Political turmoil in Nepal may take a toll on the operations of Indian fast-moving consumer goods (FMCG) companies with a strong footprint in the Himalayan nation.

Major players, including Dabur, Britannia, Marico, Patanjali, ITC, and Reliance Consumer, rely heavily on local distributors and partnerships for their Nepal business.

Executives say they are monitoring the situation closely, wary of supply chain and sales disruptions if law and order doesn’t stabilise soon.

The unease echoes the uncertainty these companies faced barely a year ago in Bangladesh, when political upheaval following the ouster of the Sheikh Hasina government forced a scramble to secure operations.

Some of the FMCG companies such as Dabur, ITC (through Surya Nepal) and Britannia have their manufacturing operations in Nepal. Companies like Reliance Consumer have a partnership with the Chaudhary group for local manufacturing and distribution.

The Chaudhary group (CG), Nepal’s largest multinational conglomerate, has recently also entered into a formal joint venture agreement with the Indian food company Bikaji Foods.

An industry executive stated that Indian FMCG companies are closely monitoring the developments in Nepal. They have advised their employees to remain cautious amid the ongoing political turmoil.

Earlier on Tuesday, Nepal Prime Minister K.P. Sharma Oli stepped down, capping days of agitation which led to the death of at least 19 people in police action on Monday, officials said. The protesters set fire to Parliament, Singhdurbar premises, Supreme Court, political party offices and homes of senior leaders.

Nuvama Institutional Equities executive director (research) Abneesh Roy said it’s “slightly similar to the situation that had happened in Bangladesh, but we did not see any major long-term impact on Marico but Emami, etc, did see an impact,” he said.

Varun Beverages’ (PepsiCo’s bottler) Nepal business is 3 per cent of its consolidated revenue. Campa has also entered the Nepal market, he added.

“Most of the listed Indian consumer staples companies operate in Nepal via Indian listed entities, so there can be a slight overhang for most names. Almost all FMCG names like Dabur, ITC, Marico, HUL and others have presence in Nepal,” said Roy.