From the Desk of Managing Director Sherab Namgay
I am pleased to report that despite the challenges faced by Bhutan Board, the company has achieved a significant feat this year. It’s worth noting that just a few years ago, the company was almost written off. The credit for our success goes to our employees who have gone above and beyond to achieve the desired outcome with the guidance of our competent board of directors.
As a company, we have faced various challenges, such as the breakdown of old machinery at the board factory, which has been in operation for 35 years without an upgrade. This issue has hindered production, but our core business of particle board requires us to keep the machines healthy to capitalize on market opportunities. The management is devoting significant time in ensuring proper upkeep of the machines through sourcing of right spares. This year, we revamped our Ready-to- Assemble (RTA) Furniture Factory in Pasakha with the latest BIESSE Technology from Italy. This upgrade has resulted in improved furniture quality and reduced wastages.Additionally, we started an organic manure business using wood mulch stored for over three decades, with positive early market feedback indicating good prospects for domestic and export markets.
Our plantation on government leased land has helped us cushion the erratic supplies from private sources, and we conduct an afforestation program to sustainably use resources. However, we still face challenges with the cost and availability of some key chemicals required for particle board production. To tackle this challenge, we use intelligence and foresight to procure and maintain inventory for uninterrupted production.
As part of our transformation program and performance turnaround strategy, we have migrated our system from Tally to a modern ERPNext that operates live round the clock. This migration has brought efficiency across locations through data-based decision-making and real-time information sharing on various operational matters.We intend to leverage technology in managing our operations and continue fine-tuning our systems to make Bhutan Board a system-driven company. This system upgrade has enabled us to satisfy all statutory and regulatory requirements, resulting in zero audit observations during the statutory audit of our books of accounts for the year 2022.
Looking forward, considering the demand from both domestic and export markets, the future of our company is very bright. We will stay nimble in aligning our strategy with market requirements to ensure appropriate shareholders’ return in the immediate future.
We appreciate your continued support in furthering our progress
2022 Annual Report: A Year of Strategic Growth and Challenges
Background :
The company was incorporated under the Companies Act in 1983 as one of the largest manufacturing units in Bhutan. The Tala factory was operationalized in 1988 and the Pasakha Furniture Factory was operationalized in 1991.
Bhutan Board Products Limited (BBPL) is a DHI linked Company. It was established with primary mandate of value addition to scarce forest resources, as a Joint Venture Undertaking between Royal Government of Bhutan and private promoter Company, M/s H& K Co., on the basis of 80:20 ownership.
2022 Highlights
Operational Efficiency
%
Market Expansion
%
Share Capital :
| Sl.no. | Particulars | No. of shares | Value (in Nu.) | % |
| 1 | Authorized Capital | – | 150,000,000 | – |
| 2 | Face Value of each share | – | 10 | – |
| 3 | Total No. of Shares issued | 1,400,0140 | 140,001,400 | – |
| 4 | Shares of Druk Holding and Investments (DHI) | 668,3340 | 66,833,400 | 47.74 |
| 5 | Shares of Financial Institutions: | |||
| (a) | Bank of Bhutan (BOB) | 1,724,000 | 17,240,000 | 12.31 |
| (b) | Royal Insurance Corporation of Bhutan (RICB) | 118,300 | 1,183,000 | 0.84 |
| (c) | Bhutan National Bank (BNB) | 14,000 | 140,000 | 0.10 |
| 6 | Shares of Zhung Dratshang | 829,500 | 8,295,000 | 5.92 |
| 7 | Shares owned by Hing & Kong Company (H&K Co) | 480,000 | 4,800,000 | 3.43 |
| 8 | Shares owned by others | |||
| (a) | Royal Bhutan Army | 294,000 | 2,940,000 | 2.10 |
| (b) | Shares owned by the BBPL Employees. | 11,500 | 115,000 | 0.08 |
| (c) | Shares owned by the private individuals. | 3,845,500 | 38,455,000 | 27.47 |
Our Production Facilities
Darla Particle Board Factory
The Particle Board Factory is equipped with sophisticated machineries imported from SIEMPELKAMP, Germany. The Plant consumes raw wood extracted from forest land leased to the Company as the primary raw material to produce medium density (graded) plain particleboards and pre-laminated particleboards conforming to German DIN and Indian BIS standards. The products are also certified by Bhutan Standards Bureau.
Located in Darla, Bhutan
Pasakha Furniture Factory
The Unit produces two ranges of furniture prefabricated from particleboards – Home and Office range with knockdown features and hardware imported from Malaysia and Singapore. The furniture is designed on machinery and equipment from BIESSE, Italy.
Balujhora, Pasakha, 15 Kms from Phuentsholing
Products designed for both domestic and export markets
Human Resources
The company currently employs 260 people with bulk of the employees being skilled but primary and secondary education. Except for two employees in the export market, rest of the employees are Bhutanese.
The company currently engages about 33 logging contractors to extract firewood from the plantation areas managed by the company.
Key Markets
Particle Boards & Furniture marketed in India
Particle Boards & Furniture marketed in local market, Bhutan
%
%
New Projects
Organic Fertilizer Plant
Focuses on producing organic fertilizer from wood mulch. Aids local organic farming and floriculture.
Adjacent to the main factory area, Bhutan
Supports sustainable agriculture practices
Plant Nursery and Afforestation Program
Large-scale nursery for commercial tree saplings. Integral to our afforestation and sustainability efforts.
Government leased land, Bhutan
Caters to both domestic and commercial needs
Our Commitment to Core Values
The Foundation of Our Success
At Bhutan Board Products Limited, we uphold the highest standards of safety, ensuring zero accidents through proactive measures. We foster meritocracy, rewarding excellence and teamwork, while maintaining integrity in every action, ensuring fairness and transparency. Our leadership is visionary, constantly innovating for tomorrow’s needs. We believe in equality, treating all stakeholders with fairness and respect, which is crucial for our long-term success.