Invest projects

Construction of a factory for the production of diapers in the city of Nursultan

  • Indicator Results
  • Investment amount, thousand US dollars 3 569
  • NPV of the Project thousand, US dollars 6 926
  • IRR, % 34,6%
  • IBITDA yield, %
  • Payback period, years 5,3
  • Discounted payback period, years - -

Products

Annual capacity: 2.88 million packs of baby diapers

Project

This investment project plans to build a factory for the production of baby diapers with a capacity of 2.88 million packages per year on the territory of the free economic zone "Astana - new City" in the city of Nur Sultan. The plant area is 1,125 sq. m.

Company

United Care Group LLP is a project company established for the implementation of a project for the construction of a factory for the production of baby diapers. The founders of the Company are Aesthetics Group LLP (50% share in the authorized capital) and Kausar-Pharm LLP (50% share).

Market

  • In 2020, the revenue level of the global diaper market reached 48,915 million US dollars. According to forecasts of Allied Market Research, the world will see an increase in total revenue, and the average annual growth rate (CAGR) in 2021-2024 will be 4.7%.
  • The volume of production of sanitary and hygienic products in the Republic of Kazakhstan reached 311 tons in 2020. The average annual growth rate (CAGR) for the period 2016-2020 was 30%. The only manufacturer of children's disposable diapers in the Republic of Kazakhstan is Sachiko Olzha Products LLP. In 2020, the company's share in the market of diapers and baby pants in Kazakhstan amounted to 5.3% or 4.4 billion tenge.
What is the attractiveness of the project?
  • Advantageous location. The location of the production in Nur-Sultan is an advantage, taking into account the proximity to the target group of consumers and the presence of a developed transport hub that ensures prompt delivery to the regions of Kazakhstan and to the market of neighboring countries (Russia, China, Uzbekistan, Kyrgyzstan). These factors will make it possible to achieve a lower, competitive cost of production.
  • Growing demand and access to new markets. According to MarketLine forecasts, there will be an increase in the total revenue of the diaper market and consumption worldwide, which will further expand the market for products in neighboring countries.
Investment offer

The Project requires financing in the amount of 3,569 thousand US dollars, of which:
  • 70% (2,498,3 thousand US dollars) - debt financing in the presence of collateral;
  • from 30% (1,070,7 thousand US dollars) - Investor participation.
The proposed financing structure and measures of state support are indicative, the final structure of financing and participation in the Project will be determined based on the results of joint negotiations with the investor.


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