Forty employees of the Pasakha-based Bhutan Carbide and Chemicals Ltd. (BCCL), started by the Tashi group of companies, are home on what should be a normal workday.
BCCL laid off these 40 employees recently, because the company is not doing well for the first time in almost two decades of its operation, according to BCCL chairperson, Tobgyal Dorji. “We had to downsize because the market situation after the global recession hasn’t improved.”
The company produces calcium carbide, which is used to manufacture acetylene gas for welding purposes, and silico manganese, an essential raw material for steel. Most of BCCL products go to steel industries in India, which have been severely hit by recession, with declining consumption and rising stocks at warehouses.
“Many Indian manufacturing companies that use our products aren’t producing at an optimum level,” said the chairperson. “No matter how efficiently we produce, the market prices aren’t moving up and our cost of production is shooting.”
He said downsizing was not the only issue that the company was dealing with. “At present, we’re looking very deeply into cutting costs in other areas, such as consumption, production and procurement, until the situation improves,” he said. “We’re selling the material at a loss.”
BCCL has 440 employees and is considered one of the most profitable companies in the country today. Tashi group holds 52 percent equity in BCCL, the rest is held by financial institutions and the public. In 2004, BCCL was said to have invested Nu 1,000m to produce new products such as low carbon silico manganese. BCCL started commercial production in mid-1988.
“The company was doing exceptionally well for the past many years but, after the recession, our performance hasn’t been good. We’re taking these actions to make the company more efficient and productive,” said Tobgyal Dorji.
BCCL contributed Nu 13.703m as corporate income tax for the 2008 income year. Which means that the company had made a profit of about Nu 45.677m that year.
In 2007, the company had made a profit of about Nu 21.3m. The company is among the top five taxpayers in Phuentsholing, said a revenue and customs official.
“This year the company is looking at a loss. But the exact figure and situation would be known during a board meeting this month,” said chairperson Tobgyal Dorji. “The Indian manufacturers have reduced their tonnage and we’re unable to sell our products. It’s difficult to operate until the market turns around.”
Source: Kuensel
No comments:
Post a Comment