Expansion of vineyards and organization of wine production

Инвестиционное предложение

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Презентация проекта

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Investment proposal

Project	Expansion of vineyards and organization of wine production
Project goal	Increasing the volume of harvested grapes with introduction of drip irrigation system and organization of grape processing.
Sphere/industry	Agricultural industry
Project implementation schedule	2019-2021
Project implementation location	Yangiabad district, Jizzakh region, Republic of Uzbekistan
	Information about project participants:
Initiator	LLC «YANGIOBOD UZUM-SERVIS»
Co-executor (industry institution)	JSC «Uzsharobsanoat»
Project amount	4412,2 thousand USD
	Expected financing sources
Own funds	2096,6
Commercial bank loans	–
Required amount of foreign direct investment	2315,6 thousand USD
Main costs composition	– Existing plantations, equipment, buildings and structures – 1249.7 thousand USD (investment of LLC “GIT”) – Saplings, equipment, technology and materials for expansion of a plantation for 259 hectares – 3101,7 thousand USD – Working capital – 17,3 thousand USD – Unexpected expenses – 43,7 thousand USD
Expected profitability	16%
Expected payback period	6 years
Cash flow	Total sales2019 – 105,0 thousand USD 2020 – 1 012,5 thousand USD 2021 – 1 215,0 thousand USD 2022 – 1 620,0 thousand USD 2023 – 2 025,0 thousand USD 2024 – 2 835,0 thousand USDProduction costs for the 4th year – 712,1 thousand USDAverage annual costs when reaching maximum power: Total – 660,9 thousand USD. Of them:Raw material – 156,0 thousand USD Wages of employees – 214,1 thousand USDOther expenses – 221,4 thousand USDTaxes and obligatory payments – 87,2 thousand USD
Characteristics of products planned for production	Fresh, processed and dried fruits and vegetables compliant with the ISO standard
Project capacity/productivity	Grapes – 3 500 tons of products per year Grape wine – 120 000 dahl per year
Contribution to the project by the initiator	Land plot (500 Ha), refrigeration complex for 100 tons, drying complex for 100 tons. Products, financing part of investment expenses in the amount of 2,096.6 thousand USD.
Current project status	Feasibility study of the project is at the development stage

Information about the initiator of the project

Company	LLC «YANGIOBOD UZUM-SERVIS»
Details, address, contacts	Pastchakir village, Yangiabad district, Jizzakh region, Republic of Uzbekistan;
Date of the company’s foundation	2016
Statutory fund	4,28 billion UZS;
Founders and distribution of shares	LLC «GOOD INTENT TRADE» – 100% share;

Information about the founders

Name	LLC «GIT»
Contact number	+998977470167
e-mail	bek_17@mail.ru

Contact of the performer from the MIFT

Name	Ochilov Akmal
Position	Leading expert
Contact number	Mobile: +998 99 876 25 10 Work: +998 71 252 42 13
e-mail	a.ochilov@invest.gov.uz

General information

Number and types of created jobs	Total jobs: 104 units, out of them: – Administrative staff: 3 – Engineering and technical personnel: 1 – Employees: 100
Impact of the project on the environment (Environmental Impact Statement Project), including the expected types and volumes of waste, their disposal place	No negative environmental impacts are expected.
Information about the land for construction of the enterprise	on land plots of LLC “YANGIOBOD UZUM-SERVIS” with a total area of 580.6 hectares, located in the territory of RMC “Khujamushkent soy” (430.6 hectares) and RMC “Balandchakir” (150 hectares).
Existing infrastructure	– electrical substation – will be provided at the expense of the existing capacity of supply (3 transformers) and additional transformers 2 pcs. – natural gas network – not provided – sewer networks – not provided – railway station: – Dashobod station, 20 km – water – existing own wells (5 wells), 3 more wells will be drilled
Required infrastructure	–
Upcoming construction and installation work	Industrial and administrative buildings/facilities
Design and estimate documentation	A business plan of the project is developed
Electric power requirement (kW/h), installed power (kW/h or mW/h	88 400 kWh per year
Water requirement (m cube)	21 200 m3 per year
Gas requirement (t cube)	–

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

Types of products	Grapes (tons)/Wine (dahls)
Annual production	2019 – 350 / 02020 – 875 / 30 0002021 – 1050 / 36 0002022 – 1 400 / 48 0002023 – 1 750 / 60 0002024 – 2 450 / 84 000
Estimated sales markets and their shares:
Internal	10% of the total
Export	90% of the total
Production cost	Grapes – 0.5 USD/kgWine – 3.0 USD for Dahl.
Need for raw materials (per year)	Fertilizer – 387.5 tons/yearFuel – 80.0 tons/year
Market volume	Total market demandThe volume of the world grape market is about 8.0 million tons and increases annually by an average of 3%.Uzbekistan for the last three years takes the first place in the export of raisin to China and increased the supply of its raisin by 30%, and its market share reached a record of 68.4%;Uzbekistan takes the 9^th place (72.0 thousand tons) in the world in the export of raisins and the 10^th place in the export of grapes (about 100 thousand tons);In the first half of this year, exports of wine materials amounted to 9.6 million dollars;
Expected market share	Uzbekistan – 0,07% Russia, CIS and PRC – 0,04%
Main competitors	In Andijan region – LLC Navigul Agro (50,000 tons/year), LLC Inter Agro Fresh (3000 tons/year);in Tashkent city – LLC Gold Dried Fruits Export (10,000 tons/year);in Fergana region – LLC Golden Apple (9000 tons/year);in Surkhandarya region – LLC Gold Dried Fruits Export (10,000 tons/year);in Tashkent region – LLC Highway Logistics Center (10,000 tons/year)
Main competitive advantages	Quality and low cost of production
Main target groups of consumers	All categories of the population
Sales structure by target consumer groups	All categories of the population
Pricing strategy	Export Estimated main competitors’ price initiator’s price (tons/thousand USD) (tons/thousand USD)
Final product cost structure	Agricultural raw materials 46.2% Depreciation 21.1% Salary 27.0% Other costs 5.9% Markup 15.0%
Patents, licenses, certificates in accordance with the current legislation	–
Formed base of potential customers with a confirmed willingness to purchase products	is being developed
Marketing research	Available
Presentation component of the project	Available
Additional information	– Enterprises, attracting foreign direct investment and specialized in manufacturing products (services) are exempt from corporate income tax, property tax, single tax for micro and small enterprises, as well as mandatory contributions to the Republican Road Fund, which are provided with the volume of private foreign direct investment: from 300 thousand USD to 3 million USD – for 3 years; over 3 million USD to 10 million USD – for 5 years; over 10 million USD – for 7 years. (Decree of the President of the Republic of Uzbekistan DP-3594 of April 11, 2005). – the minimum amount of share of foreign investments in the authorized capital of an enterprise with foreign investments is reduced from 30 to 15 percent. – the requirements for mandatory participation of a foreign legal entity as a participant of an enterprise with foreign investments have been canceled. – the minimum amount of the authorized capital of an enterprise with foreign investments was reduced from 600 million UZS to 400 million UZS. (about +/- 50.0 thousand USD at the rate of the Central Bank of the Republic of Uzbekistan on the day of investment) – the amount of the state duty for state registration of enterprises with foreign investments is reduced by three times; – the obligatory procedure for concluding export contracts for fruits and vegetables at prices not lower than the prices published by JSC Uzagroexport is canceled.
Project risks	Increasing competition by competitorsDelay in attracting investment

Production technology and parameters of main equipment

Depends on the investor’s preferences

Type of equipment	is being developed
Country of origin
Productivity
Price
Energy consumption	Not available
Installed power	Not available
Overall dimensions of the equipment	Not available
Main equipment weight	Not available
Main equipment units (lines)	Not available
Working hours per year
Duty cycle
Frequency of conducting the planned preventive maintenance (PPM)
Number of people involved in the production process and their functions

Expansion of vineyards and organization of wine production

Contacts