Product
Sales volumes upon reaching full design capacity in 2034 will be as follows:
- workwear (summer) – 38.4 thous. pieces;
- workwear (winter) – 36 thous. pieces;
- mass-market (clothes and bedding, summer) – 40 thous. pieces;
- mass-market (clothes and bedding, winter) – 36 thous. pieces.
Project
The Project provides for the expansion of the production capacity of an existing business, the Abay clothing factory located in the city of Abay, Karaganda Oblast. The territory of the industrial facility is fenced, the access roads are paved, the factory is connected to the central power supply and heat supply.
Initiator
The initiator of the Project is Stezhok LLP which operates a production facility such as a clothing factory in the city of Abay, Karaganda Oblast. The factory specializes in the production of workwear and clothing for the mass market. The annual production volume is beyond USD 650 thousand. The sales geography of the Company's products covers all regions of Kazakhstan. The main clients of the factory are Saryarka NAN LLP, Ulytau NAN LLP, Kazpaco LLP, Kazakhdorstroy LLP and Avtodor NS LLP (BI Group Holding).
Market
- In 2021, the global clothing market was valued at 610 billion USD. According to The Business Research Company, the market is projected to reach 831 billion by 2027. The market is expected to grow at a CAGR of 4.4% between 2023 and 2027.
- The global workwear market is expected to reach 51.11 billion USD by 2027 at CAGR (2021-2027) - 6.19%.
- The share of imports in the markets of tracksuits and outerwear in Kazakhstan is 89% and 99.6%, respectively. The average annual growth rate of production of tracksuits in Kazakhstan in 2018- 2022 amounted to 4%. The average annual rate of decline in the production of outerwear in the country for the period 2018-2022 amounted to 23.8%.
- Advantageous location. Production located in the city of Abay will make it possible to cover the consumer market of Karaganda Oblast with a population of over 1.1 million people. Access to a developed and extensive network of railways and highways will facilitate the delivery of goods to neighboring regions (Ulytau, Abay, Zhetisu, Akmola, Pavlodar and Almaty oblasts), where over 4.6 million people reside.
- Well-establishes sales channels. Current annual output of the factory is over 650 thousand USD. Product sales cover all regions of the country. The main clients of the factory are Saryarka NAN LLP, Ulytau NAN LLP, Kazpaco LLP, Kazakhdorstroy LLP and Avtodor NS LLP (BI Group Holding). To sell clothing in the mass market segment, the Company has opened an online store aiming to expand its audience and include young people and city residents.
- State support. The project is included in the list of priority industries for the provision of government support, which framework allows receiving a number of benefits, preferences and in-kind grants.
The Project requires investment of 1,439 thousand USD (exchange rate: KZT 449), of which:
- 70% (1,008 thousand USD) – debt financing subject to collateral;
- 30% (432 thousand USD) – investor participation.
