At least 300 million drams needed to start a new business, dairy and mineral water companies say
18.11.2015,
16:43
Half of Armenian companies engaged in the production of dairy products and mineral water believe that the minimum amount needed to start a new company in these sectors is 300 million drams, according to the findings of a survey conducted by the State Commission for Protection of Economic Competition (SCPEC).
YEREVAN, November 18. /ARKA/. Half of Armenian companies engaged in the production of dairy products and mineral water believe that the minimum amount needed to start a new company in these sectors is 300 million drams, according to the findings of a survey conducted by the State Commission for Protection of Economic Competition (SCPEC).
The indoor survey was conducted to identify the obstacles to production, import, supply and sale of these products, as well as the amount of investment needed to start a company.
For example, 80% of dairy companies and 70% of mineral water producing companies believe that the payback period of investment is 10 years and more. Small and medium sized companies say they are ready to make new investments if interest rates on loans are between 3% to 10%. According to them, the main obstacles to enlarged production are the local small market, lack of access to new markets, as well as the need for major investments.
The study has revealed that more than 80% of dairy products market is dominated by three companies -Ashtarak-Kat, Dustr Marianna and Tamara and Ani and about 90% of the mineral water market is held by Jermuk Group, PPP Mineral Water Plant and Jermuk Mayr Gortsaran.
About 45% of the local cheese market is controlled by BG and Food, Dustr Melania and Araks-2 companies. According to the survey, other major obstacles to business expansion are non-availability of financial resources, red tape and unskilled workforce. ($ 1 - 482.24 drams). -0-
The indoor survey was conducted to identify the obstacles to production, import, supply and sale of these products, as well as the amount of investment needed to start a company.
For example, 80% of dairy companies and 70% of mineral water producing companies believe that the payback period of investment is 10 years and more. Small and medium sized companies say they are ready to make new investments if interest rates on loans are between 3% to 10%. According to them, the main obstacles to enlarged production are the local small market, lack of access to new markets, as well as the need for major investments.
The study has revealed that more than 80% of dairy products market is dominated by three companies -Ashtarak-Kat, Dustr Marianna and Tamara and Ani and about 90% of the mineral water market is held by Jermuk Group, PPP Mineral Water Plant and Jermuk Mayr Gortsaran.
About 45% of the local cheese market is controlled by BG and Food, Dustr Melania and Araks-2 companies. According to the survey, other major obstacles to business expansion are non-availability of financial resources, red tape and unskilled workforce. ($ 1 - 482.24 drams). -0-
