Dungsam Cement reports impact of lockdown

Bhutan’s Dungsam Cement Corp has been adversely affected by the lockdown in India, according to Sonam Jigme, CEO.

No export volumes or revenue have been recorded from 21 March to 12 April, compared to around 75,000t sold and BTN323m (US$4.2m) of revenue last year.

Around 81,280t had been sold domestically from 1 January to 21 March, earning BTN488m. However, only 24,233t has been recorded after 21 March. Mr Jigme said that although there is domestic demand, sales have considerably fallen because product is supplied through internal routes, which has increased the transportation cost and price.

He also noted that the raw materials for PPC and PSC, fly ash and slag, are usually imported from India. "We are already out of fly ash and slag stock, as suppliers are not able to supply these critical raw materials due to lockdown in India," he said. "It is also affected because of the restriction of movement of people for loading."

To make a profit, the company would now need to sell more than 700,000t in a year. "With Mangdechhu project completed and no new hydropower coming up, it would be difficult. However, we’re hopeful of break even if the COVID-19 situation improves within June."