Investment offer

Investment offer

1. Name of the project and company information:

Project name: Designing a pig complex for breeding pigs using a new technology (includingpigs) at «Polotsk combine of bread products».

Project branch: Ministry of agriculture and food of Republic BelarusEntry place

Type of investor participation: creating a combined enterpriseSelect

Project location: Vitebsk region, Polotsk districkt Entry place

Anticipated start date of the project: Entry place

Company’s full name (project partner /initiator): Open joint-stock company «Polotsk combine of bread products»Entry place

Type of ownership: joint-stockEntry place

Registration date: 06.02.1997Entry place

Authorized fund structure: state - 9993 %, non-state entities -  %, foreign stakeholders -   %, other stakeholders- 7 %.

Current financial results (optional): Entry place

Project description (idea/preconditions, project stages and actual project status, expected results): buying of the technical equipment and designing of the pig complex with the closed cycle including 24 000 pigs.Entry place

2. Market characteristics of the planned production

Product description:

· product name and description: porkEntry place

· main consumers: meat-packing plants, agricultures on feeding pigs and cattle.Entry place

· list of goods with similar product performance: Entry place

· prospective distribution channels (including geographical distribution): wholesale and retail commerce in Belarus and Russia.Entry place

Describtion of the current domestic market of the production planned:

· market capacity:   Select

· government regulation (price control, licensing, etc.): Price control to meat handed over on meat-packing plants, restriction of volumes of meat export.

· other (please specify): Entry place

Key domestic market indicators of the production planned:

· annual output of the sector (in current prices): 755 billion rubles in 2012 year

· return on sales (%): 4 (in 2012 year)

· average nominal monthly wages at similar enterprises: 2 000 rubles (in 2012 year)

· level of concentration (approximate total market share of the top five players, %):  

3. Competitive advantages of the project

Infrastructure available:

Railway lines and roads:

own railway lines (specify distance in km):  

X Belarusian Railway (specify distance in km): 10, 2

X republican motor roads (specify distance in km): 2,2

other roads with improved surface (specify distance in km):  

Communications availability:

X electricity (voltage:, distance in km: 1,2)

water supply

gas pipeline

Land and production facilities:

X land availability (area:15 hectares, purpose: building)

constructions available (area:  , purpose:  , short description: Entry place)

Other infrastructure

warehouses, logistics terminals (area:  , description: Entry place)

X possibility to expand production and install additional facilities

possibility to create the necessary infrastructure via state budgetary financing (description: Entry place)

other (specify): Entry place

Strategic advantages:

strong brand

profiled staff

supply chain of raw materials and components

distribution network

undersaturated market in Belarus for the production proposed

X Common Economic Space market access

guaranteed volumes of orders (from Select)

X use of local raw materials

availability of valid patents, licenses, permits:  

other (specify):  

4. Financing requirement

Total investment: 18 799 000 US dollars, including capital expenditures: 18 622 000 US dollars

Financing requirement for investor: 16 920 000 US dollars.

5. Preliminary indicators of project efficiency

Sales revenue, without VAT (after reaching the estimated capacity: 68 685 000 US dollars

Pay-back period (PBP): 11 years

Dynamic pay-back period (DPBP): 12 years

Internal rate of return (IRR): 6, 3 %

Net present value (NPV): 2 795 000 US dollars Select

Discount rate:   %

Business plan/feasibility study availability (specify): is available

Annotations: Entry place

6. Contacts

Person responsible for the project (Name, position): Sysenko Oleg Vladimirovich, the chief engineer

Telephone: work 8 0; mobile  

Fax: 8 0

E-mail: *****@***ru

Website: Entry place

Date of investment offer completion: 04.01.2013.