Economy

Business diversification: Schools & Health

Published by Octron on July 27, 2009

Biratnagar’s businessmen have started investing in education and health due to continuing insecurity in the industrial sector and failing competitiveness with India and China. In the last two years, they have pumped around Rs. 1 billion into the two sectors in Biratnagar.

Leading business houses like the Golchha Organisation, Bishal Group, Devanara Group, Rathi Group and MC Group have all put money in health and education. The Golchha Organisation and the MC Group were the first to invest in the education sector. Others soon followed.

Golchha operates Eurokids while MC has invested in DAV School. Bishal, Devanara and Rathi have jointly invested around Rs. 170 million in Delhi Public School. They are also planning to start Ashirwad Nursing Home with an investment of Rs. 320 million. They have also invested Rs. 30 million in the Eastern Engineering College. Arun Rathi, one of the investors, said that they were planning to invest an additional Rs. 50 million.

Growing insecurity and an unfavourable industrial environment have forced businessmen to diversify. In the last five years, not a single factory has been established in Biratnagar.

Arun Rathi said that many businessmen had opted for these new sectors as industry was risky.

Source: Nepal

Readers Rating: