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O’ZBEKYENGILSANOAT. UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY. BUSINESS ENVIRONMENTS & INVESTMENT POSSIBILITIES IN TEXTILE INDUSTRY OF UZBEKISTAN. // Great Silk Road to Europe which passed by Uzbekistan played its important role for development cotton and silk traditions in Uzbekistan.
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O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY BUSINESS ENVIRONMENTS & INVESTMENT POSSIBILITIES IN TEXTILE INDUSTRY OF UZBEKISTAN
// Great Silk Road to Europe which passed by Uzbekistan played its important role for development cotton and silk traditions in Uzbekistan O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY
O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY GENERAL INFORMATION ON TEXTILE INDUSTRY OF UZBEKISTAN
// INDUSTRY STRUCTURE O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY O’ZBEKYENGILSANOAT TEXTILE SECTOR SILK PRODUCTION SECTOR KNITTING & SEWING SECTOR RAW SILK // SILK YARN // SILK FABRICS // SILK CARPETS APPAREL // GARMENTS // HOSIERY // ACCESSORIES COTTON YARN // COTTON FABRICS 631 enterprises 1791 enterprises 85enterprises MARKETING & ADVERTISING AGENCY DESIGN CENTER “SHARQ LIBOSLARI” “O’ZBEK YENGILSANOAT QURILISH” CONSTRUCTION COMPANY “YENGTIJMARKAZ” EXPORT-IMPORT COMPANY Marketing researches, Advertising of textile products abroad Creation of new designs Monitoring of construction Export & import of textile equipment, goods, accessories Attracted Investment – US$ 2,5 bln • Employees - 85’000
// LOCATION WISE CONCENTRATION OF COTTON PROCESSING IN %, 2014 O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY 25% 32% 27% 50% 134% 67% 26% 113% 18% 34% 12% 8% 6%
// PRODUCTION CAPACITIES O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY Cotton yarn 390+ thousand tons; 95% produced at world class spinning capacities; 80% spinning capacities less than 10 years old (Rieter, Trutzshler, Toyota, Marzolli, Savio, Shalfhorst); Priced in local currency as well as in US Dollars Silk Raw silk – 900 tons; Silk yarn – 190 tons; 60% produced at modern technologies less than 10 years old
// PRODUCTION CAPACITIES O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY Fabrics 282 mln.sq.m. woven fabrics 82,0 th. tons knitted fabrics 60 % produced at world class weaving and knitting capacities (Picanol, Somet, STB, Sulzer, Terrot, Mayer&Cie, PayLung) wide range of ready knitted and terry fabrics Garments Apparels – 256 mln. pieces Hosiery – 71,3 mln. pairs 80% produced at modern technologies (Juki, Brother, Kansai, etc) wide range of garments and hosiery
// EXPORT OF TEXTILE PRODUCTS O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY Silk production Export growth 17,0 million USD Fabrics 90,0 mlnUSD Garment & Hosiery 170,0mlnUSD Cotton yarn 495,0 million USD
// EXPORT: MAIN CONSUMER COUNTRIES in 2013 O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY CA & Afghanistan: 90 mln. people CIS: 300 mln. people CIS Europe Moscow Central Asia 46% Minsk London Berlin Astana East Asia Kiev Brussels 12% Paris 21% 7% Beijing Ashgabat Bishkek Tokyo Ankara Seoul Tehran Baghdad Kabul Jerusalem Shanghai Amman Cairo Doha Riyadh 8% South-East and South Asia Abu Dhabi Muscat Middle East& Africa Manila Bangkok Phnom Penh 6% Singapore Jakarta
// Production 2013 // Target 2017 O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY
O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY INVESTMENT OPPORTUNITIES
O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY INVESTMENT OPPORTUNITIES
// COTTON FIBER O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY Quality Medium staple of world recognized premium quality cotton Price 15% price discount from the world cotton prices based on Cotlook index (upfront) 20% reimbursement of VAT on the purchase price of cotton 15 % cash payment, 85% payable in 90 days Supply from one of the 20 cotton terminals from all over the country
// LABOR COST COMPARISON (USD/per hour) O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY Source: international agencies
// PRIVILEGES AND PREFERENCES O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY Reinvest Pay to budjet
// TRANSPORT CORRIDORS O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY
O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY PROPOSALS for POTENCIAL PARTNERS
// COOPERATION UZBEKISTAN – FOREIGN PARTNERS O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY • Engineering of textile projects as well as working out efficient financial scheme; • Joint investment projects in high value added areas in cotton and silk sectors (weaving, dyeing, finishing, blended and technical fabric, apparel); • Technical assistance programs in textile technology knowledge transfer; • Textile and apparel trade.
// SYNERGY EFFECT O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY • Financial capital. • Know-how (modern technologies). • International management (brand). • Distributions channels and access to international markets (marketing). • Financial support and incentive scheme. • Low cost energy resources. • Skilled labour at competitive cost. • CIS market at free trade regime. // Match making
// BASIC STRATEGY FOR PROJECT IMPLEMENTATION O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY Cotton Fiber [Yarn] -Spinning • [ Fabric] • Weaving • Knitting -Dyeing -Finishing -Sewing Complete Products Up Stream Middle Stream Down Stream Perfect stream-system from production from textile yarn to products Cotton fiber Manufacture Logistics
// PROPOSED WAYS FOR COOPERATION O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY
// INVESTMENT PROJECT SUPPORT O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY • 1. Loans provided by UzOmanCapital Investment company • Technological partner share – 30%; • UzOmanCapital share – up to 30%; • Bank credit – not less than 40%. • 2. Co financing (to charter capital) from Uzbek Banks • Development of textile complexes in the regions • Investor share – 30%; • Uzbek Bank share – up to 70% (to be paid back in 10 years). • 3. Facilities (buildings) provided at Zero cost • Engineering infrastructure provided to the doors • 4. Special incentive scheme (facilitation of Projects, tax benefits)
// Comparative table of supply of cotton yarn to Russia O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY Note:* A similar situation applies to imports of textile products from China, Turkey;** Estimated price
// Comparative diagram of supply of 20 mt of cotton yarn to Russia O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY in US$per box 21% UZBEKISTAN KOREA Yarn price
O’ZBEKYENGILSANOAT Production cost 80 384 US$ UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY 25,4 ton yarn 20,0 tonyarn Profit 25 %
// Comparative table of supply of textile products to Russia O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY Note:* A similar situation applies to imports of textile products from China, Turkey;** Estimated price
// Comparative diagram of supply: one container of T-Shirt to Russia O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY in US$per box 31,7% KOREA UZBEKISTAN T-Shirtprice
O’ZBEKYENGILSANOAT Production cost 227 515 US$ UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY 103 400 pcs t-shirts 70 000 pcs t-shirts Profit 31,5%
// CONCLUSION - GEOGRAPHICAL SHIFT (MLN. SPINDLES) O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY Source: Gherzi Consulting, Swiss
// CONCLUSIONS O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY World textile production moves to the regions with relatively low production costs; Being big cotton producer – Uzbekistan offers most favorable conditions to absorb foreign investments from countries - leading textile centers; Proximity of a huge CIS market (abt US$ 16,4 billion) - free trade zone – as well as Growing local market will make Uzbekistan even more attractive
// THANKS O’ZBEKYENGILSANOAT UZBEKISTAN TEXTILE INDUSTRY GOVERNING COMPANY Address 45 Babur Str., Tashkent, 100100, Uzbekistan Phone: +998 (71) 253-93-54 Fax: +998 (71) 253-93-54 Email: info@etextile.uz Web: www.etextile.uz