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Organization of the production of yarn, knitted fabric and garments

Project Documents

ID# 65

Investment proposal

Name of the project

Organization of the production of yarn, knitted fabric and garments

Main goals of project

Expansion of the production of yarn, knitwear and garments

Sphere /industry

Textile industry

Implementation of schedule project

The implementation period is 13-16 months depending from the foreign investment.

 Stage 1.  2-3 months:

 Conclusion of an agreement.  Legal registration.  Preparation of design documentation.  Coordination with a serving commercial bank.

 2nd stage.  6-7 months:

 Construction of a production building, supply of engineering and communications networks, preparation of an industrial site.  Conclusion of a contract for the supply of equipment.

 3rd stage.  5-6 months:

 Supply of equipment.  Customs clearance of equipment and imported materials.  Installation of equipment.  Commissioning works.  Formation of Administrative personnel and production personnel of the enterprise.  Training.  Organization of work to ensure the initial financial and circulating assets of the enterprise.

Location of the project

The project is planned to be implemented on the basis of the Gurlensk textile factory


Information about participants of the project:

– initiator

Joint Stock Company Uzbekneftegaz

– co-executor (the lead sectorial of Ministry/authority/Department)

Governor of Gurlensk district

– creditor

Total costs of project

14 mln. USD

                                                   Prospective source of financing:

– own funds

– loans of commercial banks

– the required volume of direct foreign investments

14 mln. USD

Composition of main costs

– construction and installation works – 2.0 million USD

 – basic equipment (including installation supervision and component parts, and transportation) – 10.0 million USD

 – raw materials for the launch period (3-6 months) – 1.5 million USD

 – other – 500 thousand USD

Projected profitability


Projected payback period

4 years

Cash flows

It will be determined by the development of a business plan / feasibility study

Characteristics of the planned production

Yarn, dyed linen and finished products

Capacity of project/productivity

3.6 thousand tons of yarn,

1.7 thousand tons of canvas

10 thousand pieces of knitted

 products per year

Contribution to the project by the initiator

☒Solving organizational issues.

☒ land

☒ buildings and structures

☒ license

☒ highly qualified personnel

☒ technological equipment

☒ idea

☒ utilities

Current status of project

Investment offer

Information about the initiator of the project

Full name of the enterprises

Joint Stock Company Uzbekneftegaz

 Requisites, email, contacts

Khorezm region

Gurlensky district, st. 

Mustakillik House 5

Tel .: (+ 998-94) 660-43-01

Foundation date of the enterprise


Statutory fund

100,0 mln. soum

Structure of founders and distribution of shares

Joint Stock Company Uzbekneftegaz 100%

Information about the founders

Full name Joint Stock Company Uzbekneftegaz (LLC Muruvvat Muruvvat Teks)
Contact number

+ 998 94 6604301

Email address


General information

Number and types of jobs created

Total jobs: 500 units, of which:

 – AP: 25

 – Engineering: 25

 – Workers: 450

Environmental impact statement (project EIS), which includes expected types and volumes of waste, places of their utilization

Is not determined

Information about the land plot for the construction of the enterprise

It will be determined by the development of a business plan / feasibility study

Existing infrastructure

The factory is provided with all the necessary communication networks, including:

 – Electricity of the net;

 – water supply networks;

 – natural gas networks;

 – sewer networks;

 – car roads;

The required infrastructure

Telephone line, Internet fiber

Upcoming construction and installation works

Main production building;

storage facilities;

repair premises;

administrative building;

mini-hotel for foreign technologists (if required);

water pump tower (if required);

transformer substation;

fencing of the territory.

Designed-estimated documentation

Based on the investment proposal, design estimates will be developed

Power requirement (kWh), installed capacity (kWh or megawatt hour)

15,000.0 thousand kW per year (conditionally)

Demand for water (cub/m)

1300.0 cubic meters per year (conditional)

Gas demand (cu/m)

400 cubic meters per year (conditionally)

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

Type of product

Yarn, dyed linen and finished products

Annual production (ton. year)

3.6 thousand tons of yarn,

1.7 thousand tons of canvas

10 thousand pieces of knitwear per year


Prospective markets sales and their shares:





Costs of products

It is determined by the results of market research, as well as based on the quality of products

Demand for raw materials (per year)

It will be determined by the development of a business plan / feasibility study

Provision of raw materials

Provided by 100%

Market volume

There are more than 7000 textile enterprises in the republic, whose annual capacity is:

 Cotton yarn – 650 thousand tons;

 Cotton fabric – 425 million square meters;

 Knitted fabric – 140.7 thousand tons;

 Knitted goods – 660 million pieces;

 Hosiery products – 132 million pairs.

 Mostly textile accessories are purchased from imports.

Expected market share

Is not determined

Main competitors

In the Khorezm region, there are 3-4 competitors of small enterprises (Uztekh Shovot, Urgtekh, etc.).

Main competitive advantage

High quality of finished products and reasonable prices

Main target groups of consumers

Textile enterprises

The structure of sales according to target groups of consumers

Textile manufacturers

Pricing strategy

Price is set based on the study of domestic and foreign markets

Cost structure of the final product

It will be clarified following the development of a business plan / feasibility study of the project and taking into account market research.  At the same time, the projected profitability is calculated 25%.

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


The presence of a formed database of potential customers with a confirmed willingness to purchase products

CIS countries, domestic market (or not defined)

Presence of marketing research


Presentation component of the project

Is being developed

Additional information

According to the decree of the President of the Republic of Uzbekistan PD-2731 dated January 18, 2017, newly created micro firms and small enterprises in the field of industry located in the Yangiarik and Kushkupyr districts of the Khorezm region are exempted from paying a single tax payment until January 1, 2027 and in the rest of the Khorezm region  regions – for a period up to January 1, 2022.

Project risks

– the risk of increasing construction time with untimely financing of the project;

 – the risk associated with a change in the world price situation for raw materials, materials and components, as well as for finished products.

Production technology and main technical parameters

Type of equipment

Requires supply manufacturers of textile equipment world brands

Country of origin

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


3.6 thousand tons of yarn,

1.7 thousand tons of canvas

10 thousand pieces of knitwear per year



Energy consumption

Depends from the equipment

Installed capacity

Spinning mill 3,500 tons / year, dyeing shop-1,700 tons / year, knitwear 10,000 pcs.

Overall size of equipment

Is not defined

Weight of main equipment

Is not defined

Node of main equipment (lines)

Is not defined

Number of working hours per year

4800-5000 hours

Duty cycle

16 hours per day, 2 shifts

Periodicity of the planned –warning repair (design and preparation works)

Once in a year, no more than 5-7 days

Number of people involved in the production process and their functions

Total job places: 40-50 units


(Show schematically)