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Manufacture of leather goods

Инвестиционное предложение
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Презентация проекта
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Investment proposal
  

Project name

Manufacture of leather goods

Objective of the project

Organization of production of leather goods for ensuring domestic needs of the population and the export of finished leather products
Industry Leather Industry
Project Implementation Schedule Project implementation period: 24 months.Stage 1. 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. 12 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. 6 months for:equipment supply, customs clearance of equipment and imported materials, installation of equipment.Stage 4. 3 months for: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 Fergana region

Information about project participants:

Initiator Kokand Chrome Private enterprise
Co-executor (branch office) “Uzcharmsanoat” AssociationFergana region khokimiyat
Creditor Aloqabank JSC
The total cost of the project 3 180,0 thousand USD

Expected sources of financing:

Own funds

380,0 thousand USD

Commercial bank loans 500,0 thousand USD
Required foreign direct investment

2 300,0 thousand USD

Composition of main costs

Breakdown of main costs:

– construction and installation work – 763.2 thousand USD

– basic equipment (including installation supervision and component parts, and transportation) – 1,780.8 thousand USD

– raw materials for the launch period (3-6 months) – 445.0 thousand USD

– other – 191.0 thousand USD

Expected profitability

21,6 %

Repayment period predictable payback period

4 years

Cash flows

Cash flow after commissioning of 100% capacity – 6,374.6 thousand USD

Constant, periodic and other expenses – 4,692.0 thousand USD

Gross profit – 1 680.0 thousand USD

Characteristics planned for production Quality and low prices for products
Design capacity/volume

260 thousand units per year

Contribution to the project by the initiator

Building and structure, taking into account the existing production of primary processing of leather

Current project status

A business plan has been developed, the definition of a foreign investor is being worked out.

Information about the initiator of the project
 

Full name of the company Kokand Chrome Private enterprise
Details, address, contacts

Fergana region, Kokand city, A.Navoi 69/46

Date of the enterprise’s foundation

23.07.2009

Statutory fund

189,3 million UZS

Founders and distribution of shares

Tolip Musayev (100%)

Information about the founders
  

Full name

Tolip Musayev

Date of birth

06.05.1951

Contact number

+998 90 556 70 39

E-mail

tolipmusayev@rambler.ru

Contact details of executor from MIFT
  

Full name

 

Position

 

Contact number

 

E-mail      

 

General information
  

Number and types of created jobs

Total: 80 people, of which:
6 – AMS;
7 – qualified staff;
67 – employee with secondary vocational education.

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

In accordance with the EIS, the project can be implemented only in the case of installing a purification plant for discharging process water.

Information about the land for construction of the enterprise

The required total area for the property is 1 ha.

Existing infrastructure

 

highways

Plumbing and sewage

Required infrastructure

Technical water pipe

Power supply with alternative power capacity of at least 1000 kVA.

Upcoming construction works

Production building 1728 m2.

Auxiliary buildings 576 m2.

Industrial site – 800 m2.

Improvement of 1500 m2.

Design-estimate documentation A business plan of the project is available
Electricity demand (kWh), Integrated power (kWh/s or mW/h)

It is determined after the choice of technological equipment.

Water requirement (cubic meters per m)

It is determined after the choice of technological equipment.

Gas demand (cubic meters)

The technological process does not require technical gas supply.

 

 

Market analysis, productions definition (works, services),marketing researches
  

Types of products

Leather products – bags, wallets, covers, accessories, etc.

Annual production

260 thousand units per year

Estimated sales markets and their shares:
Internal 50%
Export 50%
Cost of production from 3 to 40 USD
The need for raw materials (per year)

17,4 million square meters of leather

Provision with raw materials

100%

Market volume

About 4 million units of products

Expected market share

6,5%, 6,5 million USD

Main competitors

Over 100 local producers and exported products

Main competitive advantages 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

Market

The cost structure of the final product

Basic and auxiliary materials – 52.1%;

Depreciation – 4.1%;

Other expenses – 5.1%;

Salary – 17.0%;

Extra charge – 21.7%.

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

Available, included in the business plan

Presentation component of the project

Is being developed

Additional Information

Manufacturers of leather products – members of the Association:

– Exempt from income tax and property tax, single tax payment – for micro firms and small enterprises, as well as mandatory contributions to state trust funds;

– Exempt from paying customs duties (except for customs clearance fees) for imported equipment, components, raw materials not produced in the republic, materials and fittings, used by organizations – members of the Association in production, according to the lists approved in the prescribed manner;

– have a delay in the payment of customs duties (except for customs clearance fees) for a period of up to 60 days from the date of acceptance of the customs declaration when importing equipment, components, raw materials, materials and accessories required for own production of goods not included in the above-mentioned approved lists.

Project risks – the risk of non-compliance with the established parameters of the feasibility study of the project and/or the Business Plan in terms of the planned revenue receipt;

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

– the risk of unforeseen political and economic phenomena in the global economy, changes in world prices for raw materials, materials and components, as well as for finished products.

Production technology and main equipment parameters
  

Type of equipment

Pulling and softening machine, squeezing machine, adjustable machine, planing machine, grinding machine, measuring machine, felting machine, double-belt machine, frame dryer, dyeing line, drums for dyeing, tanning, rolling drums, hydraulic presses, sewing machines

Country of origin

China, Turkey

Productivity

0,9 thousand units per day in assortment

Cost

1 780,8 thousand USD

Power usage

Undefined

Installed power

7,2 million square dm wet blue (primary processing)

Overall dimensions of the equipment

Undefined

Main equipment weight

Undefined

Main equipment units (lines)

Undefined

Working hours per year

About 5440 hours a year

Work cycle

2 shifts

The frequency of scheduled preventive maintenance (SPM)

Once a year, no more than 30 days a year

The number of people involved in production process and their functions

Total: 80 people, of which:
6 – AMS;
7 – qualified personnel;
67 – employee with secondary vocational education.