The PPE market in Uzbekistan: the return of the capital, young professionals and rapid growth

Getsiz.ru is read not only in Russia, but also in the CIS countries. Within two weeks, we will make our readers familiar with the situation on the PPE markets in Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan, Uzbekistan, and Ukraine. We collected opinions of the participants in the branch and manufacturers of PPE about the market situation, challenges, achievements and new projects. Davronbek Akhmedbekov (Liniya Zashity Group) made an overview of the PPE market in Uzbekistan.

Davronbek Akhmedbekov, «Liniya Zashity» Group, Managing Director.

In 2018 Uzbekistan continued its decisive movement towards fundamental reforms and development.

I mean primarily the liberalization of the foreign exchange market. After 25 years flourishing, «gray» business sector is receding into the background, so entrepreneurs can breathe deeply. At last, currency conversion was introduced and the so-called double dollar exchange rate disappeared. Now it is possible to make quicker payments in foreign currency.

Since January 2019 customs tariffs for products that are not manufactured in the country have been revised and reduced. This made it possible to introduce more advanced and innovative PPE to the market at more reasonable prices.

The tax system has been radically revised and streamlined. In particular, a uniform profit tax of 12% and a value added tax of 20% were introduced. This equalized all market players and harmonized large companies’ wages policy, so wages are now paid officially and «not in an envelope» as before. In general, the new tax conditions have had a positive effect on the image of the entire business in Uzbekistan, making it more transparent and structured.

Uzbekistan, and especially its capital Tashkent, are experiencing a construction boom. Under the personal control of the head of state, huge construction sites have been set up. They attract large investments. Thanks to this, new companies manufacturing construction materials pop up and more jobs are being created, where workwear and PPE are needed.

The fuel and energy sector is being thoroughly restructured. The obsolete and useless facilities of Uzbekneftegaz and the Ministry of Energy are being dumped. The resulting funds and capacities are invested in the upgrading of the sector’s profitable enterprises.

Together with the Russian industrial giant «Rosatom» a project of the first nuclear power plant in Uzbekistan was approved. The construction investment totaled $ 11 billion. Thus In 2018 a new industry branch appeared and a new agency was set up – «Uzatom».

The Government of Uzbekistan has become more loyal to big businessmen who started returning to their homeland with new ideas and plans of investing in the development of Uzbekistan.

At the end of 2018, in accordance with the Decree of the President, the Ministry of Occupational safety the State Technical Supervision Service set up a work group with the purpose to revise and develop a new technical regulation for PPE in accordance with the modern requirements of all industries in the country.

The personnel policy of the largest industrial enterprises has changed drastically. Young leaders, who graduated from the world’s most renowned universities and already have experience of working at major international companies, are in the management of the country’s biggest enterprises. Due to this, a new, more advanced and effective management policy is formed at the industrial flagship companies of the country.

A significant part of state-owned companies has become open to private investors who acquire shares in these companies.

The largest mining enterprises in the country (Navoi MMC, Almalyk MMC and Uzmetkombinat) are preparing to enter IPO market.

According to our estimates, the PPE market of Uzbekistan increased in 2018 by 20%. We assess the market value at $ 80 million and expect a rapid market growth in the coming years.

«Liniya Zashity» Group has two production facilities in Uzbekistan: a workwear factory (employing about 100 machine tailors) and a factory for the production of particulate facepiece respirators (30 workers). In all regions of the country we have own representatives, which speeds up communication with the customers.

Currently «Liniya Zashity» Group does business with 90% of industrial enterprises of Uzbekistan. Our company has successfully implemented a management system that is used by the similar companies throughout the world.

We are actively developing the retail PPE sales. We have three stores in Tashkent and one in the largest industrial city of Uzbekistan – Navoi.

Special focus is given to improving the culture of use of the advanced PPE throughout the country. At the end of 2018, «Liniya Zashity» Group opened a training center for industrial safety, where not only new employees but also experienced specialists in occupational safety can upgrade their professional skills.

In 2017, «Liniya Zashity» marked its 10th anniversary. In the wide assortment of the company’s products there are both PPE of our own manufacture and products of world leading companies whom we represent as a distributor on Uzbekistan’s market.

In 2018 in relation to the new catalog release, the range of our products offered on the market, in particular, safety footwear and workwear, was drastically expanded. In 2019, we became a dealer of well-known Russian manufacturers: «Technoavia» and «Avangard».

Quality remains the basic principle of our company’s work. And this is also a distinctive feature of products that we offer on the market.

For 2019 we are planning a further extension of the branch network and retail stores.

Boris Dubovik, «Zelinsky Group» LLC, Managing Director.

The leading companies in Uzbekistan use respiratory protection equipment manufactured by «Zelinsky Group». The main consumers of RPE in the country are oil and gas production and processing plants, chemical and mining industries. Confidence in the quality products manufactured by Sorbent JSC and Tambovmash JSC (members of «Zelinsky Group») has been formed on the basis of many years’ use of our RPE at workplaces with the most difficult conditions.

«Zelinsky Group» on regular basis delivers RPE to uniformed agencies of Uzbekistan as well.

In terms of supply volume Uzbekistan, along with Kazakhstan and Belarus, is among the three largest export markets for «Zelinsky Group». Given the positive changes in the economy of Uzbekistan, we highly estimate the potential of this market in the long run.

The total volume of «Zelinsky Group’s» deliveries to Uzbekistan in 2018 exceeded 50 million rubles. And we are planning to increase sales in 2019 by at least 15%.

For many years the interests of «Zelinsky Group» in Uzbekistan have been represented by the «Novy Format» Group of companies.

«Liniya Zashity» Group was founded in 2007. It is the largest manufacturer of PPE and workwear in Uzbekistan and distributor of Ansell, JSP, Honeywell, Parkson Safety, Deb Stoko and «SOMZ» OJSC in the Republic of Uzbekistan. The company office is located in Tashkent

«Zelinsky Group» is a brand uniting four manufacturers of respiratory protective equipment: «Sorbent» JSC, «Tambovmash» Plant, «EHMZ» OJSC and «ARTI» Plant. «Zelinsky Group» JSC is the leading Russian manufacturer of respiratory protection.

The 23rd international specialized exhibition «Occupational Safety and Health – 2019» (BiOT) will be held on December 10-13 in Moscow, pavilion No. 75 of the Exhibition of Economic Achievements. The exhibition is organized by the Russian Ministry of Labor and the Association of Developers, Manufacturers and Suppliers of Personal Protective Equipment (ASIZ). In 2018, the area of BiOT Fair was 13 thousand square meters. The number of visitors was 15 thousand.