CONSTRUCTION AND OPERATION OF
TAVUSH MINERAL WATER PLANT
INVESTMENT PROJECT
2017
TAVUSH MINERAL WATER PLANT
INVESTMENT PROJECT
PROJECT DESCRIPTION
The purpose of the project is the construction and the operation of mineral
water bottling plant in Tavush region (proved reserves on depth of 190m).
Main characteristics
Start of the project
Project duration
Project price
Project initator
Plant area
Production site area
Production capacity (unit/hour)
05.2017
3 years
770 000 $
Slovakia LLC
1 ha.
2000 sq.m.
2850
PRODUCTION
It is planned to produce sparkling mineral water in 0.5 l. glass bottles and in
0.5 liter, 1 liter, 1.5 liter, 5 liter. plastic bottles
Annual production - 6 million bottles.
EXPORT ORIENTED PRODUCTION
The company is planning mostly to export its production. Several targeted
destinations had been choosen:




Russian Federation
United Arab Emirates
Kuwait
Qatar
CAPITAL EXPENDITURES
Capital investments of around 374,852,000 AMD (770 000 USD) are needed
for the construction of the 2000 sq.m. plant on 1 hectare of land
Investments will be mainly directed to the construction and purchase of
technical solutions.
The rest of the capital investment will be spent on land acquisition,
infrastructure and replenishment of working capital.
FINANCIAL INDICATORS
Indicator
Payback period
Discounted payback period
Profitability during 3 years of the
project
Profitability starting from the 4th year
of the project
ROE (Return on investment)
NPV
IRR
Value
1 year
1.12 year
73,88%
85,04%
98,5%
2,232,744 AMD
67%
PRICING POLICY
To ensure competitiveness of the product flexible pricing policy had been
chosen:
Product
Capacity of
the bottle
Price (AMD)
0,5l Glass
0.5l
0,5l
0.5l
1l
1l
1,5l
1.5l
5l
5l
115
135
205
250
320
PRODUCTION CAPACITY AND INCOME
During the first year of its operation the company plans to bottle more than
5,000,000 liters of water.
Product
0,5l glass
0,5l plastic
1l plastic
1,5l plastic 5l plastic
2,700,000
1,300,000
766,666
110,000
Quanitity/bottle 1,300,000
115
135
205
250
320
Price
Income (AMD) 149,500,000 364,500,000 266,500,000 191,666,666 35,200,000
66
59,4
132
198
235
Cost price
49
75.6
73
52
85
Margin
PROJECT EXPANSION POSSIBILITY
The initiator company has the right to exploit 5 different spring water
sources in Tavush region with the water flow of 10 litres/second. The
project can be expanded, much more bigger plant or several small plants
with higher production capacity can be constructed.