Innovation can save the Soviet industrial heritage. Politicians prefer to make such promises before elections, but businessman Guram Nemsadze from Donetsk proves with his deeds that such a path is indeed possible. Another thing is that the implementation of such a project requires a lot of effort and maximum involvement at all stages of work.
Structural reorganization
It is common to consider innovations exclusively digital solutions or even just computerization of production. Of course, this is far from true. Processes and even manufactured materials can also be new. Guram Nemsadze restored the work of laboratories at enterprises, contributed to the creation of fundamentally new refractories, helped Ukrainian metal producers with import substitution, and united unprofitable enterprises into a group of companies successfully operating globally. Here are the details.
Guram Givievich Nemsadze started his work in 00s in Krasnoarmeisky plant of dinas brick PJSC — one of the oldest enterprises of the refractory industry. Before the arrival of Nemsadze, the company used to supply the same products as many years ago. At the same time, the demand was declining, and equipment was becoming obsolete. All this put the company on the brink of bankruptcy.
Businessman Guram Nemsadze decided to renovate the company fundamentally.Modernization affected processes and approaches at all levels:
- The workflow was completely computerized. This increased the speed of matching transactions and reduced downtime.
- Marketing systems and storage of products were updated. The new approach made it possible to reduce the amount of leftovers in warehouses, freeing them up for new products.
- The procurement control system provided for the reduction in the number of surpluses – their number halved.
- Attracting investments. Guram Nemsadze was actively engaged in negotiations with international institutions to find new resources.
- Factory laboratories were launched. Last on the list, but the key decision in terms of significance is the restoration of scientific work in production. It was this strategy that helped Nemsadze eventually restore the success of the enterprises.
With the development of enterprises, the issue of expansion became topical. The merger of Krasnogorovsk Refractory Plant PJSC and Krasnoarmeisky Silicate Plant PJSC helped reduce unnecessary competition. Both companies became the basis of the GIR Group, launched by Nemsadze in 2011. Further, the group expanded: in addition to those already listed, other large enterprises joined. Namely:
1. Veliko Anadol Refractory Plant
2. Vladimir deposit of secondary kaolins
3. Druzhkovsky refractory plant
4. Kirovograd Mining Company
Investor Guram Nemsadze has optimized the GIR Group product line. Each company of the group corresponded to a clear specialization in the manufacture of products for:
1. Coke oven
2. Metallurgy
3. Glass industry
Guram Givievich Nemsadze managed to achieve a significant increase in output - the figures exceed 140 thousand tons annually. In addition, the network of customers has expanded, the income of factories has increased, and with them the salaries of employees.
New solution for metallurgy
In addition to optimizing processes, Guram Nemsadze paid a lot of attention to launching the production of new types of refractories. It was Nemsadze who initiated the launch of the research and production holding "General Investment Resources" - the abandoned laboratories of the factories were updated, and the employees started searching for the materials needed by customers.
Personally Nemsadze Guram Givievich became a co-author of the discovery (together with Sharandin, a graduate student of the Donetsk National Technical University), of one of the innovative refractories. This was a previously unknown material that fully met the needs of customers. At the same time, businessman Guram Nemsadze participated in laboratory work and managed to negotiate with partners who tried the new material in practice – in the conditions of real production.
The launch of new refractories has improved the competitive position of enterprises, attracting new clients. This is due to the quality of the proposed products, which made it possible to reduce the cost of each ton of steel produced by metallurgists by $0.5-1. For a highly competitive market, such an indicator is a noticeable advantage. It is also important that the new refractory was a product of import substitution - previously, metal manufacturers purchased similar materials from foreign manufacturers, though of poorer quality. All together it strengthened the Ukrainian business. At the same time, Nemsadze companies have offered the market more than 30 new types of refractories, and the development of new solutions continues.
Business useful for the state
Guram Nemsadze is also engaged in economic theory. His scientific works concern the optimization of the financial architecture of companies in unstable conditions, and also touch upon the issues of inflationary processes. Nemsadze's publications are directly related to his practical activities.
Based on the experience gained during the modernization of the refractory industry, Guram Givievich Nemsadze explores the prospects for the development of financial architectures, searches for opportunities to minimize risks, and develops recommendations for sustainable development. One of Nemsadze's key scientific works is also useful in practice: it allows one to optimize the financial architecture of literally any organization. Guram Nemsadze proves with his texts that consistent optimization allows any business to be profitable.
Guram Nemsadze writes that structurally any organization includes the following elements:
- Structure of property
- Corporate management
- Organizational form of doing business
- Funding structure
The combination of these elements determines the value of the company in the market, fluctuations in business indicators also depend on them. Accordingly, the management of each of them contributes to the improvement of the financial architecture and makes it resistant to external factors. Guram Nemsadze notes that different stages of company development require different strategies:
1. A period of crisis requires the activities increasing liquidity and maximum efforts to retain funding.
2. The moment of recession involves the analysis of financial flows, minimization of costs and the search for new sources of financing.
3. The growth stage is the most positive moment when one needs to make efforts to find new investments.
Optimization of the financial architecture includes several stages, each of which has its own actions:
- Analysis of problematic points and strengths, identification of areas for improvement, comprehensive audit.
- Monitoring of key indicators: monitoring the dynamics of business data, identifying prospects and areas for investment.
- Selection of optimization points and determination of actions according to the general strategy.
- Implementation of the identified plans and tasks.
Guram Nemsadze biography
Guram Nemsadze is from Donetsk, where he was born on January 2, 1982. He graduated from secondary school No. 150 in Donetsk (1999). He obtained his higher education with a Master of Finance and Banking (diploma with honors) degree from the Donetsk National University.
In 2021, Guram Nemsadze defended his doctoral dissertation on the “Financial architecture of corporations in an unstable economic environment”. The defense took place at the Chernihiv Polytechnic University.
Guram Nemsadze is the author of books and publications, such as:
- “Analysis of the impact of financial architecture on the efficiency of the financial activities of a corporation”
- "Complex supply of refractory products - effective reduction of unit costs" (2013)
- The book "Improving the durability of the lining of steel-pouring ladles"
- "Financial Architecture of a Corporation: Essence and Components" (2017)
Nemsadze Guram is a participant of conferences in Ukraine, Germany, and the USA. He is fluent in three foreign languages.
Nemsadze Guram Givievich owns patents for inventions:
1. 2018 — «Dinas refractory» (Ukraine)
2. 2020 — «Wood burning oven» (USA)
Career:
1. Manager of the development and construction company "VIP-Master". He started as a student, but soon rose to the position of Deputy Director of Finance.
2. In 2004, he started working at the Krasnoarmeisky Dinas Plant.
3. Guram Nemsadze established the Litera development company (2005-2014), which was focused on residential and office buildings in Donetsk.
4. He is a founder of the GIR Group of Companies (General Investment Resources), GIR EUROPA Sp. z o.o., GIR International. The latter brings together 500 partner companies globally.
5. As of 2022, Nemsadze Guram is developing GIR in the US and Indian markets.
Guram Nemsadze's family: married with three children.
