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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