Red Bull Shifts Production to Nepal Amid Import Ban

KATHMANDU: Red Bull, the popular energy drink, will now be locally produced in Nepal as the government has imposed a ban on its import. The production has commenced at a factory located in Nawalparasi.

Finance Minister Dr. Prakash Sharan Mahat inaugurated the factory and highlighted that Red Bull’s production in Nepal began in response to the halt in imports of the brand, which initially started production in Thailand. The import of energy drinks, including Red Bull, was officially halted in Nepal on June 2, 2019, through a notice published in the Nepal Gazette.

Minister Mahat expressed optimism about the economic benefits of local production, stating that it would generate employment and potentially triple if the factory operates in three shifts according to demand. He emphasized that the increased income and revenue in this sector would contribute significantly to the country’s economic growth.

According to the Department of Industry, Nepal already has seven juice and energy drink industries in operation. Notable among them are Tejsu Pvt Ltd with an investment of Rs 1.5 billion, Sundar Beverages with an investment of 300 million, Crystal Beverages Pvt Ltd with an investment of Rs 270 million, CG Foods Nepal Pvt Ltd with an investment of Rs 240 crores, Surya Food and Beverages Pvt Ltd with an investment of Rs 210 million, South Asian Beverages Pvt Ltd with an investment of Rs 1 billion, and Saras Beverages Pvt Ltd with an investment of 2 billion rupees.

Saras Beverages, part of the Khatan Group, has received permission to import and manufacture Red Bull in Nepal. The company has established a factory with a capacity to produce 60 million cans of Red Bull annually, incorporating German technology.

Addressing the financial challenges in the economy, Minister Mahat reassured that the issues would be resolved soon. Despite the negative sentiments stemming from low revenue collection and a decrease in demand, he emphasized a solution-oriented approach, alleviating concerns in the economic landscape.