Prozorro.Sale

Following the alcohol industry, privatization reached the area of bakery production. From the beginning of December, the State Property Fund began preparations for the transfer of seven bakeries to private ownership. What opportunities this will open for investors and the state as a whole – read in the article.

What Is the State of the Bakery Industry Today?

At one time, state-owned combines of grain products (CGP) were one of the main components of agricultural production, which was completely controlled by the state. CGPs were located on large plots of land and actively developed their logistics infrastructure. But with the transition to a free trade market, such a system began to decline. Many competitors appeared in the country, and previously powerful and profitable enterprises began to turn into abandoned and unprofitable ones. But it became possible to correct this situation thanks to the permission for the CGP` privatization.

Which Plants Will Be Put Up for Sale?

Now the following plants are preparing for privatization:

Prozorro.Sale Shortly, all of them will be displayed in the Prozorro Sale system.

What Benefits Will Investors Get from the Plants Privatization?

Thanks to privatization, the declining factories will be able to be modernized and restored to their former power. The scale of the facilities makes it possible to do this – after all, at one time these enterprises were part of a large agricultural infrastructure. CGPs were designed to process large volumes of grain, therefore they are equipped with powerful elevators and have access to the railroad.

That is why many private institutions are already interested in acquiring these facilities instead of looking for a new location and building a plant from scratch. A ready-made enterprise, even if it is not in the best condition, has many advantages: a large plot of land, location, and ready-made infrastructure.

For portfolio investment companies, the privatization of CGP will be a convenient and easy way to invest in agricultural production and successfully deploy a large production base.

Specialized investors who are already owners of the agricultural business, including large and medium-sized companies that operate near these facilities, will have the opportunity to lengthen the chain of creating additional value for agricultural products.

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