The Republic of Dagestan is the leader among Russian regions in wool production. The region accounts for a quarter of the wool produced in Russia - more than 14 thousand tons. Today, there is one enterprise operating in the Republic of Dagestan - Kavkazskaya Wool LLC, which receives and washes about 1,600 tons of wool per year. The enterprise numbers 47 employees. The products of the enterprise are supplied to Ivanovo and Moscow regions and the Republic of Belarus.

This enterprise is currently implementing an investment project for the production of tops and knitwear. It is planned to produce about 300 tons of tops per year. To date, within the framework of the project, the construction of a warehouses with the area of 2050 square meters is underway.

All the necessary infrastructure has been created and wool washing equipment installed. The enterprise has purchased wool washing equipment and tops production equipment in China, which is on its way. The total volume of investments for the project implementation will amount to more than 350 million rubles.
The production volume may increase up to 3500 tons of wool per year with 190 employees. The project is planned to be fully implemented by 2025.

Taking into account that the existing capacities in the republic are insufficient for the processing of wool, a regional wool processing cluster is being created in the republic. The cluster will include enterprises for wool washing, as well as production of tops and felts. The list of potential participants (5 producers and processors of wool) had already been compiled. Nowadays, the technological and co-operation chains from wool production to the yarn and felt manufacture are being specified.