Stage 1. Market analysis
a) a description of the project products (x/c flat leaf rental without coatings, electrolytically galvanized rental/with coatings, hot -valked rental without/with coatings (including polymer, including PRENTECH)):
- areas of application of each type of project products
- Description of the main production technologies and redistributions of production
b) Analysis of the market of key raw materials
- Description of the main types of raw materials for the production of project products (separately for phase 1 and phase 2 of the project:
- phase 1 - g/c rental, zinc, polymer and paints and varnishes of phase 2 - slabs, zinc, polymer and paint coatings.
- The main suppliers of raw materials and consumers (in terms of competition for raw materials). Analysis for each type of raw materials
-express analysis of the raw materials market (for each type of raw materials) (dynamics of supply and demand in retrospective (2008-2013) and forecast period (2014-2022)) on the Russian market
-the dynamics of prices in retrospecting (2008-2013) and forecast period (2014-2022)) for each type of raw materials, description of logistics and supply channels for each type of raw materials (manufacturer of raw materials-> Product manufacturer)
c) quantitative and qualitative analysis of the Russian and global markets of fried sheet rental (including coatings) in retrospective (2008-2013) and forecast period (2014-2022)):
- Analysis of the Russian and world markets indicating demand, production volumes (with details according to the main manufacturers), export and imports, sales prices, key segments of consumers in the main macro registers, and a qualitative characteristic of pricing principles. Market analysis must be carried out with details for each type of project products.
- Analysis of the main products of the substitute and the prospects for their development, including the dynamics of markets according to these segments
- Description of key demand/supply drivers for each product. Analysis of the trends of the main industries - consumers of project products
d) the formation of the forecast of the development of Russian and the markets of the neighboring foreign countries until 2022 by indicating the proposed position of the company in each of the markets (for each type of project products):
- Analysis of the main factors affecting demand, and its forecast until 2022, including the analysis of the seasonality/cyclic industry
- Analysis of current capacities and forecasting their dynamics until 2022.
- Analysis of prices and sales volumes of each of the products that the company can achieve after the completion of the production modernization program, indicating potential sales/sales/consumers regions/consumer regions
e) Analysis of the competitive position of the company in the Russian and world markets of h/c rental (with details for each type of project products):
- a description of the competitiveness of the company in each market (by type of product), taking into account all capacities (current and planned) relative to the main competitors, analysis of the level of competition in the industry according to the "Five Competition forces" scheme M. Porter indicating the quantitative criteria of each evaluated parameter. Barriers to the entrance to the industry (including legislative restrictions, TS rules, WTO, restrictions on access to key resources);
- Description of the main direct competitors (comparative analysis of suppliers of high -quality products from the EU and cheap - from China), including:
- types of products, production capacities, production/sales volumes (over the past 5 years), market share, production technologies used, the level of loading of production capacities.
- Comparative analysis on the main parameters of competitors' business models.
- Analysis of competitors to expand capacities. Analysis of the possibility of the emergence of new competitors
- The degree of integration of competing companies in the market (including vertical integration) and a sales strategy.
- data on financial indicators (revenue, cost, price, EBITDA, profitability) of competitors in dynamics for the period since 2008. in 2022. Compared to the annual project indicators specified in the financial model of the project.
- analysis of the main factors of competition in the market (price, quality, production technology, logistics of raw materials and finished products, etc.).
- Description of current trends and success factors in the current competitive environment. SWOT analysis: strengths and weaknesses, potential and threats of the project in the presence markets of recommendations on the options for neutralizing the weak and the use of strengths of the project
- Recommendations for eliminating the comments received during this analysis (in the case of comments).
- examination of the validity of the introductory parameters of the financial model of the company, including profitable and cost articles of operating activities:
- Calculation of the share occupied by the company in the market of the X/C rental when entering the design capacity for each type of product
- comparison of average market prices for products with current and forecast prices for the project;
f) analysis of the cost of each type of project product, including the specific norm of the materials used and the cost of their purchase, energy costs.
Stage 2. Strategic project analysis
a) Analysis of the availability of raw materials necessary to increase production capacities:
- Analysis of the possibility of supplying additional volumes of raw materials by current suppliers in case of insufficient volume of resources of current suppliers, search for additional channels for the purchase of raw materials and determining its cost
- a description of the target approach to the acquisition of the main components of production with an indication of volumes and prices
- Analysis of risks associated with the failure to fulfill the suppliers of raw materials for deliveries, and ways to reduce them
b) determining the target position of the company in the market after the completion of the modernization program
c) Analysis of the execution of the current strategy of the company, taking into account market analysis and the possible reaction of competitors to an increase in capacity:
- The validity and feasibility of introducing lower redistributions at the enterprise. List all fronts indicating the marginality of each
- Determination of key customers (consumers of project products) (% revenue and prospects)
- analysis of market capacity and description of possible sales channels of additional products of the company
- a qualitative description of the possible reaction of the largest competitors of the company in the Russian market and determine the deadlines for the implementation of their plans
- data collection regarding current plans for competitors to expand capacities; Analysis of the impact of the implementation of these plans for project markets
Stage 3. Preparation of parts of the investment memorandum
a) generalization of the results of strategic and market analysis, their formalization and coordination with the management of the company:
- presentation of market data in a format ready for entering a financial model
- coordination of the completed analysis with the management of the company
b) providing comments regarding the appropriateness of the proposed plan to expand capacities, taking into account the market forecast:
- Analysis of the execution of the plan, taking into account the market forecast for the sale of products and the capabilities of the company for the purchase of raw materials
- if necessary, making proposals for adjusting the company's plan to expand production capacities
- Description of alternative markets and product sales channels
c) clarification of forecasts for raw materials, taking into account the increase in production capacities:
- Analysis of the long -term availability of all the necessary types of raw materials
- identifying the dependence of prices for raw materials on supplies
- identification of alternative sources of resources in case current sources cannot supply the necessary volumes
