Georgian Industrial Group
With 4000 employed staff Georgian Industrial Group (GIG) is one of the largest industrial groups in Georgia.
The business of GIG has been expanding quite steadily over the last years by means of acquisitions but also through organic growth e.g. by construction of new generation facilities such as hydropower plants. Over the last few years we accelerated growth in areas such as energy trading and we prepared the ground to reach more than 1000 MW in installed electric power generation capacity as well as a market share in Georgian electricity generation of some 25 to 30 % within the next 3 to 4 years.
GIG has a diversified business portfolio with a clear focus on the energy sector including the following:
Electricity generation and trading: the group owns and operates thermal and hydropower plants with a total installed capacity of 662 MW. A 300 MW coal fired power plant with modern CFB combustion technology is currently under reconstruction. The group furthermore has some 70 MW of hydro and wind energy facilities under planning and development. Overall GIG accounts for some 20% market share in electricity generation of Georgia. GIG and it’s subsidiaries are the largest electricity trader in Georgia handling export/import, transit and swap transactions with all of its neighboring countries.
Coal mining: GIG owns and operates the only coal mine in Georgia. With under license reserves of more than 331 m tons Tkibuli coal mine development envisages rising output up to 1 m tons p/y by 2020.
CNG refueling and natural gas trading: Under its brand NEOGAS owns and operates a large network of CNG refueling stations across Georgia.
GIG are also involved in commercial real estate, construction materials, beverages and metal works.
The largest subsidiaries and affiliated companies of GIG are Georgian International Energy Corporation (GIEC), Mtkvari Energy, Saknakhshiri, CPower,Tiflis Group, Globaltrans and Kutaisi Auto-Mechanical Factory(KAMP).
GIG’s strategy is aimed at increasing the market shares by focusing on our core business in the energy sector (electricity, coal, gas and renewables) while constantly improving financial performance.
GIG is committed to transparency and compliance. Consequently, its largest subsidiaries are annually audited by firms such as Deloitte & Touche, Ernst &Young or BDO. Last but not least GIG is a socially and environmentally responsible group of companies which donates to and supports social, cultural and regional initiatives.
Company Expectations from B2B meetings
New 300MW Coal Fired Thermal Power Plant – The project considers construction of 300 MW Coal Fired Thermal Power Plant in eastern part of Georgia, increasing group’s existing installed capacity up to 1,000 MW. For the development of the project existing assets, including infrastructural assets and other equipment will be used, creating significand investment optimization opportunity for the company.
For the net output of 150 MW the project has Power Purchase Agreement (PPA) (take or pay principal) with the government, which is sufficient for the relevant profitability of the project. In addition, company will have free capacity for deregulated sales, giving additional upside opportunity to the project.
New Hydro Power Plant Projects – for the upcoming 5 years, the group plans to increase its hydro capacity by 20MW. Portion of planned projects include development of existing infrastructure (the group’s water supply channels under usage of other purposes) giving opportunity for high apacity used factor per installed capacity.