"We are closely monitoring the situation and will take such steps as may be necessary to protect its (the company's) interest," Colgate's Deputy Chairman, P K Ghosh, said in its annual report.
The company's directors report said that the Nepalese fiscal year 2063-64 was a difficult year for industries in Nepal.
The operating conditions continued to be challenging and the unprecedented blockades and 'bandhs' caused frequent supply-chain disruptions, with the overall environment being tense and uncertain.
Although, the company made every effort to improve its performance, the future outlook depends upon several factors including political stability, security situation and cost factors.
These factors have negatively impacted the company's operations, undermining its competitiveness, it said.
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The company continued to manufacture and export toothpowder, relying on continuity of orders from its parent company.
However, due to difficulties with transportation across the border, the company has often been unable to meet its export commitments and delivery schedules.
The company is spending substantial amounts on upgrading its security every year to maintain the highest vigilance for security of its people and property, it said.
The Nepalese subsidiary has made a total exports of Rs 45.92 crore to Colgate Palmolive (India).