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The largest corporations operating in Brazil

Exame, the most important Business and Economy Brazilian magazine, published a list of the largest corporations operating in Brazil (financial companies, like banks, were not included) in 2003; information were collected from balances released by the companies. Below, a table with the 50 largest ones, by sales; each entry shows Name of company, city and State where the main office in Brazil is located, the business field and the volume of sales (in millions of US dollars), and applicable comments. The complete list organized by Exame had the largest 500 companies; the company #500 is Trombini, from Curitiba, which had business of US$ 149,8 in the Pulp and Paper business; only 69 companies (excluded the financial ones) had more than US$ 1 billion in sales.

Company 1 2 3 4 Petrobras

City/State

Business Field Sales

Country

Comments 1 10,567 2 2 1

Rio de Janeiro, RJ

Petroleum and Energy 38,441 Wholesale (fuel) 6,311

BR Distribuidora Telemar Telefonica

Rio de Janeiro, RJ

Rio de Janeiro, RJ So Paulo, SP

Telecommunications

Telecommunications

5,699 Spain

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Ambev So Paulo, SP Ipiranga Volkswagen Shell

Beer and drinks

5,344 Wholesale (Fuel) Automobiles 5,060

Rio de Janeiro, RJ So Bernardo, SP

4,791 Germany 4,382 UK/Holland 4,131 USA 2 3

Rio de Janeiro, RJ

Wholesale (Fuel)

General Motors

So Caetano, SP

Automobiles 3,913

Brasil Telecom Brasilia, DF Bunge Food Gaspar, SC

Telecommunications

Food and Drink 3,866 Argentina Retailer 3,858 Mining 3,628 3,628 France

Po de Aucar So Paulo, SP Vale do Rio Doce Carrefour Brasken Esso

Rio de Janeiro, RJ Retailer

So Paulo, SP Camaari, BA

Petrochemical 3,345 Wholesale (Fuel) Wholesale (Fuel) 3,192 USA 3,175 USA 3,167 Mexico 4

Rio de Janeiro, RJ

Texaco Rio de Janeiro, RJ Embratel

Rio de Janeiro, RJ

Telecommunication

Cargill So Paulo, SP Eletropaulo

Food and Drink 3,163 USA Utilities (Electricity) 3,056

So Paulo, SP

Nestle So Paulo, SP FIAT Betim, MG

Food and Drink 2,916 Switzerland Automobiles 2,813 Italy 2,649

CEMIG Belo Horizonte Utilities (Electricity) C.S.N. Rio de Janeiro, RJ VARIG Porto Alegre, RS Unilever Souza Cruz Embraer So Paulo, SP

Iron and Steel 2,573 Transportation (air carrier) 2,375

Pharmacy and Hygiene 2,319 UK/Holland Tobacco Airplanes 2,284 UK 2,243 5

Rio de Janeiro, RJ So Jos Campos, SP

Gerdau Porto Alegre, RS

Iron and Steel 2,206

30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

Usiminas

Belo Horizonte, MG

Iron and Steel 2,200 Brazil/Japan 2,184 Brazil/Paraguay

Itaipu Brasilia, DF REFAP Canoas, RS Casas Bahia AGIP

Utilities (Electricity) Petrochemical 2,131

So Caetano do Sul, SP Retailer Utilities 2,108 Italy Postal Service 2,074

2,112

So Paulo, SP

Correios DaimlerChrysler Sadia Light Copesul Ford Vivo

Braslia, DF

So Bernardo, SP 1,966

Automobiles

2,022 Germany

Concrdia, SC Food Rio de Janeiro, RJ Triunfo, RS So Bernardo, SP So Paulo, SP

Utilities (Electricity) Petrochemical 1,891 Automobiles

1,891 France

1,890 USA 1,870 Portugal/Spain 7 1,757 1,725 Bermuda

Telecommunications

Furnas Rio de Janeiro, RJ Bunge Fertilizers CPFL Campinas, SP

Utilities (Electricity) Fertilizers 1,576

So Paulo, SP

Utilities (Electricity) Iron and Steel 1,573 Electronics

Cosipa So Paulo, SP Nokia Manaus, AM Sabesp So Paulo, SP Perdigo Basf

1,550 Finland 1,515

Utilities (Water & Sewage) Food 1,483

So Paulo, SP

So Bernardo, SP So Paulo, SP

Chemicals

1,461 Germany 1,448

Copersucar

Wholesale (sugar & alcohol)

1.Petrobras drills wells and refines petroleum. BR Distribuidora sells the products (gasoline, diesel, etc) to the wholesalers (Shell, Esso, etc) which eventually sell to the gas stations.

2.Each phone company operates in different regions of the country, as defined by the chartering contracts. The restrictions may be lifted (companies may operate in other regions, or can offer new services - e.g., mobile telephony) depending on their performance (also as defined by the contracts), periodically revised. Telemar operated in Rio de Janeiro, Minas Gerais and the Brazilian northeast; Telefonica operated in the State of So Paulo; Brazil Telecom in the South and Central West.

3. Petrobras lost the constitutional monopoly on exploration of petroleum, but, in practice, its still a monopolist. In Brazil, the large oil companies like Shell, Exxon (in Brazil, called Esso) and others (Mobil and Chevron do not operate here) are focused on the retailer market (gas stations) only. These companies ann others are exploring some fields, but the years of monopoly gave to Petrobras a large competitive advantage.

4.Embratel used to have the monopoly of long-distance and international calls, but now they have a few competitors. It was a property of American MCI, but it was recently sold to Mexican group Telmex.

5.A property of British Tobacco Co.

6.The main activity of DaimlerChrysler in Brazil is the production of trucks Mercedes-Benz, which have been present in the country for decades. There is an assembler of Class-A in Juiz de Fora, MG, but it is working way below capacity.

7.The largest operator of celular telephony in Brazil; resulted of the merging of several smaller companies.

6 Tips for Indian Businesses in Brazil

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Both Brazil and India belong to the well known BRIC block of countries that are well hyped in business magazines all around the world. But is there any other common ground to facilitate small and medium business relations between India and Brazil?

These 6 tips are based on several hundred interactions with Indian business men in the area of Technology and Engineering who want to grow their business on the Brazilian market by mainly searching for distributors or sales agents for their products. 1. High quality and Low Prices

Quality and price are important aspects when selling any product or service, but keep in mind that there are more companies that will enter the Brazilian market than there are distributors and sales agents to handle.

Brazilian distributors and sales agents can simply cherry-pick the best offering in the market, and a commodity product without any other attributes than price will mean lower margins for your Brazilian counterpart. 2. Low Price Promises without numbers

Brazil has been a closed economy up to the early 90s, and the perception about imported goods includes both the expensive and the luxurious ones. If you come to a Brazilian prospect with a promise regarding low prices, but you cannot demonstrate the final price including shipping, Brazilian taxation and possible Brazilian certification you will most likely not be considered.

The cost of doing business in Brazil is not much lower than in Western Europe and North America, but due to the big social differences, Brazilian companies have relatively low production costs on local factories at hand. This will often make it hard for foreign companies to compete in terms of price on the Brazilian market. 3. Research the Industry Standard for commissions

As mentioned, the cost of doing business is relatively high in Brazil and the commission rated / margins of sales agents and distributors are normally very different from Indian standards. Suggesting 2 - 3% margin to a distributor will most likely not bring you any business in Brazil. 4. Communication

English isn't as common in Brazil as it is in many other countries. Senior Indian business men often have an accent that is difficult to understand even for people with good English skills, and together with the Brazilians lack of English skills, good communication can be very difficult.

One common parameter for successful Indian businesses in Brazil that we have encountered is the fact that their representatives are more soft-spoken. Most Brazilians find soft-spoken people to be much more reliable than the more aggressive and direct personalities. 5. You will need Friends

Brazil is a country where most of the businesses are driven by relationships and personal connections. The interesting part is that most people in Brazil are more than happy to share their network with the people they like.

So treat the people you meet with respect and aim to build relationships not only to get a business transaction completed. Many Brazilians feel that the Indian style of price negotiation is disrespectful, and we have several times been told by Brazilian service providers that they would not like to deal with Indian clients.

Keep in mind that your broker, translator or even hotel receptionist might have a contact that you can benefit from, but they will not share this information if you don't try to establish a relationship. 6. Illegal means Illegal also in Brazil

Did anybody suggest you that you could import your goods to Uruguay and then further to Brazil in order to reduce import tax?

For some reason it seems like Indian companies, more often than others, are approached by brokers who can do shady arrangements. It's well known that this is happening, but it is categorized as organized criminality and has nothing to do with establishing sustainable business in Brazil. Conclusion

Brazil and India are two very interesting countries in terms of international business. It's important not to underestimate the cultural differences when trying to establish business relations between two countries that are so different.

I'm highly impressed to see how well some Indian companies are able to easily overcome the pitfalls. They have all been doing their homework regarding pricing and value proposition, as well as having some form of Portuguese speaking representation.

Brazil - Industry
Major industries include iron and steel production, automobile assembly, petroleum processing, chemicals production, and cement making; technologically based industries have been the most dynamic in recent years, but have not outpaced traditional industries. Peak industrial growth was achieved in 1973, when the manufacturing sector grew by 15.8%; growth rates averaging about 7% were posted during 197880, rising to 8.3% in 1985 and 11.3% in 1986. Growth slowed significantly during the 1990s. According to the Brazilian Statistical Institute (IBGE), manufacturing rose an annual average of only 0.7% between 1988 and 1998. Manufacturing expanded from 2.6% growth in the third quarter of 2002 to 6.6% in the fourth quarter. Growth in 2002 was particularly pronounced in the construction industry.

In 1969, 3.7 million tons of crude steel were produced; by 1985, this had reached 20.5 million tons; and by 1998 the total output of processed ore was 190 million tons. Domestic production exceeds domestic needs. Vast reserves of accessible, high-grade ore, plus a rapidly expanding domestic demand for these products, favor continued expansion of the steel industry. The major negative factor is lack of domestic soft coal. Companhia Vale do Rio Doce (CVRD) is the largest Brazilian mining company, responsible for nearly 23% of the mineral output of the country.

Motor vehicle production, Brazil's industrial backbone, experienced a drop of nearly 27% from 1998 to 1999 because of the country's financial difficulties. Production of automobiles went from about two

million units in 1997, down to 1.6 million units in 1998. In 2001, Brazil produced 1,798,472 automobiles, an increase of 7% over 2000. In 2000, the country produced 70,304 heavy trucks, an increase of 27% over 1999. The automobile industry is expanding rapidly with major sources of foreign investment and the construction of new manufacturing plants.

Brazil mines and refines petroleum products. The country in 2002 had 13 oil refineries with a total production capacity of 1,786,000 barrels per day. Because of increased domestic refining capacity during the 1970s, imports of petroleum products were less needed, and by 1979, Brazil was a net exporter of petroleum derivatives. In 1998, Brazil only imported 50% of its petroleum. Brazil's petrochemical industry emphasizes the production of synthetic rubber at Petrobrs' synthetic rubber plant. There are also over 500 pharmaceutical laboratories and plants in Brazil, the majority in So Paulo. Over 80% of the industry is foreign-owned. Increased construction demands boosted Brazil's cement production during the 1980s and 1990s. Brazil's electrical equipment industry manufactures computers, television sets, transistor radios, refrigerators, air conditioners, and many other appliances. Brazil has the largest textile industry in South America in terms of installed capacity and output, with nearly half of the spindles and looms in operation on the continent. The Brazilian pulp and paper sector is also large, consisting of more than 220 companies, which together employ approximately 80,000 people in industrial operations, as well as another 57,000 in forestry work and operations. The pulp and paper sector is almost fully privately-owned. The government allowed foreign investment in vital industries since 1995, and supports the sale of any residual parastatal enterprises.

Read more: Industry - Brazil - average, growth, annual, sector http://www.nationsencyclopedia.com/Americas/Brazil-INDUSTRY.html#ixzz1ZF1c8hEA