Photo - Property Industry LLC
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Property Industry LLC

Production

Uzbekistan
Market: Logistics and warehouses, Food industry, Production, Another
Stage of the project: Operating business

Date of last change: 26.02.2020
Min investment
$  18.000.000
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Total required
$ 26.000.000
Rating
equalizer из 1000
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Idea

- to grow into a sustainable, agricultural food products provider in the international market place;
- to become a leader in producing and processing fruit and vegetables in Uzbekistan;

Current Status

Nowadays, in this project is already invested more than 18,000,000 US dollars.
- 10,000,000 US dollars was spent for buying equipment and machines for the project. All equipment are buy and nowadays it is implementing process; From this:
1. 10 Hectares modern greenhouses are built and working now; Additionally, 7 Hectares is building now;
2. 3100 tonns cold rooms are build and ready to start;
3. IQF production line - installation process is going on;
4. Sublimation production line - installation process is going on;
5. Jam and marinade production line - installation process is going on;
6. Packaging line - installation process is going on;
- 8,000,000 US dollars was spent for construction and building;
1. Production plant - 174*90 meters.
2. Office - fully equipped with office furnitures;

Market

Current capacity in production and forecast:
Current capacity of production of fruits and vegetables in Uzbekistan is 16 million tons per year;
The volume of production is expected to increase by 5 million tons by 2020.
Operational weakness in the market:
Only 15% of fruits and vegetables are processed in Uzbekistan, a high degree of wastage;
High price fluctuations during on- and off- seasons based on market demand;
The actual capacity of storage of refrigerated warehouses is only 5% of the national harvest.
Opportunities / market demand:
The government aims to increase the efficiency in storing the agricultural products;
The capacity of refrigerated warehouses are demanded to increase;
The demand for modern machinery, processing equipment and cooling technologies is growing.
Strength of the chosen business area:
Our product is viable; therefore, the development and growth plans of the project are credible;
The balance of risk against expected profits justifies the investment;
Average selling price of fruits and vegetables during yield season starts from 0.33 up to 0.9US$ per kg in Uzbekistan, based on type and variety.
Same fruits and vegetables are sold for at least for 1 US$ per kg in the world market.

Problem or Opportunity

Nowadays main issue is:
- Lack of money for the operational expenditures;
- No have experience in world market;
Opportunity is:
- It is new kind of business in its region and fully equipped with production lines;
- Agrosphere is the main profitable spheres;

Solution (product or service)

1. If the investor wants, he/she can invest the full amount of the project and fully operate by himself.
2. If the investor wants, he/she can invest necessary amount for the project and can be as like chairman of the company.
3. If the investor wants, he/she can invest some amount for the project and it will be opened Joint Venture company with the investor.

Competitors

The main compitor for this business is Turkey, Iran and China. But In Central Asia its a unique business.

Advantages or differentiators

There are many advantages this kind of business. We have more than ten years experience in Agro sphere. Especially, in Greenhouses. That's why we are sure that Agro sphere is the main profitable spheres in the world.

Finance

Cost of the project - 26 million US Dollars.
Currently invested - 18 million US Dollars.

Our remaining financial needs - 8 million US Dollars

2 million US Dollars for facilities and completing the construction.
6 million US Dollars for working capital.

Business model

OPEN MARKET IN FRUITS AND VEGETABLES PROCESSING SECTOR
RESEARCH BASED ON KNOWLEDGE OF MARKET DEMAND
SUSTAINABLE PRODUCTS BREADED BY ENVIRONMENTALLY FRIENDLY MINERALS
CORRESPONDING TO HIGH INTERNATIONAL STANDARDS / HOLDERS OF SEVERAL CERTIFICATES: 1. ORGANIC; 2. GLOBAL GAP; 3. ISO 22000.
EXCELLENT KNOWLEDGE OF THE AGRICULTURAL BUSINESS
CONSTANTLY INNOVATED CROPS & MACHINERY, MODERN MARKETING APPROACH AND ADVANCED TRAININGS FOR OUR SPECIALISTS.
EQUAL EMPLOYMENT OPPORTUNITY / PROMOTION OF WOMEN’S RIGHTS IN THE WORKPLACE
44 TYPES OF AGRICULTURE (fruits, vegetables, nuts & beans), MORE THAN 300 VARIETIES
CROP RIPENING PERIOD: FROM MARCH - NOVEMBER
PEAK OF THE HARVESTING PERIOD: SUMMER - AUTUMN

Money will be spent on

- For the operational expenditures;
- For buying vehicles;
- For finishing small parts of construction;

Offer for investor

Benefits for investors are as follows:
Starting from July 1, 2005, enterprises of priority economic sectors that attract foreign direct investment are exempt from corporate income tax, property tax, single tax payment for micro firms and small enterprises, as well as mandatory contributions to the Republic`s road fund.
These tax benefits are provided with the volume of direct private foreign investment:
Investments from 300,000 US Dollars to 3 million US Dollars – are exempt from tax payment for a period of 3 years;
Investments exceeding 3 million US Dollars to 10 million US Dollars – are exempt from tax payments for a period of 5 years;
Investments exceeding 10 million US Dollars – are exempt from tax payments for a period of 7 years.

Team or Management

Risks

Thailand, Bangladesh, and India are leading suppliers of dried tropical fruits to Europe.
Developing countries like Ecuador (dried bananas and plantains), Pakistan (dried tamarind and other tropical fruit), Cameroon (dried papayas), South Africa (dried papayas and dried mango), Sri Lanka (dried plantains), Ghana (dried mango) and Burkina Faso (organic dried mango) are also gaining European market share.

Incubation/Acceleration programs accomplishment

OPEN MARKET IN FRUITS AND VEGETABLES PROCESSING SECTOR
RESEARCH BASED ON KNOWLEDGE OF MARKET DEMAND
SUSTAINABLE PRODUCTS BREADED BY ENVIRONMENTALLY FRIENDLY MINERALS
CORRESPONDING TO HIGH INTERNATIONAL STANDARDS / HOLDERS OF SEVERAL CERTIFICATES: 1. ORGANIC; 2. GLOBAL GAP; 3. ISO 22000.
EXCELLENT KNOWLEDGE OF THE AGRICULTURAL BUSINESS
CONSTANTLY INNOVATED CROPS & MACHINERY, MODERN MARKETING APPROACH AND ADVANCED TRAININGS FOR OUR SPECIALISTS.
EQUAL EMPLOYMENT OPPORTUNITY / PROMOTION OF WOMEN’S RIGHTS IN THE WORKPLACE
44 TYPES OF AGRICULTURE (fruits, vegetables, nuts & beans), MORE THAN 300 VARIETIES
CROP RIPENING PERIOD: FROM MARCH - NOVEMBER
PEAK OF THE HARVESTING PERIOD: SUMMER - AUTUMN

Won the competition and other awards

PROPERTY AGRO LOGISTICS - created under existing company PROPERTY INDUSTRY.
PROPERTY INDUSTRY is a company that has 15 years of experience in production, chemical industry, sales and international import & export.
Since 2005, actively performing in the agricultural sector.
Since 2013, PROPERTY INDUSTRY is successfully realizing construction of the first, modern, agro logistics center - PROPERTY AGRO LOGISTICS in Uzbekistan.
In 2014, PROPERTY INDUSTRY signed a contract with ASTRA INDUSTRIAL COMPLEX, Ltd, Saudi Arabia, and became the official distributor in Uzbekistan
Managers & specialists are trained in Special American Business Training Program (U.S. Department of Commerce).
Senior chief is a frequent participant in MACFRUT exhibition at Rimini, Italy (event focusing on fruit and vegetable industry and as a network for B2B projects).

Photos

Photo 1 - Production
Photo 2 - Production
Photo 3 - Production
Photo 4 - Production
Photo 5 - Production
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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video