Investment case. A private Swedish investment fund is realizing a project in the Moscow Region to set up a diversified meat-processing business to satisfy basic needs of different layers of the population of Moscow. Production for the high earners includes premium meat and sausage brands, while cheaper brands, by-products as well as tinned fish and canned meat are designed for the grassroots. The total planned yearly output of the plant would be between 10,000 and 15,000 tons, with an approximate breakdown presented below:
- premium sausage brands – 10%
- premium meat brands – 15%
- non-premium sausage brands – 35%
- non-premium meat brands – 25%
- by-products – 10%
- canned goods – 5%
|
|
|
Finance. We believe that the project would be worth some $25 mln upon its realization in two years time, and would generate $4 mln in annual net profit. At the same time its cost in current prices equals $15 mln, with equipment accounting for almost 50% of that. The project’s useful life is 25 years and the expected payback period is ca. 4 years.
|
|
|
|
Project progress. At the moment, our fund has evaluated preliminary commercial effectivness of the business, carried out SWOT analysis and prepared a draft business plan. We have shortlisted potential suppliers of equipment and raw stuff to keep the business afloat before it enters the fruition stage as well as considered a host of potential customers (large chain retailers). We are now preoccupied with obtaining licences and approvals.
If you want to get to know more about this investment project - contact us directly!
|
|
|