Factory for producing leather products

Project name Factory for producing leather products

Location of the project Krylovsky district

Industry classification Consumer sphere

Basic information about the project

Project essence The main direction will processing wet-salted hides of cattle till stage cordivan semifinished products “Wet blue”

Project purpose Issue cordivan semifinished products “Wet blue” from wet-salted hides of cattle easy, middle and hard weight wet-salted conserving method by Italy technology according with European standarts ,

Project capacity Sale semifinished «Wet blue» - 115 000 units in a year; Processing customer-owned raw materials – 75 000 units in a year.

Consumer market description Potential buyers are Russian and foreign enterprises of light industry

Object construction term 1 year

Competitive advantage «Wet blue» is raw material for producing different types of leather that used during sewing dresses, furniture and footwear.

Resource availability for project realization Provide of energy carrier

Planned volume of resource consumption (annual)

Planned volume of electricity consumption (annual), MW 0,685

Planned volume of gas consumption (annual), million cubic meters 0,241

Planned volume of water consumption (annual), million cubic meters 0,380

Degree of project development Created business plan, formed ground area, investor searching

Financial estimation of the project

Total cost of the project, mln rubles 31,0

Own resources, million rubles -

Means of regional (municipal) budget, million rubles -

Previously involved means, million rubles -

Investment capacity, mln rubles 31,0

Conditions of investor participation Direct investment

Form of investments return monetary

Payback period 2 years

Basic indicators of investment project economic efficiency

Net present value (NPV) 55,714 mln.rur.

Simple payback time 2 years

Discounted payback period 5 years

Internal rate of return (IRR) 30 %

Productivity index (PI) 1,51

Income 60,7 mln.rur.

Social efficiency of investment project

Number of workplaces 39

Salary average level 8346 RUR

Budgetary efficiency of investment project

Mid-annual tax payments, million rubles 17,2

which includes into consolidated budget of the krai, million rubles 8,5

Land characteristics

Location Krylovskaya district, Kugoeiskaya vill, Stalingradskaya street, industrial area

Cadastral number of quarter 23:24:0204311

Land plot area (m2) 10 000

Ground categories Lands of settlements

Kind of permitted use Construction enterprise for producing leather

Actual use Free area

Availability of buildings, structures, constructions Doesn’t exist

Authorizations, urban planning documentation Scheme territorial planning municipality Krylovskaya district (in development stage) prepared by OJSC “Institute of territorial development of Krasnodar region”

Information on proprietor (franchisor) of ground area

Proprietor state ownership

Franchisor Municipality Kugoeyskaya village

Right kind state ownership

Data on encumbrances

Kind of encumbrances, restrictions no

Area of encumbrances no

Characteristics of existing engineering infrastructure

Infrastructure type Capacity, diameter Distance to the connection point (m)

Power supply It is necessary construction substation 35/10 kV or 110/10 kV: electro line 35 kV electro line 110kV 460 540

Gas supply high pressure supply lined = 219 mm, 6 bar., 1335

Water supply Construction artesian well In board of land area

Sewerage system Construction of waterproof sludge digestion plant In board of land area

Telephone penetration - -

Cost of maintenance of ground area with engineering infrastructure (million rubles) rough: Electric supply: 0,195 Gas supply: polyethylene – 0,280 Metallic – 0,037 Water supply: 0,080 telephonization: 0,060 Cost of road: 0,234

Additional information on ground area

Special conditions relief is quite Collapsing soil of the I type Level of subsoil waters – 6-7 meters domination wind direction: East, North-East; seismicity: until 6 points.

Cost of rent/repayment of ground area (million rubles) 0,452 / 1,9

Notes Population of Kugoeiskaya – 2470 persons.

Distance up to the large residential places and objects of transport infrastructure

Remoteness from Name Distance (km)

Municipality center Krylovskaya vill. 28

Center of federal subject Krasnodar city 208

Highway (regional, federal significance) M4 13

Roads of local significance - 0,15

Nearest railway station Railway station Krylovskaya 40

Nearest railway lines Railway station Krylovskaya 40

Airport Rostov-on-Don 185

Seaport Eisk 158

Contact information

Information on project proponent no

Information on applicant Administration of municipality Krylovskaya district 352080, Krylovskaya village, Ordzhonikidze st. 43, tel. /fax(86161) 31-4-84/31-3-73 ; official web-site: www.krilovskaya.ucoz.ru, Ubiyko Sergey Ivanovich – Head of municipality Krylovskaya district,

Basic information about the project
Project name	Factory for producing leather products
Location of the project	Krylovsky district
Industry classification	Consumer sphere
Project essence	The main direction will processing wet-salted hides of cattle till stage cordivan semifinished products “Wet blue”
Project purpose	Issue cordivan semifinished products “Wet blue” from wet-salted hides of cattle easy, middle and hard weight wet-salted conserving method by Italy technology according with European standarts ,
Project capacity	Sale semifinished «Wet blue» - 115 000 units in a year; Processing customer-owned raw materials – 75 000 units in a year.
Consumer market description	Potential buyers are Russian and foreign enterprises of light industry
Object construction term	1 year
Competitive advantage	«Wet blue» is raw material for producing different types of leather that used during sewing dresses, furniture and footwear.
Resource availability for project realization	Provide of energy carrier
Planned volume of resource consumption (annual)
Planned volume of electricity consumption (annual), MW	0,685
Planned volume of gas consumption (annual), million cubic meters	0,241
Planned volume of water consumption (annual), million cubic meters	0,380
Degree of project development	Created business plan, formed ground area, investor searching
Financial estimation of the project
Total cost of the project, mln rubles	31,0
Own resources, million rubles	-
Means of regional (municipal) budget, million rubles	-
Previously involved means, million rubles	-
Investment capacity, mln rubles	31,0
Conditions of investor participation	Direct investment
Form of investments return	monetary
Payback period	2 years
Basic indicators of investment project economic efficiency
Net present value (NPV)	55,714 mln.rur.
Simple payback time	2 years
Discounted payback period	5 years
Internal rate of return (IRR)	30 %
Productivity index (PI)	1,51
Income	60,7 mln.rur.
Social efficiency of investment project
Number of workplaces	39
Salary average level	8346 RUR
Budgetary efficiency of investment project
Mid-annual tax payments, million rubles	17,2
which includes into consolidated budget of the krai, million rubles	8,5
Land characteristics
Location	Krylovskaya district, Kugoeiskaya vill, Stalingradskaya street, industrial area
Cadastral number of quarter	23:24:0204311
Land plot area (m2)	10 000
Ground categories	Lands of settlements
Kind of permitted use	Construction enterprise for producing leather
Actual use	Free area
Availability of buildings, structures, constructions	Doesn’t exist
Authorizations, urban planning documentation	Scheme territorial planning municipality Krylovskaya district (in development stage) prepared by OJSC “Institute of territorial development of Krasnodar region”
Information on proprietor (franchisor) of ground area
Proprietor	state ownership
Franchisor	Municipality Kugoeyskaya village
Right kind	state ownership
Data on encumbrances
Kind of encumbrances, restrictions	no
Area of encumbrances	no
Characteristics of existing engineering infrastructure
Infrastructure type	Capacity, diameter	Distance to the connection point (m)
Power supply	It is necessary construction substation 35/10 kV or 110/10 kV: electro line 35 kV electro line 110kV	460 540
Gas supply	high pressure supply lined = 219 mm, 6 bar.,	1335
Water supply	Construction artesian well	In board of land area
Sewerage system	Construction of waterproof sludge digestion plant	In board of land area
Telephone penetration	-	-
Cost of maintenance of ground area with engineering infrastructure (million rubles)	rough: Electric supply: 0,195 Gas supply: polyethylene – 0,280 Metallic – 0,037 Water supply: 0,080 telephonization: 0,060 Cost of road: 0,234
Additional information on ground area
Special conditions	relief is quite Collapsing soil of the I type Level of subsoil waters – 6-7 meters domination wind direction: East, North-East; seismicity: until 6 points.
Cost of rent/repayment of ground area (million rubles)	0,452 / 1,9
Notes	Population of Kugoeiskaya – 2470 persons.
Distance up to the large residential places and objects of transport infrastructure
Remoteness from	Name	Distance (km)
Municipality center	Krylovskaya vill.	28
Center of federal subject	Krasnodar city	208
Highway (regional, federal significance)	M4	13
Roads of local significance	-	0,15
Nearest railway station	Railway station Krylovskaya	40
Nearest railway lines	Railway station Krylovskaya	40
Airport	Rostov-on-Don	185
Seaport	Eisk	158
Contact information
Information on project proponent	no
Information on applicant	Administration of municipality Krylovskaya district 352080, Krylovskaya village, Ordzhonikidze st. 43, tel. /fax(86161) 31-4-84/31-3-73 ; official web-site: www.krilovskaya.ucoz.ru, Ubiyko Sergey Ivanovich – Head of municipality Krylovskaya district,