Small Business Profile: Forma Polygraphic Center

Improvements in the Business Environment Pay Great Dividends

The Business

Guram Tkeshelashvili, founder and General Director of Forma Ltd started a print shop in 1996 near a metallurgical factory in the town of Rustavi, 30 km away from Georgia’s capital, Tbilisi.  His printing business initially provided services only for the factory, but by 1998 Tkeshelashvili sensed a niche opportunity and moved his company to Tbilisi while retaining a warehouse in Rustavi.

Tkeshelashvili initially rented a small place across from a former Russian military base, but within five years he was able to buy land next to one of the largest hospitals in Tbilisi. At the time he moved in, Tkeshelashvili’s plot housed a discarded bowling center once owned by the hospital. After a year spent removing fifty truckloads of garbage and piecing together the business, however, Tkeshelashvili became the proud owner of the Forma Polygraphic Center.

Struggling with the Business Environment

Tkeshelashvili had always been able to get credit from local banks, but at 20%, the interest charged was exorbitant. In addition, Forma Ltd., was liable for 16 different taxes and subject to constant visits from numerous government inspectors. The company also suffered from permanent electricity shortages. And bringing in higher quality paper daily from the warehouse in Rustavi would take about eight hours because of the numerous cargo check-points along the way. 

The Impact of an Improved Business Environment

Following the 2003 revolution in Georgia, Tkeshelashvili was able to lease equipment for USD 265,000 with the help of TBC Leasing, one of the biggest banks in the country and a recipient of financial support and advice from the International Finance Corporation.

"It was a great relief to get support from TBC Leasing, says Tkeshelashvili, “and equally importantly, a drop in interest rates from 20% to 18% eased the burden of doing business.” With the additional money, Forma purchased high quality equipment from Heidelberg, a German company, and leased equipment worth USD 60,000 this year.

Problems connected with electricity supply have also reduced dramatically – as have time and procedural issues connected with transportation.

Collectively, these changes have made Forma a small but successful business that operates in a very competitive and developed market.  Whereas the company received 500 orders a few years ago, since 2004 it has been receiving between 1,200 and 1,300 per year. In addition, the company has grown both in size and resources, with the number of employees doubling.

"We had a net profit of GEL 100,000 during the last financial year,” says Tkeshelashvili.