Distribution Town

Distribution Industry Association of Isfahan Province was established in 2008 by gathering a number of managers of national and provincial distributing companies from the food and medicine industry. This industry can direct the financial resources of the country towards production opportunities in different regions of the country. Creating a town for dynamic interaction through the community channel in order to improve the existing laws, ease the distribution of products and complete their warehouses is important and effective for the development of this sector. The establishment of a distribution town is creating competition and improving the quality of goods, adjusts the system of supply and demand of goods in different markets, and its proper functioning will increase provincial and even national employment and increase the government’s ability to control prices and inflation.

In total, the construction of the distribution town will be built on a land with an area of about one million m2 and will cost about 30 Million Euros. Four years have been considered to complete the studies and the construction. Based on the data and assumptions presented in the report, the net present value of the cash flow is positive, the internal return rate is equal to 21%, the benefit-to-cost ratio is 1.49 , and the pay back period will be the fifth year of investment, all of which indicate profitability.

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