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Established in 1923 in Nagold, Germany, Hafele is a leading manufacturer of furniture fittings, door hardware and electronic locking systems with a diverse range of product portfolio and has been providing services to customers in many countries of the world. The company has been expanding its footprints across the South Asia region and is also present in the Nepali market for some time now. Frank Schloeder is the Managing Director, South Asia Region of Hafele Design Studio recently visited Nepal for the opening of the Hafele outlet in Gairidhara, Kathmandu. ApEx caught up with Schloeder to talk about the objectives of opening the Hafele Design Studio, the company's expansion in Nepal and market opportunities, among other topics. Excerpts: Tell us about this exclusive Hafele Studio in Kathmandu and what can the customers find here. This concept can be found across South Asia. We have around 190 of these types of studios in the region and we have teams that are operated directly by Hafele also. Our studios will make people feel at their home. The idea is to create a 360-degree approach to interior solutions. We are a provider of interior solutions, wardrobes, or any other place in the house. We work together with architects and with developers in these kinds of designs for our customers and we then provide all the hardware required. What is the market of supplies you provide in the context of South Asia?  We started in the region 20 years ago and are now an established player. We started very small but now it’s a big organization and we are a dominant player in this market. The furniture market is not highly organized in the region. There are no big producers of modular kitchen and wardrobe systems and we want to support the professionalization of the entire business by creating really high-quality solutions that are out of the space of modular kitchen and module wardrobe systems and we provide complete solutions on that. It is estimated that the organized market is less than 20 percent of the overall market, and the rest 80 percent is unorganized. So, you can see the gross potential that we have because it’s very aspirational. Everyone wants to have a beautiful house and kitchen, and different designs have their own functionality and quality. I think this is a part of the beginning of the journey where we will see strong growth of the market in Nepal and also in South Asia as well. How do you see the prospect of Hafele in the Nepali Market?  We’ve been in Nepal already for some time providing hardware to projects and hotels. But we have not been here as an exclusive studio where customers can walk in and really discover the Hafele world. We are serious about Nepal and we want to develop this market. We found our support from the right partner i.e. UHS Holdings. It is important to find like-minded people who understand our philosophy and who have the same passion for quality, design, and customer service, and with whom we can go. We have plans to bring the brand closer across the country not only in Kathmandu, but we want to start now from here within this solid foundation and grow step by step as the market develops. How is Hafele different from other companies?  Each company has its own specifics. So far, we haven’t seen any other company that has such a broad 360-degree approach to interior solutions. We can really provide anything from door hardware to furniture fittings to appliances to complete kitchen and wardrobe solutions to lighting systems to faucets and sinks and all of that and hence this becomes a one-stop shop and this becomes easy for the customers to come and own our products. We have also been very strong with German quality products and finding the right product for the market. This is the talent that Hafele has to go and find the right product at the right price points from affordable to luxury items, so there is something for everybody. And in South Asia, if you walk into any of our studios, you feel exactly the same as they have been modules by the same team. We want to ensure that Hafele is the same wherever you go and get the same customer experience and same quality. How has the Covid-19 pandemic impacted Hafele's business?  The Covid-19 pandemic was not an easy one for all of us. Yet, it has for sure driven a trend towards people spending more time in their homes and has let them be more invested in the designs and functionality of their homes and we see a huge number of people investing in home solutions. So, in that sense, the pandemic has also helped us in a way. What are the challenges in the sector that Hafele is in?  The challenges are quite similar across the world. First of all, we need to plan what the customer needs and then we have to manage the supply chain and bring the right goods at the right time in the country because we want to have high availability of the products and make it fast for the customers to have the products. Another big challenge is to ensure consistent quality. This is why we are not just coming here to sell but we are also coming here to install the items that we sell and to service them over a lifetime. For this, we have made a huge investment in training and skills development to make sure that all our partners can deliver the same standard across the markets. Being an entrepreneur, what message would you like to give to the coming aspiring business enthusiasts?  Entrepreneurship is a good idea to develop a professional career. It is because, when you are an entrepreneur you are active. Everyone has the possibility to become an entrepreneur and also it starts in the beginning with nothing, but it gets broad if you are consistent and if your vision is broad and then you need to have the discipline to implement it. There might be ups and downs, but you have to be consistent with it by delivering your promise to the customers which are very important and only then you can have a lot of progress in your business.  

CPN-UML has pulled out of the Pushpa Kamal Dahal-led coalition government in the wake of differences over the presidential candidate, for which a vote is due on March 9. This will likely create a new political coalition, including CPN (Maoist Center), Nepali Congress, and CPN (Unified Socialist). Pratik Ghimire of ApEx talked to Raghuji Panta, parliamentarian and UML leader regarding the current political scenario.

What’s your take on the latest political developments?

Nepali political leaders never follow their ideology, values, beliefs, plans, and policies and they never work for national interest is what Prime Minister Dahal showed recently. He quit the political alliance formed barely a couple of months ago. Why did he do so? His behavior and the new coalition will only deepen political instability.

This is not a new alliance though. The Congress, Maoists, and other parties were together till the Nov 20 polls. Did they deliver quality service to the people? No. This coalition got embroiled in plenty of scams like the involvement of an unauthorized person in budget preparation. So, what should people expect from them?

Why did Dahal betray the UML?

Dahal is a shifty person. Previously also, he had betrayed almost all political parties for petty gains. This time again, this is all for his benefit. Not only will this hamper the country but also his party.

Do you see an external role in the current turmoil?

The coalition, which included the UML and other parties, had more patriotic agendas. It is now proved that international powers don't like a left-centric government and they wanted the Congress in power by any means. There certainly is an external role in this political change, but we have to keep in mind that external forces can’t act without our political leaders. The external forces have used our political actors. We must criticize external interference in domestic politics, but our politicians must also work in the interest of the nation. They should ask external forces not to interfere in internal politics and convey a message that we are capable of solving our problems on our own.

Any chance of a Congress-UML alliance?

As of now, we have no such interest. We are determined to play the role of a perfect opposition by respecting the will of the people.

What is the UML’s grassroots mission? What are its objectives?

This mission has a simple meaning. We want to involve more youths in the party as they are our future. Being one of the large political parties, it is difficult to run the party’s affairs smoothly. Missions like this one help us connect with the people at the grassroots and help solve many problems. This mission also aims to bridge the gap between youths, laymen, and the party leadership, enabling the party to work for the people more effectively.  

Nepal and the Kingdom of Bahrain have been enjoying cordial ties ever since the two countries established official diplomatic relations in 1977. Over the years, Bahrain has become an important destination for Nepali migrant workers. Pratik Ghimire of ApEx caught up with Tirtha Raj Wagle, Nepali ambassador to Bahrain in his office, to talk about the condition of Nepali workers and various aspects of Nepal-Bahrain bilateral relationship.

What is the Nepal Embassy doing for Nepalis living in Bahrain? 

Bahrain has about 21,000 Nepalis. Most of them are working low and semi-skilled jobs. For their supervision, we keep a close connection with them and discuss their issues. Whenever there are issues, such as unpaid wages or medical help or over time payment, we talk with the concerned employers. These issues are usually solved at our request.

We do follow-ups to make sure the workers’ problems are being addressed. If that doesn’t work, we take up the issue with the Labor Ministry and Labor Market Regulatory Authority. We also coordinate with manpower companies and the Nepal government if the Nepali workers are sent here without proper agreements.

What is the current condition of Nepalis working in Bahrain? 

I have found that Nepalis in Bahrain are happy with their living and working conditions here. The Bahrain government and the people also love Nepalis for their hard work, dedication and honesty. The market for jobs, yet isn’t huge in Bahrain. The population here is roughly about 1.5m, where half of them are foreigners and around 21,000 are Nepalis. The Bahrain government has a policy where skilled laborers are given priority. So, greater job opportunities are available for people with skill sets, education and language. Currently, Nepal is only supplying low skilled laborers.

For Nepalis working low-skilled jobs, how is the embassy making sure they are not deprived of their basic rights? 

The embassy contacts the respected companies and conducts inspection visits of their workplace. We also visit the living quarters of Nepali workers to make sure they are living well. If we notice any issue, we send a complaint to the authorized company and the problem will be sorted out. But we do not always get permission from companies to inspect the living quarters and workplaces, which is a problem we are trying to solve with the cooperation of the Bahrain government authorities.

For the management of the labor market, there was a labor agreement between Nepal and Bahrain. How is that helping Nepali workers?

We had a labor agreement in 2008. Nepal and Bahrain have also agreed to conduct routine technical level conferences of their labor ministries. So far, our focus has been on insurance and workers’ safety, as well as providing necessary training to the workers. The areas of priority are conducting orientation programs and training for the new workers. The two countries have not yet agreed on a minimum salary range for Nepali workers.

But we are lobbying with the Bahraini government on this. I can’t say what will be the progress as there have not been any meetings recently regarding the minimum salary range.  But from our side, we have recommended bacis salary for the workers. For instance, 100 BD for unskilled, 120 BD for semiskilled, 150 BD for skilled and 550 BD for professionals. We have also recommended certain allowances for all type of workers.

Has there been any agreement on managing the investments made by Nepalis?

Few Nepalis have been conducting small businesses in Bahrain. In order to improve their business structures, they want an exchange of business delegations or some kind of agreement. The Nepali Embassy and the government are in support of business delegation exchanges, as well as investment agreements and double taxation avoidance agreements. But as of now, Nepal and Bahrain have not reached any such agreements. But we are planning to hold a bilateral conference to discuss various areas of labor, tourism, trade, education and hospitality.

As of now, due to the lack of business agreement between both countries, any Nepali who wants to invest, has to ensure that they can only keep a financial share of 49 percent. 51 percent share should be of a local Bahraini citizen.  We are in regular communication with both governments to conduct a diplomatic consultation of foreign ministry-level meetings or at least foreign secretary-level meetings. 

There are reports about establishing ‘Bahrain Peak’ in Nepal. How is the plan coming along? 

The Royal Guard Team, which is under the Bahrain Defense Force, has successfully climbed many mountains of Nepal including the Sagarmatha, Manaslu, Lobuche and Ama Dablam. So Bahrainis have a close affinity with Nepal, particularly our mountains. This has helped in the marketing of Nepali mountains and hills in Bahrain.

A local government of Gorkha and the local people have agreed to name one of the hills in Gorkha as ‘Bahrain Peak’. I personally am unaware about the latest development on this matter, but I am sure it is being taken positively by all the concerned parties.

Dr Sanduk Ruit has just won the Isa Award for Service to Humanity. What message has it given to the Nepalis in Bahrain? 

Every Nepali in Bahrain is proud of Dr Ruit for winning the prestigious award and representing Nepal. They expect to see Dr Ruit visiting Bahrain for a health exchange program and further the ties between the two countries. This has also opened Nepal for health tourism. 

Nepal has brought different schemes for foreign investment. Which of the sectors do you think Bahrain should invest in?

Currently, the tourism sector is the focus of the Bahrain government. They are also interested in sports tourism, youth activities, ecotourism, and hydropower generation. But they need more planning and visualization. I have assured them that our service and other sectors are also good to invest in and have also asked them to visit Nepal and study more on it.  

Nepal and Bahrain lack direct flight connection. Is the Nepali Embassy doing anything about this?

The lack of direct flight has created problems. In order for Nepalis to run their business, to import local products from Nepal, direct flight would have made it so much easier. For example, during our national days, we have shown our organic products like tea, coffee and himalayan water and the Bahranis looked interested in the taste and trade. 

The same goes for tourism. Visitors still have to go through a 12-hour travel time between the two countries but it could be reduced to five to six hours in case of direct flight. The embassy has been trying to open a direct flight service, at least two flights per week, in cooperation with Nepal Airlines and Himalaya Airlines, but nothing has come of it so far. We are still trying. 

Bahrain does not have its embassy in Nepal. Its mission in Delhi handles the affairs concerning Nepal. Do you think this has affected the bilateral communication between Nepal and Bahrain?

I don’t see any problem with Bahrain not having its dedicated embassy in Nepal. Its embassy in Delhi has been supervising and overseeing the bilateral matters with Nepal quite smoothly and consistently, I must say. We communicate with them regularly. If necessary, Nepal and Bahrain can discuss and plan ways to improve bilateral relations through the Delhi mission. Until now we have not encountered any issue with this communication arrangement.

Amid talks about energy trade between Nepal, India and Bangladesh, ApEx caught up with Energy Secretary Dinesh Kumar Ghimire to discuss the prospects and challenges ahead. Excerpts from the interview:     What is the current energy scenario of Nepal? The country has been generating about 2,500 MW of energy against the daily demand of 2,500-3,000 MW. Of the total output, 2424 MW is connected to the grid. This output is a mix of hydropower, solar energy and thermal power (53 MW is generated from thermal plants). There is a growing concept about energy mix for sustainable energy transitions in the Ganges river basin. Is the government of Nepal also thinking of switching to hydro-only solutions? Does the concept of energy mix figure in meetings between Nepal, Bangladesh and India? We are committed to energy transition. We need to replace fuelwood, biogas, petrol and biomass with green energy. The need is to switch from other sources of energy to hydropower as we have a good potential in the hydropower sector. But the current situation is such that we have to depend on rainfall patterns and make plans accordingly. Having said this, we must focus on hydro-only solutions. Nepal can play a lead role in energy transition, given its water resources. The topic of energy mix features in these meetings. Different countries are generating energy using a variety of sources. For example, Bangladesh generates energy from gas. Whatever the mode of generation, energy generation cost should go down. Ganges river basin countries are increasingly vulnerable to energy supply shocks, like recent hikes in gas prices. This makes the transition to other renewable energy sources necessary. Your thoughts on this? The countries should maximize the use of available resources. Nepal, for example, can generate hydropower from its rivers. Other sources of energy will be expensive; they will not be viable for us. Instead of panicking, we should rather focus on generating hydropower. How will climate change impact hydropower generation in Nepal? Can the country benefit from India’s solar projects? Climate change will surely have an adverse impact on hydropower. In fact, this global phenomenon has already started impacting Nepal. For example, there has been no rainfall so far this winter. Less rainfall will lead to decreased farm yields. We need to make plans and designs in keeping with changing weather patterns. We need to explore alternative ways of energy generation. For example, we can increase solar power generation and explore the possibility of harnessing wind power. Nepal cannot benefit much from solar projects in India. Hydropower export to India will benefit us. Hydropower projects have impacted the livelihoods of local communities and local environment, biodiversity and river ecology. Have government plans tried to address these issues? Government plans have incorporated these issues. Cost of projects also entails fulfilling corporate social responsibility vis-a-vis local communities living in and around project sites. Projects that generate less than 100 MW have to spend 0.75 percent of total project cost on CSR. Whereas projects generating more than 100 MW must spend 0.5 percent of the total cost toward the mitigation of impact on the environment and on the livelihoods of local communities. Nepal has held talks with Bangladesh and India in recent months. What was discussed and decided? What issues did Bangladesh raise vis-a-vis energy trade with Nepal?  We have been discussing issues related to electricity trade with Bangladesh and India. Nepal and India have agreed to increase power trade. We have decided to increase the volume of power to be transmitted via the Dhalkebar-Muzaffarpur transmission line. This started with Nepal and India signing a power trade agreement in 2014, opening up new vistas of cooperation in the hydropower sector. Power trade talks are also going on with Bangladesh. Bangladesh has raised the issue of transmission lines. It is seeking India’s permission for the transmission of electricity generated in Nepal using the Indian infrastructure. It also wants dedicated transmission lines. It will be easy for Bangladesh to pay the holding charge to India for using the latter’s transmission lines to import electricity generated in Nepal. Bangladesh has expressed interest to invest in the 683-MW Sunkoshi-III semi-reservoir project on the Sunkoshi River along the border of Ramechhap and Kavre districts. Both Nepal and Bangladesh have sought permission for the use of Indian infrastructure—the transmission line—for facilitating energy trade between the two countries. Has there been any progress on this front? What do you think are the major challenges hindering energy trade between South Asian countries? How can member countries facilitate this trade? India has issued a cross-border electricity guideline 2018 to facilitate and promote cross-border power trade. Talks are on with India and Bangladesh with regard to power trade with Nepal. We are planning for a trilateral meeting between Nepal, India and Bangladesh on this issue. Lack of cross-border infrastructure is hindering energy trade between the countries in South Asia. So, the focus should be on developing regional infrastructure capable of transmitting a huge quantum of power. Each country has its own set of technical guidelines and those parameters should be met. There should be a common grid between countries, if we are to boost cross-country power trade. South Asia should have a common technical utility to address these issues. Generation of electricity from a single source is insufficient. Countries should not depend on a single source of energy. A country may have surplus energy whereas another country may be suffering from a crunch. For example, during the monsoon, Nepal has surplus energy whereas India may have a shortfall, meaning we can supply the surplus. If there are diverse sources of energy, the price goes down, the reliability of the system increases and energy consumption also goes up.