Dabur Nepal, a unit of Dabur India Ltd, has stopped its production for indefinite period from Friday after the Maoist affiliated trade union issued threat asking for money from the company's office in Bara district in southern Nepal.
The Maoist affiliated trade union has demanded Rs 100 million (Nepalese rupees) from the management of the company, according to private Kantipur TV channel.
The Maoist trade union leaders also organized public meeting at the premises of the factory for four hours on Friday and warned the management staff of physical action if their demands were not met, it said.
Dabur Nepal Pvt Ltd is the manufacturer of herbal products.
Meanwhile, the Federation of Nepalese Chamber of Commerce and Industries has warned that if the government failed to resolve the issue of Maoist extortion on the industries within two days, it would close all industries in the Bara district.