The New Nation - Internet Edition

Staff Reporter

Despite adequate production capacity, latest machineries and increased demand of products in the market, state-owned Eastern Cables Ltd is losing its market to the private sector due to lack of adequate manpower to market the goods, sources said.

The state-owned concern was exporting its products to Middle East and European states some years back but now fails to meet the demand of the local market.

However, this year the government has decided to increase production of Eastern Cables Ltd with a view to make the concern more profitable.

Informed sources said goods of Eastern Cables Ltd is of a high standard but some unscrupulous businessmen are marketing their substandard goods with the same name and logo. Buyers are being cheated by the dishonest businessmen in the name of goods of Eastern Cables Ltd.

General Manager of the Eastern Cables Ltd Munir Ahmed told newsmen that only 394 people are now working in the company. The company fails to recruit manpower due to complexity in the recruitment process.

He said the Company fails to market it products due to lack of manpower.

The production target of the company for the fiscal year 2007-08 has been set at 3,450 tones despite it has capacity of producing 7,300 tones. The company incurred net profit of Tk 4 crore in 2006-07, which was Tk 1.76 crore in FY 2005-06. Informed sources hoped that the net profit might reach over Tk five crore this year.

Sources said a move was taken to privatise the Eastern Cables Ltd, which is now hanging in the balance for unknown reason. Experts opined that the company might earn more profit if it was handed over to the private sector.

According to the statistics of the Eastern Cables Ltd, at present the company has property worth Tk 318 crore. The company owns 29.98 acres of land at Patenga in Chittagong.

The government owns 51 per cent share of the company, while the rest are owned by company employees and the general people.

A high official of the Eastern Cables Ltd, preferring anonymity, said the company has the prospect of earning a profit of Tk two crore every month, if officials and resource management were competent.