Fenaka cuts cost by 60% in eight months

Fenaka Corporation has managed to cut costs by 60 percent over the last eight months, according to the company’s managing director Muaz Mohamed Rasheed.

The state utility company, which is struggling with insolvency, is set to for takeover by the State Trading Organization (STO). The merger is set to be finalized at the start of next year.

In a press briefing on Tuesday morning, Muaz spoke about the measures implemented by the company to reduce expenses.

He told reporters that the measures have helped cut costs by 60 percent over the last eight months.

Muaz commended the company’s staff for their cooperation.

“We spent MVR 60 million as operational cost by end of August this year, compared to MVR 150 million during the same period last year,” he said.

Muaz said that the measures targeted the company’s spending in various areas.

He said the biggest saving was on the company’s logistics.

According to Muaz, the company spent MVR 11.7 million on logistics this year, as opposed to MVR 74.7 million on logistics during the same period last year.

He added that the company had previously “deliberately wasted” funds in the name of running CSR initiatives.

“We found that CSR initiatives in 2023 were run without any sort of reservation or any policy whatsoever,” he said.

Muaz said that the first thing the new management did when it took over was to suspend the CSR component. He said the company spent MVR 174,000 on CSR this year, compared to MVR 9.3 million last year.

He added that the MVR 174,000 spent on CSR includes a MVR 100,000 donation to aid Palestine during the national telethon held in June.

Muaz said the cost cutting measures implemented by the company were effective and producing results.