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The company plans to start the production of self-tapping screws on gypsum board due to the fact that at the moment there is a favorable situation for the start of the production of hardware products in Russia. The Chinese government began to improve the environmental situation in the country, 500 factories for the production of hardware products were closed. In this regard, there was a shortage in the market of self-tapping screws, the price increased in dollar terms from August 2017 to May 2018 by 30%. The growth of the population and the increase in the volume of real estate input lead to an increase in the need for repairs to the premises, and the most popular currently finishing material is drywall. It is attached to the wooden crate, as well as to metal profiles. All this leads to an increase in the consumption of drywall screws and an increase in demand for these products.
The amount of start-up capital is 21, 1 million rubles, the payback period of the project is 3 years, the yield on self-sufficiency is 3 months. The project has a 5% annual increase in raw materials and sales prices.
Market analytics
Today, the market for drywall screws is 90% occupied by Chinese-made products. The total market volume of self-tapping screws for hot-smokes in kg is 7, 900 tons per month, 10% is taken by NLMK products — 240 tons. In connection with the latest events (the struggle of the PRC government for the environment, the growth of the dollar, the rise in metal prices) the price of a kilogram of Russian-made self-tapping screws has become lower than the cost of the Chinese. Therefore, production in Russia is becoming cheaper, and profitability is growing. On the territory of Russia, only 3 large manufacturers of self-tapping screws, which satisfy about 15% of the market demand, while the consumption market grows every year.
The sale will be carried out to wholesale companies of the Volga region and Moscow.
Products will be sold by setting a sales quota for each customer in order to minimize the risk of non-payment by the buyer. The company will adhere to the strategy of «average market prices.»
Russia, The Republic Of Tatarstan, Kazan
Project price: 400 000
Investments volume: 400 000
Stage: Idea
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Sadyikov Ruslan Rashitovich
