JSC “Kavminvody” 357242 Russia, Stavropol Region, Mineralniye Vody, Novoterskiy settl.,Beshtaugorskaya St.1, Tel./fax (87922) 7-13-84, E-mail: zavod@novoterskaya.ru

JSC «Kavminvody» - is the largest producer of mineral water in the Caucasian Mineral Waters Region. The enterprise bottles mineral water and drinking water. The mineral table and health water “Novoterskaya Tselebnaya” is much in demand; the assortment is supplemented with the drinking water “Novoterskaya Mountain”.

The competitive advantages are:

- qualitative production; - high level of production organization, records management presence; - 29% of mineral water bottling volume in the Caucasian Mineral Waters

Region (according to information given by Health Resort And Tourism Administration

Division of the Caucasian Mineral Waters);

- in Moscow Region ”Novoterskaya Tselebnaya” takes 11% of the market and is the leader of sales;

- own trade mark.

JSC “Kavminvody” production

Today JSC “Kavminvody” is producing the following kinds of products:1. Main volume of production makes up mineral table and health water “Novoterskaya Tselebnaya” in 1,5 l. PET bottles (takes 65% of production), in 0,5 l. PET bottles, in 0,5 l. glass bottles “Euro”, and in 0,5 l. glass bottles “Elite”.2. Bottled non-carbonated drinking water “Novoterskaya Mountain” in 5 l. and 19 l. PET bottles.3. Bottled carbonated drinking water “Novoterskaya Mountain” in 1,5 l. PET bottles.The enterprise can produce: - Non-carbonated mineral table and health water “Novoterskaya Tselebnaya”.- Bottled non-carbonated drinking water “Novoterskaya Mountain” in other kinds of bottles.- Bottled carbonated drinking water “Novoterskaya Mountain” in 0,5 l. PET bottles.

Description of the mineral water “Novoterskaya Tselebnaya” deposit (spring №72)

Zmeikinskoe deposit of carbonaceous mineral waters is a hydro-mineral base of the enterprise. The deposit is located on the south-west side of Zmeika mountain. Basic water supply of Zmeikinskoe deposit is the result of precipitation-caused waters intake into the productive horizon in places of its coming out on the surface in the district of Ginalskiy mountain range in the foothills of the Big Caucasus. The further saturation with carbonic acid and health-giving microelements is the result of high-temperature gas-saturated fluid rise out of the interior of the Earth through semi annular break systems of Zmeika mountain.

Today development of the deposit is realized by means of the production well №72. Its depth is 1482 meters. The well design prevents from mixing with contaminants and water of a different chemical composition. It permits to bottle water with natural qualities.

The well is equipped with control-and-measuring apparatus complex which allows keeping a look-out for main characteristics of the well (pressure, temperature, flow quantity) in continuous mode and with high accuracy.

Around the well there are zones of mountain-sanitary protection.

Sanatorium «Mineral Waters» Far from urban noise, on 24 hectares of richest ground, surrounded with the famous Five Mountains (Pyatigorye) a heavenly nook of the Caucasian Mineral Waters spread. Slight ripples on the smooth lake surface, rustling of rush, singing of birds, crystal-blue sky that you can touch with your hand… This is “Mineral Waters” sanatorium. The four-storied building located in the shade of alleys is ready to receive 210 guests. Comfortable single and double rooms are waiting for holiday-makers. Here is a pump-room with the mineral water “Novoterskaya Tselebnaya” possessing unique medicinal properties for urological and gynecological disorders, pancreatic diabetes, gastrointestinal tract diseases.

Procedure complex used in “Mineral Waters” sanatorium with mineral water “Novoterskaya Tselebnaya”

1. Internal intake of the mineral water “Novoterskaya Tselebnaya” for diseases of gastric and intestine tract, urological illnesses, diseases of metabolism, diabetes.

2. Mineral bathes – 36˚C -15 minutes, course of treatment 10-12 procedures which give positive results for diseases of stomach and intestines, urological illnesses, diseases of metabolism (obesity), diabetes, skin diseases and also diseases of musculoskeletal system.

3. Gastric lavage with the mineral water 37-38˚C - 3-4 liters on the procedure, one course 2-3 lavages. This is effective for diseases of stomach, gastritis abundant formation of slime, narrowing and putting down of stomach, heartburn, food poisoning.

4. Lavage of bilious tracts without stomach probe 200-250 ml with the mineral water, drink at 40-45˚C on an empty stomach, in 15-20 minutes repeat with addition 5 grams sulfuric-sour magnesium. This promotes energetic empting of gall-bladder – 2 times a week on the course 4-8 procedures for diseases of liver and biliary tracts, constipations.

5. Micro enema with the mineral water 50-100 ml – 37-38˚C on the course – 10 procedures for colitis, diseases of thick intestine.

6. Enemas at 25-35˚C – 1 liter is used for spasmodic constipations and colitis. 7. Siphon lavage of intestines – 2-5 liters of the mineral water on one procedure 37˚C,

course of cure – 6 procedures for spasms, constipations, skin diseases, gout, diabetes, obesity, diseases of kidneys.

8. Rising intestine shower – on one course – 10 procedures – 10 minutes, 8 liters of the mineral water is effective for colitis, constipations, hemorrhoids, male diseases.

9. Gynecological lavage with the mineral water. Course – 10 procedures, 37˚C is effective for gynecological diseases.

10. Inhalations of pharynx and nose with the mineral water – 10 procedures for diseases of respiratory tracts, tonsillitis, laryngitis, bronchitis, sinusitis.

11. Lavage of gums with the mineral water at 37˚C. Course – 10 procedures is effective for gums diseases.

12. Lavage of organism at 37˚C – 10 procedures with the mineral water - is used for diseases of gastric and intestinal tract, poisoning, allergy, intoxication, narcotic and alcoholic dependence.

History of JSC “Kavminvody” enterprise

«You remember how it all started, everything was new and for the first time…»

Construction site in the year 1996

In April 1997 JSC “Kavminvody” produced the first consignment of the mineral water “Novoterskaya Tselebnaya” which gained love and recognition of

consumers right away.

In the photo – administrative building, 1 plant and warehouse.

This is how our enterprise looks now. In 2002 a new warehouse was built, and in 2003 a second plant was put into operation. It allowed increasing the production volume of “Novoterskaya Tselebnaya” and starting the production of drinking water “Novoterskaya Mountain”.

History of JSC “Kavminvody” enterprise

The story of the business enterprise started in the beginning of 90 years when “Kavmininter” company won the state right on the exploitation of Zmeikinskoe deposit of mineral waters. In February 1995 a new enterprise JSC “Kavminvody” was registered. The main objective of the enterprise was creation of technology that presents mineral water to customers in its original form, the way it was created by Nature. The management of the JSC with highly qualified specialists of enterprise made a decision to develop own technology of water-preparation and to order equipment of “Sidel” company (France).

In February 1996 installation works began and already in April 1997 the enterprise produced the first bottle of the mineral water “Novoterskaya Tselebnaya” which gained recognition of specialists in Berlin exhibition of mineral waters and was awarded a diploma. This momentous event occurred on 20 April and this day is the date of activity beginning of JSC “Kavminvody” on the mineral water producer market. Now the enterprise is one of the best producers of mineral water in Europe.

In the beginning of 2003 was completed the building of production facilities of the second plant. The equipment was produced by KHS company (Germany). In accordance with the plan, in the spring of 2004 production of mineral water “Novoterskaya Tselebnaya” started and a new trade mark – drinking water “Novoterskaya Mountain” appeared.

Production capacity of JSC “Kavminvody” (1 plant)

Mineral water “Novoterskaya Tselebnaya” PET bottling line

Bottle capacity - 1,5 l or 0,5 l.

Line productivity - 6000 bot/h.

Producer – SIDEL firm (France)

Mineral water “Novoterskaya Tselebnaya” glass bottling line

Bottle capacity - 0,44 l. 0,5 l. 0,61 l.

Line productivity - 6000 bot/h.

Producer – ROBBATEK firm (Italy)

Production capacity of JSC “Kavminvody” (2 plant)

Mineral water “Novoterskaya Tselebnaya” and drinking water “Novoterskaya

Mountain” PET bottling line

Bottle capacity - 1,5 l.

Line productivity - 12000 bot/h.

Producer – KHS firm (Germany)

Production capacity of JSC “Kavminvody” (2 plant)

Drinking water “Novoterskaya Mountain” PET bottling line

Bottle capacity – 5 l.

Line productivity - 2000 bot/h.

Producer – KHS firm (Germany)

Quality control system of JSC “Kavminvody”

All work of the enterprise is directed at preservation of natural mineral water quality.

All conditions founded for that at the enterprise:

- the best up-to-date equipment was bought;

- modern technologies of water preparation are used;(The water preparation system preserves quality of water given by Nature.)

- highly qualified specialists work at the enterprise;

- well-equipped laboratory works round the clock.

Water preparation system

Central laboratory

At JSC “Kavminvody” quality system is certified in accordance with the International standards of ISO 9000. There are correspondence certificates for each kind of product at the enterprise. “Novoterskaya Tselebnaya” has certificates of high quality in programs “Moscow quality”, “Russian quality”.

For considerable result achievements in the field of quality and high-performance methods of quality management JSC “Kavminvody” was awarded with the Russian Federation Government Prize in the field of quality.

«Moscow quality» program

“Moscow quality” program is realized by Moscow Chamber of Commerce and Industry in accordance with the instructions of Moscow Mayor Yu.M.Luzhkov

№620-PM from 1 August 1997.

The tasks of “Moscow quality” program :

- discovering of high-quality home goods and services;

-assistance to promotion goods and services on the market;

- constant information for customers about “Moscow Quality” program realization.

The program was supported by Premiere’s Instruction of Moscow Government “About measures of state support of diploma-enterprises of “Moscow quality” program.

The enterprise which successfully gets the diploma of “Moscow quality” has the right to use mark of conformity during three years. The mark is registered by Russian State Standard.

The certificate and diploma of “Moscow quality” is the authoritative confirmation of high quality of goods and services.

The participation in “Moscow quality” program includes coverage in Moscow and Russian mass media, on the radio, TV, web-server, publications of Moscow government, publication in catalogue of goods and services “Moscow quality”, organization of exhibitions, seminars and conferences and so on.

Potentialities of JSC “Kavminvody”

The modern European equipment guarantees output of 520 thousand bottles a day, 15600 thousand bottles a month or 190 million bottles a year.

The specialists of sales and marketing departments work out the plan of coming out on the new regional markets taking into consideration specific nature of every region. The bonus and deduction system gives wide opportunities to distributors. The department of advertisement together with the distributor work out plan of advertising measures in the region. JSC “Kavminvody” gives advertising materials of production for the trade place design.So, the opportunities of JSC “Kavminvody” allow providing customers with high quality production in the necessary volume.

Regions of production distribution

Shipment and delivery of production to customers

The mean time of loading:Road vehicle – 25 min.Box car or thermos car – 2 h.40 min.

The delivery of production to the customers is realized by automobile and railway transport.

Four warehouses are used for loading.They are equipped with fork-lift trucks.

The area of warehouses makes up:1 warehouse - 900 m2

2 warehouse - 900 m2

3 warehouse - 1800 m2

4 warehouse - 3000 m2

18 electro and 3 diesel fork-lift trucks are used here.

Achievements of JSC “Kavminvody”

At JSC “Kavminvody” system of quality has been certificated in accordance with the international

standards of ISO 9000.

“Novoterskaya Tselebnaya” has received high quality certificates in programs “Moscow quality”,

“Russian quality”.

For considerable result achievements in the field of quality and high-performance methods of quality management JSC “Kavminvody” has become the

Russian Federation Government Prize winner in the field of quality.

For excellent qualitative characteristics “Novoterskaya Tselebnaya” has been awarded high prizes at prestigious

International and Russian exhibitions in Berlin, Dubai, Cairo, Paris, Cologne, Minsk, Moscow, Saint-Petersburg, Nizhniy

Novgorod, Samara, Sochi, Voronezh, Ekaterinburg, Novosibirsk.

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1997 1998 1999 2000 2001 2002 2003 2004

Novoterskaya Tselebnaya 0,5 l. PETbottles

Novoterskaya Tselebnaya 1,5 l. PETbottles

Novoterskaya Tselebnaya 0,44 l.Glass bottles

Novoterskaya Tselebnaya 0,5 l.Glass bottles

Novoterskaya Tselebnaya 0,5 l.Glass bottles "Elite"

Novoterskaya Mountain 1,5 l. PETbottles

Novoterskaya Mountain 5 l. PETbottles

Novoterskaya Mountain 19 l. PETbottles

Sales and assortment growth dynamics of JSC “Kavminvody” production

Requirements for business associates of JSC “Kavminvody”

In accordance with the task of increasing the sales volume JSC “Kavminvody” investigates new regions and conducts the attestation of distributors and potential partners in conformity with to the following requirements:

- basic kind of distributor activity – mineral waters, soft drinks and low alcohol drinks;

- a distributor has to have a developed sales department and this department has to guarantee not less than 50% of sales;

- compulsory work with large and small network shops.