Investment Projects

Expansion of poultry production

  • Indicator Results
  • Investment amount, thousand US dollars 102 633
  • NPV of the Project thousand, US dollars 91 609
  • IRR, % 19,9%
  • EBITDA yield, %
  • Payback period, years 6,3
  • Discounted payback period, years - -

Annual capacity:

  • marketable eggs - 4,803 thousand units / year;
  • poultry meat - 91,967 tons / year;
Domestic demand:
  • consumption of poultry meat - 246 thousand tons / year.
Project

This investment project (the “Project”) plans to expand the existing business of Alel Agro JSC by launching six broiler poultry farms with an annual capacity of 47.9 million tons of poultry meat in the Zhambyl region. At the moment, construction has been completed on two poultry farms, but the facilities have not yet been put into operation.

Company

Alel Agro JSC is the largest poultry meat producer in Kazakhstan. The sales volume of products in 2020 reached 51.4 million tons. The Company's assets include 6 functioning broiler poultry farms and 2 operating broiler poultry farms in the Almaty region, as well as a feed mill, a slaughterhouse, a sorting terminal and an incubator.

Market
  • In 2020, the level of world production amounted to 125 million tons of poultry meat. According to the forecasts of the OECD and the UN FAO, the world will see an increase in the overall level of consumption of poultry meat. Compound Annual Growth Rate (CAGR) 2021-2024 will be 1.8%.
  • In 2020, the production and consumption of poultry meat in the Republic of Kazakhstan amounted to 96.5 thousand and 246.2 thousand tons, respectively. Domestic production of poultry meat is 84%, the rest is covered by imports.

What is the attraction of the project?
  • Established trade and logistics chain. To sell products under its own brands Alel, Ameral fresh, Tasty Chick, the Company launched a network of branded stores in Almaty, as well as 4 regional distribution centers.
  • Governmental support. Activities within the framework of the Project are included in the list of priority sectors for the provision of state support and the receipt of appropriate benefits and preferences.
  • Proximity to large markets. Zhambyl region is located in geographical proximity to the capacious sales markets of Almaty and Almaty region (4.0 million people), as well as to the border with China.
Investment proposal

For the implementation of the Project, financing in the amount of 102,633 thousand US dollars is required, of which:
  • 10% (USD 10,266 thousand) – debt financing (subject to collateral);
  • 80% (82,130 thousand USD) - participation of PEFs (KIDF, KCM, SKI);
  • from 10% (10,266 thousand US dollars) - investor participation.
The proposed financing structure and state support measures are indicative, the final financing structure and the stake in the Project will be determined based on the results of joint negotiations with the investor.

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