DHI di­ver­si­fies its rev­enue base

Business Bhutan - - Front Page - Pema Sel­don

Druk Hold­ing and In­vest­ments (DHI) di­ver­si­fied its rev­enue base in the past year through eight new in­vest­ment ven­tures.

DHI mo­bi­lized in­vest­ments funds for its com­pa­nies with a share cap­i­tal of Nu 374.05mn of which Nu 204.26mn was in­jected in the Con­struc­tion De­vel­op­ment Cor­po­ra­tion Ltd in 2016. The re­main­ing Nu 169.79mn will be added this year. DHI also in­vested Nu 94.41mn in State Min­ing Cor­po­ra­tion Ltd in 2016.

To ex­plore new in­vest­ments, DHI car­ried prefea­si­bil­ity stud­ies (PFS) on phar­ma­ceu­ti­cal for­mu­la­tion unit and

in­te­grated agri­cul­ture fa­cil­ity. Ad­di­tion­ally, PFS were also car­ried out on Agar­wood in­oc­u­la­tion this year in col­lab­o­ra­tion with De­part­ment and Park Ser­vices.

‘The fi­nanc­ing plan for Amochhu land de­vel­op­ment and town­ship project was fi­nal­ized and fund re­quire­ment as­sess­ment was com­pleted. A to­tal area of 65 acres of land was also iden­ti­fied for in­dus­trial es­tate in Taal, Cheng­mari Samtse,” said DHI CEO, Dasho Karma Yezer Raydi, at the an­nual DHI press con­fer­ence held yes­ter­day.

At the com­pany level, SMCL com­menced op­er­a­tion of Habrang Coalmine and supplied coal to Dungsam Ce­ment Cor­po­ra­tion Ltd in Fis­cal Year (FY) 2016. It gen­er­ated an in­come of more than Nu 67mn from coal sup­ply. It also car­ried out stud­ies re­lated to Dzongth­ung stone quarry, Dum­si­dara Dolomite mine, Urul­lu­dara quartzite mine and stone quarry for Chamkarchu hy­dro-elec­tric project.

In hy­dropower project area, Druk Green Power Cor­po­ra­tion com­pleted De­tailed Project Re­ports of Druk Bindu and Kuri I hy­dropower projects.

“The re­ports were sub­mit­ted to the min­istry of eco­nomic af­fairs for re­view and ap­proval. It also com­pleted the phase I drilling works for Ny­era Amari I and II projects,” said Dasho Karma Yezer Raydi.

Con­sid­er­ing high de­mand for herbal prod­ucts and the gap be­tween de­mand and sup­ply of Bhutanese herbal prod­ucts, DHI as­sisted Men­jong Sorig Phar­ma­ceu­ti­cal (MSP) in carrying out re­search and de­vel­op­ment ac­tiv­ity on a herbal prod­uct.

Ac­cord­ing to the CEO, DHI and MSP iden­ti­fied herbal tea as a po­ten­tial project and fol­low­ing that, pi­lot man­u­fac­turer of cin­na­mon tea was car­ried out. The pi­lot was suc­cess­ful and the prod­uct has now been trans­ferred to MSP.

To help ad­dress is­sues per­tain­ing to ac­cess to fi­nance, DHI con­tin­ued with the Lo­den-DHI funds. It’s a spe­cial fund­ing win­dow launched with the Lo­den foun­da­tion in FY2015. DHI pro­vided a to­tal fund of Nu 20mn to be man­aged by the Lo­den foun­da­tion.

As of FY2016, Lo­den had spent Nu 1.4mn pro­vided by DHI to sup­port 18 new en­tre­pre­neur­ial ven­tures.

In terms of fi­nan­cial per­for­mance, the con­sol­i­dated to­tal as­sets and net worth rose by 4.82% and 3.59% re­spec­tively in 2016 com­pared to the pre­vi­ous year and this was mainly be­cause of the in­crease in the group re­serves by 8.66% from Nu 31567.43mn in 2015 to Nu 34,301.6mn in 2016.

The rise in to­tal as­sets was mainly at­trib­uted to the sub­stan­tial in­crease in the bank­ing loans and ad­vances by 38.35% or Nu 1641.51mn and the cash and bank bal­ances by 4.80% or Nu 945.61mn.

Un­der the other non­cur­rent as­set, the ad­vance pay­ment to sup­plier con­sti­tuted the ma­jor share of the in­crease, which was mainly for the Tangsi­bji hy­dro-en­ergy Ltd. amount­ing to Nu 1095.51mn.

The in­crease in cash and bank bal­ances were mainly on ac­count of in­crease in short term de­posits and in­crease in cash re­serve and bank bal­ances with RMA.

DHI to­tal as­sets grew by 0.70% from 2015, an in­crease of about Nu 366.62 mn.

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