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UNP 300125187 
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Copyright 2005-2019 Open join-stock company "Vitebsky zavod elektroizmeritelnykh priborov"

Investment Offer

  1. General information about the project
  2. Project name: Creation of high-productive assembly production of electric devices in JSC VZEP for 2017-2020 years
  3. Project branch: mechanical engineering mechanical engineering
  4. Project location: Vitebsk, Republic of Belarus, Ilyinsky St., 19/18 (the investment project provides placement of an object on the operating areas of the production case No. 1 of JSC VZEP; the area – 10 908,9kv. m; accession number 200/S-43761; appointment – the building specialized for production of the electrotechnical, electronic and optical equipment; certificate No. 200/1083-917 on the state registration of December 5, 2013)
  5. Project description (the essence of the investment project, prerequisites, goals, what is expected from investor, why can the project be of interest to investor)

Purpose: Creation of the high-productive assembly production of electric devices corresponding to the average European level.
Prerequisites: JSC VZEP is leading enterprise in Republic of Belarus on development and production of the electric devices used in the to automotive and tractor vehicles, aircraft, an energy drink, housing construction and on industrial enterprises.
Tasks: Modernization of the operating production, automation of the operating processes for the purpose of improvement of quality, decrease in product cost and preserving competitive capacity on the operating wounds and gaining new.
Appeal of the project: The business plan is developed. Presence at the entity of a stable order portfolio, wide experience in the sphere of production of electric devices, availability of qualified personnel, own control testing facilities, it is implemented and the quality management system corresponding to STB ISO 9001-2009, ISO/TS16949:2009 is enhanced

  1. Project implementation period and stages, including the expected project implementation starting date

The project implementation period - 2017 - 2020 years without stopping productions.
Term of input of the equipment: annually from 2018 to 2020 years
Exit to design capacity – 2023 year.
Project stages:
- development of the design estimates;
- carrying out SMR;
- equipment procurement;
- commissioning;
- commissioning;
- personnel training.

  1. Degree of the project readiness (availability of business plan, feasibility study, marketing research or other preparatory work/studies carried out (or in progress) and the date, when they were prepared)

The Business plan approved with JSC «BATE» — managing company of the Holding «Automotive components» and the Ministry of Industry of the Republic of Belarusis developed, marketing researches of the markets are conducted.
The engineering organization for integrated management of the investment project - the Affiliated republican unitary enterprise "Gosstroyinzhiniring", (the certificate on the state registration of the legal entity, is issued based on the decision of the Minsk Executive Committee of the City Soviet of People's Deputies of 06.01.2010 and is brought in the Single state register of legal entities and individual entrepreneurs, the registration number 191294299)

  1. Information about the project initiator
  2. Organization full name: Open joint-stock company «Vitebsky zavod elektroizmerytelnykh priborov»
  3. Registration date: it is registered by Administration of Zheleznodorozhny district of Vitebsk 11.01.2010 in the Single state register of legal entities and individual entrepreneurs for No. 300125187
  4. Authorized fund structure, %:

Legal entities:

Share

- state ownership form

 

- private ownership form

100

Individuals

 

  1. Description of the market of the product intended for manufacture
  2. Description of the product intended for manufacture:
  3. product name and description:

- devices for onboard network of cars and tractors (indexes, guards of devices, combinations of devices, speedometers and tachometers electronic, takhospidometra);
- measuring converters of electrical quantities (current, tension, frequency, active and jet capacity),
- temperature measuring instruments digital;
- electric power counters multitariff electronic single-phase, three-phase;
- panel board small-sized devices of alternating current (ampermeters, voltmeters, frequency meters, transformers, electric thermometers).
2. main consumers:
Belarus: JSC Amkodor, JSC MZKT, JSC MAZ, JSC MTZ, JSC BELAZ.
Russia: JSC GAZ, JSC AZ Ural, PJSC KAMAZ, JSC Kurganmashzavod, JSC Saransk Instrument-making Plant, JSC Elektroagregat, JSC Zhukovsky Engineering Plant, JSC NPK Ural Carriage-Building Plant
Ukraine: PJSC AvtoKrAZ, JSC Kharkiv Tractor Plant.
3.main competitors (producers of similar product performance goods):
JSC "Autopribor", Vladimir, Russia, "Autopribor" Oktyabrsky, Russia, JSC "Rizhsky zavod autoelektropribor" Riga, Latvia.

 

  1. Domestic market description
  2. current market capacity (over the latest reporting period, please, specify the year):

11 381 th. USD

  1. prospective domestic market share: 69 %
  2. strategy for operating in the domestic market:

lower prices
better product quality
better service
state support (protection from import, guaranteed state public purchases and other support)
other (specify)


  1. state regulation (price regulation, licensing of the activities etc.): certification of measuring instruments certification of measuring instruments
  2. return on sales (%): 7,8 (in 2020 year);
  3. market concentration degree (approximate total market share of five largest market players, %): 100.
  4. other (specify): text entry space.
  5. External market description

1. Estimated sales volume distribution by core regions, %:


EEU countries (Eurasian economic union)

Incl. Belarus market

EU countries

Other countries

99,1

66,6

0,2

0,7

  1. Does the company have experience in exporting to these countries: ▲ yes;  no
  2. Do other Belarusian producers export these products to the main target markets?

yes; no

  1. Description of available infrastructure

Railways and motor drive ways:
company’s own branch railway
Belarusian Railway line (distance from the site, km):      
▲ state motor roads (distance, km): 14
other roads with improved surface (distance, km):      
Communications:
electricity network (voltage: 220/380, distance, km: 7)
▲ water pipeline
▲ gas pipeline
Land plot and manufacturing facilities:
▲ land plot availability (area: 12.2639, purpose of use: placement of real estate objects, communications)
▲ presence of constructions (area: 64100,83, purpose of use: m2, purpose of use: 58 buildings of operating purpose, 1 hostel, isolated dinig room, isolated room of civil defense)
Other infrastructure:
▲ warehouses, logistics terminals (area: 7300 m3, description manufacturing warehouses)
▲ possibility of production expansion and installation of additional production capacities
possibility of construction of the necessary infrastructure via state budgetary financing (description: text entry space)
Other (specify): text entry space

  1. Key advantages of the project
  1. The developed brand
  1. Profile personnel
  1. Supply network of raw materials and accessories
  1. Commodity distribution network
  1. The non-saturated market offered for production in the Republic Belarus
  1. Entry into the market of EEU
  1. The guaranteed order amounts (from the entities (state and private))
  1. Possibility of use of local raw materials availability of valid patents, licenses, permissions

 

  1. Project financing

A. Total investment amount: 6 688 th USD
B. Investment sources/ Sources of funding:

 

Source

Amount

Own resources

2 588 th USD

Investor’s resources

     

State financing

     

Grants

     

Long-term loans

4 100 th USD

Short-term loans

     

Other (specify):

     

     

     

Total:

6 688 th USD

С. Investment resources allocation:
▲research and development
infrastructure development
▲ construction
purchase of real estate
▲ purchase of equipment, technologies, licenses
▲ preparation of production
working capital financing
▲other (specify):


personnel training

  1. Form of investor participation in the project:

Forms of investor participation

Investor’s share in authorized fund under the intended participation form, %

Contribution to the authorized fund of a newly established enterprise

     

Purchase of shares (share in the authorized fund) of the existent enterprise

     

Purchase of the enterprise as an asset complex

     

Additional issue of shares for selling to investor

     

Other (specify):

Additional share issue for sale to the investor

50

Entering not of a money deposit into an authorized capital in the form of the necessary equipment

50

     

  1. Preliminary indicators of the project efficiency

Indicator

Value

Time horizon (settling period, the number of years)*

14

Annual revenue (excluding VAT, after reaching the project capacity), USD

25465 th

Period for reaching the project capacity, years

7

Pay-back period, years

10

Dynamic pay-back period, years

11

NPV**, USD

3712.88 th

IRR**, %

1.241

Discount rate***, %

7

Base period / year

2016

* Time horizon validation:

 

 

** IRR and NPV are indicated as of year 2030 of the project implementation.

 

*** Discount rate validation:

 

Date of calculations conducting: 10/12/217

  1. Contact information

 

Contact person (name, position)*: Kolpakov Vladimir, chief engineer
Phone +375 212 660817 mob.: +375 25 6009515
Fax: +375 212 665810
E-mail: vzep.info@gmail.com
Website: www.vzep.vitebsk.by
Date of the investment offer preparation: 26/01/2018

Contact person (name, position)*: Strelsky Andrey, deputy director on economics
Phone: +375 212 665583 mob.: +375 25 6932441
Fax: +375 212 665810
E-mail: vzep.info@gmail.com
Website: www.vzep.vitebsk.by
Date of the investment offer preparation: 26/01/2018

 

* If the form is filled in by another person, please, indicate contact information of the executor as well

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