The investment capacity of the Leather Industry of Uzbekistan and the prospects of investment cooperation.

The investment capacity of the Leather The investment capacity of the Leather Industry of Uzbekistan and the prospects of Industry of Uzbekistan and the prospects of

investment cooperationinvestment cooperation

• The Association consists ofThe Association consists of• 53 industrial enterprises, including:53 industrial enterprises, including:

• - 2- 222 enterprises for processing of hides and skins; enterprises for processing of hides and skins;• - 25 enterprises for the production of footwear;- 25 enterprises for the production of footwear;• - - 44 leather business; leather business;• - An enterprise for the production of artificial leather;- An enterprise for the production of artificial leather;• - A company specializing in the manufacture of ceramic - A company specializing in the manufacture of ceramic

tiles.tiles.

The AssociationThe Association"Uzbekcharmpoyabzali""Uzbekcharmpoyabzali"

Manufacture of footwear

58%

processing of hides and skins

23%

production of leather

haberdashery10%

production of artificial leather

9%

Structure of Association"Uzbekcharmpoyabzali"

Development projects at the expense of foreign investment

• JV «PENG SHENG» - manufacture of leather, footwear and construction materials - $ 30 million

• JV «ORIENT TECHNOLOGY» - manufacture of leather - $ 5.0 million

• PI «KENTAVRUS DPKS» - leather production - $ 2.0 million

• IP "SHI GUO" - shoes $ 1.8 million

The Republic of UzbekistanThe Republic of Uzbekistan

Potential markets for productsPotential markets for products

The country's population -The country's population -29.5 million people29.5 million people

Need - 25.0 mln.par of Need - 25.0 mln.par of shoes a yearshoes a year

The country's population -The country's population -29.5 million people29.5 million people

Need - 25.0 mln.par of Need - 25.0 mln.par of shoes a yearshoes a year

The proximity and availability of simplified customs rules with the The proximity and availability of simplified customs rules with the CIS countries, whose population - more than 260 million peopleCIS countries, whose population - more than 260 million people

The proximity and availability of simplified customs rules with the The proximity and availability of simplified customs rules with the CIS countries, whose population - more than 260 million peopleCIS countries, whose population - more than 260 million people

PROPOSED ACTIVITIES FOR THE PROPOSED ACTIVITIES FOR THE ORGANIZATION OF NEW PRODUCTIONORGANIZATION OF NEW PRODUCTION

Creating a new production of leather goodsCreating a new production of leather goodsCreating a new production of leather goodsCreating a new production of leather goods

Creating a new venture for the production of Creating a new venture for the production of children's and women's shoeschildren's and women's shoes

Creating a new venture for the production of Creating a new venture for the production of children's and women's shoeschildren's and women's shoes

Creating a new enterprise for the production of Creating a new enterprise for the production of leather garmentsleather garments

Creating a new enterprise for the production of Creating a new enterprise for the production of leather garmentsleather garments

Renewal of a shoe factoryRenewal of a shoe factoryRenewal of a shoe factoryRenewal of a shoe factory

Organization of production of leather goods

Factors determining the prospects of the project:- The constant and increasing demand of local people for such products-Ability to export to the CIS countries, Central AsiaThe presence of local high quality raw materials - the skins of cattle and small cattleCurrently, 50% of such products imported for import

Production of leather goods

• The cost of the project – 3.0 mln. USDThe cost of the project – 3.0 mln. USD• The foreign party – 3.0 mln.USDThe foreign party – 3.0 mln.USD• as follows:as follows:Plant construction – 0.5 mln. USDPlant construction – 0.5 mln. USDEquipment – 2.0 mln.USDEquipment – 2.0 mln.USDSupply of raw materials – 0.5 mln.USDSupply of raw materials – 0.5 mln.USD• Total amount of production:Total amount of production:Leather accessories – 500 thousand units Leather accessories – 500 thousand units

(bags, belts, gloves, etc.) (bags, belts, gloves, etc.)• Current manufacturers:Current manufacturers:"Andijon charm", "Huzhaobod“"Andijon charm", "Huzhaobod“,, "Orzu"Orzu””,, "Tredvel International". "Tredvel International".• Domestic demand - 50%.Domestic demand - 50%.• Ability to export 20-30% of production in the CIS countriesAbility to export 20-30% of production in the CIS countries

Organization of production of child and women's shoes

Factors determining the prospects of the project:- The constant and increasing demand of local people for such products-Ability to export to the CIS countries, Central AsiaThe presence of local high quality raw materials - the skins of cattle and small cattleCurrently, 80% of such products imported for import

Production of children's and women's shoes

• The cost of the project – 1.5 mln. USDThe cost of the project – 1.5 mln. USD• The foreign party – 1.5 mln. USDThe foreign party – 1.5 mln. USD• as follows:as follows:Plant construction – 0.4 mln. USDPlant construction – 0.4 mln. USDEquipment - 0.9 mln. USDEquipment - 0.9 mln. USDRaw materials - 0.2 mln. USDRaw materials - 0.2 mln. USD• Total amount of production:Total amount of production:Children's and women’s footwear – 0.7 mln. pairsChildren's and women’s footwear – 0.7 mln. pairs• Current manufacturers:Current manufacturers:"Nafis” "Vella milenium“ "Farovon shoes” "Bugatti shoes""Nafis” "Vella milenium“ "Farovon shoes” "Bugatti shoes"• Domestic demand - 20%.Domestic demand - 20%.• Ability to export 10-20% of production in the CIS countriesAbility to export 10-20% of production in the CIS countries

Production of leather clothes

• Factors determining the prospects of the project:

- The constant and increasing demand of local people for such products

-Ability to export to the CIS countries, Central Asia

-The presence of high-quality local hides and skins

-Currently, 85% of such products imported for import

Creation of an enterprise for the production of leather garments

• The cost of the project - 2 200.0 thousand. USAThe cost of the project - 2 200.0 thousand. USA• The foreign party - 2 200.0 thousand. USAThe foreign party - 2 200.0 thousand. USA• as follows:as follows:• Construction of buildings, 400, 0 thousand dollarsConstruction of buildings, 400, 0 thousand dollars• Supply of process equipment -1500.0 thousand dollarsSupply of process equipment -1500.0 thousand dollars• Supply of raw materials, 300, 0 thousand dollarsSupply of raw materials, 300, 0 thousand dollars

• Power generated by the production:Power generated by the production:• Leather clothing in stock - 60,000 units of product per yearLeather clothing in stock - 60,000 units of product per year• Current manufacturers:Current manufacturers:• FE "Tredvel International"FE "Tredvel International"• Ensuring the needs of 15%.Ensuring the needs of 15%.• Ability to export 10-15% of production in the CISAbility to export 10-15% of production in the CIS

Suggested items for redemptionSuggested items for redemption

Terms of sale "Delta Invest" Ltd.

(footwear)

The minimum cost

(UZS)5.7 billion sum

Term Leasing No more than 7 years

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