The Bhatbhateni Group, best known for its nationwide chain of supermarkets and recent investments in the hospitality sector, is now entering the garment manufacturing industry. In partnership with the Little Angels Group and Nepali Congress leader Umesh Shrestha, the company is setting up a ready-made garment factory in the Bhairahawa-based Special Economic Zone (SEZ) in Rupandehi district.

The foundation stone for the new factory was laid during a formal ceremony held on Wednesday. Min Bahadur Gurung, the founder of Bhatbhateni Group, told New Business Age that the project involves an investment of around Rs 1.5 billion. The factory is being established with the dual objective of catering to domestic demand and exporting garments to international markets.

Gurung said the garments produced at the new facility will be sold through Bhatbhateni Superstores’ 27 outlets across Nepal’s major cities. “We already have our own retail outlets where we can distribute our products,” he said. “If there is demand from other retailers, we will supply to them as well.”

He expressed confidence in the potential for garment exports, particularly at a time when Bangladesh—one of the leading global exporters—is facing challenges in its garment trade. “This presents an opportunity for Nepal,” Gurung said.

However, Nepal's own garment exports have been on a downward trend. According to data from Nepal Rastra Bank, ready-made garment exports in the first nine months of the current fiscal year 2024/25 declined by 10.3% to Rs 4.25 billion compared to the same period last year, when Nepal exported garments worth Rs 6.29 billion. Meanwhile, imports of garments rose by 19.2% in the nine-month period of current fiscal year, exceeding Rs 30.84 billion.

Gurung said the government’s export incentives encouraged the group to invest in this sector. He added that preparations are underway to begin operations within the next 9 to 10 months, and that the factory will be equipped with modern machinery that meets international standards. The procurement process for these machines is currently ongoing.

Raw materials for the factory will be imported from countries including China, South Korea, Japan, and India. Gurung said the finished products will be exported primarily to India, China, and South Korea, where the group already has business relationships. “We believe there is market potential for Nepali-made garments in these countries,” he noted.

The factory will manufacture clothing for men, women, and children. It is expected to create employment for 1,200 to 1,400 people. “We’ve already set up a training center to recruit and upskill local workers,” Gurung said.

In addition to this venture, Bhatbhateni Group is also constructing a five-star hotel—Hotel Annapurna—at Darbarmarg in Kathmandu.