DHI diversifies its revenue base
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.