Colgate Palmolive India exits Nepal; invites workers' wrath

Oral care giant Colgate Palmolive India has announced the sale of its fully owned unit in Nepalt, which it had been operating for twenty years, by transferring its shares to a local company, Everest Hygiene Products, thereby incurring the wrath of the employees and the ruling political party who turned violent after learning of the sale.

Before exiting, the company signed a contract manufacturing agreement with Everest Hygiene Products for sourcing and supplying toothpowder from its Hetauda factory in Nepal in order to maintain operations and exports from the plant.

The company said "All employees of Colgate-Palmolive (Nepal) would continue their employment on the existing terms and conditions under the new ownership."

Colgate Palmolive had already decided in 2005 to exit Nepal when it discontinued  production of tooth paste at its Hetauda factory.

Employees of the factory turned violent on hearing about the news of the sale and the newly founded strong arm of the Communist Party of Nepal-Unified Marxist Leninist (UML), Youth Force, captured and detained two senior officials of the company as they were on their way to Simra airport to take a flight to Kathmandu.

They later on handed them over to the local police who then escorted the two Indian officials to the Indo-Nepal border.