Chapter I

Introduction
1.1 Background of Study
Himalayan Distillery Limited (HDL) stands as a pivotal figure in Nepal’s alcoholic
beverage industry. Founded in 1985 as a private company, it has sinceansformed into a
public limited company and listed on the Nepal Stock Exchange, becoming a key player
in the nation’s economy. With its expansive production facilities, diverse product
portfolio, and dedication to quality, the company has established itself as a leader in the
domestic liquor industry and continues to grow both in local and international markets.
This background information will explore the company’s history, its vision and values,
product development, market positioning, and its broader impact on the industry and
community. Himalayan Distillery Limited was established in 1985 with the aim of
producing high-quality alcoholic beverages tailored to the growing demand in Nepal. The
distillery’s origin dates back to the time when the Nepalese market was witnessing a
significant increase in the demand for locally produced liquors, alongside a growing trend
for international alcohol brands. This period marked the rise of a middle class in Nepal,
eager for diverse and sophisticated products. Recognizing this potential, Himalayan
Distillery was founded as a private limited company and began operations in a small
facility. The early years were focused on establishing a foothold in the domestic market
by offering quality spirits at affordable prices, a move that would prove crucial in setting
the company on the path to future success.

In 2000, the company made the strategic decision to transition into a public limited
company, thereby increasing its capital base and allowing it to access more resources for
expansion. The subsequent listing on the Nepal Stock Exchange in 2003 was another key
milestone, enabling the company to become more transparent and accountable to the
public and shareholders. These changes marked a period of transformation, allowing
HDL to scale up its operations significantly.

A defining characteristic of Himalayan Distillery is its commitment to product

development and innovation. Over the years, HDL has expanded its product range to

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cater to a variety of consumer preferences, offering everything from premium whisky to
locally inspired spirits. One of the company’s flagship products is Silver Oak Whisky, a
premium product that has become synonymous with the brand’s commitment to quality.
The brand has gained considerable market share not only within Nepal but also in
international markets where it is known for its distinct taste and high-quality ingredients.

In addition to Silver Oak, HDL produces other well-known brands such as Himalayan
Aaila, a traditional Nepali liquor, and Blue Oak, a whisky that reflects the company’s
dedication to blending modern techniques with traditional flavors. The company has also
developed Golden Oak and Black Oak, both of which are crafted with the same
meticulous attention to detail and are designed to appeal to different segments of the
market.

The company’s production process is carefully designed to maintain high standards of

quality. HDL operates a state-of-the-art distillery in Birgunj, located in the Parsa District
of Nepal. This facility is equipped with advanced machinery and adheres to international
standards in the production and bottling of its beverages. The distillery has an annual
production capacity of over 11.76 million liters, which allows HDL to meet both
domestic and export demand effectively.

A key aspect of the company’s product innovation is its ability to blend tradition with
modernity. For example, Himalayan Aaila is an indigenous Nepali liquor that draws
inspiration from ancient recipes while being produced using modern distillation
techniques. This balance of old and new is a cornerstone of HDL’s approach to product
development, allowing the company to cater to a diverse and growing consumer base.

Himalayan Distillery operates in a competitive market, both domestically and

internationally. The alcohol industry in Nepal is dominated by several large and small
producers, and competition is fierce. However, HDL has carved a niche for itself by
focusing on product quality, innovation, and branding. The company’s flagship brands,
such as Silver Oak, have not only garnered strong customer loyalty but have also set a
high standard for the quality of Nepali spirits.

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The company’s strategic market positioning is underscored by its commitment to brand
recognition and visibility. By sponsoring events, participating in trade shows, and
employing a robust marketing strategy, HDL has managed to build a recognizable brand
in Nepal. The introduction of Silver Oak Whisky, in particular, helped the company to
position itself as a premium brand in the market, competing with both local and
international brands.

In recent years, Himalayan Distillery has also begun to focus on expanding its presence
in international markets. Its products, particularly Silver Oak, are now available in
several countries outside Nepal, allowing the company to tap into the growing global
demand for quality spirits. This international expansion is a critical part of HDL’s long-
term growth strategy, which aims to increase the company’s revenue streams and
establish its products as a global brand.

Himalayan Distillery has always been conscious of its role in society and the
environment. Corporate Social Responsibility (CSR) is an integral part of the company’s
operations, with several initiatives aimed at improving the well-being of local
communities and promoting environmental sustainability. One of the most notable
aspects of HDL’s CSR efforts is its commitment to environmental conservation. The
company has implemented various measures to reduce its carbon footprint, including
using eco-friendly packaging and implementing energy-efficient technologies in its
production processes.

Additionally, Himalayan Distillery is actively involved in social initiatives that benefit

local communities. The company has made significant contributions to organizations
such as the Down Syndrome Society Nepal and Lifeline Health Home Care,
supporting initiatives aimed at improving the lives of marginalized and vulnerable
groups. HDL’s focus on community engagement reflects the company’s belief in the
importance of giving back to society, particularly in a country like Nepal, where social
and economic disparities are prevalent.

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Sustainability is also a key consideration for the company, especially in an era where
consumers are increasingly aware of the environmental impact of their purchasing
decisions. Himalayan Distillery has taken several steps to ensure that its production
processes are as sustainable as possible, from using locally sourced materials to
minimizing waste in the production process. The company’s efforts to create a circular
economy and promote responsible consumption are essential elements of its overall
business strategy.

Himalayan Distillery operates with a strong corporate governance framework designed to

ensure transparency, accountability, and ethical conduct in all aspects of its operations.
The company’s leadership is committed to upholding the highest standards of corporate
governance and ensuring that shareholders, employees, and customers are treated fairly
and equitably.

The company is led by a team of experienced professionals with extensive knowledge of

the liquor industry and the business environment in Nepal. This leadership team is
responsible for driving the company’s growth and implementing its strategic goals. In
recent years, the board of directors has made significant efforts to diversify the
company’s leadership team, ensuring that a broad range of perspectives and expertise are
incorporated into the decision-making process.

HDL’s commitment to strong governance practices is reflected in its transparent

reporting to shareholders and stakeholders. The company regularly publishes its annual
reports, which provide detailed information on financial performance, operational
developments, and corporate social responsibility initiatives. These reports serve as a
valuable resource for investors and other interested parties who wish to gain a deeper
understanding of the company’s activities.

Like many businesses, Himalayan Distillery faces several challenges that could impact its
future growth. The competitive nature of the alcohol industry means that HDL must
continuously innovate and adapt to changing market conditions. The rise of craft and

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artisanal spirits, for example, has led to a shift in consumer preferences, and HDL must
respond by introducing new products that appeal to evolving tastes.

In addition, the regulatory environment in Nepal, as well as in international markets,

presents challenges that require careful navigation. The government’s regulations on
alcohol production, taxation, and distribution can have a significant impact on the
company’s operations. However, HDL’s experience in the industry and its strong
relationships with government authorities place it in a strong position to navigate these
challenges effectively.

1.2. Profile of Organization

Himalayan Distillery Limited (HDL) stands as one of Nepal’s foremost producers of
alcoholic beverages, with a rich history and a forward-looking vision that has enabled the
company to grow and thrive in both the domestic and international markets. Established
in 1985, the company initially began its journey as a private limited company, making a
mark by producing quality alcoholic products for the local market. Over the years, the
company transitioned into a public limited entity in 2000, reflecting its desire for greater
expansion, and in 2003, it became publicly listed on the Nepal Stock Exchange (NEPSE).
This pivotal moment in the company’s history opened up avenues for investment and
broader visibility in the competitive alcohol industry of Nepal. With a heritage rooted in
traditional distilling methods combined with innovative practices and a focus on product
excellence, Himalayan Distillery Limited has carved out a significant place in the
marketplace.

The mission and vision of Himalayan Distillery reflect its unwavering commitment to
quality, responsibility, and stakeholder satisfaction. The company's mission is centered
on researching, developing, manufacturing, and marketing premium alcoholic beverages
in a profitable yet responsible manner. By focusing on continual improvement and
professionalism, HDL aims to maintain competitiveness while prioritizing customer
satisfaction. The company envisions becoming the most respected liquor company in
Nepal, both in terms of the quality of its products and its service, as well as in
shareholder value and profit. These core values define the operations and strategic

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direction of the company, ensuring that it not only meets the expectations of its customers
but also delivers value to its shareholders and upholds ethical standards in its business
practices.

Himalayan Distillery operates with a set of values that are deeply ingrained in its culture.
These include a focus on stringent quality control, customer satisfaction, innovation,
integrity, and teamwork. The company’s philosophy also emphasizes openness,
motivation, and mutual respect, fostering a positive work environment that enables
employees to thrive. Efficiency, compliance with laws, and transparent operations are
other cornerstones of the organization, ensuring that it adheres to best practices in
governance and business ethics. Through these values, HDL strives to create a
sustainable, profitable business model that not only generates returns but also contributes
to societal well-being.

A key feature that distinguishes Himalayan Distillery in the competitive landscape of

Nepal’s alcoholic beverage industry is its diverse product range, which caters to various
segments of the market. The company’s flagship product, Silver Oak, is a premium
whisky that has become synonymous with quality and craftsmanship. This brand has
gained widespread recognition and loyalty among consumers for its smooth taste and
refined production methods. It is a representation of the high standards that HDL adheres
to in its production processes.

Another prominent product in HDL’s portfolio is Himalayan Aaila, a traditional Nepali

liquor that showcases the rich cultural heritage of Nepal. The unique presentation and
distinctive taste of this indigenous liquor make it a favorite among local consumers.
Additionally, Blue Oak, another one of the company's premium offerings, reflects the
deep connection between Nepal’s culture and the natural elements that define the nation’s
landscape. The brand draws inspiration from the oak tree, which is a symbol of strength,
longevity, and resilience. Golden Oak and Black Oak are other products in the portfolio
that reflect the company’s innovative approach to blending traditional and modern
distillation techniques to create a unique and varied product range.

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Each of these products demonstrates HDL’s ability to cater to different consumer tastes
and preferences while maintaining the highest standards of quality. The company’s
commitment to innovation is evident in its continuous exploration of new product ideas,
packaging designs, and marketing strategies that align with evolving consumer trends. As
the market becomes increasingly competitive, with both domestic and international
players vying for attention, Himalayan Distillery’s ability to innovate has helped it retain
its position as a leading player in the industry.

The backbone of Himalayan Distillery’s success is its modern manufacturing facility

located in Birgunj, Parsa District, Nepal. The company has invested heavily in its
production infrastructure, with a distillery capable of producing 30,000 liters per day and
a portable extra neutral alcohol (ENA) capacity of six million liters. This extensive
production capacity allows HDL to meet both domestic and export demand while
maintaining strict quality control standards throughout the entire production process.

The Birgunj facility is equipped with advanced distilling technology sourced from
reputable international manufacturers such as KATZEN (USA). These state-of-the-art
machines and systems are designed to ensure consistent product quality, which is
essential for maintaining consumer trust and brand loyalty. Additionally, the distillery
features its own laboratories, which are certified by the National Accreditation Board for
Testing and Calibration Laboratories (NABL) in India, further emphasizing the
company’s commitment to quality and compliance with industry standards. The use of
modern machinery and technology helps HDL to maintain high levels of efficiency in
production while ensuring that the final products meet the stringent standards of quality
expected by consumers.

The manufacturing facility is not only a hub of production but also a key element in the
company’s strategic expansion plans. By continually upgrading and improving its
production capabilities, Himalayan Distillery is positioning itself for long-term growth.
As demand for its products increases, the company can scale up production without
compromising on quality, ensuring that it remains competitive in the market.

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Himalayan Distillery’s market operations span across Nepal, where it operates through a
well-established network of distributors and wholesalers. The company’s products are
available in both off-trade and on-trade channels, which means they are sold both in retail
outlets and at bars, restaurants, and other establishments where alcohol is served. This
diverse distribution strategy ensures that HDL’s products reach a wide range of
consumers and are accessible across different geographic regions in Nepal.

To manage its sales and marketing efforts, the company has partnered with J.G.I.
Distribution Pvt. Ltd. (JGIDPL), a third-party distributor, which helps to streamline the
distribution process. The sales and marketing team at HDL consists of around 200
individuals who are dedicated to promoting the company’s products, managing
relationships with distributors, and executing marketing campaigns. The company’s
marketing strategies focus on building brand recognition, consumer loyalty, and
expanding market share in both existing and new markets.

One of the key challenges in the competitive liquor market is differentiating the brand
and ensuring that consumers remain loyal to a particular product. Himalayan Distillery
has leveraged several techniques to differentiate itself, including advertising campaigns,
event sponsorships, and partnerships with local influencers. These efforts are designed to
enhance brand visibility and increase consumer engagement, helping HDL stay relevant
in an ever-changing marketplace.

As a responsible corporate entity, Himalayan Distillery takes its role in society seriously.
The company is committed to social and environmental responsibility, which is evident
in its ongoing efforts to contribute to the welfare of local communities and promote
sustainability. HDL advocates for a green and circular economy, with initiatives aimed at
reducing waste, conserving resources, and minimizing its environmental footprint. The
company’s production facilities incorporate energy-efficient technologies, and it
continuously explores new ways to reduce its carbon footprint, ensuring that its
operations are sustainable in the long term.

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Himalayan Distillery is also actively engaged in community welfare through donations
and partnerships with non-profit organizations. The company has made significant
contributions to organizations such as the Down Syndrome Society Nepal and Lifeline
Health Home Care, supporting initiatives aimed at improving the lives of marginalized
and vulnerable groups. By giving back to the community, HDL demonstrates its
commitment to social responsibility, not just in terms of producing quality products, but
also in making a positive impact on the lives of those in need.

Himalayan Distillery’s financial performance underscores its success in the industry. As

of April 30, 2025, the company’s stock price stands at NPR 2.75 per share, and its market
capitalization is approximately NPR 261 million. In the fiscal year 2024, HDL reported a
revenue of USD 19.5 million, which reflects the growing demand for its products and the
company’s ability to scale its operations effectively. The net income for the same year
was USD 4.4 million, demonstrating strong profitability and efficient cost management.

The company’s total assets were valued at USD 31.3 million, with relatively low levels of
debt, indicating a strong financial position. The ability to generate substantial revenue
while maintaining manageable debt levels places Himalayan Distillery in a favorable
position for future growth. With a strong presence in the domestic market and a growing
international footprint, HDL is poised to continue its expansion, both in terms of product
offerings and geographical reach.

1.3 Statement of the Problem

Experienced fluctuating performance in recent years. Despite maintaining a strong brand
presence and significant market share in the domestic alcohol industry, the company
faces several challenges that threaten its long-term sustainability and growth. Rising
competition from domestic and international brands, frequent regulatory changes
regarding alcohol production and distribution, increasing raw material costs, and
concerns over ethical marketing and public health have put pressure on its profitability
and reputation.

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Additionally, the company’s heavy reliance on a limited product range and domestic
markets exposes it to economic and policy volatility. Operational inefficiencies, changing
consumer preferences, and environmental concerns related to production processes
further complicate its ability to maintain its leadership position. Thus, it is essential to
assess the current position of Himalayan Distillery Limited to identify gaps and develop
strategies for sustainable development and competitive advantage.

1.4 Objective of Study

To analyze the financial performance of the company
This objective focuses on evaluating the company's profitability, liquidity, and solvency
using financial ratios and trends from balance sheets and income statements.

 To study the market position of the company

This involves examining how Himalayan Distillery is performing in comparison to its
competitors in the Nepali liquor industry, based on market share, sales, and brand
recognition.

 To evaluate the company’s share performance on NEPSE

This includes studying the trends in the company's share prices, dividend history, and
investor interest in the stock market.

 To understand the contribution of the company to the economy

This objective aims to assess how the company supports the national economy through
employment, taxes, exports, and production.

 To identify challenges and opportunities faced by the company

This involves identifying internal and external factors affecting the company’s growth,
such as competition, policy changes, or raw material availability.

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1.5 Rationale of Study
The current position of Himalayan studies reflects a rapidly growing and evolving
interdisciplinary field that addresses the ecological, cultural, and geopolitical
complexities of the Himalayan region. Over recent decades, there has been a significant
increase in scientific research focused on various aspects of the Himalayas, including
biodiversity, climate change, glaciology, and sustainable development. However, despite
this growth, many areas—especially in the eastern Himalayas—remain under-researched
and data-deficient, emphasizing the need for expanded, inclusive studies. Institutions
such as the National Mission on Himalayan Studies (NMHS) in India and the Centre of
Excellence for Himalayan Studies at Shiv Nadar University are playing vital roles in
advancing this research by focusing on sustainable water resources, biodiversity
conservation, and climate-resilient development. Additionally, digital platforms like
Digital Himalaya have contributed to preserving and making accessible vast amounts of
ethnographic, linguistic, and environmental data. Another critical development is the
encouragement of transnational research collaborations, which are essential for
addressing cross-border environmental issues and promoting geopolitical stability in the
region.

The rationale behind the growth of Himalayan studies lies in the region’s unparalleled
ecological, cultural, and strategic significance. Known as the "Water Tower of Asia," the
Himalayas feed major rivers that support billions of people, making their conservation
essential for water and food security across South and Southeast Asia. The region is also
highly vulnerable to climate change, with rising temperatures leading to glacial melt,
increased natural disasters, and loss of biodiversity. Studying these dynamics is crucial
for formulating effective adaptation and mitigation strategies. Moreover, the Himalayas
are home to diverse communities whose cultural practices and traditional knowledge
offer valuable insights into sustainable living. Preserving this heritage while ensuring
socio-economic development is a key objective of ongoing research. Lastly, due to their
location along international borders, the Himalayas play a central role in regional
geopolitics.

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1.6 Literature Review
The literature review explores existing research and secondary data related to the
distillation industry, corporate governance, product innovation, market strategies, and
sustainability, focusing particularly on how these aspects apply to Himalayan Distillery
Limited (HDL) within the context of Nepal’s alcoholic beverage sector. Given the global
nature of the alcohol industry and the unique position of HDL in the Nepali market, this
review consolidates various strands of relevant literature that may provide a broader
perspective on the company’s operational and strategic framework.

The alcoholic beverage market in Nepal has experienced significant growth in recent
years, driven by increased disposable incomes, changing consumer preferences, and
expanding distribution networks. Nepal’s alcohol consumption culture, which has
historically been centered around traditional beverages such as Rakshi (local liquor) and
Aaila, is undergoing a shift toward branded spirits and international product offerings.
Researchers such as Shrestha and Manandhar (2019) emphasize the growing demand for
premium alcoholic products in Nepal, which has resulted in greater competition among
domestic players like Himalayan Distillery, as well as international brands.

In their study of the alcohol industry in Nepal, Khatiwada and Gautam (2020) highlight
the role of large-scale distilleries in transforming the market landscape by introducing
internationally competitive products. The growth of premium and high-quality liquor
brands, such as Silver Oak, has contributed to this transformation, providing consumers
with a wider array of choices. HDL, being one of the significant players in this segment,
benefits from these evolving market dynamics.

Himalayan Distillery Limited was established in 1985, and its long journey from a private
limited company to a publicly listed entity on the Nepal Stock Exchange (NEPSE) in
2000 reflects its ambition to expand and solidify its position within the industry. Previous
studies on Nepali companies, such as by Poudel (2021), have discussed the advantages of
going public, noting how companies like HDL are able to access capital from the stock
market, which in turn enables them to scale operations and invest in infrastructure. This

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transition to a public company marks a significant milestone in HDL's growth, helping it
attract both local and international investors.

The company’s ability to remain competitive has also been influenced by its commitment
to high-quality production processes, as well as the effective use of innovation.
According to a report by the Federation of Nepalese Chambers of Commerce and
Industry (FNCCI, 2022), companies in the Nepali distillation sector are increasingly
focusing on innovation in both products and processes, including packaging and product
positioning. Himalayan Distillery is a prime example of a company that has embraced
innovation, offering a range of products from Silver Oak to Himalayan Aaila, to cater to
both the traditional and modern tastes of the Nepali consumer.

The distillery process is the core of any alcoholic beverage company. Research on
distillery technologies emphasizes the importance of maintaining high-quality production
standards. In particular, studies by Bhandari and Shrestha (2021) show that distilleries
employing advanced manufacturing systems and quality assurance protocols are better
equipped to deliver consistently high-quality products to their consumers. HDL’s state-
of-the-art distillery in Birgunj, which is capable of producing 30,000 liters per day,
represents a significant investment in cutting-edge technology designed to meet both
domestic and international demand.

HDL’s manufacturing facility employs technologies such as those provided by KATZEN

(USA), which are well-known for their efficiency and high standards. These technologies
help the company maintain product consistency and scale production as needed.
Furthermore, the distillery has in-house laboratories certified by the National
Accreditation Board for Testing and Calibration Laboratories (NABL) in India, ensuring
that each batch of alcohol meets the necessary quality standards. The adoption of such
technologies has helped HDL in its quest to maintain a competitive edge in the market
while also ensuring regulatory compliance.

1.7 Method of study

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The research methodology provides a systematic approach to investigating the
organizational performance, operational dynamics, and strategic practices of Himalayan
Distillery Limited (HDL). This section elaborates on the research design, population and
sample, types of data, data collection methods, and tools used in the study. As the alcohol
industry continues to grow in Nepal, the need for strategic marketing becomes crucial.
Marketing strategies in the alcoholic beverage sector are often focused on brand
differentiation, consumer loyalty, and expanding distribution networks. Research by
Manandhar et al. (2018) on marketing strategies in the alcohol industry emphasizes the
role of branding, advertising, and sponsorships in building a consumer base. Himalayan
Distillery, with its focus on premium products such as Silver Oak and Blue Oak, targets
higher-income consumers and those who value quality over price. These premium
products are often marketed through targeted advertising campaigns, sponsorships, and
partnerships with local influencers, all of which help strengthen brand loyalty and
increase market penetration.

Corporate social responsibility (CSR) is an area of growing interest in the alcohol

industry. Many companies are increasingly involved in environmental conservation,
sustainability, and social welfare, not only because it enhances their public image but also
because it creates long-term value. Research by Sahoo and Sen (2019) highlights that
consumers are becoming more conscious of the social and environmental impact of the
products they consume, including alcoholic beverages.

Himalayan Distillery’s financial performance reflects its success in the Nepali alcoholic
beverage market. The company’s ability to generate consistent revenue and maintain
profitability, despite the competition in the market, highlights its strong market position.
In their study on the financial health of Nepali companies, Poudel and Sharma (2021)
emphasize the importance of maintaining profitability while managing costs, which HDL
appears to have achieved through efficient operations and strategic investments.
According to the company’s financial reports, HDL's revenue as of 2024 reached USD
19.5 million, with strong profitability.

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The company's market capitalization and share price on the Nepal Stock Exchange
(NEPSE) also serve as indicators of its financial stability and investor confidence. As
noted by analysts such as Bista and Koirala (2021), publicly listed companies in Nepal
benefit from greater transparency, allowing them to attract more investors and expand
their reach in the marketplace. HDL's listing on NEPSE reflects its strong financial
foundation and strategic focus on growth.

1.7.1 Research Design

This study follows a descriptive and analytical research design. The descriptive
component is used to explain the existing structure, functions, and background of
Himalayan Distillery Limited, while the analytical component is used to evaluate and
interpret financial and operational performance, market strategies, and stakeholder
perspectives.

 Descriptive Design: Describes the profile of the organization, its product range,
facilities, CSR activities, and general operations.
 Analytical Design: Evaluates financial trends, market position, and internal
practices based on both primary and secondary data.

1.7.2 Population and Sample

In any research study, identifying the appropriate population and selecting a
representative sample are crucial steps in ensuring the reliability and validity of the
findings. For this study focused on the current position of Himalayan Distillery Limited,
the population encompasses all individuals and entities directly or indirectly connected to
the company's operations and performance. This includes the internal stakeholders such
as executives, management, and employees of the company, as well as external
stakeholders such as distributors, wholesalers, retailers, and consumers. Each of these
groups plays a vital role in shaping the business outcomes of the company, and their
insights are necessary for a comprehensive analysis.

The total population is significantly large and dispersed across various locations where
Himalayan Distillery’s products are manufactured, distributed, and consumed. Due to the

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impracticality of studying the entire population within the constraints of time, resources,
and accessibility, a representative sample was carefully chosen to provide reliable
insights into the company’s present standing. The sampling technique used for this study
was purposive sampling, a non-probability method where respondents are selected
based on their knowledge, experience, and relevance to the research topic. This method
ensures that only those participants who can contribute meaningful and informed
perspectives are included.

The selected sample consists of 75 respondents drawn from various stakeholder groups.
From within the organization, 10 managerial-level employees were selected, including
individuals from departments such as operations, marketing, finance, and human
resources. These participants were chosen due to their strategic roles and understanding
of the internal functioning of the company. In addition, 15 general employees from
production, quality control, logistics, and administration were interviewed to gain
operational insights and understand employee perspectives on organizational efficiency
and challenges.

To represent the external market environment, 20 retailers and wholesalers who regularly
sell Himalayan Distillery’s products were included in the sample. Their views are
instrumental in assessing product demand, consumer behavior, distribution efficiency,
and market competition. Lastly, 30 regular consumers of Himalayan Distillery’s
beverages were surveyed to understand customer satisfaction, brand perception, and
changing preferences. The consumer segment was selected from different age groups,
income levels, and regions to ensure diversity in responses.

The chosen sample strikes a balance between internal and external stakeholders, allowing
the study to capture a holistic view of the company’s current position. This combination
helps to identify not just the internal strengths and weaknesses, but also external
opportunities and threats affecting the company. The diversity of the sample ensures that
the findings are reflective of the broader situation and not limited to a specific group.

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1.7.3 Method Data Collection
To obtain accurate and relevant information regarding the current position of Himalayan
Distillery Limited, both primary and secondary data collection methods were employed.
Primary data was gathered through structured questionnaires and face-to-face interviews
conducted with selected stakeholders, including managerial staff, employees, retailers,
and consumers. The questionnaires included both open-ended and close-ended questions
to allow for both quantitative and qualitative analysis. In addition, informal discussions
were held to capture deeper insights and opinions that may not emerge through formal
questioning. Secondary data was collected from company reports, financial statements,
industry publications, government documents, and previous research studies related to the
alcoholic beverage industry in Nepal. This combination of data sources ensured a
comprehensive and well-rounded understanding of the company’s current situation.
1.7.4 Method of Data Analysis.
his study is based only on secondary data. Information was collected from the company’s
annual reports, Nepal Stock Exchange (NEPSE), Securities Board of Nepal (SEBON),
the official website of Himalayan Distillery Limited, and financial news portals like
Sharesansar and MeroLagani. These sources provided financial statements, market data,
and company updates.

1. Annual Reports of Himalayan Distillery Limited (HDL)

– These include audited financial statements, management discussion and
analysis, and key performance indicators.
2. Nepal Stock Exchange (NEPSE)
– Market data such as share prices, trading volume, and market capitalization
were obtained from the NEPSE website.
3. Official Website of HDL
– Company news, announcements, press releases, and other corporate information
were gathered from the official website of Himalayan Distillery.
4. Publications from the Securities Board of Nepal (SEBON)
– Regulatory filings, corporate governance reports, and investor information were
used.

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 5. Financial News Portals and Journals
– Business news portals like Sharesansar, MeroLagani, and economic journals
were used to get updated insights into the company’s performance and industry
trends.
6. Books and Research Papers
– Academic and professional literature related to the Nepali liquor industry and
financial performance analysis also provided contextual information.

1.7.5 Definition of Variables

In this study, both independent and dependent variables were identified to analyze the
current position of Himalayan Distillery Limited. The independent variables include
factors such as management efficiency, employee performance, marketing strategy,
distribution network, product quality, pricing strategy, and customer satisfaction. These
are the key elements that influence the overall performance of the company. The
dependent variable is the current position of Himalayan Distillery Limited, which is
measured in terms of market share, brand reputation, financial performance, and
customer perception. These variables were defined and measured through structured
questionnaires, interviews, and analysis of company data to understand how different
internal and external factors impact the company’s standing in the competitive market.
The clear identification of these variables helped in establishing logical relationships and
drawing meaningful conclusions from the research.

1.8. Limitations of the Study

While this study on Himalayan Distillery Limited (HDL) provides valuable insights into
the company’s operations, market presence, and strategic practices, it is important to
acknowledge certain limitations that may have affected the depth, scope, and accuracy of
the findings. These limitations are common in organizational and field-based research
and should be considered when interpreting the results.

One of the primary limitations was restricted access to internal or confidential

information. Although HDL is a publicly listed company and shares some financial data,

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detailed insights into pricing strategies, operational costs, proprietary manufacturing
processes, or future expansion plans were not fully accessible due to company
confidentiality policies.

The study was conducted with a relatively small sample size of 50 respondents, which
may not comprehensively represent the perspectives of all stakeholders involved with
HDL. Especially for a company with a national distribution network, a larger and more
diverse sample—both geographically and demographically—would yield more
generalizable findings.

The fieldwork and data collection were largely concentrated in Birgunj (where the factory
is located) and Kathmandu (as a central market). As a result, responses may reflect the
conditions and opinions of individuals from these specific regions, potentially excluding
valuable input from consumers, distributors, or retailers in other areas of Nepal.

Due to the limited time available for the study, in-depth interviews and longitudinal data
analysis (e.g., trends over a decade) could not be fully explored. A longer research
timeline would have allowed for follow-up interviews, cross-seasonal financial
comparisons, and a broader review of industry dynamics over time.

There is always a possibility of response bias in surveys and interviews. Respondents—

particularly employees or company-affiliated stakeholders—may have provided
favorable responses out of loyalty or fear of repercussions. Similarly, consumers might
have been influenced by brand perception, rather than providing entirely objective
feedback. There is a lack of academic and peer-reviewed literature specifically focusing
on Himalayan Distillery Limited. Most available resources are news articles, industry
reports, or company-released documents. This restricts the depth of theoretical analysis
and comparative discussion with other companies.

The alcoholic beverage industry is sensitive to frequent changes in regulations, taxation

policies, and consumer behavior. Therefore, findings and conclusions drawn from the
current market conditions may become outdated quickly, limiting the long-term
applicability of the study’s recommendations.

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