The Condom House - a store dealing with contraceptives -- at Sundhara has seen impressive growth in business in the very first year of its establishment.[break]
“There has been a rapid rise in the number of people using condoms in the last few years. This has helped the business grow at a phenomenal rate,” Yubaraj Neupane, proprietor of the store, told Republica.
Manish Poudel, CEO of Praxis Trade Link - the first registered company involved in import, marketing and distribution of condoms, said his company recorded a turnover of Rs 150 million in 2009. “We expect the turnover to reach Rs 200 million this year,” Poudel said.
Praxis and Kamastura are the only registered condom brands in Nepal.
Pradeep and Pradeep Company imports Kamastura brand of condoms from India and distribute them in domestic market. The company has been importing 15 varieites of condoms.
“The price of Kamastura condoms is round Rs 30 per packet,” SK Singh of the company told Republica. He further informed that the company´s annual turnover is around Rs 100 million.
“There is immense scope for increasing our business. But as retailers get low margin for selling our products, they encourage customers to prefer other brands where they enjoy big margin,” Singh added. “Other brands have been offering 30 to 50 percent profit margin for retailers.”
People in the business informed Republica that Trishna and Black Cobras brands of condoms are also enjoying good business. Their annual turnover hovers around Rs 8 million each.
Poudel estimates the domestic condom market to be worth around Rs 1 billion.
“Good brands are getting a large number of customers. But lesser known cheaper products have even big market,” Poudel said, adding, “Their business is even bigger than ours.”
Neupane said people these days have become selective when it comes to buying condoms. “They go for quality, not the price. This is one of the reasons why the condom business in growing,” he added.
Traders import condoms mostly from Malaysia, India, London, Singapore, US and Japan.
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