Industry: Berry Region: Russia Deal price: $1 million Deal Method: equity investment
Prerequisites:
• 23% of fresh fruits and berries for the population of the Russian Federation
● Lack of Siberian cultural berries with useful nutritional properties
● The market relies on the harvest of wild plants and the lack of artificial berries
Project Objectives:
● Establish a fruit and pulp orchard for growing Siberian berry crops
● The production plan includes laying -- an orchard of 987 hectares (with plans to expand to 2,000 hectares in the future),
Among them: 454 hectares of seabuckthorn, 533 hectares of honeysuckle.
● Use efficient breeding materials in land reclamation, drip irrigation, raw material processing and storage,
Advanced technology
Status:
● Long-term use of land for the execution of the project
● A land reclamation project, a drip irrigation project and an orchard laying project have been developed
● Select equipment to ensure optimum growing conditions for designed crops
● Land preparation is underway, with plans to begin laying the orchards in the fall of 2020
Potential consumers:
Vitamin manufacturers: Altayvitaminy CJSC, Ufa Vitamin Factory,Schelkovo Vitamin Factory
Raw Berry food manufacturer: LLC NPF Altai Bouquet,SAVA Tomsk, Dikorosprom Wholesale and retail Trade network
Investment advice: Plan to invest 200 million rubles in exchange for shares.
Investment period: 4 years
The total cost of the project is 108 million rubles
The net present value is 53 million rubles
Investment objectives - construction and installation works, equipment, working capital
Investor yield (IRR) :19.5%
Payback period (PB) :4.8 years