Description of the business project:
The tile production project includes the production of natural clay
tiles by “Bashak Group” LLC. It is planned to install the production
factory in Absheron. Thus, the entrepreneur will lease the land
supported by a 99-year contract and start operating. The total
area of the plant is 2,000 m
2. The factory territory consists of a)
raw material warehouse; b) a workshop for product production;
c) a finished goods warehouse. Brick and tile production process
consists of the following stages: I) Preparation of raw materials;
II) Formation; III) Drying; IV) Coloring; V) Cooking; VI) Packaging;
VII) Transportation. Without any reinvestment in fixed assets, the
operation life of the modernly equipped complex is anticipated to
last for 10 years by category. According to the financial analysis,
it was assumed that 20% taxes would be levied on the activity
of the complex. The total investment cost, including expenses
for constructing a production system, the purchase of tangible
assets, and the placement of equipment is supposed to be AZN
5,950,000. It is assumed that 78.2% of the investment amount will
be financed by equity and 21.8% by debt.
Project is ready to be financed by the EBRD Azerbaijan.
