Import substitution and production localization
This is a key challenge to the Russian economy and industry. Over the past decades, the goverment has created a number of favorable conditions to stimulate the entry of leading international companies and suppliers into the Russian market.
This, including the adaptation of a product, service or technology to the Russian market, customer and legislation.
«New production means a new corporate culture, quality standards, and product assortment, which in turn develops and stimulates Russian manufacturers to increase their own competitiveness»
Localization may take the form of subcontracting production, license agreement, own production, joint venture. Each of these forms implies a complex integration process and requires knowledge of specifics of the country, regional preferences and methods of governmental support.
We act upon 15 years of experience in localization of high-tech industries and supporting complex import substitution projects. We understand and constantly monitor the market, provide our clients with both expert advice and full support of projects for the location of production in the Russian Federation.
- Economy overview of Russian Federation: population, GDP, business segmentation, macroeconomic factors: inflation, exchange rates, etc.);
- Overview of opportunities for localization in Russia: GreenField (SEZ*, industrial parks, etc.), BrownField, rental areas;
- Analysis of “+” and “-” of localization types: a separate legal entity, joint venture, license agreement;
- Main types of goverment support for localization and export;
- Legal aspects for localization.
- Market analysis, search of local partners and customers;
- «Selection of production sites for localization: analysis of regions with different government support, ranking of region with best conditions for investor»;
- Support to get status of Special Economic Zones (SEZ) resident;
- Legal support: legal entity registration, choice of optimal taxation, etc.;
- Business plan development for investment project and financial modeling;
- Suppliers of sub-components and materials screening;
- Governmental support: co-financing, concessional lending, complex assistance to get regional tax cuts, etc.;
- Support in selection of a general contractor.