Construction of an enterprise for SKD assembly of special vehicles in Vladivostok

With growing construction volumes in the Far East of Russia, production of special vehicles becomes an increasingly profitable business. This aim was set by a businessman from Vladivostok, who filed a request with Intesco Research Group to have a business plan. He plans to create an enterprise which will have uninterruptible production of special vehicles to meet demands for high-quality vehicles of construction, mining, industrial organizations of the region at affordable prices. Putting trust in experience of Intesco Research Group in development of large-scale business plans, the businessman addressed our company.

Thus, specialists of Intesco Research Group had a task of developing a business plan, the aim of which was justification of cost effectiveness of organizing a business for assembly of special vehicles, as well as working out the creation and development program for the future enterprise.

Project aim and tasks

Employees of Intesco Research Group, working in close cooperation with the customer, stated clear aim and tasks of the project under planning. The aim was creation of an enterprise for SKD assembly of special vehicles of the following kinds: truck-mounted concrete pumps, bulldozers and excavators, in Primorsky Krai, the city of Vladivostok. The project suggested new construction and organization of assembly of special vehicles. The list of tasks included the following items:

• Max. fast reaching of planned capacity.
• Use of advanced technologies and modern equipment.
• Production of high-quality products and establishing competitive prices for them.
• Winning over and keeping the most part of the regional market of consumers.
• Conducting a thought-out production and sales policy that meets the aims of the enterprise.
• Conducting an advertising campaign and product promotion policy.
• Development and expansion of the Enterprise to the economically feasible scale.
• Entry to foreign markets, organization of partnership with the People’s Republic of China.
• Creation of jobs and pumping up the budget of the local and federal levels.

Conditions required for successful project implementation

The basic condition for successful implementation of the project was organization of uninterruptible supplies of components for assembly of vehicles and sales of ready products. Having studied the market of demand and supply, we suggested that components for assembly of vehicles be supplied primarily from China in the form of ready SKD sets and assembled in an assembly workshop in the territory of the plant. Due to the convenient location of the plant close to China, delivery of components will be effected in minimum terms, while a great number of suppliers will provide a wide range of required products.

Project implementation will require construction of workshops for assembly of special vehicles, administrative and warehouse rooms in the territory of the total area of 18 hectares.

Besides, during project implementation it is necessary to take into account a number of aspects for its further development. It requires:

• creation of a network of service centres and a warehouse of spare parts;
• attracting, at the initial stage, enterprises of adjacent industries for purchase of components;
• further localization of production and manufacturing of the company’s own components;
• creation of warehouse stocks of products;
• creation of an educational centre for training of the technical personnel;
• expanding the range of products with account for consumer demand;
• opening new lines for assembly of products;
• creation of an extensive network of dealer centres in the territory of RF.

Volume and structure of investment in creation of a plant for assembly of special vehicles

Calculations showed that project implementation will require investment in the volume of 1 257 980 thousand rubles. The basic part of investment will be required to purchase components of special vehicles. The financing structure is the following:

During development of the business plan the investing bank was already known, therefore all calculations were conducted with account for the following terms:

• annual interest rate – 12%;
• standstill on interest payments – 1 quarter;
• standstill on principal payment – 4 quarters.

Project effectiveness rates

Having conducted all calculations, specialists of Intesco Research Group received the following effectiveness rates for the project on creation of an enterprise for SKD assembly in Primorsky Krai, the city of Vladivostok.

You can order development of a business plan for your project by calling at +7 (495) 212-91-91 or filling in a request at the website, after which our manager will call you.

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