AZERBAIJAN IS NOT ONLY A SYMBOL OF OIL&GAS, Mr. ISKANDAR KHALILOV SAYS…

To one of famous processing, hotel, financial-industry in Azerbaijan and abroad and not only to ISR brand is 10 years in 2005. Since the time of its operating, ISR holding intensively invests in economy of Azerbaijan, new mills, plants, processing powers are being opened in different places of Azerbaijan day by day. From the first time, this is chaotic investments of giant financial facilities in different profile plants not connected with each other but in real this is a system of building in Azerbaijan of great vertical-integrated holding under recognized ISR quality.

Iskandar Agasalim oglu Khalilov was born in December 9, 1955 in Baku. In 1979 he graduated economy faculty of Azerbaijan National Economy Institute named after D.Buniatzade and in 1984 - Moscow Juridical Academy. Married, have two children. He founded ISR Group of Companies in 1995. Presently, he is vice-president on international activity of Oil Company "LUKOIL OVERSEAS" relations and simultaneously headed "ISR HOLDING".

We would like to introduce the auditory of our readers in 30 countries of the world with the interview of founder and permanent chief ISR HOLDING, Mr. Iskandar Khalilov.

Caspian Energy: Mr. Khalilov, the company established by you is 10 years, could you please to inform us in detail about "ISR HOLDING" formation in Azerbaijan?

President of ISR HOLDING,

Mr. Iskandar Khalilov: If you remember, Nationwide Leader Heydar Aliyev addressed in 1994 with request to all Azerbaijanis operated in enterpreneurship business and living abroad of the Republic to use their skills and opportunities in formation of young Azerbaijan economy. This announcement influenced to me being as a patriot of my motherland. I came to Baku and have visited "Black City" and decided that we should begin from this unsuccessful region.

So, approximately after a year "ISR" - hyper-market "RAMSTORE" appeared. Soon, Trade Center was built near it on selling of construction materials "Mr. BRICOLAGE" and after "Baku Entertaining Center". In 1998, the complex was constructed known as "ISR PLAZA" in Fountain Area and underground garage for 200 cars. At the same year, there was begun the development and construction of well-known in the world "Mc.Donald's" restaurant network.

At the same time, "ISR" actively had taken part in privatization processes of the Republic. At the end of 90s Baku Textile Mill became the first private enterprise of light industry in Azerbaijan.

In 2003, Holding got control pack of Goychay Tinned Fabric stocks on processing of natural juice and privatized the largest in Europe on reserves of iodine the Novo-Neftechali Yod-Brom plant in 2004.

I should state hotel culture too. At present, there is completed the reconstruction of the second building of "Azerbaijan" Hotel.

Approved by Decree of the President of the Republic of Azerbaijan dated in February 11, 2004 with No. 24 "State Program of social-economy development of regions of the Republic of Azerbaijan made me sure in creation of public "AZPLODEXPORT", which aimed the preparation and export of agricultural products. For finished period company have created combine in Zagatala for processing of nuts, concluded an agreement about processing of agricultural products with tinned plants in Guba and Goychay, branches were opened in Lenkoran, Ali-Bairamli, Khachmaz and so on.

Company established by you is multi-vector holding represented in many sectors of economy. How many subdivisions Holding has?

- As you aware, enterprise is a holding company where control share holding of other companies are included in content of assets, and they are called as associated. So, "ISR Holdings" has eight associated companies, but taking into account that the process of formation of "mother" company is being continued and intensificated. And in the nearest time the tens of companies and firms will be joined to it that cover the processing and trade activity, sphere of service, tourism and etc.

What are your probable new spheres of activity?

- Today, and in the nearest future Holding will concentrated for expansion of hotel business with opinion to creation 4 and 5 stars hotels which quality and assortment of services will not worse than Europeans.

Holding is going to establish insurance and leasing companies.

How do you satisfy with "ISR PLAZA" activity?

- We should note that I extremely satisfied with operation of business-center. Undoubtedly, status of one of more important investment projects of ISR Group has the largest ISR PLAZA hotel-business center. ISR PLAZA - modern complex represents itself the harmony of comfort, fashionableness and maximally effective business-functions.

Providing to its renters the largest spectrum of services the center achieved increasing the quantity of signed long-term contracts with famous companies, organizations and embassies. So, today ISR PLAZA became "business address" for such companies like KPMG, Procter&Gamble, Societe Generale, TotalFinaElf, TPAO, Unocal, Karasu operating, KCA Deutag, Italian Trade Comission and also for Norwegian and German embassies.

ISR PLAZA is "A" class building and therefore whole staff was selected for three months before opening of center. There had been fulfilled careful selection between candidates for making busy different positions. Then selected staff passed special training in accordance to requirements of international standards. In result the services providing by center are not worse than in New York or London. Training for staff is held regularly.

Recently you have privatized the 2nd building of "Azerbaijan" Hotel. How many investments are planned to invest in project of reconstruction and which features new hotel complex Hotel Park Inn will have, and will there be enlarged the list of provided services?

- "Azerbaijan" Hotel was chosen not by chance. This is the one of the most famous and comfortable hotel complexes in Baku requiring the modern reconstruction and equipping. In autumn of last year, there was signed administrative agreement between GLOBAL INVEST COMPANY and RADISSON SAS in Belgium about mutual managing with "Azerbaijan" Hotel that will be fulfilled its activity under the brand of four stars PARK INN hotel.

Total amount of investments in reconstruction of the 2nd building of "Azerbaijan" Hotel will be 30 mln. USD.

One of the first signs of Holding's operation as you have already known became "Baku Entertaining Center"…

- This is rare case when useful ideally harmonizes with nicely: fitness-center was constructed by order of one of ISR Group of Companies - AZERTURIZM. There was not any familiar center in the region. Its covered territory has 5.000 sq. m.

How successfully is the realization of Novo-Neftechali Iodine Plant (NNIP) reanimation continued?

- NNIP was privatized in September 2004 by affiliated company of Holding ISR CHEMICAL on the base of investment trend. For last year except of successful execution of investment programs (as an obligation ahead of state) "ISR" attracted the one of the largest world iodine consumer - American "Troi" for joint activity on iodine processing. Foreign investor's attraction provided with opportunity of new technologies, equipment and experience introduction that allowed to NNIP to become the largest iodine producer in post Soviet area (with 500 tons a year) in the nearest future. At present, there are being conducted preparation works on field, communications and administrative issues.

Plant is specialized not only on iodine processing but also in technical and common salt. Raw material base makes iodide-bromine waters from Khillin and Neftechali fields. There in each molecule of air lives shrill, easy cognizable iodine odour refreshing keen brains.

When is there planned the launching of plant?

- New equipment at plant will be fully combined and ready for launching in April 2006. We would like to mention that 200 working places were opened at plant has not been operated since 1993 and stated figure will increase on measure of processing expansion, including the operation of Azerbaijan contractors supported by ISR.

What about the results of marketing researches on iodine demand in the world market?

- For last some years world iodine consumption increased twice. There are some countries that have iodine reserves. The largest iodine producers in the world are Chili (65%) and Azerbaijan at a point in achieving of full power of processing will join in five of world producers (1%). Today iodine is largely used under processing of pharmaceutical goods, military-industry complex, processing of mesomorphic monitor (LCD) and others.

Today, there are opened new productions, including tinned food fabrics in speed developing Azerbaijan. It is interesting to our readers to know more about Goycay tinned food fabric and producing production.

- Goycay Tinned Fabric was commissioned in 1982. After Soviet Union's breaking up the plant stopped its further operation. In April 2004 after needed investments the fabric was rebuilt and reconstructed. Presently, there are served 150 persons at fabric. During the season of processing the number of served employees increase to three times. 90% of "Valas" pomegranate raw for industry processing is purchased mainly in Goycay region. Goycay pomegranate profitability differ from output slop from 1 kg. (more than 33,5% to 35%), with taste and odour qualities.

Only at Goycay fabric is set and operates aseptic lines of with vacuum storage of natural juices. The system provides the storage of natural juices without addition of chemicals. Fabric operates within the frame of AZPLODEXPORT and its function is storage, processing, packing of agricultural productions, drink and food productions' preparation, also their export in abroad. Having the best progressive technological opportunities AZPLODEXPORT is specialized in particular on output of exclusive pomegranate juice.

Azerbaijan has rich with ground resources with their high qualitative profitability, and climate conditions and sunlight beneficially influence to growing of valuable culture.

Which innovations were introduced at Azplodexport and what about the perspective of production expansion?

Besides the existed opportunities AZPLODEXPORT develops infrastructure and so, there will be constructed two refrigerator warehouses with 10.000 tons of each in the nearest time. It will also become the powerful support to local producers.

There were constructed the gofrocarton and plastic plants for the shortest time. At present, holding conducts operation by creation of the most modern plant in Azerbaijan on processing of glass tare that completely will free producers from forced tare's import.

Azplodexport profile proves that Azerbaijan - is not only a symbol of oil and gas, but it is quite rich country with profitable grounds where served friendly and hard worker nation.

One more from subdivisions of ISR is AZAGROTREYD, which is reliable network of dry and refrigerator warehouses for storing of food products in Baku, located in 176.000 sq. m. area. Warehouses' territories are equipped with 6 local railways routes and own railway substation.

What are Holding's cooperation perspectives with Nikoil in the financial market? Which are other financial structures are under the area of Holding's activity?

- In May 2005, Holding purchased 20% of "Nikoil" shareholders. Concerning cooperation in the financial market we can say that presently, there is polished the project of introduction of some banking operation at Holding's units. I think that positive moment of cooperation is the getting of reliable tool for attraction of extra investments in economy of country. I would like to mention that Com'unibank financial organization joining to structure of holding. It exists more than 10 years and presently is a member of the Russian Banks Association MMVB. Bank provides with large-scale bank services for corporate clients of different forms of ownership and private persons. Bank's business credo is community of powerful. Therefore its staff in its operation confess the following valuables: reliability, effectiveness, efficiency and openness.

Did you speak about activity of privatized by you Baku Knitted Fabric?

- In reality, in the sphere of interests of ISR Group of Companies are the most difference branches of enterpreneurship including such delicate but so profitability like processong knitted.

Knitted fabric belonging to ISR Group of Companies equipped with the most modern equipment on processing of stockinet and materials of large assortment on the base of selected raw.

Do there exist oil and gas companies in the structure of Holding?

- ISR-OIL company provides with services to holding's companies in Azerbaijan.

Other structure of ISR is EURASIA COMPANY using the newest world technologies, progressive developments and multi years experience of high-qualified specialists renders the services to companies in the Middle Asia.

FIORENTINI GAS SERVICE INTERNATIONAL - joint venture between PIETRO FIORENTINI and ISR established for operation in Azerbaijan, Middle Asia and Iran markets.

ISR ENGINEERING COMPANY being in the structure of service providing renders the services on integrated control with the projects connected with drilling, capital repair of wells, cutting offshoots, drilling of multi-barreled wells and provides with their implementation. The types of company's activity include the wireline, perforation, hydro breach, concreting and others attended by exploration and development of oil and gas fields.

RIRoil Sari - is a company joining in holding and making the processing, transportation and selling of petroleum products. Its office is located in the center of business activity in Europe, Switzerland and Alps places. It provides convenient during implementation of trade operations and informs about European news and tendencies, including the creation to holding the positive shape of international company.

Being as modern with great characteristics of transport company joining in unique system of water transport of Russia, IRS SHIPMANAGEMENT owns with 10 vessels, tankers like river-sea class.

Annually transportation fleet ships big quantity of cargoes, including petroleum, light and black petroleum products and oil. Unique vertical department contributes to execution of rational planning the operations and fleet's placing under which there are guaranteed the modern and safety freight's shipment to point of destination.

… visited "Black City", and, decided that we should begin from this unsuccessful region...

During last decade ISR Group of companies greatly realized many great plans and took the leading position in national business. Companies entering to groups, permanently fulfills largest investments playing important role in economy development of Azerbaijan.

ISR Group of Companies - the largest tax payers in private sector of country. They have created working places for hundred high-qualified specialists and young energy employees. In many of its initiatives ISR Group of Companies became national trailblazer and so, caused the coming of new era in economy prosperity of Azerbaijan.

"ISR Holdings" has eight associated companies and soon, the tens of companies and firms will be joined to it.

Service rendering by center has several preferences, which I would like to state an effective operation of technical provision, permanent safety in building, daily security service operating, automatically system of access to offices, fire and transport facilities parking safety, regular cleaning of all rooms, daily air cleaning and filtration, food and abode.

ISR PLAZA took off (from 2nd to 13th) of its floors for office and (from 14th to 16th) comfortable neighboring five stars Apart Hotel controlling by well-known hotel group Radisson SAS. Restaurants, coffee bar and confectionery, including ultra-modern conference-hall and fitness-hall for vigour supporting are placed in foyer.

And at last floor of ISR PLAZA borrowed by "Terrasa" restaurant and from its windows is possible to admire the Baku in evening that is marvelous city with its ancient past and fast developing present.

Perfectly harmonious with great Azadlig square. Hotel is located in some minutes from romantic sea front with leisurely walking and in some - by car to any central region of city.

After reconstruction and upgrading of existed construction for exploitation, there will be opened 11 floors building of the 2nd building with 248 rooms with large bars and restaurants, conference-halls and rented under office rooms (2nd floor). PARK INN - is the second project of RESIDOR SAS HOSPITALITY realized in Azerbaijan because five stars hotel RADISSON SAS have already existed in hotel-business center ISR PLAZA for six 6 years.

Architecture style of center was fulfilled with perfect connection of elements of innovations with elegant motives of national colouring. There is provided to clients with opportunities in using large spectrum of services: entertaining with bowling, visiting cafe, spend the time in bar and renewing the balance of calorie with the help of European and national kitchen in local restaurant. And certainly to reach own health up to the level of "excellent"… There exists marvelous tropic pool, Turkish bath, jacuzzi and sauna. And for physical training there exists the hall aimed to aerobic and trainer. Therefore it does not seem surprise the fact that majority habitant of Baku thinks that healthy-entertaining center as lovely place for spare time spending

Azerbaijan at a point in achieving of full power of processing will join in five of world producers (1%).

It is known a little that unique place in the world where there is burned and ripening of 250 types of pomegranate is Goycay alley. Healthy features of pomegranate are incontestable fact since ancient. It is good against prophylactic cardiovascular and cancer diseases, cough, anaemia and infection diseases. Main feature of output by company pomegranate juice is that it is prepared exclusively from ripe, sappy fruits and free from conservants.

Goycay Tinned Fabric is a unique plant processing the extraction of pomegranate seeds. On technical lines after washing pomegranate fruits equipment unrip and shake up the fruits with the purpose of seeds' separation from bitter skin and the process is fulfilled at plant.

Thanks for your interview.