«Creation of a scientific and manufacturing facility for growth and processing of essential oil plants in the Autonomous Republic of Crimea» - презентация

1 «Creation of a scientific and manufacturing facility for growth and processing of essential oil plants in the Autonomous Republic of Crimea»

2 Goals of the Froject: Adaptation of new oil plants varieties Adaptation of innovative technologies and models into essential oil industry Development of a scientific and technological potential in a sphere of essential oil manufacturing Positive socio-economic effect Adaptation of new oil plants varieties Adaptation of innovative technologies and models into essential oil industry Development of a scientific and technological potential in a sphere of essential oil manufacturing Positive socio-economic effect Creation of a modern scientific and manufacturing facility for growth and processing of essential oil plants as a pilot renewal project in traditional and perspective industry for Crimea.

3 Project backgrounds Scientific and technological potential of the AR of Crimea; Natural, climatic and soil conditions of Crimea; Modern technologies for high-quality manufacture of essential oils competitive on world market Adaptation of complex and waste-free technologies of essential plants processing will provide a maximal economical effect; Steady growth of essential oil world market with high-quality characteristics of production; Industrial standards, professional labor force. Scientific and technological potential of the AR of Crimea; Natural, climatic and soil conditions of Crimea; Modern technologies for high-quality manufacture of essential oils competitive on world market Adaptation of complex and waste-free technologies of essential plants processing will provide a maximal economical effect; Steady growth of essential oil world market with high-quality characteristics of production; Industrial standards, professional labor force.

4 Essential oil production in the AR of Crimea in 2012

5 Location of the Project Total area of complex is m 2. Crop farm has 553,2 hectares of plowed fields, including 457 hectares for oil plants growth and 78,2 hectares of crop rotation fields. Total area of complex is m 2. Crop farm has 553,2 hectares of plowed fields, including 457 hectares for oil plants growth and 78,2 hectares of crop rotation fields. Project is implementing on the territory of experimental farm Krymskaya roza of Agricultural Institute of Crimea, National Academy of Agricultural Science of Ukraine, in Belogorskiy region of the AR of Crimea

6 Sales of products method Investments Investments of capital assets and intellectual rights Новое предприятие Private investor Creation of a new private-public partnership facility Agricultural Institute

7 Creation of a crop complex Creation of a processing complex Main development stages Raw material provision, manufacturing of seed material, selective works Processing of essential oil materials with manufacturing of high-quality essential oils and other related production

8 Project implementation timeline 0 year Development of a organizational model of the Project implementation on a base of a State facility Design approval with NAAS of Ukraine Pre-constructional stage – marketing researches, engineering design documentation, draft contracts expertise Negotiations with machines and seed material suppliers Design estimation documentation Repair and recovery activities, construction of engineering communications Financing of the Project Purchasing of machines and seed materials 1 year Soil preparation for coriander and sage Purchasing of equipment and installation of industrial machines Completion Harvest and processing of coriander Fall field works – soil of catnip, artemisia, lavender, roses Addition of the Project

9 Project implementation timeline 2 year Roses flower processing line introduction Second stage of soil works Full manning of the facility for processing of flower and herbs materials Processing of sage, catnip, wormwood 3 year Processing of rose and lavender Gain of a rated value of output Granting of own seed-plot for seed material

10 Manufacturing area Total area is m 2 Tree-floor laboratory complex (30х13m) with area of 390 m 2. Growth chamber building (42х19m) with area of 798 m 2. Seeds warehouse склад (30х18m) with area of 360 m 2. Greenhouses (6 pts. 84х18m) with area of 1512 m 2 each. Selection greenhouse (6 pts. 24х3m) with area of 72 m 2 each. Utility and ventilate facilities (30х12m) with area of 360 m 2. Electrical substation with power of 1000 kWatt. Total area is m 2 Tree-floor laboratory complex (30х13m) with area of 390 m 2. Growth chamber building (42х19m) with area of 798 m 2. Seeds warehouse склад (30х18m) with area of 360 m 2. Greenhouses (6 pts. 84х18m) with area of 1512 m 2 each. Selection greenhouse (6 pts. 24х3m) with area of 72 m 2 each. Utility and ventilate facilities (30х12m) with area of 360 m 2. Electrical substation with power of 1000 kWatt.

11 Investments volumes and directions Investment expenditures Volume Thousand USD Thousand UAH Crop farm in total, including: Seed material purchasing Agricultural machines purchasing Soil expenditures Processing complex in total, including: Design and introduction of a complex Construction and repair works Purchasing of main equipment, supporting machines and materials Installation and pre-commissioning works Working capital Total

12 Crops for growth Clary sage «Taygan» Lavender «Vdala» Rose «Lada» Artemisia Taurus Catnip «Alla» Coriander High tolerance for winter and dry conditions, 30% better than national standard C-785 of essential oil concentration, extract and scleral in 1 gram. High tolerance for winter conditions, 50% better than national standard (Stepnaya) of essential oil concentration and higher harvesting by 35 kilograms in 1 hectare High crop yield of flowers (55 centners per hectare) and high terpene alcohol concentration in essential oil (by 30% higher than standard crop) High crop yield (10-12tons per hectare) is in 8-10 times more productivity as wild plant. Essential oil concentration (80% of tuyon) is % and in 2 times higher than wild plant. High crop yield (20-25 tons per hectare) and has more essential oils (more than 100 kilos per hectare). Indexes of quality are better than foreign analogs as far as has 70-75% of citronellol. Traditional crop in variety of Crimean essential plants. Coriander has 76% of soil areas and 66% of essential oil plants harvest volume in Crimea.

13 Manufacturing and sales structure 6 main categories of products: Essential oils; Extracts; Bio concentrates; Bio concentrates on water basis; Eau de toilette; Other production (ursolic acid, forage products, preparation of burn). 6 main categories of products: Essential oils; Extracts; Bio concentrates; Bio concentrates on water basis; Eau de toilette; Other production (ursolic acid, forage products, preparation of burn).

14 Consumers and sales channels ProductKey groups of consumersSales channels Eau de toiletteIndividualsRetail, Internet-shops Burn treating substancesIndividuals Pharmacies, Internet-shops Ursolic acid Pharmaceutical companiesWholesale to consumers Fixed oilSoap industryWholesale to consumers Forage additions (protein meal) Agricultural enterprises and private farms Wholesale to companies, retail Feed flourAgricultural enterprises and private farms Wholesale to companies, retail

15 Consumers and sales channels IndexExternal market Internal market Essential oils100%0% Extracts100%0% Bio concentrates70%30% Bio concentrates on water basis 70%30% Eau de toilette 30%70% Other production0%100% Total60%40%

16 Planed production volumes

17 Project indexes

18 Key indexes of effectiveness

19 Investment effectiveness INDEXUNITVALUE Payback periodYears4,7 Discount Payback periodyears5,4 Net present value thousand USD 1638,5 Internal rate of return%22 Profit investment ratio Pcs 1,46 Revenue of investments%17,6

20 General conclusions of the Project The business plan is developed and is going to be implemented under the legislative of Ukraine and the AR of Crimea. The Project meets key development priorities of Ukraine and the AR of Crimea. The project aimed on creation of the industrial complex with full production circle of high- quality and competitive essential oil products in rural regions of the AR of Crimea and oriented on external and internal markets. The project will create 58 new working places in rural regions. Total cost of the Project is thousand USD, including working capital financing at opening stages of the Project. The Project is effective and attractive for investors. The business plan is developed and is going to be implemented under the legislative of Ukraine and the AR of Crimea. The Project meets key development priorities of Ukraine and the AR of Crimea. The project aimed on creation of the industrial complex with full production circle of high- quality and competitive essential oil products in rural regions of the AR of Crimea and oriented on external and internal markets. The project will create 58 new working places in rural regions. Total cost of the Project is thousand USD, including working capital financing at opening stages of the Project. The Project is effective and attractive for investors.

21 Project initiator details Experimental farm «Krymskaya rosa» Institute of Agriculture of National Academy of Agricultural Science of Ukraine The Autonomous Republic of Crimea, Belogorskiy region, Krymskaya rosa village, 4 Pavlichenko Str. Telephone Support of the project Ministry of Agrarian Policy and Food of the Autonomous Republic of Crimea Simferopol, str. Kyivskaya, 81 (0652)