Indicative FSP

Business plan development of a new production center of dry mortars in Greece

Italcementi Group is one of the largest cement corporations in the world, with leadership in the Mediterranean Rim and a yearly-consolidated cement capacity of over 70 million tons of cement. “Halyps Cement” seeks to diversify its production portfolio by investing in dry mortar products, adhesives, grouts, as well as in special cement products, based on the Group’s current experience. This project consists of a Business Plan for a greenfield investment for the production and distribution of dry mortar products, targeting mainly the domestic market in Greece. The establishment of a new production center will eliminate all the importation & logistics costs occurring up to now, whilst at the same time will facilitate larger volume productions to satisfy the current demand by targeting a segmented market. Nevertheless, it will result at lower product costs since the company will be able to set up its own operational expenses and eliminate all the importation costs. This will make the company more competitive in the local market as it will result to higher profit margins. In the model have been included revenues from current and potential customers, while the most important costs involve property, land and equipment installations, including all initial operating costs. The investment has been ranked using the Net Present Value, Internal Rate of Return and Pay-back Period methods. Risk Analysis was based on Break-Even, Sensitivity Analysis and Scenario Analysis using as critical variables the product prices, sales volumes and variable costs.

Current Distinctions & Awards