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A BILLIONAIRE IN THE MOUNTAINS

BY R JACOB

This is the extraordinary tale of Binod Chaudhary, a Nepalese billionaire who built a global empire by selling instant noodles.

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A BILLIONAIRE IN THE MOUNTAINS

BY R JACOB

This is the extraordinary tale of Binod Chaudhary, a Nepalese billionaire who built a global empire by selling instant noodles.

Nestled between the mountainous borders of India and China, Nepal is a country that is easily overlooked at first glance. Best known as the home of Mt Everest, the world’s tallest mountain, closer inspection reveals

a remarkable tale of a land shaped by the grit, determination and hardiness of its inhabitants. It is no surprise then, that the country is also known for being home to the tenacious Sherpa mountain guides and the fearless Gurkha warriors.

However, much of the country’s economy depends on tourism and agriculture since the latter half of the 20th century. At the time, Nepal’s fledgling tourist industry saw a sudden surge in interest from the Western world due to the popularity of Mt Everest and Hinduism which was precipitated by the hippie counterculture.

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A young Binod in Japan, the country he credits as his unofficial ‘business school’.

A young Binod Chaudhary capitalised on this influx

by opening Kathmandu’s first-ever nightclub. Named Copper Floor, the stylish discotheque received regular patronage from Nepal’s elite and influential personalities from around the world. While Copper Floor was Binod’s first venture out of the family business, the entrepreneur is best known for shepherding the nascent Chaudhary Group into Nepal’s largest multinational company, a testament to his entrepreneurial vision. Today, Binod is recognised as the country’s first and only billionaire – with a towering empire built on instant noodles.

From Marwari To NepaliBinod’s story began four generations ago in India, when his Marwari ancestors migrated to Nepal at the behest of the Ranas, the ruling Nepalese family at the time. The Marwaris are a prominent trading community from the Indian state of Rajasthan that have a strong presence in commercial and industrial sectors around the world. Born in 1870, Binod’s grandfather accepted the trade invitation of the Ranas and moved to the Himalayan country at a young age, laying roots for the modern-day Chaudhary Group. “We take his birth as the time of origin of the Chaudhary Group,” Binod says reverently.

A perceptive and entrepreneurial textile trader, Binod’s grandfather passed on this spirit to his son, who set about expanding the family business. Dabbling in everything from construction to fabrics, Binod’s father proved himself to be an adept businessman. He founded Arun Emporium, Nepal’s first departmental store, and was the first to visualise a manufacturing industry in Nepal. However, he was struck by an unexpected heart problem, prompting the younger Chaudhary to set aside his plans of higher education and take over the family business.

Finding himself thrusted unexpectedly into the limelight, Binod was initially not taken seriously by other businessmen and had to fend off opportunists looking to take over his business. “I had to fight back. There was no one to guide me,” he says, recounting how the experience made him tough from the very beginning. But this was not his first foray into business. At the age of 14, Binod was encouraged by his teachers to start a tuck shop in school. He would borrow money to buy a few items, and then resell them. “It really taught me the basics of buying, selling and keeping stock,” he recalls. This early experience also helped him when he set up Copper Floor with a group of friends. Coming from a conservative family and society, many people assumed they had opened the discotheque to fuel a hedonistic lifestyle. “It was purely business for us,” he explains. “I wanted to do something novel and creative.”

Learning On The JobMuch of Binod’s business acumen comes from his grandfather, who taught him the finer intricacies of building customer relationships. Quoting his grandfather, who would routinely interact with customers, Binod says, “A good businessman does not wait for people to come to him, he reaches out to them.” He would also meticulously check the numbers in the ledger, a practice carried on by Binod to this day. “A person who does not take numbers seriously will never succeed in business,” he firmly states.

Despite being unable to attend business school, Binod’s dealings with companies like Suzuki and National Panasonic led him to spend a couple of months each year in Japan, where the Japanese work ethic left a lasting impression on him. “I always call Japan my business school,” he says. His time in Japan gave him the opportunity to learn how to build an organisation and

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A trailblazing entrepreneur, Binod is known today as Nepal’s first and only billionaire.

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Chaudhary Foundation was established in 1995 and focuses on improving the lives and strengthening the communities of Nepal.

operate in a team. The punctuality and teamwork of his peers instilled in him a sense of discipline, and the ability to carry forward and implement ideas even in the face of disagreement.

Binod recounts that every generation of entrepreneurs in his family has faced their own set of unique difficulties. “None of us were content with what we have been given, even if it meant we could still live a comfortable life. But our determination presented us with challenges which we were prepared to face, thanks to our ambitious spirit. My grandfather could have chosen to be a small farmer in his tiny village in Rajasthan. Because he did something different, here I am today.”

An Instant FoundationThe tipping point for the Chaudhary Group was the introduction of Wai Wai, a popular brand of instant noodles to Nepal. In the mid 1980s, Binod was on the lookout for wheat flour-based products to sell when he noticed that Nepalese travellers would always return home with boxes of instant noodles from abroad. A number of crucial factors spurred Binod’s decision to bite the bullet and venture into the noodle market – first, importers had been aggressively marketing instant noodles in the region; second, more Nepalis were starting to travel abroad; and finally, he already had a packaging plant. “All I needed was the knowledge and the technical understanding of how to produce the noodles,” he explains.

When Binod travelled to Thailand to meet with the producers of Wai Wai, he was initially met with scepticism as the minimum production needed from him would be 30,000 packets per day – an amount that seemed far too

high for Nepal. Undeterred, an enthusiastic Binod managed to convince the owner to agree and even help to set up a production plant. Explaining further, he says, “The fact that these noodles were not yet as popular in Nepal was not a bad thing. It was completely the opposite – a golden opportunity.” Chaudhary Group officially bought over the brand and today, Wai Wai has carved out a significant market share, both locally and internationally, with a production capacity of 2,100 packets per minute.

With the success of Wai Wai, Binod started to expand his business globally. In 1990, he set up Cinnovation Group, a diversified conglomerate headquartered in Singapore. Under this aegis, Binod expanded into the hospitality business where he notably partnered with Taj Hotels to set up properties in Sri Lanka, Maldives, Thailand, Nepal, and soon, Dubai as well.

Giving Back To NepalThroughout his entrepreneurial journey, Binod never lost sight of his Nepalese roots and upbringing, and fondly remembers his childhood and the community that took the Group to where it is. “Nepal is my identity. I would be nobody if I was not Nepalese,” he says with pride. His love for his country is apparent in his description of the natural beauty of the mountains and the historic and cultural monuments scattered throughout Nepal – in fact, Nepal has the densest concentration of heritage sites in the world. “People here are honest, sincere and contented. I can go on and on about Nepal!” he exclaims.

In 1995, Binod started the Chaudhary Foundation as a way to give back to the Nepalese community. The foundation focuses on developmental sectors, with

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Binod hopes to one day pass on the reins of the family business to his sons Rahul (far left), Nirvana (second from right) and Varun (far right).

special attention to disaster reconstruction and economic improvement. The foundation is devoted to women’s empowerment, improving health and hygiene, rebuilding areas affected by natural disasters, and incubating businesses run by young local entrepreneurs. “We observed, listened and identified problems – and now we are working towards solutions,” he states proudly.

According to Binod, transforming Nepal into a prosperous country is his ultimate dream. Conceding that its resources could have been better managed, he is hopeful that this can be improved in the future. One of the major problems Nepalese face is poverty, and Binod is convinced there must be a way for locals to fulfill their aspirations just as he did. He strongly believes that easy access to information and increasingly irrelevant geographical boundaries have placed Nepal’s youth on the same level of opportunity as those in places like the US, Canada or China.

As Nepal’s only billionaire, the country’s younger generation frequently reaches out to Binod with requests to take action for the country. These requests have prompted him to effect change through politics, where he is currently a member of parliament representing the Nepali Congress. “To have the opportunity to transform my country and to change the fate of millions of people is something incomparable. I joined politics so that I can do something for my own country,” he says.

Musings On SuccessThe Chaudhary Group has been built on the hard work of four generations, and at the age of 64, Binod has been making plans to soon hand over the reins to the next generation. His two sons, Rahul and Varun, currently run the company’s international operations from Singapore, Mumbai and Dubai, while his third son Nirvana handles the operations in Nepal.

However, an individual of Binod’s capacity never really retires. When asked about his hobbies, he shares, “My work is my hobby. I enjoy every minute of the work I do.” In his opinion, the process of working exposes him to different places and people, while simultaneously keeping him abreast with newer ideas and technologies. His work ethic and discipline carry over into his personal life as well, where he manages time for his family, golf, trekking, and newfound appreciation for spirituality.

For those aspiring to be successful entrepreneurs, Binod imparts a few words of advice: “Be ambitious, persistent, patient and disciplined. Time management is essential, and each and every minute must be utilised efficiently. Failure is a natural part of life – honesty and courage are integral to keep moving forward. To me, wealth is just the fuel to achieve your dreams. But success is something that lasts, remains immortal and makes a difference in the lives of others.”

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