Moreover, the decision making process here takes much more time, and becomes a step-by-step procedure, when the developer has to conduct a successive series of negotiations with different specialist.

When speaking about the second group of our target customers – foreign and international companies, we should bear in mind the necessity of keeping the services level to the international standards. Compared to local companies, having no choice of industrial parks in Russia, this group of customers is free to choose from other global locations – that is European, Chinese and American industrial parks and technoparks, having industrial premises. The competition on the global market is of a comparatively higher order than at the local one.

Besides, there is another intangible benefit – the brand name, the company reputation and some other points of prestige. E.g. the global company presence at the site to a great extent increases its attractiveness for other potential residents. The authority, prestige and influence of the first site resident set the project general tone. At present moment the negotiations with some leading world polymers processors are held and actually their entrance to the site is one of our main aims at the moment, able to increase the further promotional efforts.

The neglected state of the territory presupposes our obvious inability to attract the residents at the moment of the project’s initiation. Hence, at the initial stages of the project development the site could not be developed according to “build-to-suit” concept, when the developer holds preliminary negotiations with potential residents, signs binding lease agreements with them and develops the land plots or buildings according to these very residents’ requirements; it could rather be “spec building”, when no binding lease agreements are signed, and the developer improves the site state at his own expense.

3.4. Market Trends and Growth

To formulate a prospective business plan, we should assess the target market development trends. Russian economy today experiences rapid growth, the number of investment projects grows from years to year, and the corresponding investment amount increases as well. Thus, investment growth in 2007 exceeds 17.4% comparing to the previous year.

The “Himgrad” Industrial Park prospects depends on both real estate and petrochemical markets development trends.

Russia's commercial real estate sector is currently the fastest growing in the world and will retain the direction to further extensive and intensive growth. The first one is connected with the increase in premises total square, the forecast of which is presented at Graph 4 . The intensive growth comprises the premises quality improvement and their compliance with internationally excepted standards.

Graph 4

As for the chemical industry, in which work our target customers, it also experiences considerable growth at present time. So, the investment in chemical products is 2.6% of total investment in Russia in 2007.

The annual production volume in Russian chemical industry in 2007 amounts to $34.7 bln. (growth rate is 10% compared to year 2006). The corresponding number for the Republic of Tatarstan chemical industry is $3,8 bln. with growth rate at 16% level. According to the analysts’ estimates[3] , the specified trend will extend for the following five-seven years. So, the growth in chemical industry will provide the growth of our target customers, occupied in chemical business.

4.0. The Proposition

The project developer aims at creating new for the region establishment – an institution, providing a juncture of production and service facilities, which intensify the site residents development.

The purpose is to be achieved by means of reconceptualization, reconstruction and redeveloping to meet the state-of-the-art economic conditions requirements.

A suggested positioning statement may be formulated as follows: “Himgrad” Industrial Park is one of the best possible locations for both small and medium-sized companies, providing a comprehensive services range along the entire customer value chain at comparatively low prices” .

So, the residents of the industrial park will get a complex product consisting of:

1. premises for lease; and

2. a range of services provided to residents as an essential and integral part of it.

Generally, the range of services provided to industrial parks residents is much wider than a usual scope of services for other types of leased property. If we speak about the comprehensive range of services, the concept of the “Himgrad” Industrial Park is focused on providing core (directly connected with the residents’ manufacturing process, such as property management and complex energy supply) and additional services along the whole customer supply chain (see Fig 4 ).

Our mission is to provide companies in the industrial park with the infrastructure and customer-centric industrial services they need to focus fully on their core business. This circumstance enables to boost the competitiveness of both the industrial park and the tenant companies. We aim at creating favourable conditions (including e.g. tax remissions) for regional petrochemical industry development, by means of combining within one territory research and development, production, marketing & sales and logistics facilities providing a comprehensive range of services along the whole value chain for site residents

Fig 4

The complete technological infrastructure of the industrial park will serve the needs of the resident companies. The technological infrastructure (see Fig 5 ) comprises refrigerating stations, freight terminal, railway network, capacity park, electric power substation, machining process centre, gas-distributing post, pilot plants park, high-end technology park, corporate university, water treatment station, sewage disposal plants, compressor stations, fire station, aid post, heat and steam distribution point etc.

Fig 5

Our company aims at creating a unique business environment, assisting the residents in their efficient development . The effect is achieved via providing a number of intangible benefits to the residents. That is the compliance of our strategy to residents’ development strategies, aiming at creating possible synergy from residents’ interaction (the chance of finding future business partners and contractors increases, when, like in our industrial park, there exist both developing and mature companies), and employing authoritative resource, which becomes possible due to our active and close interaction with the Republic of Tatarstan government.

5.0. The Business Model

Our business-model is based on a global trend of separating infrastructure from chemical companies core business. Infrastructure is no more chemical industry core business, neither a supplementary part of it. The difference between the very nature of these two spheres of activity is so immense, that they hardly can go together (see Table 1 ).

Table 1

The infrastructure providing business is less risky, than that in chemistry and petrochemistry producing. The profits are less than those in chemical industry (see Graph 5 ).

Graph 5