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) |
Shpere/Industry |
Textile |
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 } |
Date of the enterprise’s foundation |
2002 |
Statutory fund |
– |
Founders and distribution of shares |
– |
Information about the founders
Full name |
Undefined |
Date of birth |
Undefined |
Contact number |
Undefined |
|
Undefined |
Contact of the executor from the MIFT
Full name |
|
Position |
|
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 |
Undefined |
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; warehouse; 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) |
Undefined |
Water requirement (cubic meters per m) |
Undefined |
Gas demand (cubic meters) |
Undefined |
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: |
|
Internal |
50% |
Export |
50% |
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 |
Undefined |
Undefined |
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:
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 |
Productivity per year is from 6 thousand tons of terry cloth up to 10.0 mln. terry products |
Cost |
18,0 million USD |
Power usage |
Depending on the chosen production technology |
Installed power |
Not available |
Overall dimensions of the equipment |
Undefined |
Main equipment weight |
Undefined |
Main equipment units (lines) |
Undefined |
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 |
Any use (reproduction, publication, copying, reprinting, distribution, translation, broadcasting, processing and other methods of distribution) of the materials of the Investment Portal - Invest.gov.uz, without indicating the original source and a link to the Portal is strictly prohibited!