Nepal Dairy Pvt Ltd (ND), one of Nepal’s largest private dairy processors, is a pioneer company in the private dairy sector businesses of Nepal. The company and its dairy products are widely popular all over Nepal. Established in 1980 by a group of entrepreneurs, it started as a cottage dairy with an investment of £500 (NRs 70,000) with only 14 litres of milk in the busy Mahaboudha Street of Kathmandu. The organisation is led by Dr Heramba B Rajbhandary, the Executive Chairman and founder, along with six other board members with extensive experience in the dairy sector. Out of the seven Board of Directors in the company, two are women and about 38% of the company employees are women. ND is also a member of the Dairy Industries Association (DIA) of Nepal, an association comprising 35 larger dairy processors with a combined capacity to process approximately 400,000 litres of milk/day collected from various areas of Nepal.

Incubate and Pilot Decentralised Dairy Processing to Attract Investors

CASA partnered with ND from October 2020 to December 2022 on a budget of £244,318 (£59,951 from CASA) to incubate and accelerate a decentralised dairy processing model aimed at strengthening rural dairy enterprises and expanding farmer linkages. Under this partnership, ND collaborated with two local micro-processors, providing co-investment, technical assistance, and a buy-back guarantee for processed dairy products, which would be sold under the Nepal Dairy brand. The intervention supported the establishment of a cheese processing centre (Adhunik Nepal Dairy) in Terathum, which increased its processing capacity by over 25% and began sourcing additional milk from local farmers. A second micro-processor, a Khoa processing centre in Bara, was under construction and expected to be operational soon.

CASA’s technical assistance initially enabled ND to secure £42,611 in investment for micro-processor establishment, while also supporting machinery set-up, staff training, product development, and standard operational improvements. Additionally, the project strengthened Nepal Dairy’s supply chain by facilitating milk procurement agreements with seven new Milk Collection Centres (MCCs) across Provinces 2 and 3, integrating 2,508 farmers from previously underserved areas. CASA also supported ND in delivering Good Manufacturing Practices (GMP) and cattle management training to 1,711 farmers across Provinces 1, 2, and 3. Through this model, Nepal Dairy and CASA demonstrated how decentralised processing and strategic private sector partnerships can drive inclusive growth in Nepal’s dairy sector.

Shortly before closure ND secured a £933,928 loan from Stanchart Bank. ND later benefitted from support through CASA’s partnership with True North Associates, being taken on the pathway to going public. It raised £451,613 equity investment through a right share issue.

Updated: August 2025