Kathmandu, Nov 24 (IANS) The Patanjali Group, owned by Indian yoga guru Ramdev, opened its new factory in Nepal on Thursday, aiming to produce various fast-moving consumer goods (FMCG) in a bid to expand its business across the border.

Patanjali has invested over Rs 1.6 billion in the new venture which is named Patanjali Ayurved Pvt Ltd. Nepal.

Nepal President Bidya Devi Bhandari inaugurated the factory at a function in Bara in southern Nepal.

She said: "Nepal is rich in biological diversification and it is the need of the hour to conserve herbs that are produced in the country."

The industry's establishment has helped further consolidate the Nepal-India age-old relations and create employment opportunities in the country, the President added.

She was accompanied by Ramdev and his close aide Acharaya Balkrishna, among others.

Bhandari also expressed her gratitude to Ramdev and Balkrishna for their contribution in making the people aware of the importance of yoga to live a healthy life and further promoting it.

Minister for Agriculture Gaurishankar Chaudhary said Nepal's highlands are home to a number of herbs and called for their proper utilisation.

Indian Ambassador to Nepal Ranjit Rae said Patanjali has helped further strengthen Nepal-India bilateral ties existing in different spheres.

Established with a total Rs 1.6 billion joint investment of Nepali businessman Upendra Mahato and Patanjali Yogpeeth and brought into operation eight months ago, the industry produces 55 types of essentials, including food and cosmetic items.

A total of 90 per cent of raw materials and chemicals are imported from India for the industry while Nepal makes up a meager 10 per cent.