Arzamas dairy plant

Project description

Agro-industrial holding Arzamas (startup).

Project description and proposal for investors.

Description of the project.

The goal is providing the region with products of European quality and create more than 150 jobs with an average salary of more than 25 thousand rubles/month.

The number of stages and a list of objects:

1. The dairy with a capacity of 50тонн/day and verified set of products.

• The project cost 4.5 million euros
• Supplier of equipment and technology ” ABL-Technologies LTD” Israil
• The project proponent has its own farm and herd of cattle 2200голов milk production with primary treatment in the amount of 60 t:/day.
• There is a team able to run the project.
• The payback of the project 36 months from commencement of construction
• Annual income at 80% load for about 7 million euros.

The project "in the field". Allocated land for the construction of access roads,

electro/energy, water, gas. The lack of sanitation. The plant is surrounded by

farms cattle, geographically, the excess raw milk whiter 400тонн/day. There is a business plan.

So as not to disturb the dairy market, select the plant's capacity to 50тонн/day.

Choosing the best technology and equipment and optimize for ROI.

Investment costs:

— The cost of equipment and technology for 1.8 million euros "Ex Works"

— Insurance and shipping with customs clearance with VAT about 0. 4 million euros.

— Construction 1500квм production and auxiliary space boiler room,

dining room, office, dormitory with 20 rooms, covered Parking for cars, workshop for

machines, septic (treatment on 75кубм per day)- cost of about 1.62 million euros.

— 0.3 million euros to small shops,

— 0.38 million euros to start production

The cost of the project believe 4.5 million euros. (Euro =75rub).

The payback of the project 36 months from commencement of construction:

Assuming that to build and run the plant needs 18 months and "spin"

sales 6 months, over 36 months, the plant will be paid off fully

2.(Agrokompleks on 1200голов cattle dairy cattle TMK1. Project cost 11.5

million euros. Start of construction in 3, 5 years after the start of construction

dairy. Output TMK1 design capacity of 3, 5, years since

construction.

The performance of a single MTK — 1200голов of dairy cattle (calculated power) is 9125.0 tons of milk per year (25 tons per day, with the possibility of increasing this figure), about 250 tons of meat per year, about 170 heads of highly productive heifers per year. The cost of milk(operating)

16 rubles per liter, selling 30 rubles/liter, the payback period only milk for 7 years taking into account

discount rates. Effectively in the presence of the milk industry.

Return complex from the start with the milk industry a maximum of 7 years. Correct from the point of view of economic efficiency and sustainability the presence of more than or equal to 2,400 head of dairy cattle.

1. The second agro ТМК2 on 1200дойных cows with production and storage

feed and fertilizer production. Cost 12, 5 million euros, the beginning

construction in 3 years since the start of construction of the first МТК1.

1. Construction of 10 houses for specialists of 250 thousand euros. Construction

completion of the second ТМК2. The use of the grant funds under the program "development of rural areas".

1. The construction of a second dairy 25тонн/shift with a specific, refined

set, products worth 3.5 million euros on the same site. Construction since the completion of the first phase of 10 houses.

1. The third farm ТМК3 1200дойных cows by production and feed storage, and

the production of fertilizers 12, 5 million euros. Start of construction since the commissioning of the second phase of the dairy.

1. Construction and commissioning of the abattoir plant and meat processing

750тонн a year or 2100кг/day to the finished products in retail packaging in weakly frozen and chilled — 1, 2 million euros with the sale of meat products in the mobile car – shopping and Internet trading orders. The payback period is three years from the date of commissioning.

1. Construction of 20 houses for the specialists and the kindergarten development programme

in the rural areas. The cost 550тыс euros. Start of construction since the commissioning of meat processing.

Total: the sum of 46.8 million euros, the complex is 3600 heads of dairy herd is

27400тонн of milk a year, or 75тонн per day with processing 750тонн meat

a year and 510 heads of highly productive heifers per year.

1. Construction

storage by washing, sorting, packing, bookmark, storage of vegetables and fruit area of the warehouse 1500квм with 12 sections 2, 5 thousand tons worth 5.5 mil euros, including 1.5 million EUR in working capital. The construction from the beginning of the commissioning of meat processing.

Purchase of products after harvest will occur at the agreed prices and quotas granted to the private farms. The fruit will be procured at the fall of wholesale prices. This structure allows you to develop horticulture in the region, the waste during sorting before packaging and bookmark are used in meat processing enterprise and the feed units in the farms.

Only a controlled diet of animals will allow to achieve high quality and repeatable results in the production of branded dairy products and ready meals mild frost with good economic indicators in the trade.

For reference:

Only the separate vegetable store with a full load will pay for itself in three years, and, together with the butchery and the use of culled products in the diet of animals – the effect is hard to overestimate.

Total: 52.3 million EUR investment.

The estimated market value of the project more 150мил. Euro after payback.

After the launch of the first phase in three years built scheme of the entire project with minimal involvement of funds. Even in the current economic situation in the country the development of the project more than real.

Conditions of participation in the project:

Financing through the Russian banks of the first stage.

1.The scheme of mixed financing: Private investor (direct funding in exchange for equity) project provides "their" funds of 1.2 million Euro plus a collateral in the amount of 3.3 million euros in exchange for a 50% stake plus one vote, with a commitment to repurchase at market value at the time of redemption. The time and amount of repayment are determined by agreement.

When the designed capacity of the enterprise value will be minimum 16 mil. Euro. Final redemption happens after 3-4years.

If you have a plan for the development of the project and at the request of the investor the amount specified redemption saved in the project. Redemption at the request of the investor can be held before the next stage of development. Amount and time are determined taking into account the cost and payback time of a subsequent phase, but not less than 30% per annum.

— 70% of the project amount drawn as project financing with the involvement of Russian banks, the participation of construction companies and transactions with suppliers of equipment and technologies on the basis of export operations

1. The scheme is direct investment under the agreement to a third party investor:

1. Acquired equipment and technology of 2.7 million euros in exchange for equity participation of 50% of the project property, plus 25% under control.

1. A contract of lease of means of production for a period of 3years from the start of production. The cost of renting is that you could in two years there were 2, 7 mil.the Euro, then the ownership is transferred to the plant. Under the contract, the General contractor, the builders provide a Bank guarantee in the amount of the General contract to enter the construction of production infrastructure in operation. Through the Russian financial structure under the leasing scheme of redemption and the contract with the builders make the contract settlement with the Builder after the commissioning of the construction object.
2. After three years since start of production sell with the investor agreement to repurchase shares of 50% and the designated order of mutual settlements. The value of the assets for this period is $ 16mln euros.

The implementation of the project without the participation of the investor in the subsequent stages — 10 years.

With preservation of the investor's share in the subsequent stages — 8 years.