Offer to the investor
Total project cost: 85 mln RUB
Capital planned to be raised: 30 mln RUB and above
Investment purposes: construction and equipment of production facilities
Available investment options: any possible investment options will be considered
Internal rate of return (IRR): 22%
Planned payback period: 6 years
The global healthy lifestyle tendency creates the demand for organic fruit and berries. The global frozen fruit market demonstrates stable growth index of +4.6% The Russian Federation beats the global average CAGR of shock-frozen fruit production: for six years, it reached 39%. The major share of the market is occupied by manufacturers from Central and Siberian Federal Districts. However, shock-frozen fruit and berry production in the territory of Yenisey Siberia is not developed.
There are 30 thousand people in the Republic of Tyva to engage in the wild-growing berry harvesting; the forests cover the area of 8,070.9 thousand hectares. The current berry harvesting volume is 1,687 kg. However, the annual harvesting potential is 3.2 thousand tonnes of cowberry, 2.4 thousand tonnes of blueberry/bilberry, and 0.3 thousand tonnes of sea buckthorn.
The project implies the construction of shock-frozen wild-growing fruit and berry (cowberry, sea buckthorn, cranberry, and bilberry) production for sales through the retail outlets of Russia and foreign countries.
The company deals with harvesting, processing and packing of the wild-growing berries. The berries and fruits are harvested by the local citizens on their own and accumulated in the reception points to be delivered to the processing centre for shock freezing. The annual fruit and berry production volume constitutes 1.5 thousand tonnes.
The most preferable location would be the city of Kyzyl, attractive both from the labour resources and transport accessibility perspectives.
At the moment, the project is at the idea stage. The production technology 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.
Republic of Tyva