The FINANCIAL — Elit Electronics, which recently went under new corporate governance, is performing fairly well with 44% exceeded planned realization in June.
Elit Electronics’ first quarter sales reached 11,500,000 GEL. In the second quarter the sales of the company increased to 17 million GEL.
“In 2010, the planned realization exceeded by 44%. If we compare the results of June to May the rate of increase is 30%,” declared Ia Gogoladze, Marketing Communications Manager at Elit Electronics.
Techno Boom, the company founded by former owner of Elit Electronics Anzor Kokoladze has been operating for approximately 2 months on the Georgian market.
According to Eter Kokoladze, Techno Boom sales were over 3 million GEL in June. The company is operating 5 stores within its chain, three in Tbilisi and two in Batumi.
“The highest investment and capital in Techno Boom is our reputation, 14 years of experience working in the market and 180 highly-qualified employees, which have shown distrust of the new management and left Elit Electronics are now working with us,” says Eter Kokoladze, Director of Techno Boom.
According to Kokoladze BTA Bank and home appliance companies have loaned Techno Boom a total amount of 700,000 USD.
“BTA Bank loaned 300,000 USD credit that will be for bringing the latest technology to Techno Boom. At the same time, we started cooperation with German brands, one of the world’s most famous brands – Korting, which provided 80,000 EUR technology credit.
Company Vestel, the huge-scale manufacturer of technology has opened a 250,000 USD credit line and gave exclusive in wholesale.
Moreover, Al Malmas, large-scale distributor in mobile phones has credited 100,000 USD worth of production. So it is evident the world brands trust us, and clients trust us also,” said Kokoladze.
The governance of Elit Electronics was changed at the end of February, with the main objective to improve the mistakes of the old management. The change of director was guided by a 3 month transitional period, when creditor banks – TBC Bank, Bank of Georgia and Bank Republic – decided to help the company, which was in the most severe financial condition, from going bankrupt and to eliminate the gaps present in the company’s management.
“During the global crisis and Georgian-Russian war Elit Electronics survived only because of good management and correct decisions. Despite the fact that during the war in Gori two branches of Elit electronics with inventory were completely destroyed, the company’s old team managed to overcome the crisis and started implementation of a rehabilitation plan developed with creditor banks. Since its approval the plan was over accomplished,” declared Eter Kokoladze.
According to Kokoladze, at present the distribution of shares is as follows: 55% of the share is TBC Bank’s, 30% – Bank Republic, and 15% – Anzor Kokoladze.
“Before the 2008 Georgian-Russian war we planned to issue shares of Elit Electronics on the stock exchange and TBC Bank was actively involved in this process. By that time Elit Electronics was valued at 80 million USD,” declared Kokoladze.
Gogoladze says that the case of stock issuing won’t be actual till Elit Electronics comes out of its regime of rehabilitation.