MIRA INFORM REPORT

 

 

Report Date :

17.12.2013

 

IDENTIFICATION DETAILS

 

Name :

KARTULI LUDIS KOMPANIA ZS

 

 

Registered Office :

Mtskheta Region, Saguramo 3311    

 

 

Country :

Georgia

 

 

Date of Incorporation :

09.06.2011

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Operators of a brewery, producers of beer, energy drinks and lemonades

 

 

No. of Employees :

700

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 


NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Georgia

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

GEORGIA - ECONOMIC OVERVIEW

 

Georgia's main economic activities include the cultivation of agricultural products such as grapes, citrus fruits, and hazelnuts; mining of manganese, copper, and gold; and output of a small industrial sector producing alcoholic and nonalcoholic beverages, metals, machinery, and chemicals. The country imports nearly all its needed supplies of natural gas and oil products. It has sizeable hydropower capacity that now provides most of its energy needs. Georgia has overcome the chronic energy shortages and gas supply interruptions of the past by renovating hydropower plants and by increasingly relying on natural gas imports from Azerbaijan instead of from Russia. Construction of the Baku-T'bilisi-Ceyhan oil pipeline, the Baku-T'bilisi-Erzerum gas pipeline, and the Kars-Akhalkalaki Railroad are part of a strategy to capitalize on Georgia's strategic location between Europe and Asia and develop its role as a transit point for gas, oil, and other goods. Georgia's economy sustained GDP growth of more than 10% in 2006-07, based on strong inflows of foreign investment and robust government spending. However, GDP growth slowed following the August 2008 conflict with Russia, and sunk to negative 4 percent in 2009 as foreign direct investment and workers' remittances declined in the wake of the global financial crisis. The economy rebounded in 2010-12, with growth rates above 6% per year, but FDI inflows, the engine of Georgian economic growth prior to the 2008 conflict, have not recovered fully. Unemployment has also remained high at above 15%. Georgia has historically suffered from a chronic failure to collect tax revenues; however, the government, since coming to power in 2004, has simplified the tax code, improved tax administration, increased tax enforcement, and cracked down on petty corruption, leading to higher revenues. The country is pinning its hopes for renewed growth on a determined effort to continue to liberalize the economy by reducing regulation, taxes, and corruption in order to attract foreign investment, with a focus on hydropower, agriculture, tourism, and textiles production. Since 2004, the government has taken a series of actions against endemic corruption, including reform of the traffic police and implementation of a fair examination system for entering the university system. The government has received high marks from the World Bank for its anti-corruption efforts.

 

Source : CIA

 


Company name

 

KARTULI LUDIS KOMPANIA ZS (CORRECT)

JSC GEORGIAN BEER COMPANY (REQUESTED)

 

 

ADDRESS

 

Area       :         Mtskheta Region        

Town       :         Saguramo 3311    

Country    :        Georgia

 

Telephone  :      (995 32) 243 7770 / 200 0000 / Mobile (995 595) 450 036 (Sofia Kobaidze) / (995 595) 990 203 (Maka Metskhi) / (995 599) 510 331 (Sergo Gviniashvili)     

Fax        :          (995 32) 243 7770      

E-Mail     :         s.kobaidze@geobeer.ge / e.iosebidze@geobeer.ge / m.metskhi@geobeer.ge / info@zedazeni.ge

Website    :       www.geobeer.ge

 

Trading Style :   Zedazeni

           

English Translation : Georgian Beer Company JSC

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                    Position

 

1. Vasili Sulkhanishvili                General Director

 

2. Sergo Gviniashvili                   Financial Director

 

3. Eteri Iosebidze (Mrs)              Chief Accountant

 

4. Sofia Kobaidze                        Procurement Manager

 

5. Mariam Metskhi                     Export Manager  

 

6. Kakha Paichadze                  Commercial Director

 

7. Kristina Khutishvili                   Office Manager         

 

Total Employees : 700 

 

 

PAYMENTS

 

No trade experience of payments is available.

 

Subject is a newly established company incorporated in June 2011 and commenced production on 2 April 2012.

 

Subject is a member of the GIG Group of companies, which comprises 12 companies engaged in diversified fields of activities with annual revenues in the region of LARI 160,000 (2010).

 

Trade risk assessment: High

 

 

SIGNIFICANT CHANGES

 

NEW GEORGIAN BEER ZEDAZENI- BREWED TO BE THE LEADER

 

2 April 2012, (www.commercial.ge): Georgian Beer Company, the owner of Zedazeni brewery, believes the new Georgian beer will become the local market leader by the end of the year. Zedazeni brewery was opened in the village Saguramo of Mtskheta on April 2, 2012. President of Georgia Mikheil Saakashvili officially opened the brewery.

 

Georgian President said he’s proud to see 700 new jobs created within the plant.

 

“I’m especially proud to see that 200 out of the 700 employees of Zedazeni brewery are IDPs,” stated Saakashvili.

 

In his words, the launch of Zedazeni brewery is the proof how effectively Georgia’s economy is growing and developing. “We have no similar modern factory in Georgia today. This is one of the top modern lines of breweries in Europe. Its construction was accomplished in seven months and it took a month to begin production,” Saakashvili said. “Regardless of what others say, Georgia`s economy is developing rapidly in our region. The country’s economic growth was 7% last year and we are expecting further growth this year. In spite of this, there is poverty and unemployment in Georgia and I know this very well, but I am checking up numbers and I know that the unemployment index is reducing,” he added.

 

According to Kakha Paichadze, Commercial Director of Zedazeni, high quality Georgian beer made by the Czech and German experts, will shortly become the top Georgian beer brand. In addition to beer, new Georgian brewery will produce several types of lemonade.

 

“Zedazeni beer is produced with high quality ingredients, the brewery is equipped with modern technologies. What’s also very important, we offer competitive prices,” noted Paichadze.

 

GEL 70 million was invested in the construction of Zedazeni brewery plant.

 

Zedazeni beer will also be sold abroad. First export markets will be: Ukraine, Kazakhstan and Azebaijan and also Russia.

 

“The business group that we represent has a long-time experience in beer business. Back in the 90s we had Lomisi brewery in Akhalgori. Then we had Natakhtari made into a leader of the local market,” said Paichadze. “People who were not informed that Natakhtari had a new owner used to complain about beer quality with us. Now when we see that Natakhtari is not the high quality beer it used to be and  there’s room for  a new leader. Here we present Zedazeni-beer brewed to be the leader,” Paichadze added.

One of the founders and owners of Zedazeni is Iago Chocheli, brother of Mtsekhta-Mtianeti Governor Tsezar Chocheli. In the past, Tsezar Chocheli was operating Lomisi brewery in Akhalgori. Current competitor beer factory Natakhtari once belonged to Iago Chocheli. In early 2008, Efes beer bought Natakhtari.

 

PRINCIPAL BANKERS

 

NAME     :         TBC BANK

 

Branch   :          Vazha-Pshavela Avenue 11

Town     :           Tbilisi 0105

 

Telephone:        (995 32) 227 2727

Fax      :            (995 32) 227 2727

 

 

FINANCIAL INFORMATION

 

As the Company has only recently commenced production, relevant financial information is not available. However, the subject interviewed offered the following information :

 

Total Invested Capital : LARI 70,000,000 (as of June 2012)

 

Financial year ends 31 December.

 

The following financial information applies to GIG Group of companies :

 

Sales Turnover       :       LARI 160,000,000 – 2009 – exact

                     :              LARI 210,000,000 – 2010 – approx

 

Net Profit           :           not given but stated to be profitable

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started :    9 June 2011

 

History :            The subject company was established in Georgia on 9 June 2011 and commenced production on 2 April 2012.

 

ID Code :           404900737 

 

Capital :            not given

 

Zaaktsionero Sazagadoeba (joint stock company) (ZS) with the following director and shareholders :

 

Director

 

Vasili Sulkhanishvili

(Georgian national / Personal No. 01008002059)

 

   Shareholders                                                Percentage

 

1. Rkinabetonis Shpalis Karkhana LLC                   70%

   Georgia

   Sole Shareholder : Miksori ShPS

 

2. Georgian International Energy Corporation           20%

   Delisi Side Str. 3 pt 22, floor 5,

   Tbilisi 0177

   Georgia

   Tel: (995 32) 210 295 / 210 332

   Fax: (995 32) 210 288

   E-mail: giec@giec.ge

 

3. Kakhaber Okriashvili                                             10%

 

Affiliated companies of Kartuli Ludis Kompania ZS :

 

Associates

 

1. Miksori ShPS

   Khandzteli Street 1

   Gldani District

   Tbilisi 

   Telephone: (995 32) 265 6704

   Fax       : (995 32) 265 6705

   E-Mail   : info@mixori.com

   Managing Director : Lasha Chocheli

   Est.: 11 April 2008

   ID Code : 205249827

   Sole shareholder : Yago Chocheli

 

2. Evrika Teleradiokompania ShPS (Evrika TV)

   M. Tsinamdzghvrishvili Street 93/95

   Dzveli District

   Tbilisi   

   Telephone: (995 32) 294 2029 / 294 2564

   Fax      : (995 32) 294 2029

   Managing Director : Otar Chkhartishvili

   Est.: 29 December 1995

   C.R. No.: 4/4-250

   ID Code : 203844723

   Shareholders:

           - Yago Chocheli   - 71%

           - Ilia Injia      - 15%

           - Naira Kveselava – 14%

 

3. Telekompania Sakartvelo ShPS (qop tv-33)

   Vazha-Pshavela Avenue 45

   Tbilisi

   Managing Director : Tamat Stepanishvili

   Est.: 16 July 1997

   C.R. No.: 7/4-784

   ID Code : 206074291

   Sole shareholder: Yago Chocheli

 

4. Barambo ShPS

   Mtskheta-Mtianeti Region

   Natakhtari Village 3308

   Telephone: (995 32) 291 9181 / 247 0141 / 210 6046

   Fax      : (995 32) 291 9180

   E-Mail   : mari.chocheli@barambo.ge

   Employs : 537

   Est.: 11 March 2009

   ID Code : 205274834

   Capital : LARI 25,000,000

 

Subject also member of GIG Group of companies, which also includes the following companies :

1. Georgian Industrial Group Holding ShPS

   Delisi Street, III turning 22, Floor 5

   Tbilisi

   Telephone: (995 32) 210 187

   Fax      : (995 32) 210 189

   E-Mail   : gig@gig.ge

   Est.: 28 March 2006

   C.R. No.: 4090/006-ShPS

   ID Code : 205138493

   Capital : LARI 25,000,000

 

2. Saqnakhshiri GIG Group

   Karlo Lominadze Square 4

   Tkibuli 4300 

   Georgia

   Tel: (995 297) 222 00

   E-mail: lamuna@mail.ru

   The main activities of the company : coal mining and coal  

   enrichment. Saqnakhshiri is the owner of the biggest - Tkubuli

   coal layer in Georgia. Current renovation process provides the

   possibility to reach 1.2 million tones of coal extraction by 2010;

 

3. Kutaisi Automechanical Plant Ltd

   Automshenebli Str. 88

   Kutaisi 4600 

   Georgia

   Tel: (995 331) 93556 / 93141

   Fax: (995 331) 93556

   E-mail: kamp@gig.ge

   The main activities of the company : production of goods for  

   heavy industry, constructive, mining enrichment and open cast mine  

   directions.

 

4. Intertrans

   Delisi Side Str. 3 pt 22, floor 5,

   Tbilisi 0177 

   Georgia

   Tel: (995 32) 210 294 / 210 297

   Fax: (995 32) 210 298

   E-mail: intertrans@intertrans.ge

   The main activities of the company : short time cargo 

   transportation in the region;

 

5. Tiflis City GIG Group

   Chavchavadze Str. 62

   Tbilisi 0162

   Georgia

   Tel: (995 32) 290 338 / 912 607,

   Fax: (995 32) 916 278

   E-mail: tiflisicity@gig.ge

   Currently Tiflis City implement "Sun City" project in Batumi.  

   "Sun City" is the most exclusive address in Batumi for living,

   entertainment and business purposes.

 

6. Georgian Media Incorporated Holding

   Kostava Str. 75 b

   Tbilisi 0179 

   Georgia

   Tel: (995 32) 334 471 / 338 811

   Fax: (995 32) 333 187

   E-mail: zaza@gmi.ge

 

6. MZE TV

   Kostava Str. 75 b

   Tbilisi 0179 

   Georgia

   Tel: (995 32) 212 111

   E-mail: mze@mze.ge

 

7. Rustavi-2

   45, Vazha Pshavela ave.

   Tbilisi

   Georgia

   Tel: (995 32) 322 271 / 322 371

   Fax: (995 32) 250 031

   E-mail: tv@rustavi2.com

   (Broadcasting Company)

 

8. Georgian Business Consulting Ltd

   Faliashvili Str. 85

   Tbilisi 0179

   Georgia

   Tel: (995 32) 227 471 / 942 133

   Fax: (995 32) 227 505

   E-mail: info@gbc.ge

 

9. Globaltrans

   Tsereteli ave 142

   Tbilisi

   Tel: (995 32) 355 952

   Fax: (995 32) 355 952

 

10.Industria Kiri

   Mshvidoba Str. 70

   Rustavi

   Georgia

   Tel.: (995 99) 922 175

   E-mail: industria_kiri@posta.ge

 

11.Durnuki Road Metal Factory

   village Durnuki

   Tetritsyaro region

   Tel: (995 32) 320 900

   Mobile: (995 77) 503 844

 

12.Orbi

   Dumbadze str. 12

   Tetritsyaro region

   Georgia

   Tel: (995 95) 298 084

   E-mail: orbikaspi@mail.ru

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Operators of a brewery, producers of beer, energy drinks and lemonades.  

 

NACE Code : 1105

 

Imports from Europe, Turkey, Germany, Czech Republic, Ukraine, France, Russia and Armenia.

 

Exports to Azerbaijan, Armenia, USA, Ukraine, Kazakhstan, Uzbekistan and Russia.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned premises comprising administrative offices, a brewery with production facilities as well as storage facilities located on 24 hectares plot of land at the heading address.

 

 


REGISTERED OFFICE

 

Mtskheta Region        

Saguramo 3311    

 

 

SPECIAL NOTE

 

You enquired on: JSC GEORGIAN BEER COMPANY. Please note that this name applies to an English translation of the subject’s name. Subject’s correct registered name is as per heading.

 

Interviewed : Mariam Metskhi (Export Manager).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.10

UK Pound

1

Rs.101.27

Euro

1

Rs.85.43

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.