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Organization of textile complex for terry products production

Investment proposal

Project name

Organization of textile complex for terry products production

Objective of the project

Creation of a textile complex from yarn processing to finished products (terry products)



Project Implementation Schedule

Implementation term 13-16 months, according to the attracted foreign investment.

Stage 1. 2-3 months for:conclusion of an agreement, legal registration, allocation of a land plot, preparation of project documentation, coordination with a serving commercial bank.

Stage 2. 6-7 months for:construction of an industrial building, supply of engineering and communication networks, preparation of an industrial site, conclusion of a contract for the supply of equipment.

Stage 3. 5-6 months for:equipment supply, customs clearance of equipment and imported materials, installation of equipment, commissioning, formation of the management and personnel of the enterprise, personnel training, organization of work on ensuring the initial financial and circulating assets of the enterprise.

Project location

All regions of the republic, including FEZ “Hazarasp”, “Urgut”, “Gijduvan”, “Kokand” (a specific place will be determined on the basis of consideration and study by the initiator of the project location and negotiations)

Information about project participants:

– Initiator

“Uztuqimachiliksanoat” Association


-Co-executor (supervising sectoral body/ministry/agency)

“Uztuqimachiliksanoat” Association

– Creditor

The total cost of the project

36,5 млн. долл.

Expected sources of financing:

– Own funds

– Loans

– Required foreign direct investment

36,5 million USD

          Composition of main costs

– construction and installation work – 7,5 million USD

– basic equipment (including installation supervision and component parts, and transportation) – 18,0 million USD

– raw materials for the launch period (3-6 months) – 6,5 USD

– others – 4,5 million USD

Expected profitability

16,3 %

Expected payback period

4,1 years

Cash flows

It will be determined on the basis of development of a business plan/feasibility study of the project (annual net profit is 4,5 million dollars)

Characteristics planned for production

Terry cloth

Design capacity/productivity

From 6 thousand tons of terry cloth up to 10.0 mln. terry products.

Contribution to the project by the initiator

Resolving organizational issues, presenting necessary privileges and preferences, etc

Current project status

Project proposal


Information about the initiator of the project

Full name of the company

“Uztuqimachiliksanoat” Association

Details, address, contacts

Tashkent city, A.Avloniy street 20A }

(+99871) 202-22-44

Date of the enterprise’s foundation


Statutory fund

Founders and distribution of shares


Information about the founders

Full name


Date of birth


Contact number





Contact of the executor from the MIFT

Full name




Contact number





General information

Number and types of created jobs

Total jobs: 300-350 units

Impact of the project on the environment (project EIS), including the expected types and volumes of waste, the place of their disposal


Information about the land for construction of the enterprise

Not available.

The required area:

– total area: 1,5 hectares

– production area: 0,8 hectares

Existing infrastructure

All necessary communication networks will be provided, including:

– electrical networks;

– water supply network;

– natural gas networks (if required);

– sewer networks;

– roads;

Required infrastructure

Telephony, Internet Fiber

Upcoming construction works

Main production building;


repair room;

administrative premises;

mini hotel for foreign technologists (if required);

water pumping tower (if required);

transformer substation;

fencing of the territory.

Design-estimate documentation

Not available. Development is required

Electricity demand (kWh), Integrated power (kWh/s or mW/h)


Water requirement (cubic meters per m)


Gas demand (cubic meters)



Market analysis, product description (works, services) marketing research

Types of products

Terry products

Annual production

From 6 thousand tons of terry cloth up to 10.0 mln. terry products

Estimated sales markets and their shares:





Cost of production

Determined by the results of market research, as well as based on the quality of products

The need for raw materials (per year)

It will be determined on the basis of a business plan/feasibility study.

Provision with raw materials

Provided by 100%

Market volume

In the republic there are more than 7000 textile enterprises, the annual capacity of which is:

Cotton yarn – 650 thousand tons;

Cotton fabric – 425 million square meters;

Knitted fabric – 140.7 thousand tons;

Knitwear – 660 million pieces;

Hosiery products – 132 million pairs.

Based on the importance of the textile industry for the economic development of the country, Uzbekistan is implementing a Program of measures for further development of the textile-garment and knitwear industry for 2017-2019. According to the Program, by 2020 the production of cotton yarn is planned to be increased by 2.5 times, finished fabrics – by 2.8 times, silk fabrics – by 2.7 times, nonwoven materials – by 1.5 times, knitted fabric – by 2,7 times. It is planned to increase the output of garments by 3.2 times, knitwear by 2.1 times, the production of raw silk by 2.1 times.

Expected market share



Today “Uztuqimachiliksanoat” Association unites more than 1400 major manufacturers in the textile market in Uzbekistan, which account for a substantial part of light industry production, in particular, processing 706 thousand tons of cotton fiber and producing 510 million square meters of fabrics of various assortment, including:

  • knitted fabric – 89 enterprises;
  • knitwear – 495 enterprises;
  • garments – 354 enterprises;
  • hosiery – 54 enterprises;

textile haberdashery – 20 enterprises.

Main competitive advantages

High quality and low cost of production

The main target groups of consumers

All categories of consumers

Sales structure by target consumer groups

All categories of consumers

Pricing strategy

Established on the basis of studying the internal and external market

The cost structure of the final productа

It will be clarified on the basis of development of a business plan/feasibility study of the project, taking into account market research. At the same time, the expected profitability of the project is 16,3% calculated.

Availability of patents, licenses, certificates in accordance with current legislation

Not available

Availability of a formed base of potential customers with a confirmed willingness to purchase products

Not available

Availability of marketing research

Not available

Presentation component of the project

Is being developed

Additional Information

Enterprises of the textile industry – members of “Uztuqimachiliksanoat” Association are exempt from January 1, 2021 from paying customs duties (except for customs clearance fees) for imported cotton, artificial and synthetic fiber, wool, raw materials and other materials necessary for production of textiles and not produced in the republic, according to the lists approved in the prescribed manner.

In the case of a project implementation in the FEZ, the benefits in the FEZ are granted for a period from 3 to 10 years depending on the amount of attracted investments, including in the equivalent (USD):

from 300 thousand dollars to 3 million dollars – for a period of 3 years;

from 3 million dollars to 5 million dollars – for a period of 5 years;

from 5 million dollars to 10 million dollars – for a period of 7 years;

from 10 million dollars and above – for a period of 10 years, with application of the profit tax rate and the single tax payment in the amount of 50% below the current rates for the next 5 years.

Project risks

– The risk of non-compliance with the established parameters of the feasibility study of the project and/or the Business Plan regarding the planned receipt of revenue;

– the risk of an increase in construction time when the project is not timely financed;

– the risk associated with unforeseen political and economic phenomena in the global economy, changes in the world price situation for raw materials, materials and components, as well as finished products..


Production technology and main equipment parameters

Type of equipment

Requires supply of manufacturers of textile equipment of world brands

Country of origin

Germany, Spain, Japan, France, Turkey, Switzerland, India, China


Productivity per year is from 6 thousand tons of terry cloth up to 10.0 mln. terry products


18,0 million USD

Power usage

Depending on the chosen production technology

Installed power

Not available

Overall dimensions of the equipment


Main equipment weight


Main equipment units (lines)


Working hours per year

4800-5000 hours

Work cycle

16 hours a day, 2 shifts

The frequency of scheduled preventive maintenance (SPM)

Once a year, no more than 15-20 days a year

The number of people involved in production process and their functions

Total jobs:  300-350 units