Business news from Ukraine

HORIZON CAPITAL INTERESTED TO INVEST $5-20 MLN IN SPECIALIZED NON-FOOD RETAIL IN UKRAINE

KYIV. Dec 10 (Interfax-Ukraine) – Horizon Capital, managing three private equity funds, is interested in investing in relatively small promising specialized network projects in the field of trade in consumer goods, as well as projects in the format of “fixed price” in Ukraine.

Partner of Horizon Capital Alexei Dmitriev unveiled such plans at the third Retail & Development Business Summit in Kyiv.

“We as a fund are interested in specialized networks, such as pharmacies, networks that sell clothes, shoes. These are even smaller players, while in almost all the segments the market is not very consolidated,” he said.

According to Dmitriev, Horizon Capital is also interested in investing in the actively developing Ukrainian retail chain in the “drogerie” format.

“The targeted volume of investment ranges from $5 million to $20 million,” he said.

“There is another very interesting format, which is represented in the world market and which is not available in Ukraine. This is the so called format of “fixed price,” when everything in the store is sold at the same price,” he added.

Horizon Capital was established in 2006. It manages Western NIS Enterprise Fund (WNISEF, established in 1994 with a capital of $150 million), Emerging Europe Growth Fund, L.P. (EEGF, established in 2006 with a capital of $132 million) and EEGF II (EEGF, established in 2008 with a capital of $370 million).

TEN MORE UKRAINIAN COMPANIES RECEIVE PERMITS TO SUPPLY MEAT AND DAIRY PRODUCTS TO KAZAKHSTAN

KYIV. Dec 10 (Interfax-Ukraine) – The Agricultural Policy and Food Ministry of Ukraine has reported that the Agriculture Ministry of Kazakhstan permitted 10 Ukrainian companies to supply mead and dairy products to the country.

“The expansion of the list of companies is more evidence of the quality of Ukrainian products. We’re moving not only towards the EU, but we also diversify sales of animal products,” Deputy Agricultural Policy and Food Minister for European Integration Vladyslava Rutytska said.

She said that Ichnia milk powder plant, Pervomaisk Canned Dairy Plant, Bilohorie-Molokoproduct, Ovruch Canned Dairy Plant, Processing Complex of Vinnytsia Poultry Farm LLC, Hubin Poultry Farm, Poltava Meat Factory, Alan and Lustdorf received the status “permitted, enhanced control.”

As reported, from September 25, 2015 Kazakhstan lifted restrictions on supplies of dairy products for some Ukrainian dairy companies.

TURKEY’S EREN HOLDING TO OPEN EIGHT NEW SUPERSTEP STORES IN UKRAINE IN 2016

KYIV. Dec 10 (Interfax-Ukraine) – Eren Holding, a Turkish group of companies, developing a network of SuperStep multi-brand shoe shops in Ukraine, plans by the end of 2016 to open eight new stores, the company CEO for the Lacoste, SuperStep and Nautica brands in Ukraine has said.

“Even in such not so good times in the Ukrainian market we continue to grow… We plan by the end of next year to have nine SuperStep stores in the Ukrainian market,” he said during the third Retail & Development Business Summit in Kyiv.

At the same time, the company expert noted that if the demand for products from the SuperStep stores in Ukraine grows, their number could double in the coming years.

“Now we have no plan to expand the network to, let’s say, 20 stores. However, if we see an increase in the demand for SuperStep, then I am sure in the coming years we might double the number of stores,” he said.

In addition, he said that the activities of Eren Holding in Ukraine will not be limited with the shops of Lacoste, Nautica and SuperStep: the holding intends to bring new brands to the market in Ukraine in the near future.

In Ukraine Eren Holding operates ten stores of clothing and footwear under the brand of Lacoste, two Nautica brand shops and one SuperStep store. The shops are mainly located in shopping centers in Kyiv and Kyiv region, Dnipropetrovsk, Kharkiv, Donetsk, and Lviv.

PARLIAMENT PASSES AT FIRST READING BILL FACILITATING CREATION OF FARMS

KYIV. Dec 9 (Interfax-Ukraine) – The Ukrainian parliament has passed at first reading a bill facilitating the procedure for creating farms.

The bill amending some Ukrainian laws regarding the regulation of some issues of the legal status of farms’ land was supported at first reading by 280 MPs.

The bill proposes facilitating the procedure for creating farms: to revoke obligatory education and experience of work and define the legal status of land parcels of farms as land for commodity agricultural production.

The document proposes that state-owned or municipal land parcels are sold only at land auctions, a mechanism for re-registering leasing rights to land parcels used for farming by individuals is established.

 

KHARKIV SPARKLING WINE FACTORY STARTS BOTTLING SPARKLING WINE UNDER NOVY SVET BRAND

KYIV. Dec 9 (Interfax-Ukraine) – Kharkiv Sparkling Wine Factory has launched production of new sparkling wine under the Novy Svet brand.

“Today we announced the result of the work lasted for the past 12 months – the return of the Novy Svet brand… Now it is transferred to Kharkiv Sparkling Wine Factory under the license agreement, as Novy Svet was our enterprise,” Agricultural Policy and Food Minister of Ukraine Oleksiy Pavlenko said at the presentation of new brands of sparkling wine in Kyiv on Tuesday.

The minister said that if the introduction of the Novy Svet brand production is success, the similar mechanism will be used for the Massandra concern.

“Kharkiv Sparkling Wine Factory and Novy Svet had different technological processes, and it was difficult for us to start production. Nevertheless, using the same wine materials used by Novy Svet we received 12 kinds of wine approved by the taste panel. This will be Ukrainian sparkling wine with retaining of Novy Svet brand for Ukrainian consumers,” Director of Kharkiv Sparkling Wine Factory Andriy Malyshev said.

It is planned to produce 30,000-40,000 bottles by New Year, he said. The preliminary cost of one bottle of Novy Svet wine will be UAH 100.

VEHICLE PRODUCTION 84% UP IN NOV ON OCT

KYIV. Dec 9 (Interfax-Ukraine) – Vehicle production in Ukraine grew by 95.5% in November 2015 year-over-year and 84.4% compared to October 2015, to 1,167 units, according to tentative data from the Ukrautoprom association.

The association said that 838 passenger cars were made, and it was 90.5% up on October 2015 and 2.1 times up on November 2014.

Zaporizhia Automobile Plant (ZAZ) made 677 passenger cars, and this is five times more than in October 2015 and 3.2 times more year-over-year.

ZAZ in November produced 63 commercial vehicles, while in October 2015 and November 2014 no commercial vehicle was made.

Commercial vehicle output in November grew by almost 60% on October 2015 and by 21% on November 2014, to 185.

Bus production last month rose by 87% on October 2015 and more than doubled on November 2014, to 144 buses.

Bogdan Corporation produced 20 buses in Lutsk compared to one bus in October 2015 and six buses in November 2014.

In January-November 2015, 6,434 vehicles were made in Ukraine, and the decline in production was 77.2% year-over-year.

Passenger car output fell by 83%, to 4,362, and commercial vehicle production was down by 18.8%, to 1,395, and bus production fell by 20%, to 677.