Business»
Learning from an old hand
NOV 20 - At a time when DDC (Dairy Development Corporation) was the only company that sold dairy products in the country, Dr. Heramba Rajbhandari decided to open his own small shop where he would sell curd. The humble beginnings of Nepal Dairy contrast sharply with the household name it is today.
Dr. Rajbhandari was then working as the General Manager of DDC, which gave him an unparalleled knowledge in the field. He travelled across the country, working with farmers, and sharing his knowledge of what he had learned as a Ph.D. student of Dairy Sciences in the Philippines. Before venturing to establish his own shop, he recalls how he used to stand in a corner of Mahaboudha, an orchard then, where he opened his shop, and count the number of people that walked the lanes past him. “I found out that 30 to 35 people would walk that lane in the morning every day,” he says.
When he did start his shop, his family members helped with the preparation of all the products. People said he was wasting his time, and the then-Prime Minister called him up to berate him—“How can you afford to wear two hats in one head?” referring to his government post that was an obvious conflict of interest. Yet, Dr. Rajbhandari knew that these were obstacles he would have to face, and he persevered. “I didn’t give up as I knew what I wanted and what I was doing.”
He had trouble finding investors, as very few people, including himself, had the capital to invest. Yet, when they saw the diary’s profit escalate, others eagerly invested and bought shares, going as far as to “sell their wives’ jewellery”.
Nepal Dairy gained momentum due to its ability to cater to client’s demands. The burgeoning demand for ghee, butter, cheese, and curd led to a number of necessary expansions. And that was still not enough. “People wanted more products—like ice cream. So, we gave our clients what they wanted.”
Dr. Rajbhandari invited professionals from abroad to train his staff in introducing new dairy products that had not been seen in Nepal. Soon there was a wide range of ice-creams in different flavours. When Nepal Dairy’s ice-creams hit the market it was an instant hit, and seeing its success, Nepal Dairy soon introduced their pizzas, sandwiches and burgers. “People wanted something with their ice cream, and, unwittingly, the trend of fast food developed.”
Today, Nepal Dairy has transformed from a dairy shop into a hangout for teenagers and older people alike. It has an untarnished reputation as a perfect eating-out destination for couples and families, and a suitable place to buy any dairy product. This is probably due to Dr. Rajbhandari’s own perfectionist attitude. His desire to serve only the best is evident from Nepal Dairy’s success.
This does not mean his dairy has lost its adaptability to changes in consumer taste. When a regular costumer of his asked him to introduce Nepali snacks, like momos and noodles, he was more than happy to agree. Nepal Dairy, since then, has taken a different shape, and is now regarded as one of Nepal’s premier fast food junctions. In doing so, Nepal Dairy has not just earned itself a name and a place in Nepali stomachs, but also helped and supported farmers by buying their milk. “I’ve always worked with farmers and I would still want to work with them.”
Establishing Nepal Dairy is one thing but there has been a lot of competition, from national as well as international companies. Survival in the fast-food industry, however, is dependent on change. New technologies must be implemented, and new products must be developed. Nepal Dairy and its factories in Khumaltar and Balkumari are continuously engaged in researching better techniques for production. It brings in foreign professionals, and also engages students from Kathmandu University to conduct research in developing different dairy products, like, for example, the cream cheese that recently hit the markets. “For a fast-food company to develop, adequate research, updating your products, and hygienic food are all important. Technology and science are also important aspects,” says Dr. Rajbhandari.
With the utilisation of the latest technologies, and regular research, Rajbhandari is still seeking to change Nepal Dairy for the better. There is reason to be optimistic that Nepal Dairy will continue to appetise— even with the imminent entry of international competitors.
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