Obuv Rossii invests in production
Obuv Rossii will invest in the development of production of 5 billion rubles in the next 7 years. The Obuv Rossii group of companies has announced an investment program to develop production until 2022. The company intends to invest 7 billion rubles in the expansion and modernization of its own production facilities in the Novosibirsk region in the next 5 years. This will allow the company to increase production volumes by 2022 year by 3 times - up to 1,5 million pairs of shoes per year (now - 500 thousand pairs). The investment program is planned to be implemented both at the expense of own and borrowed funds, the volume of own investments will amount to 2 billion rubles. The payback period of the project is 6 years.
“Now in Russia is a favorable time for the development of our own production, which is explained primarily by the capacious market - the volume of the shoe market in 2015 year exceeded 1,2 trillion rubles and 400 million pairs of shoes. In addition, Russian manufacturers got a chance to develop, among other things, due to the effect of the ruble devaluation - now in our country it’s cheaper to make shoes at some assortment positions at 15-20 than to place outsourcing orders abroad, ”commented Anton Titov, Director of GK "Shoes of Russia." The development of its own production allows Shoe of Russia to reduce currency and import risks, reduce transportation and logistics costs, be more mobile in forming its assortment, enter new sales markets, and test new technologies and materials.
In 2014-2015 and in the first months of 2016, the company already invested 1 billion rubles in the development of production - Obuv Rossii acquired the S-TEP factory in the city of Berdsk, Novosibirsk Region, launched a modernization program for a cutting and sewing workshop for two years, and acquired a new line for the production of safety shoes . At the end of May, two sets of Orisol automated sewing complexes will be delivered to the company’s company in the city of Berdsk, which will allow this year to double the capacity of the cutting shop of the enterprise to 200 thousand pairs of shoes per year.
Obuv Rossii Group of Companies is a federal shoe company, one of the five largest shoe retailers in Russia, a leader in the mid-price segment of the shoe market. The group was founded in 2003, the head office is in Novosibirsk. The main business areas of the Group are footwear production, retail and wholesale of footwear and related products. Obuv Rossii develops five shoe chains: Westfalika (single brand, mid-price segment), Pedestrian (multi-brand shoe supermarket), Emilia Estra (shoes boutique), Rossita (store for the whole family) and Lisette (fashion showrooms). The Shoe of Russia shoe network currently has more than 450 stores in more than 100 cities. RAEX (Expert RA) assigned the Group a credit rating of “A +” (a very high level of creditworthiness), the third sublevel, and the outlook is stable. The company's revenue in 2015 year under RAS amounted to 9 billion rubles, net profit - 1,3 billion rubles. The company has online stores westfalika.ru, westfalika-home.ru, emilia-esta.ru, rossita.com. More information about the company can be found on the website www.obuvrus.ru.
Obuv Rossii will invest in the development of production of 5 billion rubles in the next 7 years.
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