1Start-up projects in the direction Agrobiotechnology 2013-2017 (contract № 12056p / 22882 of 25/07/2014)

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FOOD INDUSTRY AGROINDUSTRIAL COMPLEX1) Lack of of manufacturers of mass production of the blown grains (corn, oats, wheat) for use in sectors food and mixed fodder industries;2) The high cost of production of the blown grains existing technologies: thermobarometric, termomehanics explosion in the piston chamber; thermocompression explosion in the cylinder way pressure relief; hydrolysis processing; thermal and microwave treatment in household appliances.3) Low productivity of existing apparatus (up to 30 kg / h) and the high costs of energy technologies extruding and expanding of grain (efficiency - 2.5-4%).

1) The existence on the market of feed production of large monopolies - feed mills, establishing prices for animal feed;2) The component composition feed does not correspond demanded diet feeding of animals of different species;3) Loss of use of agricultural producers of waste vegetable raw materials to add to the feed and get additional profit from sales of the free volume of grain. The share of grain crops in animal feed in Russia on average - 75% in the European Union - 45%.Appointment of technology, product

Increasing the total (energy) density of the feed for the agricultural animal by 5-15% and the development of environmentally friendly cereal food for the population, through the use of innovative technologies barothermal destruction and uniform grinding and mixing.

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1. Valuable highly nourishing feeds for the animals, with a high proportion of waste plant materials (50%).

2. Environmentally friendly explosion grain foods for the population with low bulk density (185 g / l for the grain up to 650 g / l for beans) and shelf life without the use of reagent additives and stabilizers.

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Markets Russia:1. Capacity (volume) of the market of feed for animals - 135 billion. Rub./ Year .;2. Capacity (volume) of the grain market products for the population - 24 billion. Rub./ Year.

Absent analogues of industrial use technology barothermal explosion in the market.

There is a foreign technical apparatus serial analog for the explosion of grain “Pushka" (Ukraine, Alexandria) and several domestic of pilot plants is not used in industry serially (“KMZ-20" - Moscow, "VKUSVAM" developers defense enterprises and Russian Academy of Sciences).Component composition of feed in Russia

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Sales model companies analogues: 1) Sale of finished grain food for the population in the retail chain stores (OOO "New technologies", OOO "PK Agroproduct").

2) Processing of raw materials leguminous existing methods of crushing or extrusion on farms.

Conclusions:1) The lack of deep processing of leguminous seeds barothermal method domestic manufacturers;2) low-nutrient (level of metabolizable energy) of the traditional animal feed.

The method of sales Type of seller The share of total sales,%

Existence of an agreement

Retail stores and retail chains Trading network, retail 30 no

Agricultural holdings, farms, large food processing plants

Large wholesale, internet 70 yes

Period of the project 2015 2016 2017

The market share of Russian 5% 10% 20%

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1) Scientific research works in Orenburg scientific center Ural Branch of Russian Academy of Science (Computational experiments process barothermal explosion leguminous and raw materials from vegetable waste);2) Technological works in Orenburg scientific center Ural Branch of Russian Academy of Sciences (engineering surveys, development feasibility study of technology, development of design and technological documentation for experimental samples systems implementing barothermal technology);3) Development works in Biotechnics.ltd (designed and created experimental samples: Cleaning of grain auger CAG-50.Apparatus for the explosion of plant raw materials AEPM-100.Flowing mixer feed FMF-160.Curing boiler CB-60.4) The yield of the sales market: interest partner and investor clients and retail chain stores, livestock and poultry farms and food processing plants.

Biotechnics.ltd is a resident of the Orenburg regional business incubator. Location of accommodation: 5 Sharlykskoe Highway, оffice 80, Orenburg, 460019, Russia.

Application Form № 2014112150 / 13 from 28.03.2014. Biotechnics.ltd patent for a device of the Russia – «Method barothermal destruction of multiphase media and device for its implementation».

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The aim of attracting investment - production start barothermal cereals and animal feed, the designed production capacity of 325 tons of grain per year. Period - 12 months. Phase of the project cost - Eur 200 370.

Product Name the milestones of the work, performed their

own

Raised funds, EUR.

Product Name of work performed at the expense of investors

Investor's funds, EUR.

1) Employment of engineering and technical personnel in the production line for the production of blown-grain products and animal feed.2) Start of production and have attained the design capacity of the enterprise - 325 tons / year, with the achievement of full payback of the project and make a profit.

31 000 1) Rent of industrial premises, or backup facilities in the business incubator. 2) The conclusion of commercial contracts between the Biotechnics.ltd and the Research Institute of the Orenburg region to jointly research and production activities. 3) Sales of products wholesale and retail. 4) Sales promotion due to advertising campaigns in the media and on the Internet, participation in regional, national and international exhibitions. 5) Involvement of public and private partners and investors (Ministry of Agriculture, Food and Processing Industry of the Orenburg region).

200 370

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Expected commercial effect of the project (additional sales volume in EUR per year):2015. Design capacity - 325 tons of grain per year.Sales of feed for agricultural animal and grain products to the population – 200 370 EUR per year.

2016. Design capacity - 650 tons of grain per year.Sales of feed for agricultural animal and grain products to the population – 400 740 EUR per year.

Post-project period:2017. Design capacity - 850 tons of grain per year.Sales of feed for agricultural animal and grain products to the population – 524 044 EUR per year.

2018. Design capacity - 1000 tons of grain per year.Sales of feed for agricultural animal and grain products to the population – 822 030 EUR per year.

Dynamics of sales - Orenburg region, Russia, near abroad countries, Europe.Term return of money resources - 2018.

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1) The conclusion of a license agreement for use of the patent for the invention "Method barothermal destruction of multiphase media and device for its implementation» (№2014112150 / 13).

2) The amount of investment in the project from 200 370 to 822 030 EUR.

3) The share from a commercial sales:Log in project implementation on 1 year.Exit from the project for 4 year implementation - the share of profit of 20%.

Charter Biotechnics.ltd does not provide the inclusion of new founders in the company. The company does not produce its own shares. 

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Achievement of recoupment (money back to the investor) in 2018.

 

Indicators of the project Stages of execution2015 2016 2017

The volume of grain processing (tonnes) 325 650  850Direct (variable) costs, EUR 23 366 5 696  7 449Current (constant) costs, EUR 798 606 199 800 254 574

Sales proceeds, EUR 200 370 400 740 524 044

Net profit / loss, EUR - 621602 195 244 262 021The amount of investment in the project (partner, investor), EUR

822 030

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Possible risks of production in 2015:

1) Lack of own area under production, possible interruption of work process equipment.2) The absence of significant investments in primary production, which slows down the process of development of the enterprise.3) Lack of economic ties with major consumers of the product, as well as trading companies.

Solution - getting investment of up to 822 thousand euros, in order to move on to the second stage of the project in 2015-2018 yy.

Requires specialists:1) Partners (specialists of business incubators or venture capital funds), the proposed project to potential investors.2) Investors.

Existing competent specialists in the team: project manager, technical leader, manager, marketer, economist-accountant, working-performers.

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