As I reflect on the journey of Bhutan Board Products Limited (BBPL) through 2024, I am both humbled and inspired by the resilience and determination that have defined our path. This year presented an array of challenges from geopolitical disruptions in India and Bangladesh to intensified market competition and internal operational hurdles. Yet, amidst these adversities, BBPL has not only endured but also laid the groundwork for a stronger, more innovative future. The volatile external environment, marked by India’s general elections and political instability in Bangladesh, significantly impacted our export-driven operations, which account for 79% of our business. Coupled with domestic challenges such as a sluggish construction sector and rising input costs, these factors tested our agility. Internally, aging infrastructure at our Darla Board Factory led to production setbacks, while competition from MDF, plywood, and particleboard manufacturers intensified. Despite these headwinds, BBPL achieved a modest net profit of Nu. 4.88 million, a testament to our strategic interventions and unwavering commitment to excellence Our financial performance, while falling short of expectations with total operational revenue of Nu. 287.98 million, showcased pockets of strength. Furniture sales exceeded projections by 110.58%, reaching Nu. 52.64 million, driven by strategic wins such as large-scale school furniture projects and wardrobe supplies to Gyalsung Academies. Particleboard sales, though impacted by export challenges, remained the backbone of our revenue at Nu. 215.86 million. These results underscore our ability to pivot and capitalize on domestic opportunities while navigating export market constraints.

Operationally, we faced a 10.49% decline in raw board production and a 7.20% drop in laminated board output due to increased downtime and raw material shortages. However, our furniture production surged, reflecting our focus on capturing the high-margin domestic market. Our forestry operations also made strides, leveraging scientific thinning to secure cost-effective raw materials and reducing reliance on private forests, aligning with our sustainability goals.

Looking ahead, we are poised to transform challenges into opportunities. Our strategic roadmap includes securing BIS certification to strengthen our position in the Indian export market, upgrading critical machinery to enhance production reliability, and expanding our furniture portfolio through bold B2B and B2C initiatives. We are also exploring diversification into shuttering ply to tap into the growing construction sector and introducing premium particleboard variants to counter competitive pressures. These efforts, coupled with prudent cost management and a focus on sustainability, will drive long-term growth and profitability.

With optimism and resolve, I look forward to a transformative 2025, as we continue to build a resilient, future-ready BBPL that delivers value to all stakeholders.

With warm regards,

Human Resources

BBPL employs 274 people, the majority being skilled workers with primary and secondary education. Except for two employees in the export market, all employees are Bhutanese.

The company engages about 19 contractors—including raw wood suppliers, firewood transporters, and 6 machine operators for plantation firewood extraction—executing works worth Nu. 32.20 million during the year.