ISO9000 Certified Fruit and Vegetable Processing -- Artashat Cannery
| Improving
quality standards in the well established cannery business — ISO9000 certified production of juice brightening production facilities will allow scaling up Armenian cannery production for European export. Artashat Cannery proposes to process larger quantities of Armenian and Georgian produce to supply Austrian and German juice filling companies with international quality brightened juice concentrate. Mr. Artak Eloghlyan of Alpha Plus Consulting presents quality enhancement and expansion plans of Artashat Cannery. Further project details and corporate information is available with him and with Mr. Sergo Karapetyan, President of Artashat Cannery, in business meetings during the conference. Company: Artashat Cannery OJSC Amount: $2,000,000 Tenor / Terms: 50% equity financing Documentation: Detailed project description and ISO900 certification plans; business plans and financial information Use of funds: The funds will be used for the purchase of fruit processing equipment, aseptic packages, and raw materials (apples) Legal status: Open Joint Stock Company Proposed local/strategic partners: To Be Determined Current operations: The Company prepares tomato paste, peach and apricot puree, fruit juices, pickled vegetables and jams and jellies. Sales and marketing plan: The prospective sales volume for the new product - Apple Juice Concentrate (AJC) are as following: 2,000 MT - 2001, 3,000 MT - 2002, 4,000 MT - 2003. The sales volume will not be more than 5000 MT over the next 5 years. The final product - AJC will be sold in Russia, Germany, Austria, etc Business plan: The Company proposes to set up a 50-50 joint venture to produce brightened apple°juice concentrate. Its contribution will be a workshop with all necessary equipment°for squashing, pasteurizing, sterilizing and pressing the apples, 40 aseptic tanks to keep the concentrate and infrastructure (gas, transformers, steam etc.). The investor’s contribution will be 1 ultra-filter, 2 press machines, inventory (apple crops) and some other stuff (in total-$2.0 million). The difference in price between the simple apple juice concentrate and the brightened one is about 40 cents, but the marginal cost is much less, so the rest of it is net profit. The program is not only to brighten the concentrate that the Company has been (and is) producing, but also to act as wholesale purchaser from Ararat Cannery and others (including a huge company in Gori, Georgia) and to refine their produce, thus keeping the new equipment operating all throughout the year. Competition: The main competitor in Armenia is Ararat Cannery, but they do not have a brightenting facility. In the target markets, the Artashat will compete with local manufacturers and importers of the concentrate into Russia, Germany and Austria. Investment, capital cost, and financing structure proposed: 2 apple presses ($100,000 each) $200,000 Ultra-filtration equipment $800,000 Aseptic machinery $350,000 2 squashing machines ($50,000 each) $100,000 Working capital (apples, aseptic packaging) $550,000 TOTAL $2,000,000 Regulatory considerations: Tax benefits for investments of $1.0 million and more. No duties and taxes on imports of materials and on exports of finished products. Points of contact: Mr. Sergo Karapetyan President Artashat Cannery OJSC 23 Ogostosi Street, Artashat, Ararat Marz Armenia Tel: 374-35-26275 Fax: 374-35-21308 E-mail: office@alphaplusconsulting.com Mr. Artak Eloghlyan Alpha Plus Consulting 212 Baghramyan Avenue Yerevan 375078 Armenia Tel: 374-9-407565 Fax: 374-1-271071 Email: elogart@hotmail.com |