Profitability of the project
Project location
Production / capacity
from 5 to 7 thousand tons per year of indoor vegetables (mainly tomatoes), the sales structure is as follows: Domestic market – from 2,500 to 3,500 tons (or 50%) Exports to the Russian Federation – from 2,500 to 3,500 tons (or 50%)
Investment attractiveness of the project
The amount of investments is 20 380 mln. tenge
NPV – 1,255 thousand US dollars
IRR –17,6%
The payback period of the Project is 6.1 years
The discounted payback period is 9.7 years
Project
The project provides for the construction of a modern greenhouse complex with a total area of 10 hectares (including an area of 8.9 hectares) for growing tomatoes. The project is planned to be implemented within the city limits of Ust-Kamenogorsk on the territory of a former greenhouse complex in the Sogra district. It is planned to build new modern greenhouses using Dutch technology. Project objectives: Creation of export-oriented production. Satisfaction of consumer demand for vegetables in the spring and winter period.The Company's goals are to maximize profits from the implementation of the project while maintaining the social significance of the project.
Company
The initiator of the project is Nomad Agro Land LLP, which is the founder of BRBAPK LLP, an operating greenhouse complex with an area of 11.8 hectares located in Almaty. Further, the definition of "Initiator of the project" will also mean BRBAPK LLP within the framework of existing experience in the greenhouse market. BRBAPK LLP was founded in June 2014 specifically for the purpose of implementing the greenhouse complex construction project. The construction was carried out from 2014 to October 2016. In September 2016, the seedling department was launched. The first harvest of the greenhouse complex was received in November 2016. The greenhouse complex of BRBAPK LLP is a modern technological complex using advanced technologies for the production of vegetables without soil.
Market
Sales markets: Varieties of vegetable products grown in a greenhouse are characterized by high shelf life and transportability, therefore, delivery to any regions of Kazakhstan and Russia is possible. Among the Company's priority sales markets are adjacent regions of Russia, where prices for cucumbers and tomatoes are on average 20-30% higher than average prices in Kazakhstan. It is planned to ship 50% of the products for export. According to the Bureau of National Statistics, the highest retail prices in the off-season were in northern and central Kazakhstan, including Astana. Thus, in addition to the Zhambyl region, these regions are of the greatest interest in terms of selling greenhouse products on the domestic market. Astana is the most attractive market in the northern region. The market of greenhouse products in Astana is less competitive compared to the southern capital. In addition, sales prices for fruit and vegetable products are up to 30% higher than prices for similar products in Almaty.
Investment proposal
The Project requires financing in the amount of 20 380 mln. tenge:
· Investments from Nomad Agro Land LLP - 3.8%;
· Investments from the Chevron Dif - 47 CHEKA%
· contribution of Center Project LLP – 2.1%
Required investments – 47% or 9 568 mln. tenge
The proposed financing structure and government support measures are indicative, the final structure
of financing and participation in the Project is determined based on the results of joint negotiations with investors.
What is the attractiveness of the project
Environmentally friendly products and year-round harvest. Growing vegetables in compliance with environmental cleanliness without the use of genetically modified materials is an advantage compared to imported tomatoes and allows you to occupy a certain niche in the consumer basket. Heating and artificial lighting systems ensure year-round harvesting.
Import substitution. Available infrastructure for greenhouse production: thermal energy (return) Sogrin thermal power plant, connected electric power lines.
Geographical location. The developed and extensive railway system existing in the region makes it possible to organize both the supply of raw materials and delivery to neighboring countries and abroad.
Automobile access roads connect the complex with highways of republican and regional significance, with access to the nearby regions of Kazakhstan and the Russian Federation.