Feasibility study conducted for the Raska municipality
The municipality of Raska in the sourth of Serbia called for proposals to conduct a feasibility study in order to analyse domestic and foreign market for the textile produce in the process of planning for a new textile factory. The named study, conducted by European Consulting Group, analysed the textile industry, raw material and final product markets, as well as the purchasing of necessary equipment. A numerical economic/financial model of production was created with justification rating and risk analysis.
The importance of textile industry is currently on the rise, and new products, competition and markets open new possibilities for the economic growth in this area. The analysed model, comprising of shirt and jeans production (and possibly safety equipment), with production line serving the output capacity of 10.000 pieces a month was planned to provide initial employment of 70 personnel.
The initial investment will be worth approximately 600.000 Euro to be attempted through public-private partnership, with internal return rate of 17.69% over the period of 6.6. years.
The Raska municipality is among the most underdeveloped areas in the south-west of Serbia, comprising of three towns and some 55 suburban areas. The development processes here are directed towards rationalization of the use of natural resources (such as mineral deposits, thermomineral springs, land and forests), utilities, traffic, electrical, telecommunications and other infrastructure. Current local policies positively influence reduction of unemployment through use of active labor market measures, reducing the ongoing economic migration and population outflow.