Nahan’s resin factory witnesses unprecedented growth

Pankaj Sharma

Nahan, August 1
Over the past few years, the Nahan Division of the Himachal Pradesh Forest Corporation and its associated resin (Biroja) factory have achieved remarkable financial success, drawing commendation from Chief Minister Sukhvinder Singh Sukhu in a recent meeting. The factory, which once struggled with modest earnings, has now become a major contributor to the corporation’s revenue.
In the fiscal year 2022-23, the Nahan-based factory reported an annual income of just Rs 50 lakh. However, this figure skyrocketed to Rs 5 crore in the fiscal year 2023-24 — a tenfold increase, impacting the state’s revenue. Projections for the current fiscal year 2024-25 suggest that this income could surpass Rs 7 crore.

Garners praise from chief minister

• In the fiscal year 2022-23, the Nahan-based factory reported an annual income of just ~50 lakh. However, this figure skyrocketed to ~5 crore in the fiscal year 2023-24 — a tenfold increase
• In a recent meeting, Chief Minister Sukhvinder Singh Sukhu lauded the factory, which has become a major contributor to the forest corporation's revenue
• The corporation does not receive financial assistance from the government and is responsible for generating its own revenue to cover operational costs

Notably, the corporation does not receive financial assistance from the government and is responsible for generating its own revenue to cover operational costs, including salaries of employees. This makes the recent financial successes of the division and resin factory all the more impressive.
During a recent meeting, the Chief Minister acknowledged the achievements of the Nahan Division and its resin factory, praising the management’s innovative approaches and their impact on the corporation’s profitability.
Previously, the factory operated on a limited production schedule, which constrained its output and profitability. Recognising this, the new management extended production days, thereby increasing the factory’s output.
Moreover, the products manufactured at the factory — such as turpentine, black oil and phenyl — are ISI-certified and were traditionally exported only to distant markets like Mumbai, Kolkata and Gujarat. The new management saw an opportunity to tap into the local market and established a retail outlet on the Nahan-Shimla National Highway, situated on land owned by the factory and the Forest Corporation. This outlet began selling products at factory rates, which significantly increased the factory’s annual income.
In addition to the resin factory’s success, the Nahan Forest Corporation Division made notable strides in its timber operations. Changes were made to the process of cutting, processing and auctioning timber, which yielded significant savings and revenue. By effectively publicising timber auctions, the division earned Rs 6.5 lakh from the sale of tender forms alone. Furthermore, by reducing the costs associated with cutting and processing dry trees, the division saved approximately Rs 84 lakh.
Overall, these efforts resulted in substantial savings of nearly Rs 1 crore from timber operations, even before the wood was sold. The increased participation in timber auctions led to a higher revenue for the Forest Corporation. In the fiscal year 2022-23, the corporation earned Rs 3.5 crore from timber auctions. This figure rose to Rs 5.5 crore in 2023-24 and the target for the ongoing fiscal year 2024-25 has been set at Rs 7.5 crore.
The recent successes of the Nahan Forest Corporation Division and its resin factory have been achieved despite significant staffing challenges. The division currently has several vacant positions, including three posts of assistant manager and the factory is also operating with key positions unfilled, including that of the factory manager. Much of the work is being carried out by outsourced staff, which, while effective, is not sustainable in the long run.
AK Verma, the Divisional Manager of the Nahan Forest Corporation Division and General Manager of the Nahan Resin (Biroja) Factory, emphasised the historical significance of the corporation, which was established in 1972. Since then, the Nahan Division has played a crucial role in managing the state’s forest resources.
The harvested wood is organised into lots and sold through depots, providing a steady stream of income for the corporation, he added.