Manish Roongta
Chairman &Director, Asian Concreto
Top 3 challenges
Use of Low Quality Products: In Nepal, there are many small scale construction factories producing low quality products. If looking at international practices for commercial structures, M35 grade concretes should be used which consists of 1:0.5:1 ratio of cement, sand and aggregates which gives high compressive strength to the structure. But, in Nepal, concrete grade below M15 is being used which give very less compressive strength resulting in severe damage of the structures very quickly.
Weak Governance: There are no specific certifications or policies applied by the Government of Nepal in this industry due to which contractors use low grade products and the manufacturers are also diverted to manufacture low end products that high grade products.
Lack of public awareness: People aren’t aware about the type and grade of construction materials required for certain structures. Even when we try to sell the required product for particular type of construction, the contractors or general people because of having low budget go for cheap products saying that the quality doesn’t matter.
Rajkumar Gupta
General Manager, Nepal Ambuja Cement Udhyoug
Top 3 challenges
Political instability: The country has witnessed chronic political instability, including a ten year violent insurgency, which badly damaged Nepal’s development and economy. The frequent change in the government is also a huge problem. Today, high-level unemployment persists. According to government data, over two million Nepalis were working abroad in 2011 as they could not find employment at home. Young people in particular often go abroad either to study or to work, as they see no future in their country.
Slow implementation of policies: The policies made by the decision makers are implementing really slow. The Nepal government lacks speed majorly.
Unfair competition: Currently, the supply in the market is more than the demand. Also, getting license in our industry has been made quite easy. There are more players in the industry than required.
Gaurav Agrawal
Director, Shree Steels
Top 3 challenges
Policy: Unstable government policies regarding industries.
Infrastructure budget: No infrastructure spending on government development projects which indirectly hurts the overall demand for industrial goods. Every year, half of the development budget is unspent and get freezed at the end of the year
Power cut offs: Power situation is the main problem for infrastructure industries as these units need huge power for the machines which is hardly available. Moreover if the power is connected then the frequent tripping starts which hurts the manufacturing process and the entrepreneur is compelled to work with generator.
Suraj Upreti
Managing Director, SR Group / SR Steels
Top 3 challenges
Excess Supply: There is excess supply in regard to demand for steel in Nepal. Approximately, supply to demand is three times.
Unhealthy Competition: There is unhealthy competition in market within this industry. Companies are selling their products at lower prices than the cost of production which has really disrupted the market and many other genuine companies are suffering due to this reason.
Weak Budget Expenditure: Budget expenditure is weak in infrastructure development from the government. Moreover, discouraging home loans has had a negative effect on consumption of not only steel but every household material.
Rajesh Agarwal
Managing Director, Argakhanchi Cement
Top 3 challenges
Development Pace: Development as promised by the government to the construction and infrastructure industry is not happening due to which we are facing challenges of selling our products.
Production exceeding demand: As per the government’s promise regarding the pace of the development, the construction industries had started manufacturing. But, since the development pace is not equivalent to the production of construction products, there is excess products in the market than the demand. Also because of false promises, there is excessive competition in the market right now.
Lack of demand creation: The government hasn’t been able to create demand of construction products which is another challenge that we are facing. Also, since home loans has been kept in unproductive sector by the government, the demand for products from housing and buildings have deteriorated which has resulted in another challenge faced by the construction industry.
