Offer to the investor
Total project cost: 177 mln rub
Capital planned to be raised: 60 mln rub and above
Investment purposes: organization of potato cultivation, construction and equipment of the modified potato starch production workshop
Available investment options: any possible investment options will be considered
Internal rate of return (IRR): 33%
Planned payback period: 5 years
Russian modified starch market features a positive development tendency. Having a great development potential, the modified starch market of the Russian Federation is growing at a high pace of CAGR 30%. The domestic modified starch demand is growing at CAGR of 9%; at the same time, the majority of Russian regions have no modified starch production facilities of their own, as the main producers are concentrated in South and Central Federal Districts of the country.
The project implies organization of modified potato starch production for the use in the food, cellulose and paper, pharmaceutical, oil and gas industry, as well as the production of potato fibre and liquid fertilizers for agricultural purposes. The product is intended, first of all, for the satisfaction of the growing modified starch demand both in the traditional and new markets, and reduction of import dependence.
The production facility may be located in Krasnoyarsk Region. The total area of the regular sowing and chestnut soils is 1497 thousand hectares. All in all, 742 thousand tonnes of potato is produced in Yenisey Siberia and 628 thousand tonnes are produced in Krasnoyarsk Region. Selected potato may be introduced into the cropping systems of Minusinsk, Karatuz, and Shushenskoe Districts, as they possess the region’s largest sowing areas and the potato production expansion capacity.
At the moment, the project is at the idea stage. The modified potato starch production flowchart has been developed, the raw material stock has been defined, the main financial parameters of the project and the sales channels have been determined.
Depending on the sufficiency of the assets and finance owned by the investor, Yenisey Siberia Development Corporation may offer the best fitting project financing plan involving the governmental financial support options.
The project was developed by Strategy Partners group with the support of Sberbank.