To meet the large unsatisfied demand for fresh and local produced vegetables, the Company is construction and retrofitting greenhouses to state-of-the-art standards
The Business
The Company was established to develop a network of modern greenhouses in Russia to satisfy demand for fresh, locally produced vegetables. By utilizing a scalable business model and the world’s most advanced greenhouse technologies, the Company plans to construct new state-of-the-art greenhouses as well as retrofit existing outdated greenhouses. The management team has extensive experience in the Russian agriculture industry.

The Company’s mission is to initiate a fundamental reorganization of the Russian greenhouse industry through the creation of cost-effective, profitable facilities for growing healthy, environmentally friendly, high-quality products. The Company will accomplish this by providing fresh greenhouse vegetables at low costs, implementing modern marketing strategies, maintaining a transparent business structure, and adopting an aggressive growth strategy.

Market
The Company was established to develop a network of modern greenhouses in Russia to satisfy demand for fresh, locally produced vegetables. By utilizing a scalable business model and the world’s most advanced greenhouse technologies, the Company plans to construct new state-of-the-art greenhouses as well as retrofit existing outdated greenhouses. The management team has extensive experience in the Russian agriculture industry.

The Company’s mission is to initiate a fundamental reorganization of the Russian greenhouse industry through the creation of cost-effective, profitable facilities for growing healthy, environmentally friendly, high-quality products. The Company will accomplish this by providing fresh greenhouse vegetables at low costs, implementing modern marketing strategies, maintaining a transparent business structure, and adopting an aggressive growth strategy.

Political and economic changes in Russia over the last twenty years have resulted in a weak greenhouse vegetable industry. Greenhouse production of vegetables has decreased sharply since 1990, which, in turn, has created a dependence on imported vegetables despite their high prices and lower quality. Most existing greenhouse operations are undercapitalized and use outdated growing methods, obsolete facilities, and inefficient equipment.

Recent consumer studies in Russia show a strong preference for fresh local vegetables over imports due to the perception that shipped vegetables are less healthy. The result is an underserved market for locally grown vegetables in large population centers all over Russia. Despite the global economic downturn, demand for fresh vegetables in Russia is still increasing as consumers increase their consumption of fruit and vegetables.

The Russian government has a stated interest in improving the agriculture industry by offering such incentives as low-interest loans, tax breaks on equipment purchases, and energy subsidies for vegetable producers.

The Company is seeking a private equity partner.
Sector: Agriculture
Segment: Greenhouse
Region: Russia
Financing Size: $50 to $100m
Contact: Alexander Aginsky
Company: Aginsky Consulting
Telephone: +1 503 546 4049
Email: [email protected]