The largest producer of potable water in St. Petersburg, Polyustrovo Ltd., is preparing for market expansion in Moscow. The company plans to renovate its manufacturing capabilities and raise its output. Appraisers say that the project might cost up to $6 million. Considering that western companies are aggressively expanding their role on the Russian drinking-water market, experts are almost certain that Polyustrovo is reconstructing its production facilities as a response. Polyustrovo reconstruction is a type of pre-sales preparation, experts say. Others however suggest that a company which is currently unstable on the national market is not ready for such changes. Western investors generally target the complete national market, while Polyustrovo company’s positions are strong only in St. Petersburg and the North-West of Russia. For instance, the company has not yet succeeded in its attempts to gain the Moscow market. It is worth minding the fact that water in the North-West is too soft for other regions that are used to mineral water supplies. Another explanation for Polyustrovo’s expansion difficulties has also been put forward: “Foreign investors have already purchased the company and now they are investing in its reconstruction”, said a project participant on the conditions of anonymity. The management of Polyustrovo company refused to disclose the structure of shareholders and comment on any possible changes.

News source: http://dp.ru
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