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The business plan of the enterprise for the production of cans

PROJECT SUMMARY
The goal of the project is to organize an enterprise for the production of solid metal cans for packaging of canned products. Region location – Astrakhan. The choice of location is due to the presence of several large fish canning plants and fish farms in Astrakhan and the region, which are considered as the main customers of the enterprise. Despite the present competition in the region, it is planned to provide a number of competitive advantages (the cost of the final product, a high degree of individualization of banks, high quality, etc.) that can provide the company with stable demand.

For the organization of the enterprise used leased production facilities; equipment purchased in the property. Only high quality raw materials are used. The staff is trained in production technology from the supplier of equipment, sales and customer service meets the highest quality standards.

The economic efficiency and investment attractiveness of the project are confirmed by the calculated integral indicators given in Table. 1 given business plan.
Integral Performance Indicators
Discount rate (r),%
7%
Discount rate (r-months),%
0.565%
Payback period (PP), months
13
Discounted payback period (DPP), months
14
Net present value (NPV), rub.
60,866,489
Return on investment (ARR),%
12.98%
Internal rate of return (IRR),%
8.01%
Profitability Index (PI)
5.45

DESCRIPTION OF COMPANY AND INDUSTRY
The project involves the organization of an industrial enterprise in the city of Astrakhan, in a rented room. The products of the company are a metal can, used primarily for canned fish. However, if necessary, can be used for canned vegetables, etc. Nevertheless, the main sales orientation is fish canneries of the region, which should account for up to 80% of sales volumes.

In the long term, the main goal of the enterprise is to gain a leading position in its region in the industry (TOP-3 enterprises). In the short term – the formation of a stable customer base, the establishment of relationships with key customers, ensuring stable sales volumes, according to established financial plans.

Since the main consumer of the company’s products is the fish and seafood processing and canning industry, first of all it is necessary to consider the current state of the industry. Basic information on it is shown in Fig. 1 (according to Rosstat).

Basic economic indicators for OKVED 15.2 (processing and preserving of fish and seafood), in Russia, 2011-2015, ths. Rub.

The business plan of the enterprise for the production of cans

As can be seen from the above graph, indicators of the industry in Russia as a whole are growing; a particularly large increase occurs in the last two years, which can be attributed to the trend of import substitution. Domestic enterprises are developing more rapidly. This concerns not only revenue, but also net profit.

Of course, this has a positive effect on the production of canning containers – cans. The dynamics of this industry is shown in Fig. 2

The main economic indicators for OKVED 28.72 (production of packaging from light metals), in Russia, 2011-2015.

Official industry statistics on OKVED 28.72, the production of packaging from light metals (includes the production of cans for food, as well as metal lids and other products for sealing), confirms data on the steady growth of the industry. The main increase in indicators, as in the previous case, falls on the last two years. The industry can certainly be called rapidly developing.

PRODUCT DESCRIPTION
The company manufactures tin cans and tinplate lids, focusing on the needs of key customers – fish processing companies in the region. The concept of product line development is focused on a five-year period and implies the presence of 5 types of cans, 3 of which are universal, and 2 are unique and are made directly for the customer. In the future it is planned to expand the range and attract new customers.

For the production of high-quality white tin – EZhK, according to GOST-13345-85, with a thickness of 0.22 mm. Internal coating – food protective varnish, resistant to sterilization, made in Germany. External coating – food varnishes, enamels and paints made in Germany. Banks are made according to GOST 5981-88. In case the requirements of customers differ from the requirements of GOST, the products are manufactured according to more stringent requirements.

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