Obuv Rossii will open a new factory in Linevo, Novosibirsk Region
The investment project of creating a factory for the production of whole-molded shoes and shoe bottom parts made of polymer materials by Obuv Rossii Group of Companies was presented today at the Investment Council of the Novosibirsk Region. To implement the project, a new company was created in the Group's structure - EvaLink LLC, which is registered in Linevo. The company plans to open a factory in the 3 quarter of 2019 of the year; upon reaching full capacity in 2023, the company will produce 1,1 million products a year. The planned volume of investments will amount to 760 million rubles. The new factory will also use the existing production facilities of the company, which are located in Novosibirsk, and the acquired technologies.
Obuv Rossii may become the first resident of TOSED. “Linevo is well located in terms of interaction with our main production facility in neighboring Berdsk, as a result we will get the cooperation of two enterprises. We consider obtaining TOSED status an important achievement of the regional authorities, which will attract new investors to the region. Our company is interested in as many players as possible participating in the TOSER project, including those from the light industry and related industries, ”comments Anton Titov, director of Obuv Rossii GC.
Obuv Rossii plans to create a factory on the territory of Linevo for the production of one-piece molded footwear and footwear bottoms made of polymer materials. The company already has experience in the production of polymer footwear, primarily from ethylene vinyl acetate: since 2014, an automated workshop for the production of such footwear has been operating in Novosibirsk. To date, Obuv Rossii has developed and introduced into production such an assortment as: slates, clogs made entirely of EVA and with a combination of EVA and other materials; women's winter boots-dutik and men's winter solid-cast boots for hunters and fishermen; summer women's shoes.
The range of footwear will be expanded at the Linevo site. The main distribution channel for the new production will be its own retail network, Obuv Rossii, which now numbers more than 580 stores; in three years, the company intends to expand it to 1000 stores. Also, the potential sales markets for the factory are the work footwear market: Obuv Rossii is already cooperating with large food industries to manufacture such footwear; and the market of footwear for hunting and fishing, where domestic products of decent quality are presented in small volumes.
The polymer footwear market is promising. According to Discovery Research Group estimates, its volume in 2017 amounted to 51,3 million pairs, an increase in relation to 2016 - 21,4%. Almost half of the volume of this market is domestic production, which is mainly represented in the South of Russia, the North Caucasus and in the European part of the country. In Siberia and the Far East, large-scale production of polymer footwear is virtually absent. According to DRG forecasts, the market will grow to 2020 million pairs by 63,8.
GC "Shoes of Russia" founded in 2003 year, has a headquarters in Novosibirsk and an office in Moscow. The main business area is the production and sale of footwear and related products. The company operates 588 stores (113 operate on a franchise) under the brands Westfalika (single-brand shoe store), Pedestrian (multi-brand shoe supermarket), Rossita (a family-friendly store), Emilia Estra and Lisette (fashion shoe stores), and also develops brands of shoes and clothes for an active lifestyle S-tep, All.go and Snow Guard and owns two shoe factories in the Novosibirsk region. In October 2017 of the year, Obuv Rossii attracted 5,9 billion rubles during an IPO on the Moscow Exchange (OBUV ticker), the issuer is PJSC OR. In accordance with the audited financial results of the Group under IFRS, in 2017, revenue amounted to 10,801 billion rubles, net profit - 1,31 billion rubles, EBITDA - 2,74 billion rubles.
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