Dnipro business: the group of titans

ермолаевIn the famous trilogy of the classic American literature Theodore Dreiser, the median period in the life of the hero, his «shark of capitalism» and personality development are called the capacious word «Titan».

It is these business groups – powerful , having both feet on the floor, confident in their abilities, but not claiming national leadership, to a large extent create the strength and power of the economy of Dnipro and the region. Without touching once again on the «shockers of developed capitalism» — the largest financial groups in the country with the «Dnipro residence» INTERPIPE and Privat, the successes, business assets and capitals of which have already been written a lot, in this small essay we will give «strokes to the portrait» of the most systematic and successful business structures of the city, authoritative and significant, first of all, on a regional scale.

A land flowing with milk and glamorous honey

“Rainford” is one of the well-deserved Dnipro business groups, today actively works in a variety of areas, e.g. production of food (dairy and confectionery factories), mineral water and hard liquors (“Karat” distillery). In the assets of the group (controlled by Olexander Martynov, whose fortune Focus magazine estimated in $ 290 million) there is a chain of grocery supermarkets in Dnipro, Zaporizhia, Simferopol and Kyiv, the manufacturing and distributing of consumer electronics. In addition, the “Rainford” has wide interests in the field of development: there are 2 shopping and entertainment complex “Materik” in Dnipro and Kyiv. But this is not the end: the group actively works in the area of tourism (“Rainford-Travel”), as well as in the fashion business, promotes fashionable clothes and footwear (trading house “Yunost’»). Besides, “Rainford” became famous for representing “Versace” fashion house in Dnipro.

Dneprotehservice: technically and sportsmanlike

Only of the names of enterprises run by the Dniprotehservice group suggest the most serious intentions of the financial-industrial group in the machine-building segment of the industry.  Indeed, Dneprotekhservis controls OAO Dneprotyazhmash, (formerly Dnepropetrovsk Metallurgical Equipment Works) — the largest in the region and the country enterprise for the production of equipment for the Mining and Metallurgical Companies, in particular — blast-furnace and coke and by-product process. There are also Dnepropetrovsk Rolling Rolls Plant, Sinelnikovo Spring Plant, “Svetofor” Plant, which produces signaling and lighting equipment for railways and city highways. Also among the group’s assets are OOO Dnepropetrovsk Precision Casting Plant, the plant for metal structures building of OOO “NPP DneprStalConstrutsyia” and a plant for coke-chemical equipment Slavtiazhmash. Not long ago, “Dneprotehservice” having received control at OAO «Lozovskii Metal Structures Plant»: for the group, this bargain was a new step in the development of construction and industrial metal structures business.

Being seriously engaged in the area of mechanical engineering, the group now controls a number of specialized scientific institutions. In particular, project-design institutes “Metallurgavtomatika” is one of the key developers of automation and process management systems in Ukraine, as well as the Research Institute of Engineering Technology (UkrNIITM), a developer of technologies and technological equipment for the rocket-and-space industry.

Besides, the small Dnipro «Radabank» belongs to the number of assets of the «Dneprotehservice» group (last year information appeared upon the sale of the financial structure to the Russian KIT-Finance, however, to date there is no confirmation that these plans were implemented).

Among other things, Radabank is known for its Museum of Money: it is quite possible that this amusing, but non-trivial area for the bank is motivated by interest in the numismatics of the owner of the group. “Dneprotehservice” belongs to the outstanding Dnipro businessman Olexii Zinoviev, whom the “Focus” magazine ranked № 113 on the list of 130 richest people in the country. According to the periodical, his net worth is $177 million. It is known that, except for the enthusiasm for engineering and finance, he is engaged in sports. He actively supports the athletic movement in the enterprises of the group staff and even takes part in the competitions — in particular, played hockey in the Dneprotehservice tournament.

Creative “Logos”

“Logos” Corporation is the brainchild of the famous Dnipro businessman Valerii Shamotii (according to the Focus magazine his net worth is $ 147 million) today has interests in a whole range of business lines — from winemaking to entertainment and development. “The First Ukrainian Wine Holding”, one of the leaders of the Ukrainian alcohol market, is known to every Ukrainian by its TM “Tavria”, ALeXX and Inkerman. The businessman himself is fond of fast driving and water sports, and therefore his companies are credited with the sale of Subaru and even Maserati cars. Indeed, the Logos structures are engaged in the distribution of scooters and PWCs of well-known western manufacturers and occupy, according to the media, more than 80% of the specialized Ukrainian market.

Situated on the picturesque bank of the Dnipro river, the club «Bartolomeo» — Valerii Shamotii’s pride. It is considered to be one of the most respectable resting places of wealthy citizens and guests of Dnipro. Another fancy place — the spa-center «Tsunami» – is one of the favorite places for leisure activities of the Dnipro elite. As Valerii Shamotii himself noted in one of his interviews, the corporation plans to create a chain of spa centers — along with Dnipro and Kyiv — also in Odessa, Moscow, and Yekaterinburg. Another fashionable direction of the Logos — a chain of boutiques “Couture”, according to Mr. Shamotii himself, is successfully developed by his wife, who is an interested investor in this business.

Today “Logos” is actively working in development. Last year, the corporation opened a shopping and entertainment complex “Babylon” on the left bank of Dnipro. As the head of “Logos” notes, the corporation has already implemented 4 construction projects; another 20 are in the process of implementation.

As the enterpriser voiced in the media, they also plan to reformat some of the businesses. “We will get rid of non-core assets, eliminate businesses that do not have growth prospects and develop strategically important areas”.

A while back, the head of the Logos took an interest in such a promising (until recently) type of raising funds for development as an IPO. “We want to bring the furniture business (“Helios” holding) to the foreign investment market. Maybe even to hold an IPO to raise funds for the development of more priority projects. But in any of our businesses, we are ready to sell only a share, not a controlling stake”.

“Alef” builds and sows

The success of the commercial-manufacturing corporation Alef in Dnipro is visible to the naked eye. The largest shopping mall in the city – Most-City Center — impresses with the scale and architectural ingenuity everyone who enters the right bank of Dnipro. In the near future offices will be built on to the complex; there also will be prestigious apartments here.

On the account of the development department of the group there are such architectural interestingness of the city like business center “PriZma”, which is built opposite the mentioned before SEC “Most”, “Bosphorus” business and shopping center on Yekaterinoslavskii Boulevard and the nearby complex “Cascade” which is under construction. In total in Dnipro, the development department of the corporation built 7 objects with a total area of 160,000 m2. Just like the other titans of Dnipro business, Alef has interests in a wide range of lines. One of them is winemaking: the specialized branches of Alef Corporation produce their own alcoholic beverages (TM “Zolotaya Amphora”, “Sonata”, “Klinkov”, “Helsinki”), and also import alcohol from a number of well-known brands.

The group is actively engaged in agribusiness, fertilizers and plant-protecting agents, cars trading and transportation.

At the same time, in the forefront of the groundswell of interest of Western financial institutions towards the Ukrainian banking business, in 2006, Agrobank (now — Home Credit Bank), which was a part of the Alef interest group, was sold to the Czech financial group PPF.

It is worth noticing, that the success of Alef provided Vadim Ermolaev, its CEO, a fortune of about $ 227 million and included him into the list Ukraine’s Top 100 richest people.

Mykhailo Chernov, for IA “Novyi most”


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