Economy

Jagdamba Group: The emerging leader

Published by Octron on August 12, 2009

Golcha, Chaudary, Jyoti and now Jagdamba (Shankar) Group is set to become leader in Construction Material business, not just in Nepal but to be one of the largest group in South Aisa. Shankar Group, an old trading group based in Biratnagar, has turned into one of the biggest construction materials manufacturing company in the country. Now known as Jagdamba Group, it has more than half-a-dozen big companies under its roof.

This group is already one of the largest cement manufacturers in the country. The company, which entered into cement manufacturing business around eight years ago, has already built necessary infrastructure in Bhairahawa and Birgunj to produce 3 million kg of cement per day. It is also planning to set up a clinker manufacturing company to end dependence on Indian clinkers — one of the key raw materials required in cement production. This company located in western part of Nepal has set a target of manufacturing 1,000 tons of clinker per day, Sahil Agrawal, executive director of Jagdamba Group told myrepublica.com.

Jagdamba Group is also the largest steel rod manufacturer in the country. The group started manufacturing CRT steel rods 13 years ago. At that time the company´s production capacity was 50 tons per day. This was increased to 100 tons per day in 2003. Today, this capacity has been further enhanced to around 1,370 tons per day. Now, the company is planning to produce 1,000 tons more rods per day. Enhancement in production capacity will also increase the group´s stake in the local steel rods market which currently stands at 32 percent.

As a measure to diversify its product range, the group has also been manufacturing GY and barb wires for the last few years. It is currently producing 300 tons of these wires per day. It has also set up a factory to produce 160,000 tons of billet per year, a key raw material required for production of steel rods. And it also manufactures steel pipes and sheets.

“Combining the production of steels rods, wires and steel pipes and sheets, it is certain we will be known as one of largest steel manufacturing companies in south Asia by the end of the year,” Agarwal said, adding, the group is investing millions of rupees every year to enhance production capacity, diversify product range and upgrade technology.

The group owns Shankar Synthetic and Jagdamba Synthetic. The company manufactures packaging materials like sacks made of plastic and other synthetic materials and export 90 percent of its products. “This is the largest packaging material manufacturing company in south Asia,” claimed Agrawal.

Jagdamba Spinning Mills, another company under the umbrella of Jagdamba Group, is the largest spinning mill in the country. More than 90 percent of the threads produced by the factory are exported to India.

Jagdamba Group is also the country representative for renowned multinational companies like Reliance, Tata, Mittal and Bidla. It is the authorized distributor for products manufactured by Bombay Dyeing, Konka TV, Fords Motor, Komatsu and Nakatsu.

Jagdamba Group is also planning to invest around six billion rupees in 25-40-megawatt hydropower project and has set up two real estate companies. It is also planning to set up readymade noodle manufacturing company and has modernized its washing soap and detergent manufacturing company.

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