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Dungsam Polymers Limited, sales drop 20 per cent in 2020

January 21, 2021
in Uncategorized
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Like many industries in the country, 2020 was not a successful year for Dungsam Polymers Limited in Nganglam, Pema Gatshel. The company’s overall sales dropped by 20 per cent due to the COVID-19 pandemic. Dungsam Polymers is a manufacturing company of poly or plastic woven bags commonly used for packing cement and rice among other goods.

The fall in sales is directly linked to the reduced import of raw materials from India and other neighbouring countries. It was due to the pandemic. Consequently, Dungsam Polymers could not run at its full capacity.

“As compared to 2019, the sales of 2020 are gone down about 20 per cent. This is mainly because of lockdown in India, as well as lockdown in Bhutan. Initially, we had some problem of sourcing the raw materials, and spare parts,” said Tshering Tenzin, Chief Executive Officer (CEO) of Dungsam Polymers Ltd.

However, the CEO says the production picked up gradually. With support from the government, the company developed a Standard Operating Procedure for critical situations. And in the second lockdown, Dungsam Polymers operated as usual.

The company is optimistic about bouncing back since its markets remain unaffected.

The CEO added that “we have started selling fabric because selling bags in India is a little difficult. Because of pricing and payment mode. So, we already have some companies, who demand fabric. Compared to 2019, in 2020 we have sold lots of fabrics and bags as well. Now our cost of production comes down, so we are somewhat able to compete for the prices in India as well.”

Besides, the company plans to produce mesh or net bags used widely for packing vegetables.

Last year, Dungsam Polymers generated revenue of Nu 177 M, Nu 23 M less than what it made in 2019.

Thinley Dorji, Pema Gatshel

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