INVESTMENTINVESTMENT OPPORTUNITIESOPPORTUNITIES OFOFELECTROTECHNICALELECTROTECHNICAL INDUSTRY
INDUSTRY OF
OF
THE
THE REPUBLIC
REPUBLIC OFOF UZBEKISTANUZBEKISTAN

www.uzeltex.uz

“UZELTEHSANOAT”
Uzbekistan Association of Radio-electronics, Electro-technicaland Instrumentation Enterprises “UZELTEHSANOAT”
was established in 1994
Ownership forms of the “UZELTEHSANOAT” Companies
State Com panies
13%

Lim ited Liability
Com panies
33%
Joint-Stock
Com panies
54%

www.uzeltex.uz

PRODUCTION STRUCTURE OF
THE COMPANIES OF “UZELTEHSANOAT”

Consum er
electronics andhom e appliances

Electronic productsof daily dem and10%40%
Cable and w ire
products

8%42%
Industrial andtechnologicalproducts

www.uzeltex.uz

COMPANIES OF “UZELTEHSANOAT”
Cable and wire products:¾ JSC JV “Deutsche Kabel AG Tashkent”¾ JSC JV “Uzcable”¾ JSC JV “Andijancable”

Low and high voltage equipment:¾ JSC JV “Uzelectroapparat-Electroshield”¾ JSC “Relay and Automatics”

Electro-technical and telecommunication
products:
¾
¾
¾
¾
¾
¾
¾
¾
¾
¾

JSC “Foton”
JSC “Algoritm”
JSC “Oniks”
JV “UMT-Radio”
JV “Uzglaszayden”
SRI “Microelektronika”
SPC “Kvark”
EKB “Foton”
LLC “RTO VT”
LLC “Elxolding” & JSC “Kinap”

www.uzeltex.uz

COMPANIES OF “UZELTEHSANOAT”
Power transformers, electrical products
and elevators:
¾
¾
¾
¾
¾

JSC JV “Chirchik Transformer Plant“”
JSC “Uzelektroterm”
JSC “Kokand teh-invest”
JSC “Anzis”
JSC “Samarkand Elevator Plant”

Consumer electronics and home appliances:¾¾¾¾

JSC “Sino”
JSC “Algoritm”
JSC “Zenit Electronics”
JV “Idas Electronics System”

Service companies:¾ LLC “Elektroremont”¾ LLC “Elektronika”

www.uzeltex.uz

PRODUCTION GROWTH IN 2003-2008
million USD

292,4
236

156,2

63,1

80,9

29,9

2003

2004

2005

2006

2007

2008

www.uzeltex.uz

EXPORT GROWTH IN 2003-2008
million USD

106
85,7
58,5

20,7

2003

29,4

2004

30,4

2005

2006

2007

2008

www.uzeltex.uz

CONDITIONS FOR PRODUCTION DEVELOPMENT
Convenient
Convenient geographicalgeographical location
location ofof Uzbekistan
Uzbekistan ininCentralAsiawithpopulation
more
than
26,5
millionCentral Asia with population more than 26,5 million
Quantity
Quantity ofof households
households is
is moremore than
than 5,4
5,4 million
millionfamilies.
About
250
thousandnewhouseholds
families. About 250 thousand new households arearecreatedannually.
created annually.
The
Theregion
regionis
isrichrichwith
withnatural
naturalresources
resources
Well
Well developed
developed industrial
industrial potential
potential andand inexpensive
inexpensive
qualifiedhumanresourcesqualified human resources
Consumer
Consumer electronics
electronics andand homehome appliances
appliances market
marketpractically
have
not
been
yet
possessedbypractically have not been yet possessed by local
local
producers.
Presenceofhuge
demandforhome
producers. Presence of huge demand for home
appliances
applianceswith
withwell-known
well-knownbrands
brandsGovernment
Government ofof Uzbekistan
Uzbekistan provides
provides aa wide
wide range
range ofofprivileges
andpreferencesforinvestors
who
produceprivileges and preferences for investors who produce
consumer
consumercommodities
commoditiesand
andcomponents
componentsfor
forthemthem

www.uzeltex.uz

DEMAND FOR ELECTRONICS ANDHOME APPLIANCES IN LOCAL MARKET№

Products

Rated annual demand taking into account new
created families, thousand pcs

Provision of
100 families
in 2008,
pcs

Rated
quantity of
appliances
in families,
thousand pcs

Period ofsubstitution,
years

2009

2010

2011

2012

1

Refrigerators andfreezers

82

4428

12

370

377

385

393

2

TV-sets

98

5292

10

530

541

551

562

3

Computers

51

2776

3

930

949

968

987

4

DVD, CD-players

59

3159

5

630

643

655

669

5

Washing
machines

55

2970

12

250

255

260

265

6

Air-conditioners

26

1404

7

200

204

208

212

7

Stationary andmobile phones

290

15660

2

3900

3950

4030

4110

8

Electric kettles

20

1080

3

100

102

104

106

9

Electric irons

98

5292

5

400

408

416

424

10

Hair driers

12

648

2

130

133

135

138

11

Juice makers

8

432

5

100

102

104

106

12

Toasters & Mixers

20

1080

5

50

51

52

53

13

Vacuum cleaners

20

1080

8

300

306

312

318

www.uzeltex.uz

DEMAND FOR ELECTRONICS ANDHOME APPLIANCES IN LOCAL MARKET№

Products

Rated annual demand taking into account new
created families, thousand pcs

Provision of
100 families
in 2008,
pcs

Rated
quantity of
appliances infamilies,
thousand pcs

Period ofsubstitution,
Years

2009

2010

2011

2012

14

Fans

60

3240

3

150

153

156

159

15

Electric heaters

20

1080

5

100

102

104

106

16

Gas and electric
stoves

98

5292

15

70

71

73

74

17

Calculators

50

2700

3

50

51

52

53

18

Microwave
ovens

7

378

7

150

153

156

159

19

TV antennas

98

5292

5

60

61

62

64

* Number of Households - 5,4 mln.
** approximate number of annually created new families – 248 thousand*** 60% families (3,24 mln.) live in rural area, 40% families (2,16 mln.) are urban population**** Annual population growth - 2 %www.uzeltex.uz

DEVELOPMENTDEVELOPMENT STRATEGYSTRATEGY FORFORELECTROTECHNICALELECTROTECHNICAL INDUSTRY
INDUSTRY
FOR-2012
FOR THE PERIOD 20092009-2012

e-mail: info@uzeltex.uz

ELECTROTECHNICAL INDUSTRY
DEVELOPMENT STRATEGYAt
Atpresent
presentthe
thedraftdraftofofthe
theElectrotechnicalElectrotechnicalIndustry
Industry
Development
DevelopmentStrategy
Strategytill
till2012
2012hashasbeen
beenpreparedpreparedandandsubmitted
submittedto
tothe
theGovernment
Governmentfor
forendorsement.
endorsement.
The
Themajor
majorpurpose
purposeof
ofthe
theStrategy
Strategyis
isaacreation
creationofofnewenterprises
andmodernizationofnewenterprises
andmodernizationoftechnological
technological equipment
equipment forfor production
production ofof highhighquality
quality consumer
consumer electronics
electronics andand homehomeappliances.
appliances.
The
The Strategy
Strategy aims
aims at
at attracting
attracting toto thethe country
countryleading
leading world-wideworld-wide producers
producers ofof consumer
consumerelectronics
electronicsand
andhomehomeappliances.
appliances.
Companies
Companies included
included inin thethe Strategy
Strategy will
will bebeprovidedprovided with
with tax
tax andand customs
customs privileges
privileges andandpreferences.
preferences.

www.uzeltex.uz

MAIN DIRECTIONS OF THE STRATEGY

Production
Production ofof Electro-technicalElectro-technical consumer
consumer products
products(refrigerators,(refrigerators, TV-sets,
TV-sets, computers,
computers, washing
washing machines,
machines,gas
andelectric
stovesandothers)gas and electric stoves and others)

Production
Production ofof Cable
Cable andand semi-conductorsemi-conductor products
products(wires,LAN-cables,
communication
cables,high-voltage(wires, LAN-cables, communication cables, high-voltage
cables,cables,isolated
isolatedwires,wires,householdhouseholdwires)wires)
Production
Production ofof Industrial
Industrial andand technological
technological products
products(transformers,
elevators,
low-voltage
equipment,
photo(transformers, elevators, low-voltage equipment, photoelectric
electricstations,
stations,electricalelectricalheaters)
heaters)
Production
Production ofof Electro-technicalElectro-technical products
products ofof dailydaily
demand(lightingdevices,high-quality
ware,
paints,demand (lighting devices, high-quality ware, paints,
wiringwiringproducts)
products)

www.uzeltex.uz

PRIVILEGES AND PREFERENCES PROVIDED BY
ELECTROTECHNICAL INDUSTRY DEVELOPMENT STRATEGY

Companies with projects included in theElectrotechnical Industry Development Strategy
are exempted from:
customs
customs duties
duties forfor importing
importing equipments,
equipments,
parts
parts andand components
components forfor manufacturing
manufacturing
products
products
incomeincometax
tax
property
propertyand
andlandlandtaxes
taxes

www.uzeltex.uz

PERSPECTIVEINVESTMENT PROJECTS

e-mail: info@uzeltex.uz

CONSUMER ELECTRONICS ANDHOME APPLIANCES PRODUCTION PROJECTSOn the basis of the companiesof ““UZELTEHSANOAT”
UZELTEHSANOAT”“SINO” JSC“ZENIT” JSC“FOTON” JSC“ONIKS” JSC“ALGORITM” JSC
www.uzeltex.uz

“SINO” JSC
Main products:

Refrigerators,
Freezers,
Air-conditioners,
Shop equipment

Location:

Samarkand city

Total area:

6,92 hectares

Production area:

32 thousand sq.m.

Number of employees:

450

Total production
volume in 2008:

12,85 mln. USD

www.uzeltex.uz

“SINO” JSC

www.uzeltex.uz

“SINO” JSC
PROPOSED PROJECT:
Production
Production of:of:
refrigerators,
refrigerators,
freezers,
freezers,
air-conditioners,
air-conditioners,
washing
washing machines,
machines,
gas
gas andand electric
electric stoves.
stoves.

www.uzeltex.uz

“FOTON” JSC
Main products:

Radio electronic equipment,
TV-sets, cash registers,
semiconductors,
photoelectric stations

Location:

Tashkent city
8,3 hectares

Total area:
Production area:

28,74 thousand sq.m.

Number of employees:

420

Total production
volume in 2008:

8,6 mln. USD

www.uzeltex.uz

“FOTON” JSC_____ млн.долл.

www.uzeltex.uz

“FOTON” JSC
PROPOSED PROJECTS:
Production
Production of:of:
LCD
LCD andand CRT
CRT TV-sets,
TV-sets,
Audio
Audio andand video
video players
players
Electric
Electric andand gasgas stoves
stovesComputers
Computers
Microwave
Microwave ovens
ovens
Manufacture
Manufacture ofof photo-electric
photo-electric stations
stations
Total
Total projectproject cost
cost –– 3,2
3,2 mln.
mln. USD
USD
Estimatedcapacity
–
up
to
500
Estimated capacity – up to 500 kW
kW perper annum
annum(equivalent500
pcs(equivalent 500 pcs per
per 11 kW)
kW)
Production
Production ofof energy
energy savingsaving andandluminescent
lamps
luminescent lamps
Total
Total projectproject cost
cost –– 3,53,5 mln.
mln. USD
USD
Estimated
Estimated capacity
capacity –– 500
500 thousand
thousand pcs
pcs per
per annum
annum

www.uzeltex.uz

“ONIKS” JSC
Main products:

Crystal wares and products,
Crystal chandeliers,
Household and office lamps,
Other household products

Location:

Tashkent city

Total area:

17,6 hectares

Production area:

70 thousand sq.m.

Number of employees:
Total production
volume in 2008:950
40 человек
21,86 mln. USD
86 млн.долл.

www.uzeltex.uz

“ONIKS” JSC

www.uzeltex.uz

“ONIKS” JSC
PROPOSED PROJECTS:
Production
Production of:of:Electronic
Electronic measuring
measuring devices
devices
Water
Water purifying
purifying andand waterwater heating
heating filters
filters
Stationary
Stationary andand mobile
mobile phones
phonesMixers,Mixers, kitchen
kitchen machines,
machines, juicing
juicing machines
machines
Modernization
Modernization ofof production
production ofof lighting
lighting
appliances,
crystalproducts,
glass
appliances, crystal products, glass wares,
wares,
improvementofqualityandenhancement
improvement of quality and enhancementofof products
products assortment
assortment
Project
cost
Project cost –– 1010 mln.
mln. USD
USD
Estimatedcapacity–
4
Estimated capacity – 4 mln.
mln. pcs
pcs per
per annum
annum
Completion
Completion ofof construction
construction ofof thethe plant
plant forfor
production
of
fiber
glass
(roving)
production of fiber glass (roving)
Project
Project cost
cost –– 77 mln.
mln. Euros
Euros
Estimatedcapacity–
Estimated capacity – 9,49,4 thousand
thousand tons
tons perper annum
annum

www.uzeltex.uz

“ZENIT” JSC

Main products:

LCD and CRT TV-sets,
DVD-players,Air-conditioners

Location:

Tashkent city

Total area:

12,1 hectares

Production area:

26,5 thousand sq.m.

Number of employees:

350

Total production
volume in 2008:

15,3 mln. USD

www.uzeltex.uz

“ZENIT” JSC

www.uzeltex.uz

“ZENIT” JSC
PROPOSED PROJECT:
Production
Production of:
of:

Audio
Audio andand video
video players
players
Washing
Washing machines
machines
Building
Building kitchen
kitchen appliances
appliances
Refrigerators
Refrigerators
Microwave
Microwave ovens
ovens
VacuumVacuum cleaners
cleaners
Hair
Hair dryers,
dryers, electric
electric irons,
irons, electric
electric kettles
kettleswww.uzeltex.uz

“ALGORITM” JSC

Main products:

Television sets,
DVD-players,Air-conditioners

Location:

Tashkent city

Total area:

22,93 hectares

Production area

76,32 thousand sq.m.

Number of employees:

530

Total production
volume in 2008:

5,7 mln. USD

www.uzeltex.uz

“ALGORITM” JSC

www.uzeltex.uz

“ALGORITM” JSC
PROPOSED PROJECT:
Production
Production of
of::
LCD
-sets
LCD andand CRT
CRT TV
TV-sets
D
VD-players
DVD-players
Washing
Washing machines
machines
Refrigerators
Refrigerators
Gas
Gas andand electric
electric stoves
stovesMicrowave
Microwave ovens
ovens andand otherother kitchen
kitchen appliances
appliances

www.uzeltex.uz

PROPOSAL FOR JOINT ACTIVITYACTIVITY::
THREE VERSIONS

e-mail: info@uzeltex.uz

1ST OPTION FOR COOPERATIONJOINTJOINT ACTIVITYACTIVITY ON
ON THETHE BASISBASIS OF:OF:The
The brandbrand licensing
licensing (license(license agreement);agreement);
Production
Production on
on thethe basis
basis ofof franchising;franchising;Rendering
Rendering technicaltechnical support;
support;Training
Training ofof personnel;
personnel;
SupportSupport ofof thethe export
export ofof products.
products.
ItIt isis known
known thatthat during
during period
period ofof global
global financial
financial crisis
crisismany
many companies
companies have
have suspended
suspended thethe activity
activity ofof theirtheirplantsplants thatthat manufacture
manufacture electronics
electronics andand homehomeappliances.
appliances. Existing
Existing equipment
equipment within
within those
those plants
plants could
could
bebe purchased,purchased, transferredtransferred andand installed
installed inin Uzbekistan
Uzbekistan
withwith aa view
view ofof entering
entering Uzbek
Uzbek market
market andand deep
deep
localization
localization ofof production
production ofof consumer
consumer electronics
electronics andandhomehome appliances.
appliances.

www.uzeltex.uz

2ND OPTION FOR COOPERATIONJOINTJOINT ACTIVITYACTIVITY IN
IN TWOTWO STAGES:STAGES:
ST STAGE:
11ST
STAGE:
The
The brandbrand licensing
licensing (license(license agreement);agreement);
Production
Production on
on thethe basis
basis ofof franchising;franchising;Rendering
Rendering technicaltechnical support;
support;Training
Training ofof human
human resources;
resources;
SupportSupport ofof thethe export
export ofof products.
products.
ND STAGE:
22ND
STAGE:
Establishment
Establishment ofof Joint
Joint Venture
Venture with
with bilateralbilateral
investment
investment forfor deep
deep developing
developing ofof production
productionofof consumer
consumer electronics
electronics andand homehome appliances.
appliances.

www.uzeltex.uz

3RD VERSION OF COOPERATION

Establishment of Joint Venture withinvestment of both parties for production of
consumer electronics and home applianceswith the brand licensing, with initial phase of
the project based on SKD-production andinvolving technical support, training andcapacity building, support in export promotionand etc.

www.uzeltex.uz

CONTRIBUTION OF THE UZBEK SIDE ON THE 1ST STAGE
OF HOME APPLIANCES PRODUCTION PROJECTTHE
THE ASSOCIATIONASSOCIATION AND
AND COMPANYCOMPANY FROMFROM THETHEUZBEKUZBEK SIDE
SIDE ARE
ARE READYREADY TOTO PROVIDEPROVIDE ::Production
Production facilities
facilities andand infrastructure;
infrastructure;
QualifiedQualified human
human resources
resources forfor thethe projectproject
implementation;
implementation;
Administrative
Administrative andand legal
legal support
support toto thethe project,
project,
includingincluding assistanceassistance inin securing
securing privileges
privileges andandpreferences
preferences envisaged
envisaged byby thethe legislation;
legislation;
Organization
Organization ofof salessales network
network andand centers
centers forfor warranty
warranty
andand after-saleafter-sale service
service ofof electronics
electronics andand homehomeappliances
appliances products;
products;
TimelyTimely payments
payments forfor thethe equipment
equipment andand parts,
parts, supplied
suppliedforfor production
production ofof consumer
consumer electronics
electronics andand homehomeappliances.
appliances.

www.uzeltex.uz

EXPECTED CONTRIBUTION OF THE PARTNER COMPANY
ON THE 1ST STAGE THE JOINT PROJECT

Signing
Signing aa License
License agreementagreement forfor useuse ofof thethe brand
brand(trademark)(trademark) with
with thethe company
company ofof “Uzeltehsanoat”;“Uzeltehsanoat”;
Providing
Providing on
on commercial
commercial basis
basis thethe equipment
equipment forfor
assemblingassembling andand testing
testing ofof consumer
consumer electronics
electronics
andand homehome appliances;appliances;
Providing
Providing experts
experts forfor qualitative
qualitative installation
installation andandlaunchinglaunching thethe equipment
equipment andand production
production lines;
lines;
SupplySupply ofof parts
parts andand components
components on
on commercial
commercial
basis;
basis;
SupplySupply ofof press-tools
press-tools forfor production
production ofof body
body parts
parts
and
and otherother spares
spares on
on commercial
commercial basis;
basis;
Cost-sharing
Cost-sharing forfor advertisement
advertisement andand promoting
promotingproducts
products with
with thethe brandbrand ofof thethe company.
company.

www.uzeltex.uz

WE ARE READY FOR
COOPERATION WITH YOUYOU!!
THANK YOU FOR ATTENTIONATTENTION!!

e-mail: info@uzeltex.uz