E-Paper
Rising from brink of bankruptcy, Markfed is now debt free
By innovation and launching new products, particularly by ramping up sales during Covid-19 and export to foreign countries, Markfed increased its revenue and became debt free
: Emerging from the brink of bankruptcy, Punjab Markfed, a state-run cooperative organisation, has cleared three decades of debt by ramping up sales through launching new products, export to other countries and availing opportunities to generate revenue during Covid-19 restrictions.
Markfed, which was near bankrupt during 2016-17, paid all its bank loans on March 31.
“It was under a debt of Rs. 809 crores in 2017-18 and banks were not giving any loan to us for even working capital. However, with consistent efforts of staff, I feel happy to share that on March 31, 2022, Markfed has paid all its outstanding bank loans and is now debt free from the banks,” said Varun Roojam, Managing Director, Markfed.
As per data shared by white paper presented by Punjab Government in 2018, as on February 28, 2017, the Punjab government gave a guarantee amounting to ₹27782.77 crores, out of which ₹7219.81 crores was outstanding, for its operations. Apart from this, Markfed was also owing ₹1139.99 crores to financial institutions on account of loans (not secured by government guarantee).
Despite debts, Markfed was sustaining itself till 2010-11 but could not recover from the losses from 2011-12 onwards. It suffered a loss amounting to ₹394.87 crore during the year 2015-16 and had accumulated losses amounting to ₹1654.25 crore as on March 31, 2016.
By innovation and launching new products, particularly by ramping up sales during Covid-19 and export to foreign countries, Markfed increased its revenue. It managed to get the order of supply of dry ration to aanganwadi centres in Punjab and increased its sales by Rs. 42 crore from single order.
Besides that, the government made a provision that any government department can make direct procurement of any item upto Rs. 50 lakhs from Markfed without any tender. Almost over 20 departments and organisations are using this facility for procuring quality items from Markfed.
“The increase in revenue, and from loss to profit in terms of sales, we have managed to turn the tide and come out of the mess of loan. Now, we will further ramp up sales,” he said, adding that Sohna brand is doing remarkably well in terms of packed food and other such items.
Roojam said that during Covid-19 restrictions, Markfed not only maintained the food supply chain by providing grocery at doorstep, but also played a key role in providing cattle feed.
“In the next fiscal, we will make a moolah as Markfed is setting up a plant for edible oil, doubling its capacity of feed production, and signing MOUs with several state governments to provide Sohna brand products at their fair price shops,” Roojam said.
