manufacturer of agricultural machinery
TRANSCRIPT
2015
KHOZYAININFORMATIONAL MEMORANUM
manufacturer of agricultural machinery
Contents
I. Description of the company
• General information about the Company
• Key products of the Company and main directions of its activities
• Organizational structure and management team
II. Description of the market of agricultural machinery
III. Strategy of the company’s development
“Intensive Technologies” LLC. Co. is an experienced player at the market of agricultural machinery, whose production sites provide good access to consumers from Russia and CIS states.
» Annual turnover – about 9 mln EURO
» Number of employees: 186 persons, including 15 designengineers and adjusters
» Types of manufactured machinery:
• feed dispensers with two horizontal augers ИСРК-12, ИСРК-12Ф, ИСРК-15 and ИСРК-15Ф;
• feed dispensers with one vertical auger СРК-6В and СРК-11В;
• feed dispensers with two vertical augers СРК-12В, СРК-14В,СРК-16В, СРК-18В and СРК-21В;
• dispensers-straw blowers RVSС-1500, 1500Д, 2500;
• tractor-mounted bucket dump trailers PSKT-15 and 18
• organic fertilizer distributor ROUM-14, 20 and 24.
» Location: “Intensive Technologies” LLC is located in Smolensk,along with the prospective of plant foundation on the territory of“Phoenix” Industrial Park. One of the production sites of“Khozyain” Co – “Zapagromash” LLC. - is situated in Minsk(Belarus)
» Advantageous location:
• good access to main consumers in Russia: Pskov, Bryansk,Orel, Kursk;
• perspective supplies to the territory of Russia and other CIScountries.
General information about the Company Geographic position of the Company
Source: information of the Company
KHOZYAIN
KHOZYAIN
Smolensk
The group of companies “Khozyain” is a family company having the many years’ experience of cooperation with foreign partners
History of establishment and development of “Khozyain” group of companies Ownership structure of the group of companies
2000
2003
2007
2006
2004
the first unit for feed mixing ИСРК-12 “Khozyain” was manufactured in the Republic of Belarus by the license of “MarMix” Co. (Italy)
the 100th “Khozyain” unit was manufactured and the first feed dispenser with clam-type suppressor ИСРК-12Г “Khozyain”
output of new machinery models was organized: ИСРК-12Ф“Khozyain” with a mill for silage and haylage self-loading, mixer-feed dispenser with vertical augers СРК-11В “Khozyain”
the jubilee 500th feed dispenser ИСРК-12 “Khozyain” was manufactured
the 1000th feed dispenser ИСРК-12 “Khozyain” was shipped
2008
2009
the 1500th feed dispenser “Khozyain” was manufactured, output of a supplementary unit for straw cutting and blowing was mastered, the first mixer-dispenser with two vertical augers СРК-14В was manufactured
Opening of a plant for output of “Khozyain” machinery in Smolensk.A decision was taken about production reorientation to the market of the Russian Federation.
the 3000th feed dispenser “Khozyain” was shipped. Rebranding of the company’s production portfolio was started
new types of machinery were manufactured: straw dispenser-blowers RВС-2500 – “Khozyain”, agricultural semi-trailers ПСКТ-15 “Khozyain”, multifunctional organic fertilizer dispensers РОУМ-20 “Khozyain”
production was modernized in the Republic of Belarus, new capacities were put into operation in the Russian Federation. Output of the first stationary feed mixers ССК-21В was started, multifunctional organic fertilizer dispensers РОУМ-14 – “Khozyain”. The 4500th horizontal feed dispenser ИСРК-12 “Khozyain” was manufactured
2011
2012
2014
10%
10%
80%
Main numeric indicators
» Total number of employees, persons : 186
» Production and office areas: 14 961.2 sqm
» Annual turnover: 9 mln EUR
» Quantity of types of manufactured products: 7 pcs
» Quantity of output machinery models: 21 pcs
Source: information of the Company
Physical person No. 3
Legal entity possessedby a physical person No.1
Physical person No. 2
the trailed straw dispenser-blower РВС-1500 was manufactured
Production quality complies with requirements and standards
All products manufactured by the group of companies“Khozyain” are certified in accordance with the requirements ofmachinery sales in countries-markets and they are providedwith supporting documents.
In accordance with the existing plans machines aretested in independent certified laboratories at machinerytesting stations both in the Republic of Belarus and in theRussian Federation.
Products have certificates of compliance with therequirements of standards of the Republic of Belarus, theRussian Federation, the Customs Union and the EuropeanUnion.
Quality control departments are functioning atenterprises, and they fulfill input, inter-operational and outputquality control of the machinery manufactured at enterprises.Every quarter the marketing department performs surveyamong consumers, including the assessment of clients’satisfaction in quality of the machinery. In 2014 “IntensiveTechnologies” LLC obtained certificate of compliance with therequirements of GOST ISO 9001-2011 (9001-2008) of qualitymanagement systems.
In 2015 “Khozyain” group of companies received thecertificate of compliance with the requirements of Directive2006/42/EC.
Source: information of the Company
The company has an extensive dealer network in CIS countries
Quantity of dealer companies by country
» Moldova - 2 companies
» Russia - 62 companies
» Kazakhstan - 4 companies
» Ukraine - 3 companies
» Kyrgyzstan - 1 company
» Uzbekistan - 1 company
Comment:
Dealer companies and service centres of the“Khozyain” group of companies providecommissioning of the machinery and training of theclient’s technical staff, post-guarantee servicing andsupply of spare parts.
Source: information of the Company
» Belarus - 1 company
Availability of production areas is sufficient for organization of the full cycle production
Structure of areas by the type of usage, sqm Comment
The group of companies “Khozyain” is:
• an acting member of the Smolensk Chamber of Commerce and Industry,
• an acting member of the Russian Association of manufacturers of agricultural machinery “Rosagromash“,
• the supplier of machinery for the Russian State Leasing Company “Rosagroleasing”,
• an acting member of the Chamber of Commerce and Industry of Belarus,
• the supplier of products for the National Leasing Operator of the Republic of Belarus “Promagroleasing”.
Source: information of the Company
Production site (Minsk, Belarus)
Offices 936.5 (6%)
Production 14,024.7 (94%)
Total 14,961.2(100%)
Production site (Smolensk, Russia)
I. Description of the company
• General information about the Company
• Key products of the Company and main directions of its activities
• Organizational structure and management team
II. Description of the market of agricultural machinery
III. Strategy of the company’s development
Contents
The group of companies “Khozyain” is working at four key directions which successfully complement each other
Services of metal working
Trade of spare parts
Sales on the territory of CIS countries
Sales on the territory of RF 1
2
3
4
General information about direction
Source: information of the Company
Key direction of activityby the group of companies
100%
40%
13%
2%
45%
Orders are accepted for plasma and metal cutting
Minsk is the central department for sales of spare parts and consumer materials. Here, the required quantity of spare parts and components are to be manufactured and imported. Shipments to all sales markets are fulfilled from here.
Marketing of products through dealers in the CIS countries. Servicing during the guarantee and post-guarantee period is performed by servicing group.
The territory of sales: from Kaliningrad to Khabarovsk. All machinery assortment is marketed. 92% of sales via dealers, the rest 8% are direct sales, mainly to Smolensk and adjacent provinces. 10% of export supplies are directed to CIS states.
Total:
Manufactured machinery and equipment meets the demand in products for care and upkeep of cattle at cattle breeding farms
Source: information of the Company
Comment
» The trade mark “Khozyain” produces:
• feed shredders-mixers-dispensers ofhorizontal and vertical types,
• straw dispensers-blowers for cattlebedding,
• semi-trailers for transportation ofagricultural cargoes,
• organic fertilizer dispensers.
» The machinery is manufactured inaccordance with the technicaldocumentation of leading Europeanmanufacturers adapted to workingconditions in CIS countries.
Company’s product range
KHOZYAIN
Function determining units and components are purchased by “Khozyain” Group of Companies from leading European manufacturers on beneficial terms, EURO
KEY SUPPLIERS
Chains Hydraulic motors Weighing systems, fodder analyzers
Hydraulic distribution valves Hydraulic pumps
Reduction gears Axles, suspensions Structure of purchases from European manufacturers, thsd EUR
Source: information of the Company
ADR
COMER
DG
500
433
349WALVOIL
420
CASSAPA
BREVINI
IWIS
213
136
1.120Прочие
127
Source: information of the Company
Installation and assembly
Adjusting and testing
Welding and mechanical-
plumbingProcuring Protecting
Gas and plasma cutting of metal sheets
Installation of hydraulic system, weighing pins,
braking system, electrical parts
Assembly of augers and conveyers, chutes, pressing of chains
Filling of oils, testing of hydraulic system,
electrical calibration
Idle running, check of the light alarm system
Preparation of services, painting
Lubrication of bearings and all friction
components
Manufacturing process
Welding of drawbar, bin, casing, tank, frame, grab, drum
Stamping, milling, turning, piercing,
bending
Grinding of scale and seams, pressing-in
Development of control cards
Circle and strip cutting, profile material cutting)
Chain and pipe cutting
Treatment quality control
Installation of cutters, wheels, sticking of
labels
Assembly quality control
Outlet quality control Output control
Control of agricultural machinery manufacture consists of five main stages
1 2 3 4 5
The newest equipment of the best European manufacturers is used in the manufacturing process
» Hydraulic press brake SPEED
» Painting and drying chamber VENUS 1554
» Wet-type fettling plant model PC-BL 854
» Plasma cutting unit Plasmacut 12001/20-P
» Universal lathe Bulgaria Holding, model CU 630/5000
» Supporting single-beam electrical bridge crane, load lifting capacity 10 tons, span 15.5 m, lifting height 6 m
» Mobile spraying unit with pneumatic drive MERKUR SPRAYER
» Hydraulic single-post press, force 250 t
» Wet-type fettling plant BLASTLUX model PC-BL 954
» ainting and drying chamber PB-VB 1254
» Painting unit Mercur 15:1 (28:1)
» Press-perforator NITTO with hydraulic actuator model HS 06-13
» Electrically driven hydraulic pump NITTO HPD-052
» NC 3-axis milling machine FRVER MB-14R
» NC vertical milling machine TM-2
» Hydraulic single-post press PYE-250
2012
2012
2012
2012
2012
2013
2014
2011
2014
2014
2013
2012
2012
2013
2010
2014
Description of equipment Year of putting in
operation
Source: information of the Company
Total cost of equipment: 3,08 mln EUR
No companies exist among European manufacturers with absolutely the same types of produced machinery. No companies exist on the territory of Russia with so broad range of assortment
Manufacturer CountryYear of
establishmentHorizontal feed
dispensersVertical feed dispensers
Straw dispensers-
blowers
Dump trailers
Organic fertilizer
dispensers
Wideness of products
assortment
DeLaval
Siloking
Penta
BVL Group
Kuhn
Triolet
Storti
Source: news sites, websites of the companies
1883
1983
1973
1860
1916
1950
1944
OJSC “Novosibirsk Pilot and Experimental Plant of Non-Standard Equipment
OJSC “Slobodskoy Machine Engineering Plant”»
PK “Yaroslavich”
“Zapagromash” LLC and “INTEKH” LLC
Ru
ssia
I. Description of the company
• General information about the Company
• Key products of the Company and main directions of its activities
• Organizational structure and management team
II. Description of the market of agricultural machinery
III. Strategy of the company’s development
Contents
Director -A.G. Pechura
Chairman of the Board of Directors
A.N. Fedyukovich.
Development Director A.A. Mozolyako
Director of the subsidiaries network
V.A. Fedyukovich
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Organizational managing structure of the group of companies “Khozyain” contributes to the effective business conduct
Company management has a rich working experience at the market
Director
Director
Commercial Director
Chief of marketing department
Ivan G. PechuraEducation: Mogilev machine engineering institute, specialty – machine engineering technology, 1975
Institute of National Economy named after Kuibyshev 1985-1987Key working experience:
1981-2002: Deputy Director General of “Zhilkommuntekhnika” Scientific and Production Association2002 – the present time: Director of the Company.
Victor V. KruglyEducation: in 2006 the Academy of Management under the President of the Republic of Belarus, Minsk
Faculty of management (the second higher education), manager of economy1988 – Belarusian Polytechnical Institute, MinskAutomobile and tractor faculty, mechanical engineer
Key working experience:Since 2012 – Deputy Director for production; since 2014 – Director 2001 – 2012: “Lidagroprommash” OJSC – Director.
Andrei R. GorgodzeEducation: Minsk Radiotechnical Institute, specialty – semi-conductors and devices
1997-2001: Belarusian State University – Faculty of Law – jurisprudenceKey working experience:
2010-2013: Commercial Director of “Agromashholding” LLC, RF. Manufacture of Terrion tractors2013 – present time: Deputy Director and commercial director.
Yuri V. SmirnovEducation: Belarusian Economic State University. Executive MBA, Master of economic sciences;
Belarusian Economic State University; faculty of marketing.Key working experience:
2007-2013 Director of “Belorg S” LLC Co.2013 by the present time: chief of marketing and advertisement of the Company
Source: information of the Company
I. Description of the company
II. Description of the market of agricultural machinery
III. Strategy of the company’s development
Contents
Main sales markets are the Russian Federation and the Republic of Belarus
More than 4500 machinery units(predominantly cutters and mixers for feeddispensers) have been supplied to buyers in CIScountries over 15 years of activity. On thebeginning of the year 2015 more than 2000 farmsin Russia, Belarus, Ukraine, Moldova, Uzbekistan,Kazakhstan, Kyrgyzstan and Azerbaijansuccessfully operate the machinery “Khozyain”.
The group of companies “Khozyain” producesproducts in accordance with the balanced demandand offer in CIS states. These companies are theonly manufacturers of horizontal feed dispensersfor preparation and distribution of fodder to cattleby using the self-loading equipment on theterritory of CIS states.
On the whole, sales are growing in the groupof companies (mainly due to sales in the RussianFederation), and the company sees opportunitiesand prospects for its development.
Structure of sales of the Group of companies in 2014, %
58%
3%
39%
Other CIS countries
Belarus
Russia
Dynamics of sales in the group of companies “Khozyain”, pcs.
617504540548
2014201320122011
Source: information of the Company
The Company takes 26% of the Russian market
In the beginning of the 2015 over 2 000 units ofthe “Khozyain” machinery were operated in the RussianFederation. Geography of supplies includes practically allregions of the country, except for the provinces with theunderdeveloped cattle breeding (Murmansk, Magadan,Kamchatka and other provinces).
The established system of work in the RussianFederation made it possible for the Group of companiesto optimize expenditures for sales of the manufacturedmachinery, guarantee and ordinary servicing, to providea high level of access by clients to the requiredconsumables.
Structure of sales in the Russia Federation in 2014 ,%
7%
12%1%
13%
17%
50%
ROUMRVS SSKSRKPSRKISKR
Dynamics of Company’s sales in the Russian Federation, pcs.
241244
284257
201320122011 2014
Share of the Company at the Russian market,%
30%
6%
26%
31%
7%
Импорт
НОЭЗНО
Хозяин
Слободской МЗ
Колнаг
Source: information of the Company, news portals
Russian Federation
High quality of the produced machinery isconfirmed by experts at international exhibitionswith the participation of the group of companies“Khozyain”. In 2015 the innovation model ofdispensers of organic fertilizers РОУМ-14“Khozyain” became the winner of the exhibition«AgroFarm-2015» (Moscow).
In 2009-2013 the company’s productsbecame the winners of the open concourse forthe best agricultural machine “The Best Machinefor Cattle Breeding” in the Russian Federation. In2010-2011 the machinery won the silver medalat the «AgroSalon» exhibition (Moscow), diplomaof the 1st category and the Gold Medal of theinternational agroindustrial week “GoldenAutumn”, the diploma of the internationalexhibition “BelAgro” etc.
Regional structure of sales in the Russian Federation in 2014, %
7%
13%
18%
27%
18%
17%
Central Federal District
Far Eastern and Siberian Federal District
Southern and Caucasian Federal District
Volga Federal District
Northwestern Federal District
Ural Federal District
Source: information of the Company
The market of the Republic of Belarus is the second biggest one, where the Company’s share is equal to 60%
The dynamics of sales in 2011-2014 in the Republic ofBelarus was not practically changed during the wholeperiod.
The market has the steady demand and its consumersare satisfied with the quality of products, the general courseof the state for development of the agroindustrial sector ofthe economy.
The planned expansion of the model row will help thecompany retain its market share in the segment “feeddispenser” at the level of 60% and to increase volumes ofsales due to sales of machinery in the category “semi-trailers”.
Structure of sales in the Republic of Belarus in 2014,%
6%
84%
2%
6%
2%
PSKT
PBC
IBS
ISKR
ROUM
Dynamics of sales in the Republic of Belarus, pcs.
241244
284257
2014201320122011
The market share of the Republic of Belarus,%
30%
60%
10%
Import
Belarusian producers
Hozyain
Source: information of the Company
Markets of the rest perspective CIS countries
Markets of CIS countries are ratherperspective and interesting for the group of“Khozyain” companies: they have got a potentialand opportunities for Company’s profit growth,therefore, since 2012 an active work has beenstarted for study and sales in these regions. As onthe beginning of 2015 the group of “Khozyain”companies sold more than 100 machinery units toCIS states: Ukraine, Kazakhstan, Uzbekistan,Kyrgyzstan, Moldova, Tajikistan.
The big potential at the Ukrainian was notpractically implemented in sales in 2014 due tounstable political situation in this region.
The Kazakhstan market is also perspectivedue to the big cattle number in this country, loyaltyof consumers to machinery of the Belarusian andRussian production.
Structure of sales in CIS in 2014,%
5%
14%
29%
33%
19%Kyrgyzstan
Uzbekistan
Kazakhstan
Moldova
Ukraine
Dynamics of sales in CIS states, pcs.
21
2728
15
2011 20132012 2014
Source: information of the Company
I. Description of the company
II. Description of the market of agricultural machinery
III. Strategy of the company’s development
Contents
The Company has determined the intensive development strategy within the frameworks of the established market and political conjuncture aimed at import substitution and seizure of appearing niches
Purpose of the project
» Implementation of the investment project along with involvement of the foreign strategic partner(competence and technologies plus cofinancing).
Project indicators
» Period of project implementation: 2016-2022.
» Year of payoff: 2022.
» Internal rate of return: 16%
» Volume of the required investments: 10 500 000 EUR.
Project stages
» Construction of a new plant having the area of 21 000 sqm.
» Mastering and output of 18 new types of products of the machine engineering industry for 4branches of economy (agriculture, housing and utilities, civil engineering, forestry industry).
» Production volume increase by 3 times.
Main factors which influence the growth of the market share of “Khozyain” group of companies.
Source: information of the Company
Adopted in 2014 “Strategy of national security of the RF till 2020”, aimed at import substitution;
Devaluation of the Russian ruble which has reduced the purchasing power and sales of expensive imported machinery;
Participation of the Company in state support programs for agricultural equipment manufacturers (resolution of the Government of RF No. 1432, dated 27.12.12, regional programs of subsidies for buyers of machinery made in RF);
Agreement on supplies of machinery with the state leasing operator of PJSC “Rosagroleasing”, as well as regional leasing operators who provide advantageous conditions for lease of “Khozyain” machinery;
Growth of sales volumes of power intensive tractors by other manufacturers of agricultural machinery which will require respective trailed equipment in future;
Planned increase of threshold values of the food safety of the country during 7-10 years planned by the Ministry of Agriculture of the Russian Federation.
Reduction of the rate by the Central Bank of the Russian Federation and, as a consequence, reduction of rates by credits for farmers;
World tendencies for careful farming and organic growing of products will contribute to growth of sales of organic fertilizers dispensing, rather than of mineral fertilizers.
Group of companies “Khozyain” has essential potential of growth
Source: information of the Company
• Own production in the Republic of Belarus and the Russian Federation
• Availability of highly qualified personnel (designers, engineers, service engineers)
• Confirmation with tests and certificates of production quality• Strong, well-known brand with history• Financial stability of the group of companies, diversification of
incomes• Well-established sales network
• Narrow line of output machinery for manufacturers of agricultural products
• Growth of expenditures for maintenance and development of brand, investments to marketing
• Small reserve for reduction of production self-cost.
• Competition level reduction due to adopted strategies of import substitution in RB and RF
• Growth of the number of the used powerful tractors and absence of trailed machinery for them
• Tendencies to careful agricultural production• Participation in state programs of subsidizing , interaction with
national leasing operators, membership in profiled associations and unions
• High loyalty among clients of the group of companies to the trade mark “Khozyain”
• Entry to new markets of CIS and European states
• Growth of warehousing stocks due to unstable markets• Growth of self-cost due to higher prices for raw materials and
components, inflation growth• Reduction of shares of financing the agricultural production by
the state (sales share by programs is less than 30%)
Strengths Weaknesses
УгрозыOpportunities
* - the machinery used in the industry of housing and utilities is also applicable in civil engineering
The project of further Company’s development assumes increased output of products within the existing infrastructure, as well as bringing the new products to perspective markets of the Russian Federation
Strategy of Company’s development
Increased output of products within the existing infrastructure
Bringing the new products to perspective markets of the Russian Federation
458 units
884units
2015 2022
Agriculture
2018 – 66 units2022 – 298 units
Forestry
2018 – 18 units2022 – 92 units
Housing and utilities
2018 – 26 units2022 – 114 units
Total, units:458
2015
705
2018
1 351
2022
It is expected that development and bringing of the self-propelled feed mixer-dispenser will become the key project of the Company
Conditions of project implementation
Currency
Payment terms
Payment to suppliers
Development of design and technical documentationProduction of a pilot sampleCertificationTotal self-costDiscount rate
Result of project implementationNet flowDiscounted net flow
Simple period of recoupmentDiscounted period of recoupment
Required resources
EUR
6 years
2017
50% advance payment, the rest during the subsequent quarter
Calculation horizon
Project beginning
50% advance payment, the rest during the subsequent quarter
318 938
110 3353 00088 10016% per annum (3.78% per quarter)
4 522 2561 792 751
24 months33 months
Design and development work
Working capital formation
909 289
Specifications
Height: by 2.90 mWidth: by 2.60 mVolume of mixing bath: 16-18 m3;Type: 2 vertical augers;Width of the loading mill: 2.0 mTransmission: 4x4 AWDEngine: JOHN DEEREPrice: 130 000 EUR
Source: information of the Company
432 272
477 017
Date of the manufacture beginning: 2018Planned sales volume in 2018: 12 unitsPlanned sales volume during the period from 2018 to 2022: 112 units
Dispenser of liquid organic fertilizers
Date of the beginning of production - 2018.Planned volumes of sales in 2018: 4 unitsPlanned volume of sales during 2018-2022: 106 units.
Cattle-wagon
POWER-PUSH trailers Reloading bins
Date of the beginning of production: 2018.Planned volumes of sales in 2018: 9 unitsPlanned volume of sales during 2018-2022: 127 units.
Date of the beginning of production: 2018.Planned volumes of sales in 2018: 3 unitsPlanned volume of sales during 2018-2022: 90 units.
Majority of new projects has been planned in the segment of agricultural machinery as agricultural companies are the main clients of the “Khozyain” trade mark (1/3)
Date of the manufacture beginning: 2018Planned sales volume in 2018: 4 unitsPlanned sales volume during the period from 2018 to 2022: 72 units
Date of the beginning of production - 2018.Planned volumes of sales in 2018: 10 unitsPlanned volume of sales during 2018-2022: 72 units.
Date of the beginning of production: 2018.Planned volumes of sales in 2018: 3 unitsPlanned volume of sales during 2018-2022: 86 units.
Date of the beginning of production: 2018.Planned volumes of sales in 2018: 3 unitsPlanned volume of sales during 2018-2022: 80 units
Majority of new projects has been planned in the segment of agricultural machinery as agricultural companies are the main clients of the “Khozyain” trade mark (2/3)
Single-axle trailers Double-axle trailers
Three-axle trailers Rolls cutter
Majority of new projects has been planned in the segment of agricultural machinery as agricultural companies are the main clients of the “Khozyain” trade mark (3/3)
Date of the manufacture beginning: 2018Planned sales volume in 2018: 3 unitsPlanned sales volume during the period from 2018 to 2022: 55 units
Date of the beginning of production - 2018.Planned volumes of sales in 2018: 4 unitsPlanned volume of sales during 2018-2022: 60 units.
Spraying trailer Dispenser of mineral fertilizers
Date of the beginning of production: 2018.Planned volumes of sales in 2018: 3 unitsPlanned volume of sales during 2018-2022: 80 units.
Platform trailer
Apart from the market of agricultural machinery the Company is planning to come out to the market of trailers of housing and utilities and construction segments
Date of the manufacture beginning: 2018Planned sales volume in 2018: 12 unitsPlanned sales volume during the period from 2018 to 2022: 90 units
Deicer dispensing sprayer
Date of the beginning of production - 2018.Planned volumes of sales in 2018: 4 unitsPlanned volume of sales during 2018-2022: 96 units.
Hooked trailer
Date of the beginning of production: 2018.Planned volumes of sales in 2018: 7 unitsPlanned volume of sales during 2018-2022: 102 units.
Sweeping and cleaning trailers
The Company also considers the projects of bringing its own products to the market of forestry machinery
Date of the beginning of production - 2018.Planned volumes of sales in 2018: 5 unitsPlanned volume of sales during 2018-2022: 106 units.
Date of the manufacture beginning: 2018Planned sales volume in 2018: 4unitsPlanned sales volume during the period from 2018 to 2022: 71 units
Wood cargo trailer
Short-log trailer
Forest mulcher with a rotor
Date of the beginning of production: 2018.Planned volumes of sales in 2018: 4 unitsPlanned volume of sales during 2018-2022: 83 units.
Increase of nomenclature requires expansion of production premises: in 2018 the Company plans to commission a plant having the total area of 21 000 sqm
Construction / putting into operation and arrangement
The project presupposes land plot arrangement – at least 3 hectaresConstruction of production premises – by 19 800 m2Construction of office and household premises – by 1 200 m2Design works: 2016Civil and installation works, procurement and installation of equipment: 2016 - 2017
Expenditures for putting into operation and arrangement
Design works: 624 000 EURProcurement and installation of equipment: 10 647 000 EUR
The total cost of the investment project is equal to 11 271 000 EUR and it includes design and construction and installation works, provision of all production equipment, adjustment and commissioning of equipment.If already available equipment can be used, the cost of the project will be equal to 8 643 000 EUR.
Production volumes From 458 units of machinery in 2015 to 1 351 in 2022
Net profit from project implementation: –25.5 mln EUR (2015-2022)Production profitability: – 1.4% in 2015, by 23% in 2022
Waiting for profitability
Structure of incomes Profit from sales of manufactured products
FinancingFinancing of the project is planned from the own funds of the project initiator and by attraction of credit resources
Supposed efficiency Discounted period of recoupment (with the comparison rate 16 %) – 6 years since the beginning of project implementation
Amount of investments
Project descriptionManufacturing of agricultural machinery in the industrial park “Phoenix” on the basis of the existing production of “INTEX” LLC. Co., Smolensk
It is expected that implementation of plans for development of the Company will lead to increase of proceeds by 30 mln EUR by the year 2022.
2022
30
2021
26
2020
23
2019
20
2018
+18%
15
2017
11
2016
10
2015
9
Revenue of the Company, mln EUR EBITDA, mln EUR
+53%
2022
8.8
2021
7.5
2020
6.3
2019
4.9
2018
3.3
2017
1.4
2016
1.1
2015
0.5
Comment
» Growth of production capacities and planned bringing of 18 newproducts to the market will provide annual growth of Company’sproceeds by 18% up to 30 mln EUR in 2022.
» EBITDA of the Company is growing with the rate by 53% perannum owing to which in 2022 this indicator will reach 8.8 mlnEUR.
» It is expected that the net profit of the Company will reach 6.5mln EUR in 2022. (71 thousand EUR in 2015)
Net profit, mln EUR
2021
+90%
2019 2022
6.5
4.35.3
20202017
0.9
3.1
2018
1.8
2016
0.6
2015
0.1
Address
“Intensive Technologies” LLCOffice 13, 5, Smolyaninova Street,214031, Smolensk, Russian Federation
Telephone
Anatoly N. Fedyukovich, founder of the group of companies “Khozain”+375 29 676 12 64+7 910 727 59 [email protected]
Alexander A. Mozolyako+375 29 670 70 40 [email protected]
KHOZYAIN
Contacts