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Dungsam Polymers, emerging from the red

June 28, 2016
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Dungsam Polymers, emerging from the red (1)The Dungsam Polymers Ltd, which manufactures polythene bags as packaging materials, was able to narrow the amount of losses it suffered in 2015. The company’s losses came down from Nu 28 Million in 2014 to just about Nu 5 million last year.

The company which started its commercial operation in 2012 was listed in the stock exchange a year later. Its shares were sold at an additional premium costing Nu 165 a share. However, the company is yet to declare any dividends to its shareholders so far.

Company Secretary Sherab Chophel said Dungsam Polymers was able to narrow down its losses due to internal cost cutting measures, doing away with board sitting fees and staff allowances.

It was also accompanied by gradual improvements in the market and being able to supply its products to other mineral based companies in the country.

Besides cement bags, Dungsam Polymers also manufactures other packaging materials for animal feeds, minerals and vegetables.

Initially, the company was expected to sell most of its products to the Dungsam Cement Corporation. The cement manufacturing factory was considered its major market.

However, since the Dungsam Cement is also yet to fully enter the market, the Dungsam Polymers was not able to fulfill its objective of manufacturing and supplying cement bags.

The Dungsam Polymers Limited is expecting to earn profit by the end of this year.

Over the medium term, both Dungsam Cement and Dungsam Polymers is expected to perform relatively better. Markets in India is likely to pick up with huge amounts of money being allocated for the construction sector that will boost demand for cement and other construction materials in the region.

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