SBS Consulting developed the Strategy for the Integrated structure “Uralvagonzavod” (UVZ) till 2025. It was accepted by Board of Directors on 22 November 2016. Strategic goals to be achieved by UVZ will enable the company to create the powerful application platform for UVZ development as a machine building holding.
The project has been lasted for 8 months and included determination of benchmarks of development, analysis of technical basis of enterprises and creation of new management structure.
The Strategy considers achieving ambitious strategic, operational and financial goals. The plan is to increase sales of military goods by 2,5 times, share of civil products revenue to 46% by the year 2025. As for financial indicators, revenue growth to 282 billion rubles (due to extra revenue from selling new products it can rise to 382 billion rubles) is expected. EBITDA margin should rise to 19,7%.
Transformation of UVZ into diversified holding considers creation of the Managing company by the year 2018. Managing company will manage key entities of the Corporation. The expected result is increase in operational efficiency and decrease in proportion of administrative expenses in revenue to 3,5%.
Investing in new product lines and creation of 9 new business units will contribute to increasing range of activities of UVZ. The new product lines can be remotely piloted facilities, remote diagnostics of machines, new materials.
Transition to the new industrial model in 2020 implies creation of Centers of competences based on SC “NPK “Uralvagonzavod” in Nizhny Tagil, JSC “Uraltransmash” and JSC “Zavod №9” in Ekaterinburg, JSC “Elektromashina” and CHTZ in Chelyabinsk, JSC “Omsktransmash” in Omsk. In Moscow Centers of competences in IT and innovative studies will be formed.
The Strategy will be realized in 3 stages. The first stage (2017-2018) considers building of Corporation management system. On the second stage (2019-2020) increase in sales and intra-group cooperation is expected. Attracting investments for developing civil business lines, launching innovative products and increasing operational efficiency are expected to result in revenue of 228,7 billion rubles, net income of 6,7 billion rubles. The third stage (2022-2025) implies entering new product markets, active development of innovations and building traditional markets strength. In 2025 total revenue of the Corporation will be 282 (382) billion rubles.
Taking into account planned actions for reforming management system and tight deadlines for achieving strategic goals UVZ and SBS Consulting came to agreement of support in implementation of actions of the Strategy.
UVZ Corporation was founded on the 27 August 2007 by Russian Federation Presidential Decree. Corporation produces machines, wagons and military goods. UVZ is vertically integrated company. It consolidates 40 plants, design bureaus and research institutes. They are Russia and world famous producers of military goods, railway vehicles, light rails, road building and public works machines.
SBS Consulting was founded in 2006 and is the leader of Russian strategic consulting in the middle price segment. Today more than 20 largest Russian companies, federal executive authorities and some Russian regions are the clients of SBS Consulting.
90% of clients keep cooperation with SBS Consulting after the first project.
Specialization of SBS Consulting:
• development of strategy and business plan of a company;
• improvement of company’s management system and business processes;
• optimization of fixed assets construction system;
• increasing energy efficiency;
• consulting of federal authorities.
The company provides services in the following industries:
• metals and machine building;
• oil, gas, chemicals;
• construction and real estate;
• public sector;
• Institutes for development.
Strategy text: http://www.uvz.ru/data/UVZ(cv).pdf