Chaudhry Group (CG)

Towards the end of the eighteenth century, Bhuramull Chaudhary, a resident of Churi-Ajitgarh village in
Shekhawati district of the Indian state of Rajasthan, was not invited to Nepal at the behest of its erstwhile
Rana rulers for business. He sold clothes to the royalty and high-end customers in Kathmandu going from
door-to-door and later started his own store in Kathmandu.

Binod's father, Lunkaran Das Chaudhary, laid the foundations of the group. He imported consumer
electronics and garments from Japan, South Korea, Europe, and India. Lunkaran started Nepal's first
department store, Arun Emporium, in 1968. He exported jute to the US and Europe in the early-1960s
when Nepal's trade with the outside world was limited to India.

Products/services: CG has increased its product portfolio to Extruded Snacks, Potato Chips, Fried Snacks,
Fruit Drinks, Chocolate Enrobed Wafer and Broken Noodles popularly known as Bhujiya. CGFN has two
manufacturing locations in Nepal, which have been named as FUDCO at Kathmandu and Chaudhary
Udhyog Gram (CUG) at Nawal parasi, 160 Kms southwest of Kathmandu. Some of them are explained
below.

Wai Wai Noodles: CG is expanding with new plants in Nepal, India, Bangladesh, Serbia, Kazakhstan and
Egypt. Along with other noodle brands of India, one segment of Xpress Noodles, a product of CG was
banned in the Tamil Nadu state of India in 2015 for a period of three months citing high levels of lead in
similar noodle brand known as Maggi.

Post-earthquake rehabilitation: The Chaudhary Foundation assisted in building 10,000 transitional

shelters for survivors of the April 2015 Nepal earthquake. It also committed to build 100 schools for those
damaged in the earthquake. The foundation has handed over 2500 shelters and 40 school buildings. Due
to government norms, the foundation is now moving away from transitional shelter to permanent housing
and working on building a "model village".

Financial services: Chaudhary Group has a controlling stake in Nabil Bank, Nepal's largest private-sector
commercial bank. The group operates CG Finco (financial company), United Remit (remittance company),
United Finance (financial company), and United Insurance Company.

CG Hotels and Resorts: The hospitality arm of Chaudhary Group, CG Hotels and Resorts, operates hotels.

CG Education: Chaudhary Group runs handbag schools, Campion schools and colleges, and Delhi Public
School in Nepal. Outside Nepal, it has stakes in AEC Education and Malvern House in UK.

CG Telecom: CG Group has signed a deal worth $1 million with China's Huawei to launch 4G services in
Nepal.

The company involved in IB activities in the following ways;

Exports to India: The Group was the first to start processed food, i.e. Biscuits in North Eastern part of India
competing against established names like Britannia and Parle.

Noodles: The Group is the first to set up a sophisticated and state of the art technology noodle plant with
the technical collaboration with a Thai company in Nepal, which is amongst the biggest in South Asia.

Assembly Plant: The first television and radio assembly plant in Nepal.

Real Estate: The first real estate company to introduce modern concept of housing in Nepal.

Snacks: The first company to manufacture snacks.

Hospitality Sector: the first Global Company in the hospitality sector.

ISO 9002: The first food production company to be awarded ISO 9002.

International Asia Award: The first company to be awarded the International Asia Award.

The Multi-Domestic Strategy of the Company in various countries

CG is committed to operate and conduct all its business activities in a socially and environmentally
responsible manner. CG understands the importance of good relationship with all its stakeholders,
employees, customers, partners and the community at large and prioritizes its initiatives towards
sustainable development focusing on areas within its local spheres of influence.

 Creating Value for the Nation: Contribute to the upliftment of the nation's economy, and bring
parity between national infrastructural and entrepreneurial capability with other developing
nations. Create employment opportunity for as many Nepali people as possible.
 Management based on Esteem for the Human/Dignity: Management based on human dignity and
a strong sense of value of human assets is what CG strives to practice. This is what we consider as
a major building block of our organization and business.

CG Company affected by following three environmental forces:

Domestic: The Group's progress over the last sixty-seven years has been a trial-blazer on the Nepalese
horizon. In a land-locked, developing third world nation, this spells nothing short of very hard-earned
success. Apart from also being a responsible citizen, Chaudhary Group forms an intrinsic part of every
realm of life from Biotech, Cement, Education, and Electronics & White goods, Energy and Infrastructure,
Financial Services, FMCG, Hotels & Resorts, Realty to Retail.

Foreign:. It represents the wise choice of many alternatives and as we entered the 21st century, the
gleaming horizon awaits our vision towards globalization. So meeting high level of quality to satisfy foreign
consumer is also challengeable.

International: Understanding the political, economic and social conditioning of the place is extremely
important. CG has been running their businesses in different countries with great success in spite of
certain difficulties. While entering into international and after it entered, it faces many opportunities as
well as challenges.