Transcript - EastAgri

JSC “Concern AVEC and Co”
General information
 JSC “Concern AVEC and Co” was found in 1994 and currently it is one
of the largest and stable companies in Ukraine
 JSC “Concern AVEC and Co” holds leading positions in various branches
of economy and is constantly mastering new markets and businesses
The total number of employees is over 3 000
 Yearly volume of commercial operations is $ 150 mln
Honorary president
Alexander Feldman
1991 - private production and commercial company “AVEC” was
found
1994 - President of JSC “Concern AVEC and Co”, a dynamically
developing production and commercial company
1997 - creation and running one of the largest charity
organizations in Kharkiv – Kharkiv municipal charity foundation
“AVEC”
1998 - 2002 - member of Kharkiv city Parliament
1999 - honored with golden order of Nicolas the Miracle maker “for
multiplication of good on Earth”
С 1999 –The president of Alliance of national and cultural
associations of Ukraine
2000 – awarded with “Christmas 2000” award, prize winner of
rating contest “Kharkiv citizen of the century”
С 2001 – President of Kharkiv united Jewish community
2002 - Member of Parliament of Ukraine, member of Parliament
committee on problems of retired, veterans and handicapped
2003 – awarded with special medal of French republic “For fidelity
in human rights protection”
2005 – owner of the premium "Person of year 2004 " in
nomination the Charity program of the Year"
Main Businesses of AVEC
Markets and
shopping centers
management
Agricultural and
production
projects
Investment
projects in
commercial real
estate
JSC “Concern AVEC and Co”
JSC “Concern AVEC and Co”:
 Large amount of trading space in Kharkiv region
 7,6% of retail trade turnover of all large
non-grocery markets in Ukraine
 2,9% of all retail traders in Ukraine are tenants
of AVEC
Other Businesses of AVEC:
 Various investment projects
 Regional development
 Logistics and transportation – AVECSonora company
 Media-business
 Finance
 Charity
JSC “Concern AVEC and Co”
Shopping centers management
Konniy
The Central
Shopping centers
and markets
Novosaltovskiy
Sumskoy
Barabashova
Markets management
Example of “Barabashova” trade center
Whole-sale and retail “Barabashova” trade
center is the Europe largest trade object.
It is a unique “city inside the city” with its
own streets, blocks, buildings, districts and
infrastructure.
Barabashova trade center:
 Total area – over 600 000 sq.m.
 Over 28 000 shops and kiosks
 Over 100 000 visitors on weekdays and over
200 000 visitors on weekends
 Proposition of non-agricultural goods – «Everything
from a needle up to a car”
 Wide proposition of the goods of local
producers
 Operates 6 days a week + 2 whole-sale
night trade sessions each week
 Constant development
Markets management
Markets of AVEC
“The Central Market”:
 Total area – 60 000 sq.m.
 Is located 5 minutes from downtown Kharkiv
 Main groups of goods: groceries, clothes and shoes, household
chemicals, goods for sport and recreation, animal market
 35-40 thousand visitors on weekends
“Konniy market”:
 Total area – 44 600 sq.m.
 Main wholesale agricultural market in the city
 Up to 36 thousand visitors on weekends
“Novosaltovskiy market”:
 Total area – 20 900 sq.m.
 Is located in the largest residential district of the city
 Main groups of goods: foodstuff, building materials, clothes
 10-18 thousand visitors per day
“Sumskoy market”:
 Total area – 7 600 sq.m.,
 Is located in historic downtown Kharkiv
 Main groups of goods: agricultural products, flowers
International thoroughfares
in Ukraine and Kharkiv
Kharkiv region
Regional location
Kharkiv region is located on the intersection of a number of important
international and national transportation arteries. The region stands on
the lines that connect West and East (Europe and Russia, Eastern
countries) and North and South (Moscow and Crimea). A number of
automobile and rail roads connect the region to Donbass, Crimea,
Caucasus, ports of Black and Azov seas.
Kharkiv region is the largest and best developed region among its
neighbors. It is a traditional trade and terminal region. This is one of the
reasons why Kharkiv is a traditional trade city.
A powerful production and trade system of
agricultural products needs a powerful professional
logistic base.
However it is missing:
Wholesale distribution of agricultural products in
Kharkiv region is chaotic, consists of a large number
of small-size old warehouses whose location is
random.
The distribution system is far from being on the up-todate level while the demand for professional
agricultural terminal is more than high.
Resume
It is obvious that there is a serious need for professional distribution system for agricultural
products in Kharkiv region. When created, such system will efficiently integrate into
economy of Kharkiv region and the regions of Eastern Ukraine thus becoming the main
terminal in the East of the country
JSC “Concern AVEC and Co” has two large size land lots on the
circular road of Kharkiv that have perfect transportation accessibility
and fit to be used for creation of logistic terminals of inter-regional
scale
Object #1 with the overall area of 2 800 000 sq.m. consists of 3 land
lots that are located on the circular road on the North-East of
Kharkiv near Kharkiv biggest Saltovka district
Object #2 with the total area of 18 193 600 sq.m. stands on the
intersection of Moskovskiy ave. and the circular road near Rogan’
industrial district on the South-East of Kharkiv
An important point is that AVEC has both experience and the potential to realize the
agricultural terminal project of such size
In perspective, the model of the distribution center in Kharkiv may be used to create a few
other objects of such type in other regions of the country so that it becomes a national-level
efficient unified system of agricultural products distribution
• Headline FINANCIALS
– Expected investment
– 25 ha – 40 ha 1ST Phase
– 2nd phase - + 15-20 ha reserve
• for logistics / distribution
– Trading space:
• Halls – ca. 40,000 m2
• Truck sales - 50,000 – 75,000 m2
– TOTAL INVESTMENT: around $30 mln.
Ownership
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Need strong private investor
Have very good relations with Town and Oblast
Need to develop a ‘model’ where oblast or town could be part owner of site
or infrastructure
The operator should be private
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Access for Farmers
Some space or boxes could be ‘reserved’ for farmers
(this already happens at existing bazaars operated by AVEC)
Can consider some participation by traders / farmers