Urmila Shrestha is the Chief Executive Officer of Salt Trading Corporation Ltd. (STC). With over 37 years of experience at STC, she has served in various capacities and has been CEO since 2007. She has led STC’s expansion beyond its initial salt distribution mandate to include essential commodities like sugar, rice, flour, LPG gas and chemical fertilisers, broadening STC’s presence across diverse sectors to ensure the effective supply of daily necessities. Furthermore, she played a crucial role in implementing government relief programmes during crises such as the COVID-19 pandemic and the 2015 earthquake. STC is highly recognised for its unwavering commitment to maintaining a smooth supply chain during the 2015-16 economic blockade.
STC has played a key role in stabilising commodity prices, preventing black marketing, and ensuring an uninterrupted supply of iodised salt, achieving 94.9% household coverage. Under Shrestha’s leadership, STC has significantly increased annual turnover and profits. She is credited with developing and implementing STC’s first Strategic Plan & Business Model to align business growth with national economic priorities. Shrestha is also actively involved in corporate social responsibility, supporting community development, education, disaster relief, and employment for over 300 women. The National Women Commission recognised her efforts in female employment, as women comprise 95% of STC’s packaging industry workforce. She was recently awarded the Manager of the Year award by the Management Association of Nepal. The HRM Nepal spoke with Shrestha about various issues concerning STC and her leadership. Excerpts:
Q. Having served at Salt Trading Corporation Ltd. for the past three decades, progressing from assistant to Chief Executive Officer, how would you reflect on your journey with the organisation?
A. I initially joined Salt Trading Corporation Ltd. as an intern, but my career path took root there. I consider it my destiny. Although I was also selected for a banking position – a highly lucrative career at the time, given the arrival of foreign joint venture banks in Nepal – I ultimately chose STC. I had been determined to start my career in banking and had even participated in the Standard Chartered Bank (formerly Nepal Grindlays Bank) job vacancy. Despite receiving an offer letter, I changed my mind and selected Salt Trading Corporation Ltd., where I saw greater opportunities for growth. At that time, a misconception existed in workplaces that women were less productive. Furthermore, as a Kathmandu Valley native from a well-off family, I was perceived as someone who joined STC merely for engagement or to pass time. I embraced these circumstances as a challenge and continued to work at Salt Trading, proving myself a competent and high-performing staff member. I was transferred to various departments, including accounts, internal audit and Deputy General Manager of Industries – Nepal Vegetable Ghee Industry Ltd. and Khadhya Udhyog Ltd. While working in internal audit, I travelled extensively nationwide. During the insurgency, when people were afraid to travel outside the Kathmandu Valley, I performed my duties fearlessly.
Q. Salt Trading has diversified its business and significantly increased the turnover under your leadership, which has proven your passion, dedication and hard work as a leader. How did you succeed to achieve these goals?
A. I have held a leadership role since mid-2007, serving as Acting CEO for the first three months and subsequently as CEO. At that time, Salt Trading focused on trading salt, sugar, and rice, with an annual turnover of Rs. 1.75 billion. In my first year as CEO, annual turnover increased to Rs. 2.25 billion. We increased the sugar supply. Our Hetauda factory, Khadhya Udhyog, where I worked as DGM for two years during the insurgency, had ceased operations. After assuming leadership, we decided to resume operations. We expanded our trade to include chemical fertilisers and LPG (liquefied petroleum gas). We also began trading seeds and newsprint, increasing the volume of the latter. Over the past two years, we have provided newsprint to ensure the timely printing and distribution of school books.
Q. You have mentioned that women often feel the need to prove their competence and justify their positions. Even in modern society, this perception persists. As a woman in a leadership role, do you still encounter this challenge?
A. During the insurgency, I was transferred to Khadhya Udhyog in Hetauda as Deputy General Manager. I accepted the challenge presented by senior management, who perhaps anticipated my resignation due to the unfavourable conditions. Despite having a young child to care for, I chose to accept the transfer.
Q. Had you not consulted your family?
A. At that time, my father had completed his term as president of the Nepal Chamber of Commerce, and my elder sister was living with him. My husband worked as a freelancer. I asked my father to care for my child, and I went to Hetauda. My family did not object to my decision.
Q. What other challenges did you have to face to be a leader in the organisation?
A. I believe most women experience gender bias in organisations. Even within my own organisation, I have repeatedly demonstrated my capabilities despite facing challenges. Initially, the Board appointed me as Acting CEO rather than a full CEO. I have not experienced discrimination at the government level. However, people often express surprise when they see a female CEO in my office. A patriarchal mindset continues to create barriers for women in various situations, forcing us to overcome challenges at every turn.
Q. How has the economic downturn affected the business of Salt Trading Corporation in recent years?
A. We anticipate a slight decrease in annual turnover this fiscal year compared to the previous fiscal year, which was approximately Rs. 13 billion. Consumption has declined significantly this year. While the government initially tasked us with salt distribution and later added fertiliser distribution, they cover the transport logistics for a specific quota in 17 districts under their priority one (P1) programme. Although road connectivity exists to district headquarters, remote locations remain a 1-2, or even 3-day walk away. Therefore, the government should maintain this programme until reliable, all-weather road access is established nationwide.
Q. Have you faced any undue government intervention at Salt Trading as the government also holds share in the STC?
A. I have not faced any obstacle from the government. We implement the government policies of salt and chemical fertiliser distribution. The government is very cooperative to us. As the government holds 21% stake (including the stake of Nepal Food Management and Trading Ltd.) in Salt Trading, there is representation of the government in the Board.
Q. Salt Trading operates across several verticals. Could you please provide a brief overview of each?
A. We operate based on demand. Our infrastructure includes over 63 sales counters, 32 depots nationwide, 10 branches, and 7 provincial offices, along with three industries: Khadya Udhyog, a ghee industry, and a Liquefied Petroleum Gas plant. While the Morang Sugar Mill is currently non-operational, we continue sugarcane cultivation and supply 120,000 quintals of sugarcane to Eastern Sugar Mills. We also manage a seed company. We ventured into pre-engineered building construction but were unsuccessful. We completed 7-8 model housing projects in Dahachok and other locations. We were also unable to successfully operate Subarna Pharmaceuticals in Itahari, a venture we initiated nearly two decades ago in partnership with B.P. Koirala Institute of Health Sciences, Dharan, and other partners. More recently, we established STC Reinsurance Broker and SCT Holdings Pvt. Ltd. Our policy is to avoid involvement in the liquor and cigarette industries.
Q. What has been the most striking moment for you, confirming that your work at Salt Trading Corporation is a valuable contribution to the nation?
A. I have experienced several moments that affirmed we are working for the nation. In recent history, the 2015 earthquake and subsequent economic blockade stand out, during which we made tireless efforts to serve the people. Throughout the COVID-19 pandemic, I did not take a single day of leave, even during lockdowns. We granted leave to staff as needed, given their circumstances, but kept the office operational. Despite my allergies, I did not even catch a common cold during the pandemic. We implemented government relief programmes and distributed relief materials in collaboration with municipalities and the Nepal Army. Most importantly, we are deeply honoured to have served the public during the COVID-19 pandemic by managing the supply of essential goods. While many agencies were involved in relief distribution after the earthquake, we were a constant presence during the pandemic, ensuring the stability of the supply system.
Q. How is Salt Trading making an intervention in the market and safeguarding consumers?
A. Our strong market presence has prevented artificial shortages and price increases. Last year, sugar prices rose sharply when our stocks ran low. This year, however, we have maintained adequate sugar supplies and continuously provided it to the market, even at a loss. We are proud of our market intervention through the effective supply of daily essentials, which safeguards consumers.
Q. What are the major threats to Salt Trading Corporation?
A. I am concerned about unhealthy competition in the market. We are strong advocates for ethical business practices and adhere to them to serve consumers. However, the market is rife with inferior quality goods and deceptive practices regarding quantity. Market players sometimes attempt to disrupt Salt Trading’s operations with unnecessary complaints and lawsuits, diverting our focus from our business objectives. We face numerous threats. Despite these challenges, we remain committed and steadfast in our mission to serve the people and the nation.
Q. As a management leader what are your plans to drive Salt Trading Corporation forward?
A. We are diversifying our investments. Given the current market conditions, we are pursuing a strategy of acquiring shares in existing companies. The objective of STC Holding Company is to invest in promising companies facing financial constraints. We are a promoter of National Finance, which has undergone a merger, and we are now a promoter of Laxmi Sunrise Bank and Sagarmatha Lumbini Insurance.
Q. You were recently awarded the Manager of the Year Award by the Management Association of Nepal. Based on your experience, how can we promote women managers to leadership roles?
A. Women face numerous barriers, including family and childcare responsibilities that can make it difficult to fully focus on their careers and education. They may also lack the flexibility to work and travel freely, and some are deprived of quality education. To overcome these challenges, women must develop courage and confidence, maintain a “can-do” attitude, and avoid hesitation. Patience and self-belief are essential to conquering fear and doubt. I have never been afraid of challenges; I embrace them. I have observed that entrepreneurs often lose hope when faced with obstacles. I am a second-generation female professional and entrepreneur in my family. My mother supported my father in his business, my younger aunt, Sushila Singh, is the first female lawyer and first female justice of the Supreme Court, and another younger aunt taught at the university. This has instilled in me a strong focus on my career. A lack of hope, confidence, and patience can hinder growth.
Q. What kind of management culture do you promote at Salt Trading Corporation?
A. We believe in team management, fostering both vertical and horizontal communication. We maintain a friendly and cooperative work environment, and our staff are dedicated to the company’s growth. We have a disciplined work culture. I have encouraged STC staff to purchase shares in STC Reinsurance Broker and STC Holdings for their family members, fostering a stronger sense of ownership in Salt Trading Ltd. We have approximately one thousand employees across Salt Trading Ltd.’s various verticals. I received an award from the National Women Commission for employing a 95% female workforce in packaging. After becoming CEO, I extended five-year contracts to female daily wage staff. Overall, women comprise approximately 40% of our staff.
Q. Finally, could you share some of Salt Trading Corporation’s major CSR initiatives?
A. We sponsor the Hem Bahadur Malla prize, which is awarded by the Public Administration Association Nepal. We also offer several scholarships. Our Khadhya Udhyog provides a scholarship to the top Food Technology student, and STC grants a scholarship to the top student at Tribhuvan University Teaching Hospital each semester. Additionally, we award the Anangman Serchan and Loknath Joshi scholarships annually to two children of our staff (one boy and one girl) who achieve excellent results in the SEE examination.
