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GeoSteel Plans to Increase Its Domestic Market Share

Published: February 15, 2011 | 9:50 pm
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Mr. B. Sajiv, President of GeoSteel: “We intend to double our market share in Georgia apart from consolidating our customer base in the export segment.”

GeoSteel LLC, one of the largest direct foreign industrial investments in Georgia, plans to increase its domestic market share. The COMMERCIAL TIMES interviewed Mr. B. Sajiv, President of the GeoSteel, a Joint venture of JSW Steel Netherlands BV [Wholly owned by JSW, India] and Georgian Steel Group Holding Ltd(GSGHL), about the company’s development history in the local market and future expansion plans.


Q. GeoSteel LLC is one of the largest direct foreign industrial investments in Georgia. It is a joint venture of JSW Steel Netherlands BV (Wholly owned by JSW, India) and Georgian Steel Group Holding Ltd. (GSGHL). JSW is a trusted name in the global steel manufacturing having interests in mining, energy, cement, infrastructure, building-systems and logistics. How did you learn about Georgia and what were the concrete arguments why you decided your business would be a success in this country?

A. The single overriding factor which encouraged the promoters to invest in Georgia is the remarkable change in the administration brought about by President Sakashvilli and his team of ministers. The relentless efforts put in by the new team in building a strong, self reliant Georgia and the conducive environment created by them for investors prompted us set up a steel plant in this country

Q. JSW, with its Head Quarters in Mumbai, India has been in the business for over three decades and is a trusted global corporate in the business of steel marketing. It has diversified interests in steel, energy, minerals and mining, cement, infrastructure logistics and information technology. Do you have other plans in Georgia in addition to steel business?

A. JSW has plans of entering into Hydroelectric Power segment in Georgia.

Q. As we’re all well aware the so called construction boom in Georgia is far from what it was several years ago. How did this construction sector slowdown affect your business? What are your expectations and plans for future?

A. We have had a mixed basket of domestic customers and also export customers which has  insulated us from the undesirable effects of a so called slowdown in the construction segment of the Georgian market.   We intend to double our market share in Georgia apart from consolidating our customer base in the export segment.

Q. What’s the volume of GeoSteel has produced in 2010? 2011 expectations?

A. Geosteel has produced approximately 80,000 tons in 2010 and in 2011 the targeted production is at least 120,000 tons.

Q. According to your website GeoSteel aspires to be the industry leader in production and marketing of construction steel in the Caucasian region. How does your position in the Caucasian market look currently?

A. Our strength compared to our competitors has been the intrinsic strength of our steel making route which provides the cutting edge as far as the quality aspect is concerned. With the passage of time our customers in the Caucasian region have recognized this superiority and we are slowly gaining some inroads into the market which had monopolistic tendencies primarily from our competitors in the Ukraine region. We have been steadily improving our domestic market share.

Q. How cost-effective is it in steel business to develop safe and environmental friendly practices?

A. We have developed safe and environment friendly practices and there is no contradiction from the cost economics point of view in being environment friendly and cost effective. We have a state of the art fume exhaust system and foolproof measures have been developed to prevent air, water , and land contamination along with necessary controls to check the decibel level. The focus of the entire team is on ensuring safe conditions and safe practices by strictly adhering to safety SOP’s and elimination of hazardous and unsafe practices.

Q. The works of company are spread over 13 hectares land situated in the heart of the industrial city of Rustavi, Georgia. The company is serving its valued customers with workforce of more than 600 people. Are your employees all locals? How hard is it to find professional staff in your business among Georgians?

A. 90% of our employees are Georgians and the remaining are from India  and other countries. By deciding to set up a steel plant in Georgia we have committed ourselves to be an active partner in contributing not only to the growth of the Georgian Steel industry but also to become an effective catalyst in  stimulating the growth of the Georgian economy and the country as a whole. Getting professionally trained people for our industry is definitely a problem but we have been trying to overcome this impediment by recruiting fresh people and by subsequently providing them both theoretical and practical training.

All our contracted employees are provided with medical insurance.

Q. GeoSteel LLC expertise and specialization lies in following area: Thermo Mechanically Treated re-bars of GOST standard and Customer specific steel development. Which is demanded most?

A. The market requirement is essentially for TMT bars confirming to GOST standards. As far as customer specific steel development is concerned we have the necessary technology, infrastructure and the intellectual assets to take care of any such requirement.

Q. As your website reads, GeoSteel LLC manufactures high quality Thermo Mechanical Treatment steel and has set new quality benchmark. The goal of the company is to provide to Caucasian regions with best quality construction steel rebars produced (British, European, ASTM, JIS, GOST standards) in the world. Who’s your major competitor nowadays? What’s the guarantee of GeoSteel quality?

A. As far as the Georgian market is concerned our major competitors are from Ukraine. Our steel making technology ensures world class steel with very low levels of sulphur and Phosphorus and a completely automated rolling mill ensures defect free earthquake resistant product of the highest international standards.

Q. How intensively do you invest in modern technologies? Could you say GeoSteel facilities are of European standards?

A. All our plants are modern plants with state of the art technology and are equipped with modern testing facilities. Since most of the processes are completely controlled through programmable logic controllers supported by advanced instrumentation and drive technology the possibility of process instability from the volume and quality point of view is completely eliminated. The facilities are definitely of European standards.

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