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INVESTMENT OPPORTUNITY
Sale of Assets - Tender Sales
April, 2018
Contents
1. Presentation Purpose………………………………………………………………….3
2. Engine Industry Rakovica(IMR)-General information………………………………3
3. Investment opportunity….....................................................................................4
4. The market...........................................................................................................6
5. Business activities................................................................................................7
6. Perspective….....................................................................................................10
7. Serbia country profile..........................................................................................11
1. Presentation Purpose
The main purpose of this presentation is to provide a potential buyers information
about the assets of a company in bankruptcy (movable and immovable
property,Plant and Equipment).
This short presentation should give potential investors enough information to
understand property's value and condition.
This document has been translated with a sole purpose to facilitate the participation
of potential foreign investors in the procedure.
All interested parties wishing to participate in this procedure, will be eable to obtain
the additional information about the company.
The Company was performing well from its foundation in 1927 until the late 90s,
when the market was severely disrupted by the wars in the region. Since then, IMR
has gone through several restructuring attempts, but without any success.
Due to lack of funds needed for investments in modernization and upgrading of the
equipment and shortage of working capital, the bankruptcy became inevitable –
formally it was declared in 2015 and most likely it will be concluded through sale of
assets of the Company to an interested investor.
3. Investment opportunity
The main plant is located in Belgrade and it consists of a number of buildings with a
surface of cca 150.000 m2, positioned on a 20ha land plot , used for
the production of tractor components and engines, has tractor assembly lines and
miscellaneous facilities for storage,maintenance and supporting services(boiler
,transformer station......).
Construction work at the IMR complex started in 1930s, the highest numbers of
buildings have been completed in 1960s,1970s and 1980s.
Quality of building construction is standard.The largest uses of land are associated
with production, while space for storage area ,administrative and other facilities are
significantly smaller.
The existing facilities of IMR plant in Rakovica consist of facilities which are
adequately to well maintained ,these facilities are mainly adequate and contribute to
standard working conditions in the plant area,except some smaller accompanying
facilities which are in ruinous or bad condition.
On of the characteristics of complex is that IMR complex occupies a large land area
under buildings and relatively small vacant land.
The IMR Belgrade factory is located in an industrial area with direct access to the
main highway and the urban road system.
.
2. Cajetina plant located in Sljivovica
This complex consists of production hall and the following storage facilities for
bulk, septic tank, boiler , disposal facility,guard room.....
The property occupies area of 78.430,00 m2.
6. Land in Resnik
Company acquired this land in Resnik from private individuals in 1980's.This
landfilled is used as disposal site for foundry sand and waste-
7. Inventory
Inventory includes raw materials and parts, finished products,semi-finished
products ,tools.....
4. The Market
NOTE: The annex to the contract between the IMR Rakovica and the company
METEC- Ethiopia to delivery of 13.950 tractors in the next five year, was signed
on 29.09.2016.(validity of a Contract with METEC is prolonged)
Financing will be provided by SABINA GROUP through their mutual arrangement.
Tractors manufactured by IMR Rakovica meet the demand of the African markets
entirely and are therefore chosen by Sabina group to represent the continent.
Sabina group has demand for the acquistion up to 20 000 tractors from two East
African governments.
5. Business activities
There are cca 1.200 items of machinery and equipment installed in IMR's main
production facility. Also, IMR has two assembly lines in production halls, which were
used for assembling of engines and tractors .IMR has testing line to verify that the
engine assembly process is in control, and that a quality product is being produced.
The purpose of the test is to check engine performance,fuel and oil consumption
,engine power……….
Much of the existing manufacturing machinery are in use since 1980s,and still
working well after all these years .
At its peak, IMR used to manufacture 55.000 engines and 7.500 tractors annually.
The existing equipment and machinery is sufficient for annual production of 20.000
engines and 3.000 tractors.
The process of manufacturing includes assembly ,finalization, processing tractor
parts and sales of spare parts for the IMR tractors.
- diesel engines -
IMR is only producer of two-/three-/four- and six- cylinder diesel engines in Serbia,
with a power of 34,5 KW (47 KS) to 99 KW (135 KS).This engines were produced
using licensed designs, including from Landini and Perkins.
Disel engines have been developed for the following applications: tractors,industrial
(compresors,electrical generating sets,water pumps ) and marine.
The most popular are three- and four -cylinder engines with a power of 47 KS to 76
KS.(figure.2 and figure. 3)
figure.2 diesell engine PERKINS -DM series figure.3 diesel engine PERKINS -S
series
All dizel engines have water-cooled engine with direct fuel injection.There are
suitable for operation in all-weather conditions,wherein,for safe starting at low
temperatures a suitable air heater is used.
The Main characteristics are: reliability in operation, long working life, low
maintenance costs as well as easy handling and maintenance.
- Tractors -
IMR produces several tractor models which provide favourable operational
characteristics and reliable comfort of the driver.This tractors are manufactured in
standard version powered throught rear wheels or in version with four wheel drive.
Main features:economy,simplicity,reliability in operation,all purpose application
(agriculture,earth moving,forestry,public utilities.
All tractors provide a connection that links the implement to the tractor and keeps the
implement supported and in line with the tractor at all times(for plowing, sowing...).
figure.4 IMR tractors
- “Tara 4x4” off road vehicle -
Tara military cross-country vehicle, made by IMR for Serbian military.Tara off road
vehicles have been designed for passenger and load transport primarily for
specialized tasks in most difficult terrain conditions(marshy,muddy,snow covered and
sandy terrain).
The vehicle is operational at temperatures ranging from -30° C to +50°C.The
permissible track depth of the vehicle driving in the water is 0.7m.Cargo body
dimensions : lenght 2410mm,width 1650 mm,height 680 mm,height with tarapaulin
1270mm.The cargo body is of all steel construction equipped with two rows of lateral
seats for 6 persons.Engine S54 V:four stoke,liquid cooled diesel engine with indirect
fuel injection and natural suction.
The project is shut down in 1992, due to economic and political reasons.
IMR has assembled 16 Prototypes first and second series.
figure.5 - “Tara 4x4” off road vehicle
- Tractors 12 BS –
Belong to the class of modern tractors with four wheel drive and are adjusted with
their basic purposes for agricultural application.They have gearbox with 12 gearshifts
forward and 4 reverse .
Due to lack of funding there was not mass production.
The sale of IMR’s assets will offer investors a unique opportunity to:
• Acquire production facilities, technology and know-how of an enterprise which
was an important manufacturer of tractors, engines and agricultural machinery, with a
significant market share in its own region;
• Benefit from the existing contacts, experience and know-how of a quality
management team and skilled and experienced workforce, which will be available for
employment;
Investors can expect to return invested money back in a few years and also we can
expect property increases in value over short period of time.
7. Serbia country profile
Official Name: Republic of Serbia
Surface: 88,361 km2
Population: 7,498,001 excluding Kosovo
Geographical location: Serbia is situated in the central part of Balkan Peninsula
in southeast Europe
Official language: Serbian
Capital city: Belgrade
List of Largest Cities in Serbia: Novi Sad, Niš, Kragujevac
Currency: Serbian dinar (RSD)
Time zone: Western European Time Zone (GMT+01:00)
Strategic position:
Serbia is the crossroads of all major routes between Europe and Asia and the
crossroads of Pan-European Corridors 7 and 10 are located here.