Organization of a textile complex

Name of the project

Organization of a textile complex for the production of finished products on the basis of LLC INTER TEXTILE MILLS, which is engaged in the production of knitted fabrics from cotton yarn (Annual capacity of 1200 tons)

Main goals of project

Creation of a textile complex from fiber processing to finished products

Sphere /industry

Textile industry

Implementation of schedule project

The term of implementation is 13-16 months.  as far as foreign investment.

 Stage 1.  2-3 months:

 Conclusion of an agreement.  Legal clearance.  Allocation of land.  Preparation of project documentation.  Coordination with the servicing commercial bank.

 2 stage.  6-7 months:

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

 Stage 3  5-6 months:

 Supply of equipment.  Customs clearance of equipment and imported materials.  Installation of equipment. Commissioning.  Formation of AUP and production personnel of the enterprise.  Training.  Organization of work to ensure the initial financial and working capital of the enterprise.

Location of the project

The base of INTERTEXTILEMILLS LLC, Yangibazarsky district of Khorezm region (16 km from the center of the Kharezm region of the city of Urgench, 17 km from Urgench Airport, 19 km from the railway station of Urgench)

Information about participants of the project:

– initiator

LLC «INTER TEXTILE MILLS»

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

JSC “Uzinterimpex”

– creditor

Total costs of project

17.0 million USD

Prospective source of financing:                   

– own funds

1.0 million USD

– credits

–

– the required volume of direct foreign investments

16.0 million USD

Composition of main costs

– construction and installation works – 4.0 million US dollars

 – basic equipment (including installation supervision and component parts, and transportation) – 10.0 million.  US dollars

 – raw materials for the launch period (3-6 months) – USD 3.0 million

Predictable of profitability

10 %

Predictable of payback period

10 years

Cash flows

It will be determined on the basis of the development of a business plan / feasibility study of the project (annual net profit is 1.6 million dollars)

Characteristics of the planned production

Capacity of project/productivity

3.0 thousand tons

Contribution to the project by the initiator

Resolving organizational issues, providing necessary benefits and preferences, etc.

Current status of project

Project proposal

Full name of the enterprises

LLC «INTER TEXTILE MILLS»

Requisites, email, contacts

Khorezm region, Yangibazarsky district, Al-Beruniy str., House number 1,

 р/с: 20208000205012648001

 в/с 20208840505012648001

 Bank: NB FEA Rep. Uzb.  Urgench

 TIN: 17151

 MFI: 00547

Date foundation of enterprises

January 12 2013 y.

Statutory fund and

5 670,4 million soum

Structure of founders and distribution of shares

JSC “Uzinterimpex” 100%

Name, last name

Position

Contact phone number

E-mail

Number and types of jobs created

150-200

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

Draft Environmental Impact Statement made, positive result received

Information about the land plot for the construction of the enterprise

There is none.

 The size of the required area:

 – total area: 4 hectares

 – production area: 2.0 hectare

Existing infrastructure

All necessary communication networks will be provided, including:

 – Electricity of the net;

 – water supply network;

 – natural gas networks (if required);

 – sewer networks;

 – car roads;

The required infrastructure

Telephony, Internet Fiber

Upcoming construction and installation 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 and estimate documentation

There is none.  Development required

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

Being specified

Demand for water (cub/m)

Being specified

Gas demand (cu/m)

Being specified

Type of product

Cotton fabric

Annual production (ton. year)

Being specified

Prospective markets sales and their shares:

Inner

50 %

Export

50 %

Costs of products

Cotton fabric – 4-5 USD for 1 sq. m ;

 Shirt – 7-8 USD for 1 pc.

Demand for raw materials (per year)

It will be determined on the basis of a business plan

Market volume

100 %

Expected market share

In the republic there are more than 7,000 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 the further development of the textile and garment and knitwear industry for 2017-2019.  According to the Program, by 2020 the production of cotton yarn is planned to increase 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.

Main competitors

Local yarn and knitwear manufacturers

Main competitive advantage

High quality of finished products and reasonable prices

Main target groups of consumers

Local market

The structure of sales according to target groups of consumers

All categories of consumers

Pricing strategy

Established on the basis of studying the internal and external market

Cost structure of the final product

It will be clarified on the basis of the development of a business plan / feasibility study of the project, taking into account market research.  At the same time, the projected profitability of the project is 10% calculated.

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

Does not have

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

Is being defined

Presence of marketing research

Presentation component of the project

Additional information

Project risk

– 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 proceeds;

 – 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 world prices for raw materials, materials and components, as well as for finished products.

Type of equipment

Requires supply manufacturers of textile equipment world brands

Country of origin

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

Performance

Is being defined

Cost

Is being defined

Energy consumption

Depending on the chosen production technology

Installed capacity

Does not have

Overall dimensions of the equipment

Not specified

Weight of main equipment

Not specified

Node of main equipment (lines)

Not specified

Number of working hours per year

2, 000 – 2, 200 hours

Duty cycle

16 hours per day

2 shifts

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

Once in a year 15-20 days

Number of people involved in the production process and their functions

150-200