Kathmandu: Businessman Khuma Prasad Aryal is leading the construction of a large-scale animal feed industry in Hetauda, Makwanpur district, with an investment of nearly Rs 2 billion.
The industry is being developed under the company Om Agro Pvt. Ltd., which is investing Rs 1.71 billion in the project.
Once operational, the factory will have the capacity to produce 20 metric tons of feed per hour. The project was initially planned to be financed through 70 percent debt and 30 percent equity.
However, due to higher-than-expected construction costs and delays, only about 69 percent of the work has been completed so far.
Initially, the estimated cost of the project was Rs 1.22 billion, but with rising expenses, the revised projected cost has reached Rs 1.71 billion.
The company plans to secure Rs 1.20 billion in loans from banks, while the remaining amount will be covered by investors. A loan rating of Rs 1.55 billion has already been carried out for both long-term and short-term financing needs.
By June 2025, the industry had reached 69 percent completion in terms of financial progress. The company has already started commercial operations as of May 2025, although full construction is expected to be completed only by 2026. As a result, it will take more time before the plant can operate at full capacity.
So far, Rs 1.22 billion has been mobilized, including Rs 854 million in bank loans and Rs 366 million from investors. The company has signed a loan agreement with Global IME Bank to facilitate the financing.
Nepal’s animal feed industry is highly competitive, with growing interest from foreign investors, particularly from India and China. Indian investors have made significant investments in Nepal through companies such as Skylark Agro and Nimbus International Pvt. Ltd., while Chinese investors are involved in companies like Nepal Wellhope Agri Tech Pvt. Ltd. and New Hope Agro Business Pvt. Ltd. Competing with these foreign-backed firms presents a major challenge for domestic industries, the company has stated.
Khuma Prasad Aryal, the chairman of the company, is a businessman closely affiliated with the Nepali Congress party. He also serves as the chairman of Gandaki Medical College and Teaching Hospital, and is the managing director of Universal College of Medical Sciences and Nepalgunj Medical College. In addition, he is a director at Khilung Kalika Agro Farm.
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