11 June 2004
"The Expert 200: The Food and Tobacco Industry"
Major food and tobacco producers are shining examples of “points of growth” in the Russian economy.
In the past few years, price fluctuations have thrown the oil and metal industries into chaos. Ratings have marked the rise and fall of the heavy machinery and chemical industries. Yet only food and tobacco companies have constantly increased their turnover. This year’s Expert 200 once again proves this rule to be true. Food producers are performing better than other leading Russian manufacturers both in terms of growth and labor productivity, lagging only slightly behind in profitability.
Essentially, the food industry is an example of what the Russian economy can do when the investment climate is good. The payback period of investments is much shorter than in basic manufacturing industries. Investors can see returns after only a year or two. Even with the unpredictability of the situation in Russia, this period is completely acceptable to the majority of investors
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