Iran Economy in Brief – No.64

Darugar has not shut down, despite accumulated debt

KAF Holding, known as Darugar, owning 12 companies, is one of the oldest detergent manufacturers in Iran. Over the last years, the holding is struggling with serious financial problems. According to its financial sheets released, the holding has more than 5600 billion IRR ($172m) accumulated debt.

This debt is mainly made by two companies: Tolypers Detergent Factory, and Kaf Co., 1600 billion IRR ($49m) and 4000 billion IRR ($123m), respectively.

KAF Holding products are mainly soap, shampoo and other detergents. Darugar was founded in 1928 in Isfahan; as it expanded, the company moved to Tehran, became a holding and diversified its products.

Recently due to financial problems, rumors claimed that the holding will shut-down, however, this news is strongly denied by the company.

Source: Darugar Official Financial Sheets

High electricity users will be equipped by smart meters

To manage the usage of electricity, the Ministry of Energy of Iran is equipping subscribers to smart meters.

The first stage of the project, called FAHAM Program (National Smart Metering Program in Iran) was launched in September 2015.

The latest report of Iran Energy Efficiency Organisation says that so far more than 113,000 three-phase meters and 14,000 single phase meters have been installed through the country.

The project needs 11 million USD monthly financing and currently is done by three domestic contractors.

Read More about Smart Metres in Iran

Source: Iran Energy Efficiency Organisation

Every year millions of pilgrims visit Mashhad

On average 25 million of pilgrims visit the holly city of Mashhad, where Imam Reza’s shrine is located; two millions are foreigners, mainly from Saudi Arabia, Iraq, Pakistan, Bahrain and India.

Khorasazn Razavi Province is planning to improve facilities for the pilgrims. Its Governor, Alireza Rashidian, confirmed the construction of 100 rest stops on roads connecting the country’s borders to Mashhad.

According to the President of the Hoteliers Association of Khorasan Razavi, half of the hotels in Iran are located in this city, where average investment for hotel construction is $23m.

Read More about Visitors to Masshad

Future Contracts make half of Iran Mercantile Exchange

According to the CEO of Iran Mercantile Exchange (IME), in the last Iranian fiscal year (March2016-17), the record for future contracts was broken and their value reached 390 trillion IRR ($12bn), making almost half of the market value.

“The largest growth of trades in the IME was in the agricultural sector which showed a 200% growth compared to the previous year, 1394 (March2015-16)”, said Mr Soltani-nejad, who was giving a brief report of IME at the Tenth Exhibition of Bourse, Bank and Insurance, in Tehran.

Read More about IME Future Plans