Despite rumors, Arzni Group continues its production activities

Despite the media reports that the business of Armenian entrepreneur, Arzni Group owner Gevorg Afandyan is stagnating, Arzni Group continues its production activities and has reduced its output to a small extent only. Alik Khachikyan, Chief Financial Officer at Arzni Group, has told ArmInfo that Arzni Group (Byurakn LLC) keeps on producing mineral water under the AYG brand, as well as the PAPA CARLO lemonade. The company's output has dropped by 5% over year. Khachikyan has not specified the financial indices of the company.  

According to Khachikyan, the company continues exporting its products to Russia. The factory has recently delivered its mineral water to Belarus as well.

 
To note, Arzni Group also includes well-known brands such as Segafredo, AG Electronics, AG Print, KFC, Vita Spa. Khachikyan has not commented on the situation with the given brands due to the lack of information. In 2011 Arzni Group acquired the STAR trade chain, which was in a difficult financial state, and hoped to give a fresh impetus to its work, however, according to unspecified data, this asset was later disposed. 

To recall, Gevorg Afandyan is reported to owe a big sum to several banks. The proceeding on this issue lasted a few months and was over in May 2013. The court ruled confiscation of the businessman's property.

  
A reliable source has told ArmInfo that Arzni Group is still stagnating. The company has found itself at the verge of bankruptcy due to incompetent management that led to embezzlement. "Over the last few months the leadership of the company has been trying to improve the internal situation, but any attempts led to new embezzlement and negligence of the constantly changing directors", the source says. As a result, the company's staff has considerably shrunk since early 2013. The employees were discontent with their wages and constant back pays. 

The source also says that Arzni Group has recently planned to acquire ArmElectromash Plant and to launch its central office in the area of the plant.