tourism and remittances – two vital components of Nepal’s economy – may also suffer.

Consumers in Nepal are likely to bear the brunt of the fallout. Shortages of biscuits and bakery goods may emerge, while supply chain issues could affect the availability of raw materials, packaging, inputs, and transport. This could increase prices and cause further delays.

Karki to be appointed interim PM today?

Meanwhile, sources indicate that Nepal’s former Chief Justice, Sushila Karki, is likely to be appointed interim Prime Minister today.
“Sushila Karki will be appointed interim prime minister,” a constitutional expert consulted by President Ramchandra Paudel and Army Chief Ashok Raj Sigdel said.

“They (Gen Z) want her. This will happen today.”

Karki, 73, Nepal’s first and only female Chief Justice, is known for her honesty, integrity, and strong stance against corruption.
Her appointment is expected to be formalised after a meeting at President Paudel’s residence, rescheduled to Friday afternoon.

On Thursday, hundreds crowded Nepal’s main airport in Kathmandu, seeking to leave the country amid confusion over who governs following the violent overthrow of the government.

“We need to fight for justice for our family who were killed, and we cannot stay silent any longer,” said Kamal Subedi, who attended a candlelight vigil. He said his nephew was killed in the violence.

“We have lost our loved ones, but politics seem to take priority. No one has even approached us, so now we are going to fight for justice for the honour they deserve.”

With inputs from agencies