Creation of a modern warehouse complex in the industrial zone “Mishkovo” of the town of Obninsk, Kaluga Region, Russian Federation

One of the most labour-consuming project in development of business plans by Intesco Research Group was creation of a modern warehouse complex in the industrial zone of the town of Obninsk of Kaluga Region. Implementation of the project suggests construction of a modern warehouse, a refrigerator warehouse, an office centre, as well as development of the required infrastructure and purchase of innovative technological equipment. The multitude of project elements required special attention and deep understanding of the customer’s business on the part of the developers. 

Basic information about the warehouse complex construction project

The aim of the business plan was to justify the cost-effectiveness of investment in capital expenditures on the complex, as well as working out of the program of its creation and development.

According to the Customer, the main direction of activity of the warehouse complex will be provision of services on leasing of rooms of various climatic conditions and designation. With this purpose a land lot of 4.36 hectares was allocated in one of industrial zones of Kaluga Region. It is suggested that the goods will be stored both in common warehouse rooms and refrigerator chambers. The latter provide for opportunity of varying the temperature of product storage.

Selection of basic equipment for the warehouse complex

This requires equipment which will enable providing a fault-free operation of the warehouse with the total area of 100 thousand square meters and a refrigerator warehouse with the total area of 15 thousand square meters. It will be supplied within the framework of the company’s construction agreement.

While developing the business plan, specialists of Intesco Research Group suggested more flexible solutions in selection of equipment which made it possible to change conditions of storage of goods any time in the given sector, without impact on the surrounding sectors. Thus, there could be many variants of changing the range and volumes of storage, and it provided max. effective use of areas of the complex.

If we speak of logistics, in order to enable convenient acceptance and dispatch of goods, our specialists foresaw an open parking lot for motor vehicles and rooms for preparing the goods for dispatch.

Apart from warehouse rooms, an administrative building with the entire required infrastructure will be located in the territory of the complex. Its offices are also meant for rent.

Advantages of the warehouse complex project

Having thoroughly examined the documentation and the situation on the market of services in Kaluga Region, we revealed the following advantages of the investment project:

• favourable market situation and trends;
• a decrease in the need in investment owing to existing areas and utilities;
• unique location of the warehouse complex providing for cheap and convenient logistics;
• use of modern energy-efficient equipment;
• possibility of meeting the demand for areas with various conditions of storage, climate changes within sections.

Items of returns for the warehouse complex project

Thus, during the development of the business plan, the following items of returns were distinguished (based on rendering of the following services):

• Leasing of pallet positions at the warehouse;
• Leasing of pallet positions at the refrigerated warehouse;
• Leasing of office rooms.

Structure of investment in warehouse complex construction

Project implementation requires investment in the volume of 33 323 449 euro. The structure of these investments is the following:

Structure of Investment

According to the data provided by the Customer, the financing of the project will include 15% of the company’s own funds and 85% of loan funds.

Warehouse complex project effectiveness rates

Specialists of Intesco Research Group calculated the following general project effectiveness rates.

The project planning horizon (accounting period) is 7 years (28 quarters). The following rates are implemented to the whole planning horizon:

• Net cash flow (difference between the returns and spending (including taxes)) for the project amounts to 24 036 134 euro.
• Net present value (net returns for the project corrected for money value changes in time) for the project amounts to 11 387 593 euro.
• Discounted payback period (period of time required so that returns generated by investment would cover investment costs) for the project amounts to 5.35 years.

Profitability index, which shows returns for every invested euro over the planning horizon, equals 1.37. It means that the returns on every invested euro are 1.37 euro.

The internal rate of return (the percentage rate, at which the NPV is 0) for the project is 16.1%.

The internal rate of return shows the expected project returns.

Summarizing on the calculated rates, one can state that the project would have a short investment payback period, which will make it possible to pay out the loans quickly owing to a short-term production cycle.

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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