Ceramic Tiles Manufacturing

Ceramic Tiles Manufacturing

Project Profile

This unique investment opportunity involves building a plant, which will produce red and white body ceramic tiles with the potential to produce porcelain tiles as well. This project will capitalize on Georgia’s abundant raw materials to produce ceramic tiles both for export and to feed Georgia’s fast growing consumption of ceramics. Currently Georgia imports all of its ceramic products. Not only is there a massive regional demand for exported ceramics, but also the market within Georgia is experiencing an 11% growth rate, giving this facility an instant market and domestic profit potential. The investment needed for this project is USD 13-24 million, depending on the machinery supplier, and a 10-year IRR of 28% – 33%.

Background

• Global ceramic tiles market:
• Market size (2014) – USD 65 billion
• Annual growth rate – 6%

Local Market:

• Market size (2014) – USD 55 million
• Annual growth rate – 11%
• Imports share – 100%
• Origin of Imports: Iran – 32%, Turkey – 26%, China – 16%.

Advantages of Georgia:

• Duty free export to the EU, US, CIS and other regions with a total population of 2 billion
• Availability of suitable raw material deposits
• Government priority project
• Inexpensive resources, such as electricity, labor and water
• Advantageous geographical location: easily accessible European and Asian markets via the Black Sea ports of Poti and Batumi

Project Description:

• Business plan: 3 versions according to different machinery suppliers
• Plant location – Western Georgia
• Manufacturing input – 85% local, 15% imported raw materials
• Business activity – wall tiles, floor tiles, porcelain tiles
• Annual capacity according to business plan versions – 2, 3, 3 million m2
• A detailed business plan and any other information will be provided upon request. Feel free to email us at GIDG@economy.ge or see the contact information below

Financial Highlights:

• Total investment: USD 13-24 million (depending on different machinery suppliers)
• Expected revenue for a year: USD 11-17 million
• EBITDA: USD 6-11 million
• 10 year IRR: 28%-33%

Governmental Resources:

The Government of Georgia provides the following financial incentives:

• Nominal price for land
• Loan/leasing subsidy through the “Produce in Georgia Initiative” (qartuli.ge)
• Equity co-financing through the Partnership Fund (fund.ge)
• Technical assistance through the Georgia Industrial Development Group

In Summary: Local resources, local production!

Available local raw materials amount to more than 80% of the composition of ceramic body, which is a major advantage. For example, the same parameter for Azerbaijan is roughly 50%. As opposed to regional countries (such as Turkey, Russia, Azerbaijan and Ukraine), Georgia’s imports make up 100% of domestic co

phone:

551176470 ENG

phone:

577772203 GEO

phone:

595655655 RUS

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