Construction of an egg deep processing plant in Tyumen Region

Intesco Research Group has repeatedly developed business plans for large-scale projects. One of such projects was construction of the region’s largest plant for egg deep processing.

The initiator of plant construction and business plan ordering party was the company that was the largest poultry complex for poultry and egg production in the region, supplying products to markets of West and East Siberia, Central Russia and Urals. Project implementation was supposed to be based on operation of large egg-producing farms, private investors’ funds and regional budgetary funds.

The main task of Intesco Research Group was justification of cost effectiveness and working out a plan for plant construction and development.

Planned production volume

According to calculations, with the plant running at its project capacity, the production volume was to be the following:

• liquid egg melange – 14 698.36 tons annually;
• egg shell – 8 126.102 tons annually;
• dry egg yolk (fermented) – 7 606.130 tons annually;
• dry egg white – 2 991.009 tons annually;
• egg powder and fermented egg powder – by 1 690.251 tons annually each.

Investment volume and structure

The rated volume of attracted investment was 2.426 billion rubles. The investment program provided for acquiring by investors of the status of shareholders of the egg deep processing plant, established in the form of a joint stock company, with the number of shares according to the participation.

At the initial stage of project implementation the main investment items were to be the following:

Project effectiveness estimates

During calculations of effectiveness rates the following figures were obtained:

• net income/net present value – 6 596.53 billion rubles/2 490.109 billion rubles;
• simple/discounted pay-back period – 3.38/4.26 years;
• profitability index – 2.06 units;
• internal rate of return – 43.7%;
• breakeven point – 36% or 362.936 million rubles per quarter.

Project development prospects

While estimating project development prospects, specialists of Intesco Research Group stated that in case of successful implementation investor-shareholders would be able to:

• ensure growth of business indices and maximization of production cost;
• increase table egg production scale, preventing over-production risk;
• start producing separate egg products;
• increase the range of products, providing a greater flexibility in relation to needs of market participants;
• start producing dry egg products that do not have such a short life as eggs, which will enable managing egg flows and provide a possibility of processing unclaimed eggs in summer period;
• enter the business-to-business market, in particular, offer products of egg deep processing for fat-and-oil, confectionary and bakery businesses;
• enable the most effective use of circulating and capital assets;
• strengthen the position on sales markets from the European part of Russia to the Far East.

In addition to the above mentioned, it was stated that project implementation will give the opportunity of meeting the region’s needs with internal production of egg products, provide for additional tax revenues to budgets of various levels and give new jobs, which, on the whole, will positively influence the economy of the region and federal district. 

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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