Project budget: $5 000 000
Status: Ongoing

The idea for establishing the flour mill complex was born in 2006, during a period when Russia imposed an export embargo on locally produced wheat. In response, Georgian businessman Shalva Jakhutashvili, who was based in Kazakhstan at the time, saw a vital opportunity: to offset the shortage of wheat in Georgia by importing it from Kazakhstan. Together with several business groups, he swiftly organized the import of Kazakh wheat into Georgia, ensuring stability in the local supply chain.

 

Project Implementation
To bring the vision to life, Shalva Jakhutashvili took a major step in 2008 by acquiring a 70% stake in T.B.T. LLC, a company that owned flour mills in Senaki and Tbilisi. Both facilities were intended to process and distribute imported Kazakh wheat, with a combined production capacity of approximately 9,000 tons.

In 2009, the post-war financial crisis reshaped the economic landscape in both Kazakhstan and Georgia, significantly affecting business conditions, investment plans, and the capabilities of all involved partners and Georgian investors. Shalva Jakhutashvili made the decisive move to acquire the remaining 30% stake and take full ownership, committing to independently lead the rehabilitation of the struggling businessss.

 

Crisis Management
In 2014, Capitol Management took over the distressed Baraka portfolio. At the time, the company’s turnover and capitalization were severely mismatched—revenues and returns were minimal compared to the scale and value of its assets. Faced with this challenge, the team identified two potential paths: either secure additional financial resources to increase turnover, or reduce capitalization through the sale of select assets. However, given the market conditions between 2012 and 2014—characterized by inconsistent returns and an underdeveloped investment climate—injecting more capital was deemed inefficient. Capitol Management made a strategic decision to sell its Tbilisi-based assets, consolidate operations in the Senaki plant, and shift to producing a smaller volume of higher-margin products. Although production volumes were reduced to around 2,000 tons, the company succeeded in preserving a niche market presence and maintaining critical local jobs.

Today, the Senaki plant spans 4.7 hectares, with its facilities divided between the main milling complex and administrative buildings. The company operates in the market under three established product lines: “Begheli,” “Tone,” and “Baraka.”

 

Flour quality is monitored daily to ensure consistency and excellence. Since 2019, the company has implemented the use of the Chopin - Infraneo Junior, a state-of-the-art device that measures eight key indicators of wheat and flour quality in accordance with international standards. This technology not only delivers highly accurate results but also streamlines the testing process and significantly reduces analysis time, reinforcing the company’s commitment to both excellence and efficiency.

 

Flour production in Georgia remains heavily dependent on imported Russian wheat, making the sector less attractive for long-term development. Nevertheless, the Capitol Management team is actively exploring various strategies to ensure the sustainability of the plant and to transform its workforce into a catalyst for future development.