UDAYAPUR: Udayapur Cement Industry has started selling its “Rhino Brand” cement after a prolonged shortage of bags left nearly Rs 600 million worth of finished cement stockpiled in its warehouse.
The government-owned factory had been unable to pack and sell cement that had already been produced because of the shortage of packaging bags. After the current management arranged supplies, the company has started selling around 500 bags a day, according to Mira Rai, head of the sales division.
The cement is being sold at Rs 725 per bag, generating around Rs 1.45 million in sales revenue as of Thursday.
Acting general manager Baidyanath Jha said the factory has imported 53,187 bags from Ashirwad Poly Packs Pvt. Ltd. in Chitwan as an immediate solution to the packaging shortage.
The factory currently has around 40,000 bags of finished cement worth approximately Rs 400 million in stock. It also holds around 20,000 bags of clinker worth about Rs 200 million, which is ready for cement production, Jha said.
However, the resumption of cement sales has not resolved the company’s broader financial crisis. Prolonged production disruptions have pushed the factory’s total liabilities above Rs 5.3 billion, according to Jha.
Production at the factory has remained completely halted since last February, leaving employees without regular salaries. The prolonged shutdown has also kept machinery and equipment idle, with some equipment reportedly beginning to rust.
Employees say the government-owned factory, which is expected to operate regularly, has remained largely inactive for an extended period, leaving many workers without regular duties.
While the sale of existing stock has provided some immediate cash flow, restoring regular production remains the key challenge for the financially troubled factory.
