The aim of this project is to attract investments and to analyze economic efficiency of starting a commercial greenhouse business in Russia.
The financial model for the business plan is in Excel format. The fully automated financial model eliminates the possibility of errors in the calculations. You can only change the basic parameters of the project, and the whole model will be changed automatically.
CONCEPT
Products
INVESTMENTS AND FINANCING
Greenhouse complex for cultivation of vegetables and greens
Greenhouse area – *** ha
Projected production volume – up to 1.8 thousand metric tons of vegetables per year
Seedling unit
Auxiliary buildings and facilities
Greenhouse tomatoes
Greenhouse cucumbers
Greenhouse greens
Investments in the establishing of a greenhouse complex account for *** RUB. The term of the investment period is 13-14 months.
The project envisages to be financed through both borrowed funds (70%) and own funds (30%).
Disposal of products in the region of the project implementation, including
consumers
EQUIPMENT SUPPLIERS
Disposal of products in the region of the project implementation, including:
Retail chains;
Markets;
Non-chain stores.
Entering the markets of other regions of Russia.
The project presupposes the use of greenhouse constructions and equipment of domestic production of *** company.
Preconditions for Successful Project Implementation
The increasing striving of population to a healthy lifestyle and, as a result, the growing consumption of fresh vegetables all year round (especially in winter and spring).
Growing interest in the fresh vegetables production in greenhouses by both large agricultural holdings and non-core investors.
The predominance of greenhouses using outdated crop cultivation technologies and equipment on the Russian market leads to a further increase in abrasion of the majority of greenhouse
market analysis
Cucumbers and tomatoes are the major items growing in greenhouses. The share of pepper, eggplants and greens accounts for ***%. Cucumbers, greens and tomatoes are the most profitable items.
The majority of greenhouse vegetable production in Russia occurs in the Volga Federal District with a share of ***%. In 2010 the production volume here accounted for *** metric tons.
Domestic demand for greenhouse products is met by domestic vegetables less than 50%.
1.
PROJECT SUMMARY
2.
PROPOSED PROJECT
2.1.
Project Area Description
2.2.
Product
2.3.
Construction Features of the Project
2.3.1.
Land Plot for Greenhouse Complex Construction
2.3.2.
Initial Permissive Documentation
2.3.3.
General Site Lay-Out Design
2.4.
Characteristics of Equipment and Construction Features
2.5.
Production Technology
2.6.
Other Technological Issues
2.6.1.
Low -Volume Growing Technology
2.6.2.
Hydroponics
2.6.3.
Drip Irrigation
2.6.4.
Supplementary Lighting Technology
2.6.5.
Evaporative Cooling System
2.6.6.
Curtain System
2.6.7.
Co2 Injection
2.6.8.
Sulphuration
2.6.9.
Biological Means of Plant Protection
2.6.10.
Natural Pollination
2.7.
Environmental Aspects of Production
3.
INDUSTRY ANALYSIS
3.1.
Russian Greenhouse Market
3.1.1.
Development of Greenhouse Technologies
3.1.2.
Market Overview
Market Capacity and Volume
Market structure
3.1.3.
Production of Greenhouse Products
Production Overview
Production Structure
Greenhouse Companies
3.1.4.
Greenhouse Areas in Russia
Areas Overview
Investments
3.1.5.
Challenges and Prospects
3.2.
Russian Fresh Vegetable Market
3.2.1.
Market Volume
Market Volume Dynamics
Market Share of Imported Products
3.2.2.
Market Segmentation
3.2.3.
Fresh Vegetable Retail Sales
Retail Sales Volume
Geographical Distribution of Retail Sales
3.2.4.
Fresh Vegetable Market Forecast for 2011-2013
Fresh Vegetable Production Forecast
Retail Sales Forecast
Vegetable Consumption Forecast by Federal Districts
3.2.5.
Domestic Vegetable Production
Area Harvested
Greenhouse Vegetable Production
Largest Producers
3.2.6.
Imports and Exports of Fresh Vegetables
Imports
Exports
3.2.7.
Prices for Fresh Vegetables
Producer Prices for Greenhouse Vegetables
Retail Prices
3.3.
Light Zones of Russia
4.
INVESTMENT PLAN
4.1.
Investment Costs
4.2.
Working Capital
4.3.
Project Finance
4.3.1.
Borrowings
5.
OPERATIONAL PLAN
5.1.
Sales Plan
5.3.
Project Staff
5.4.
Operating Costs
6.
FINANCIAL PLAN
6.1.
Conditions and Assumptions for Calculation
6.2.
Taxation
6.3.
Calculation of Revenue
6.4.
Statement of Cash Flows
6.5.
Income Statement
6.6.
Balance Sheet
7.
ECONOMIC EFFICIENCY
7.1.
Economic Efficiency Analysis
7.1.1.
Investment Efficiency
Discounted Payback Period Method
Net Present Value Method
Internal Rate of Return (IRR)
Average Rate of Return (ARR)
7.1.2.
Efficiency Ratios
7.1.3.
Project's Financial Viability
7.2.
Risk Assessment
7.2.1.
Risk Analysis
7.2.2.
Qualitative Risk Analysis
7.2.3.
Sensitivity Analysis
7.3.
Break-Even Analysis
APPENDIX 1. SANITARY-HYGIENIC AND SANITARY- ANTIEPIDEMIC REQUIREMENTS FOR GREENHOUSE
APPENDIX 2. MANUFACTURERS OF GREENHOUSE EQUIPPMENT
LIST OF FIGURES
Figure 1.
Capacity and Volume of Russian Greenhouse Market, 2008, in 1,000 metric tons
Figure 2.
Structure of Russian Vegetable Market by Origin of Products, 2008, %
Figure 3.
Vegetable Production in Greenhouses in Russia, 1990-2008, Metric Tons
Figure 4.
The Share of Greenhouse Vegetables in the Total Vegetable Production Volume in Russia, 2005-2008, %
Figure 5.
Production of Greenhouse Flowers in Russia, 2007-2015, Million Units
Figure 6.
Structure of Greenhouse Vegetable production by Major Type of Vegetables in Russia, 2008, %
Figure 7.
Structure of Greenhouse Vegetable production by Type of Greenhouses in Russia, 2007-2010, %
Figure 8.
Geographical distribution of the Largest Greenhouse Complexes (more than 6 ha) by Federal District, units and %
Figure 9.
Geographical Distribution of New Projected Greenhouse Complexes by Federal District, %
Figure 10.
Dynamics of Greenhouse Areas in Russia, 1974-2010, in 1,000 ha
Figure 11.
Greenhouse Areas in Various Countries of the World, 2009, in 1,000 ha
Figure 12.
Structure of Greenhouse Area in Russia by Type of Greenhouse, 2009, %
Figure 13.
Greenhouse Area in Russia by Type of Greenhouse, 2010, %
Figure 14.
Greenhouse Area Dynamics in Russia Including Projects in Early 2009, 2006-2010, ha
Figure 15.
Investments of Non-Core Investors in Vegetable and Flower Greenhouse Projects, 2006-2010, Million EUR