Kathmandu. Kajria Ramesh Tiles Limited, a joint venture tiles manufacturer of India, has made a turnover of Rs 479 million in six months. According to rating agency ICRA Nepal, the company has been able to do such a big business in the first half of the current financial year.
According to ICRA Nepal, during the period till March 31, 2025, i.e. till April 31, 2081, it has made a turnover of Rs 948 million through the sale of tiles in the current fiscal year.
In the first half year, its profit gap stood at 18.7 percent. According to ICRA Nepal, however, the potential to increase the profit gap by increasing sales is yet to be seen.
India’s big brands have been forced to start producing tiles in Nepal after the government increased the import and customs duty rate from 30 percent to 40 percent on the import of tiles. A total of 5 percent customs duty has been fixed on raw materials of tiles. Stating that policy protection has created a conducive business environment, ICRA Nepal has pointed out the risk of government policy changes.
Three years ago, the production of Nepovit tiles was started in Birgunj for the first time with full domestic investment. At present, more than five industries have come into operation in tiles production.
India’s world-renowned tiles brand Kajaria has set up a tiles industry in Bardaghat of Nawalparasi in a joint venture with Nepali business house Ramesh Corp. Kajria Tiles Limited is 50 percent of India’s investment in this industry while the rest is invested by Nepalis. Indian investors have entered Nepal fearing that they will not be able to compete due to high customs rates after the tiles industry started operating with domestic investment.
