Kathmandu. Samrat Cement Industry, a cement manufacturing company based in Satbaria of Dang, has lost its turnover by half. In the last fiscal year, it sold cement and clinker worth Rs 1.77 billion.
Previous fiscal year 2079. Its turnover has decreased sharply in the last fiscal year from Rs 3.37 billion in 80. Fiscal year 2078 in terms of turnover figures. 79 was the best. It earned a total income of Rs 4.87 billion.
According to rating agency Care Ratings Nepal, its sales declined in the last financial year due to limited market demand and a sharp decline in the selling price. A total of 342,022 metric tons of clinker was sold in the previous fiscal year, which was limited to 71,568 metric tons in the last fiscal year.
The industry had suffered a loss of Rs 433 million in the last fiscal year due to non-reduction in operating expenses and interest expenses. According to the rating agency, financial pressure will persist for some time if the company’s turnover and profit margin growth is not ensured.
Although the Chaudhary Group, headed by Binod Chaudhary, bought a majority share and took control of the ownership of the industry, the company could not do well in the cement business. Soon after the entry of The Chaudhary Group, the demand for construction materials such as cement, poles, etc. contracted due to the slowdown in the construction sector. In this situation, there are signs of some improvement only since last Chaitra month.
CG Cement Industry, which has a mine in Palpa and a grinding unit in Dumkibas, which is funded by Chaudhary Group (CG Corp Global), has not been able to do well in the domestic market since the beginning.
The Chaudhary Group, which has a good hold in the Indian market through the noodle and tourism business, has not achieved significant success in exporting cement to the Indian market. In the last fiscal year 2080/81, Nepal exported cement and clinker worth Rs 3.85 billion.
In 2078 BS, The Chaudhary Group acquired 30 per cent shares in the initial phase and later acquired 74.81 per cent of the shares of Samrat Cement. Anil Rungta, a businessman from Birgunj, and Chaudhary’s two sons, Nirvana Chaudhary and Varun Chaudhary, are members of the three-member board of directors. Registered at the Office of the Registrar of Companies. Chaudhary Group owns 74.81 per cent, Rungta 12.25 per cent, Camper Finance and Security Limited (India) 11 per cent and Topendra Kumar Sharma 1.94 per cent.
