Kathmandu: In a major boost to Nepal’s growing cosmetics industry, popular South Korean beauty brand Kmax will soon be produced locally through a new joint venture.
Kmax Himalaya Pvt. Ltd., a Nepali company, has signed a technical and brand collaboration agreement with Korea K-Max Cosmetics Co. Ltd. to establish a full-scale manufacturing plant in Nepal.
The project, located in the Simara Special Economic Zone (SEZ) in Bara district, involves a total investment of approximately Rs 1.5 billion (around US$ 11 million). Of this, Rs 1.378 billion will be directly invested in plant, machinery, and production facilities.
The venture follows a 75:25 debt-to-equity ratio, with the promoters – Vishwakaran Jain and Ishankaran Jain – holding 33 percent equity.
The factory will produce a wide range of Kmax branded products including skin care creams and body lotions, hair care oils and shampoos, essential oils, cosmetic powders, nail polish, and bath soaps.
Kmax Himalaya has been active in Nepal for the past two decades under its own “Newlook” cosmetics brand. The new Korean partnership is expected to significantly enhance product quality, branding, packaging, and distribution capabilities.
To finance the project, the company has obtained credit ratings for Rs 1 billion in long-term loans and Rs 500 million in short-term/working capital facilities. As of now, around 20 percent of the physical and financial progress has already been achieved.
Being established inside the Special Economic Zone, the project enjoys attractive fiscal benefits including 100 percent income tax exemption for the first four years, 50 percent income tax exemption for the following years, and up to 20 percent tariff protection on competing imported shampoos and 15 percent on other cosmetics.
Nepal’s cosmetics market has been expanding rapidly. According to industry data, cosmetic imports have grown by an average of 7.8 percent annually over the past five years. Imports from South Korea alone rose by 3.3 percent in the first eight months of the current fiscal year.
The plant is scheduled to go into commercial production by 2027, marking one of the largest Korean investments in Nepal’s fast-moving consumer goods (FMCG) and beauty sector to date.
This collaboration not only brings a globally recognized K-beauty brand to Nepali shelves at more competitive prices but is also expected to create hundreds of direct and indirect jobs while reducing the country’s dependence on imported cosmetics.
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