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
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.
|SL||Particulars||No. of shares||Value (in Nu.)||%|
|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|
The Particle Board Factory in Darla 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
BBPL’s Furniture Factory is located at Balujhora, Pasakha about 15 Kms away from Phuentsholing. 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.
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.
The two primary finished products - Particleboards and Furniture- are marketed mostly in India (about 85%) and the balance 15% in the local market of Bhutan.
The company has set up an organic manure plant based on wood mulch to cater to the needs of consumers engaged in organic farming and floriculture in Bhutan. In addition, the company maintains a large plant nursery to raise tree sapling for commercial sale and plantation in our leased areas. The company also ventured into production of MDF crates from the factory rejects to meet the wooden box requirement of orange exporters in the later part of current year.
We believe in zero accident at workplace and shall devote necessary resources and systems to achieve this goal.
We will promote meritocracy and teamwork with appropriate risk-reward structure. Complacency and incompetency will not find a place in the company.
Doing the right thing even when no one is watching. We will not tolerate any forms of corruption, nepotism and workplace politics in the company.
We are visionary thinkers, creating opportunities and solving problems for consumers every day by looking beyond today to envision the product of tomorrow.
We will treat employees in a reasonable, equitable and objective manner and treat each and every case on merit. The stakeholders will be treated fairly in the quest for long term sustenance.