"Business plan of investment project of building of factory on manufacture of fireworks.

Project description

The objectives of the business plan are

2. The company and its products

2.1. The initiator of the project the group of individuals engaged in wholesale and retail sale of hunting weapons, ammunition and pyrotechnic articles.

Place of construction enterprises for the production of fireworks determined by the mono village.Yaroslavsky, Primorsky Krai in the framework of creating an ADZ (the territory of advancing socio-economic development.

Experience in obtaining necessary licenses Ministry of the interior (storage of the powders, the Distribution of pyrotechnic products (Ministry of industry and trade. Department of special chemistry and ammunition.), gives you the opportunity to start production of fireworks at once, before the end of the completion of the necessary buildings and structures.

Currently done the groundwork and established a pilot plant for production of component products.

The main products are battery salutes 3-4 hazard classes.

These products are currently in high demand due to their compactness, richness and spectacular effect, safety and ease of handling.

The demand for manufactured products is consistently high and there is a shortage of it in the market at affordable prices.

There is a wide variance in price, depending on region and market saturation.

In the Russian Federation there are 2-3 companies involved in

release fireworks of this type (total volume, about 60-80 million RUB).

4. Analysis of the market.

Fireworks factory is highly profitable with great potential for development.

Geographically, the market is the entire territory of the Russian Federation and the Customs Union countries, in the perspective of the US market, the European Union and the Middle East.

Development of the segment depends on the economy – in times of crisis the demand for fireworks is celebrated. As for today's quantitative indicators, from 2011, they are constantly growing. The total volume of the Russian market of fireworks for the year 2013 was estimated by experts at about 4000 million. A more precise amount is difficult to call because of the large percentage of counterfeit goods. The planned release of 40 thousand conventional batteries of fireworks will be 140 million, which is approximately 3.5 — 5% of the Russian market.

Given the fact that 80% of products sold are imported, it opens a huge prospect of import substitution to 10-15% market only by our company, and it is about 400-450 mln.

In the future, increasing output only by increasing labour productivity and introduction of know-how in the production process, can be brought (there is a deficit of products at affordable prices) to 25-30 % of the market, what will be the inflow in the economy of Primorsky Krai from 1000 to 1200 roubles annually, and creates the prospect of opening the entire industry.

The proximity of supplier parts components – PRC, allows the creation of a configuration database, coupled with the Scientific potential of the University to move to a full cycle of manufacturing of products and semi-finished products

Profitability of sold products:

ROM = (profit from sales /Cost of sales) * 100 %

in the ADZ:

48 329 491: 89 126 852 X100 = 54.2 %

Return on assets (ROA):

ROA = Net income/Assets × 100 %

in the ADZ :

48 329 491: 177 272 000 x 100= 27.3 %