1. Association "Uzbekcharmpoyabzali"
“INVESTMENT POTENTIAL OF LEATHER AND SHOES INDUSTRY REPUBLIC OF UZBEKISTAN”

2. Association "Uzbekcharmpoyabzali"
created by the Decree of the President of the Republic of Uzbekistan
Number 2552 of February 23, 2000.
The main objectives of the association is to coordinate the activities included in the industries of economic entities on the harvesting and processing of leather raw materials, the release of his competitive products, footwear, garments and leather goods. Carry out common technical and investment policy, the broad attraction of foreign investment, the introduction of advanced technology, modernization and technological re-equipment of enterprises.

3. Association "Uzbekcharmpoyabzali"
The Association consists of
92 manufacturing plants, including:
- 13 companies for procurement of raw hides;
- 29 enterprises Leather processing;
- 45 enterprises for the production of footwear;
- 4 companies for leather goods;
- 1 plant for the production of artificial leather;
     

4. The growth dynamic of marketable products for the 2012-2016 years (thous.doll.)

5. The growth dynamic of volumes of production of footwear for the 2012-2016 years (thous. pair)

6. The growth dynamic in exports of products for the 2012-2016 years (thous. doll.)

7. Association Structure
Men’s shoes
Women’s shoes
Children’s shoes
Sport shoes
Shoes
Uzbekcharmpoyabzali
Wet-blue
Crust
Finish
Design centre
Leather
Purse
Belt
Bag
Cover
Garments
Design institute
“Agrosanoatloyiha”
Design shoes
Design leather goods
Different projects for new organization enterprises
Leather goods

8. “Uzbekcharmpoyabzali” - size and growth
MEMBERS - 92
Foreign & JV - 25
Uzbek - 67
Attracted Investment (last 5 years) – $250,0 mln.
FDI - $ 60,0 mln.
Local/bank credits - $190,0 Bln.
EMPLOYEES –

9. The tax and customs privileges for foreign investors
1. All small businesses are exempt jobs not more than 300 people from all taxes until 2020.
2. In order to develop the sector and attract investments, by the government established the basic tax and customs privileges and preferences for the industry. In particular, the tax and customs privileges:
more than 0.3 million USD - for 3 years
more than 3.0 million USD – for 5 years
more than 10.0 million USD - for 7 years

10. Factors attractiveness of the industry
for investors
Stable raw material base
Low energy costs
Highly skilled inexpensive labor
The developed network of communication, banking services
A significant market for finished products

11. Factors of competitiveness
Item
Power
Cattle
4,3 mln. peaces
Small cattle
8,2 mln. peaces
Shoes
thousand pairs
Skilled labor resources
up US$ 300/month
3 Institute of Light Industry & Textile in Tashkent city, Bukhara city and Namangan city, 12 Specialized colleges
Granting into the ownership of production areas at the zero rate
Domestic market of 32 mln. population
CIS market of US$ 16,0 bln. in FTA
Item
Power
Water
0.25/1m3
Natural gas
0.05/m3
Power energy
0.04/kWt/h
Petroleum
0.86/1
Diesel
0.78/1

12. Proposed directions to organize new production
Creating a new production of leather goods and leather garments
Creating a new production of children’s, women’s, men’s and sports shoes

13. Organization of production of leather goods
Cost of the project : 0,5 – 1,5 mln. doll. USA as:
Construction of buildings;
Supply of technological equipment;
Supply of raw materials.
Production capacity : 100 to 400 thousand pcs
Payoff period : 2 to 3 years
Create jobs : 50 to 150 places
Factors determining the prospects of the project:
The growing demand of the local population and the ability to export to the CIS countries, Central Asia, the need for which 70% provided by imports.
 Availability of skilled labor and local high quality raw materials

14. Organization of production of sports shoes
Cost of the project : 1,0 - 2,0 mln. doll. USA as:
Construction of buildings;
Supply of technological equipment;
Supply of raw materials.
Production capacity : 100 to 500 thousand pcs
Payoff period : 2 to 3 years
Create jobs : 50 to 150 places
Factors determining the prospects of the project:
The growing demand of the local population and the ability to export to the CIS countries, Central Asia, the need for which 50% provided by imports.
 Availability of skilled labor and local high quality raw materials

15. Organization of production of children's shoes
Cost of the project : 1,0 - 2,0 mln. doll. USA as:
Construction of buildings;
Supply of technological equipment;
Supply of raw materials.
Production capacity : 100 to 300 thousand pcs
Payoff period : 2 to 3 years
Create jobs : 50 to 120 places
Factors determining the prospects of the project:
The growing demand of the local population and the ability to export to the CIS countries, Central Asia, the need for which 70% provided by imports.
 Availability of skilled labor and local high quality raw materials

16. Organization of production of women's shoes
Cost of the project : 1,0 - 2,0 mln. doll. USA as:
Construction of buildings;
Supply of technological equipment;
Supply of raw materials.
Production capacity : 100 to 500 thousand pcs
Payoff period : 2 to 3 years
Create jobs : 50 to 150 places
Factors determining the prospects of the project:
The growing demand of the local population and the ability to export to the CIS countries, Central Asia, the need for which 60% provided by imports.
 Availability of skilled labor and local high quality raw materials

17. Organization of production of leather garments
Cost of the project : 0,5 – 1,5 mln. doll. USA as:
Construction of buildings;
Supply of technological equipment;
Supply of raw materials.
Production capacity : 100 to 200 thousand pcs
Payoff period : 3 to 4 years
Create jobs : 70 to 200 places
Factors determining the prospects of the project:
The growing demand of the local population and the ability to export to the CIS countries, Central Asia, the need for which 80% provided by imports.
 Availability of skilled labor and local high quality raw materials

18. Organization of production of men's shoes
Cost of the project : 1,0 - 2,0 mln. doll. USA as:
Construction of buildings;
Supply of technological equipment;
Supply of raw materials.
Production capacity : 200 to 500 thousand pcs
Payoff period : 2 to 3 years
Create jobs : 50 to 150 places
Factors determining the prospects of the project:
The growing demand of the local population and the ability to export to the CIS countries, Central Asia, the need for which 60% provided by imports.
 Availability of skilled labor and local high quality raw materials

19. Association “Uzbekcharpoyabzali”
100000, Tashkent city, st. Mustakillik 109
Tel: (+99871)
Faks: (+99871)