Production of Standardized Wooden Components of New Generation

We plan to expand production of house-building wooden materials consisting of standardized wooden components of a new generation.

Forty houses have already been built as a pilot project. The technology was developed by the project owner.

Production of wooden houses from standardized components

1.1. Full name of the company: Limited liability company "DEK PA"

The project owner is Vasiliy Parfenov: creator of the construction, technology, developer of the homebuilt system, and senior project manager.
http://www.ivd.ru/document.xgi?id=6607
http://www.airweek.ru/news_2380.html
http://skatr.ru/obzor-tekhnologii-derevyannogo-domostroeniya

1.2. Brief description of the business:
Forty building sites have been completed with the pilot production under the first stage of the project. The sites have proven to be of high quality. The first house of 180 square meters was built in 1999.

1.3. Financial plan
Information is available upon request.

2.1. Purpose and short description of the project:
The project aims to generate revenue from production and sales of marketable housing products and house construction by using standardized wooden components.

The project has developed a fundamentally new system of House-Building DEK: a cell-based building material of standardized wooden components (DuKi components).

As practice and research during the pilot production has shown, the DuKi components exceed existing on the market low-rise housing units and construction systems (construction of houses using solid wood frames, boards, panels, bricks, foam-concrete and gas-silicate).

2.2. Marketing Plan
The confidence in market development in the initial period is based on the familiarity of the target market with the product and the effective novel construction system.

Sales will be organized around mixed product distribution channels due to the range of products used by developers, individuals, corporate and regional programs.

There is a plan to develop a franchise chain for geographically distant markets.

This channel-based distribution structure is optimized as it will ensure the flow of large contracts, private orders and the launch of the product on regional markets via a franchise network.

The product is competitive because of it has unique properties among the range of competing products.

2.3. Amount and terms of the investment:
Project financing of 63 million rubles is to be provided by a partner-investor.

2.5. Projected results:
Performance indicators at a discount rate of 18% over 5 years.

Sales revenue: 1, 449,862,653 rubles
Net profit: 557,504,214 rubles
Net present value (NPV): 204,325,990 rubles
Internal rate of return (IRR): 88%
Payback period (PBP): 29 months
Discounted payback period (DPBP): 31 months
Profitability index (PI) 3.0

Contact us on Merar if you are interested investors.