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SBG
ECONOMY
A BURST OF ENERGY
From coal mining to automechanics, the Georgian Industrial Group is revitalising some of the country’s oldest industries, distributing economic gain and making a name globally.
Zaza Sadunishvili
Executive Director, Georgian Industrial Group
Following the breakdown of the USSR in the early 1990s, the turmoil leading up to the creation of Georgia spelt a few downsides for the economy of the newly formed country.
Unfortunately, a lot of local industries had to be suspended in those early years of independence. Now, the Georgian Industrial Group (GIG) is playing an important role in reviving these and extending the benefits of economic growth through the nation. In many ways, GIG is taking Georgia’s past prowess, polishing it and making it ready for new industries, in the hope of economic boosts.
NATIONALIST INTERESTS AND LEADERSHIP
With about 40 firms, GIG is the largest holding company in Georgia and has spent tens of millions of dollars in various industries, including energy, mining, natural resources processing, building materials, real estate and media. Strengthened by around 3,000 highly-qualified employees, the organisation also does a lot to support the local population, including charity programmes to assist farmers, the Georgian patriarchate and socially insecure families.
GIG is the largest holding company in Georgia.
GIG has been headed by Executive Director Zaza Sadunishvili since 2009. His two-decade-long experience in industrial management, including stints in Russia and Germany, is indeed a big asset for the company.
enhance Georgia’s competitiveness and increase common wealth by effective utilisation of the country’s natural and intellectual resources. Given its nationalist interests, it is not surprising that GIG has taken over some of the country’s oldest economic pillars such as the Tkibuli coal reserves that have been in use since 1846. GIG played a critical role in reviving coal mining from this old reserve when it acquired Saqnakhshiri, the country’s only coal- mining enterprise, in 2006. A further fillip came in 2009, when the firm set up a new plant to enhance the quality of Tkibuli coal.
Another major achievement was the revival of the Kutaisi AutoMechanical Plant, one of the oldest factories in the region. In 2006, GIG took it over and proceeded to put the wheels back into motion, generating employment and reviving the economy of the region.
some of the larger local companies such as Heidelberg Cement Georgia, Energo-Pro Georgia and even the Georgian Railway.
POWERING GEORGIA
GIG deserves substantial credit for
Georgia’s rapid infrastructural growth, especially in the energy sector. One of its major subsidiaries, the Georgian International Energy Corporation (GIEC), is a market leader in this sector. But even as the nation grows, the world has to reckon with the menace of global
balance between industrial growth and ecological sensibilities.
GIEC, which specialises in natural gas, compressed gas and hydro and thermal electricity, is building a network of new power plants that will help build a greener Georgia. Backed by advanced technology, GIG is also looking at solar energy as a viable source of power.
Apart from energy, GIG’s other business interests include Intertrans, the only container terminal in Tbilisi; Georgian Media Incorporated, a group of leading Georgian broadcasting companies; Tiflis City, a prime real- estate developer, and 25% stake in Heidelberg Cement Georgia.
GLOBAL OUTLOOK
One of GIG’s strategic objectives is to foster strong ties with international institutions and foreign partners, in keeping with modern Georgia’s vision of global business leadership. Having partnered with such recognised names as Dow Jones Factiva and ISI Emerging Markets, it has done remarkably well on this front so far.
To build on this platform, the Saqnakhshiri enterprise has signed a
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