Businessman Guram Nemsadze is from Donetsk. The key assets of his GIR Group of Companies (grew up from the research and production holding General Investment Resources) are concentrated there. However, the company is successful globally – the geography of GIR offices covers the USA, Canada, Europe, and India. The secret is simple: Guram Nemsadze managed to turn an unattractive refractory production into a technological business that generates innovations.
Guram Nemsadze became interested in refractories when he started working at the Krasnoarmeisky Dinas Brick Plant PJSC. This is one of the oldest enterprises in the region. Its product line has remained unchanged for many years. In fact, a resource was being developed, after which the company was supposed to go bankrupt – such a scenario is known from many other similar cases.
Guram Givievich Nemsadze, after joining the production, decided to structurally renew the plant, and at the same time – the entire industry. His strategy made it possible to raise the dying enterprise into the class of successful business projects. Businessman Guram Nemsadze initiated the renewal of processes at all levels:
- Full computerization has been carried out. This made it possible to speed up the workflow, reduce the costs of organizing, preparing and conducting transactions. In addition, the transition to digital allowed us to control all stages of work, reducing losses.
- Restart of systems of procurement, sales, storage. All three stages brought only losses, but their renewal made it possible to optimize the enterprise: to cut surplus in warehouses by half, attract new customers; deliveries were made on time, and production worked according to the amount of signed contracts.
- New investments. Businessman Guram Nemsadze independently searched for interested partners, negotiated with banks and financial institutions, both Ukrainian and international.
- Restoration of scientific activity in production. Restarting laboratories is a key link in technological renewal. Scientists and practitioners have been looking for new products to gain a competitive advantage.
The result of this work is the invention of a new refractories that fully meet the market demand. Nemsadze Guram Givievich is one of the inventors (in collaboration with his colleague Sharandin, a post-graduate student of the Donetsk National Technical Institute) of modern refractories, which allowed metallurgists to reduce the cost of production of each ton of steel by $0,5-1. Such an indicator for conditions of high competition is a real breakthrough. Moreover, earlier similar refractories with worse properties were supplied from other countries. Now the production chain is completely Ukrainian.
Investor Guram Nemsadze personally participated in the work of the factory laboratories, and later, when testing was required, he sought to test the new material at the partner factories. As a result, Nemsadze’s companies introduces more than 30 new types of refractories on the market. Today, the search and production of more modern materials continues.
Consolidation improves efficiency
Guram Nemsadze, in addition to solving technological problems, focused on strengthening the industry. An important step in the work was the unification of small factories competing with each other. The first stage was the inclusion of Krasnogorovsk Refractory Plant PJSC and Krasnoarmeisky Silicate Plant PJSC into one group of companies. Thus, in 2011, the GIR Group was formed, led by Guram Nemsadze. Later the group got bigger. The list of its assets was replenished with enterprises of the same segment. Today GIR Group includes:
- Veliko Anadol Refractory Plant
- Vladimir deposit of secondary kaolins
- Druzhkovsky refractory plant
- Kirovograd Mining Company
- Krasnoarmeisky silicate plant
- Krasnogorovsk refractory plant
At the same time, businessman Guram Nemsadze ensured that companies did not duplicate their product range. Each production in the group has a clear specifics. Among directions:
- Refractories for coke ovens
- Materials for metallurgy
- Products for the glass industry
Investor Guram Nemsadze has achieved high business efficiency: his annual production figures are growing and already exceed 140,000 tons per year. Accordingly, the network of clients is developing, the income of employees is growing, the standard of living of the cities where the production is located is increasing. However, Nemsadze’s range of interests extends far beyond business goals.
Economic theory is a guarantee of sustainable growth
Guram Givievich Nemsadze shows a serious interest in economic theory. His scientific publications were published both in Ukraine and in the USA. At the same time, the topic of research is always somehow connected with his practice in business and Ukrainian business realities.
The successful modernization of the refractory facilities allowed Nemsadze to focus on studying the experience of improving the sustainability of the financial architecture of companies. Guram Givievich Nemsadze studies the weak points of financial architectures, avoiding unnecessary risks, making enterprises more efficient. Nemsadze pays special attention to attracting investments at different economic stages.
Exploring the structure of different companies, Guram Nemsadze highlights the following elements that are characteristic of various areas:
- Ownership structure
- Management organization
- Operational business
- Financing algorithms
Taken together, these factors determine the company’s resilience to external impact, as well as determine the market value of the organization. Influence on each of the blocks allows you to strengthen the architecture and optimize the business. At the same time, Guram Nemsadze emphasizes that the stages of business development are different and each of them has its own set of tools:
- A crisis is characterized by actions aimed at increasing liquidity. Efforts are aimed at maintaining funding.
- A recession requires a thorough review of funding sources, a radical reduction in costs, and a search for new investments.
- The moment of growth involves a concentrated strengthening of the company’s position and the search for new assets.
According to the conclusions proposed by Guram Nemsadze, improving the performance of any financial architecture consists of several stages:
- Based on the audit, the identification of weaknesses/strengths.
- Study of all important indicators: monitoring business dynamics, searching for prospects, as well as additional investment sites.
- Finding optimization points, choosing the right actions, agreeing on a common strategy.
- Consistent implementation of the designated actions.
Biography of Guram Nemsadze
Businessman Guram Nemsadze is married and has three children. Was born on January 2, 1982 (Donetsk). Graduated from secondary school No.150 (1999), graduated with honors from the Faculty of Finance and Banking of Donetsk National University (master’s degree). Later he defended his doctoral thesis “Financial architecture of corporations in an unstable economic environment” (2021, Chernihiv Polytechnic University).
Among Nemsadze’s publications:
- “Analysis of the impact of the financial architecture on the efficiency of the financial activities of the corporation”
- “Complex supply of refractory products – effective reduction of unit costs” (2013)
- “Improving the durability of the lining of steel-pouring ladles” (separate edition)
- “Financial Architecture of a Corporation: Essence and Components” (2017)
In addition, Nemsadze Guram often participates in scientific conferences at the universities of Ukraine, Germany, and the USA. Author of patents for inventions:
- “Dinas refractory” (2018, Ukraine)
- “Wood Stove” (2020, USA)
In addition to Ukrainian and Russian, he speaks three foreign languages.
- While a student, he started working as a manager of the development and construction company “VIP-Master”. After some time, he became the Deputy Director for Finance of the same company.
- Later, Guram Nemsadze himself opened the Litera company (2005-2014), which was engaged in the development of office and housing projects in Donetsk.
- Since 2004, he has been working at the Krasnoarmeisky Dinas Plant. Founder of the GIR Group (General Investment Resources) and GIR EUROPA Sp. z o.o., GIR International (incorporates more than 500 partner organizations).
Nemsadze Guram is focused on developing GIR in the US and Indian markets.