There are plenty of Indians in annual Forbes Billionaire lists, but only one Nepali made it to consecutive recent editions. Binod K. Chaudhary built an international empire, but it has not been without challenges in one of the poorest countries in the world that also suffers natural disasters.
Binod K. Chaudhary is the Chairman of CG Corp Global, a conglomerate with over 100 businesses and 10,000 staff spread over 30 countries including the US, Africa, Dubai, Maldives, Sri Lanka, Thailand, India, Nepal and China. He has controlling shares in Nepal’s largest private-sector bank Nabil, and numerous hotel investments worldwide (including Taj, Alila, Fern, Radisson and The Farm at San Benito).
The Man behind Wai Wai noodles is a global player in FMCG. His15 businesses include energy, infrastructure, realty, electronics and education.
Background
Born in 1955 in the business district of Kathmandu, Nepal, Binod’s father was his inspiration. He says,
“We were a small family from a small country. My biggest early learning was from my frequent visits to Japan. I learned about being organized and disciplined.
I come from a business family. My grandfather brought cloths from India, my father modernized by importing clothes and consumer items from Japan. My father wanted me to look after a department store he started. But I loved doing the unconventional. I started a disco. But it was still business -- others went to the disco for entertainment!”
Binod’s business aptitude showed at 10 years old. “As a school project, I ran a tuck-shop. That gave me hands-on experience,” he recalls.
Turning Point
Binod K Chaudhary’s plan to study chartered accountancy in Mumbai after coming fifth in national exams changed when his father developed a heart problem. Doctors advised him to withdraw from business, so Binod took over at 18.
“Father had been preparing to open a biscuit factory. I visited Darjeeling in my college days and somewhat knew about northeast India. I started promoting our biscuits there and they became popular,” he remembers.
Binod considered importing Suzuki cars to Nepal from Japan - before Maruti started in India. “Suzuki did not trust me as I was a young clothes trader. I convinced them. They gave me a trial dealership along with four others to sell Suzuki in Nepal. Whoever sold most cars in six months would get the dealership.
I went from door to door – neighbours, friends, and relatives – asking them to buy one car. I said I would buy that car back after six months. I sold a small car of 800cc for INR 50,000. Later I also started Panasonic in Nepal.
We opened a flour mill at Biratnagar in eastern Nepal to support our biscuit factory. But not even 10 percent of that was used for biscuits. So I looked for a product where I could use flour.”
Escalation
Thai Air had started to fly to Kathmandu. Wealthy Nepalis went to Bangkok. Binod noticed that they brought back Thai instant noodles. “I saw cartons of noodles on the airport baggage belt. I got the idea of starting Thai-style noodles in Nepal. I had plenty of flour and Thailand was not far. I got technical help from Kitty Pong Sri, a Thai noodles producer, and started Wai Wai in Kathmandu. That was 35 years ago. Now Wai Wai is produced in over a dozen plants in India and Nepal. We are opening factories in Serbia, Saudi Arabia, Kenya, and Bangladesh. Currently we have 27% share of the Indian noodle market. Wai Wai sells 2.2 billion packets worldwide, which is 2.2 % of the global noodle market,” he explains.
He tells us that CG partners with renowned companies. Time management and understanding priorities are company watchwords.
Who’s Winning in Nepal, China or India?
Binod observes that China has joined India in prominence in Nepal. He finds that China builds cheaper and more efficiently, whereas India has a huge market for almost anything.
“They do not compete as such on the business scene for Nepal. Nepal’s external business is predominantly with India due to its long cultural and social ties with India. On the other hand, though Chinese investments in Nepal have been minimal so far, but is increasing.”
Challenges
Binod says, “we always find it difficult to find the right team. Building an efficient system and having a team who can catch up to the speed at which we want to grow are bit of a challenge for us.”
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We were a small family from a small country. My biggest early learning was from my frequent visits to Japan.
