Brazil
Website of Embassy in Brasilia www.indianembassy.org.br
website of Consulate in Sao Paulo www.indiaconsulate.org.br
Basic Information
Capital: Brasilia
Domestic airports: Congonhas is the domestic airport in sao paulo and is the busiest in latin america. Santos Dumont is the domestic airport in Rio. Pl ask for a window seat to see the view of the beaches and sugar loaf mountain while landing
Brazil upgraded to Investment GradeIn 2008,, Brazil was upgraded to Investment Grade ( triple B minus ) by Standard and Poor. This is a reaffirmation of the health and soundness of the Brazilian market which has got its fundamentals right. International economic experts have concluded that Brazil has finally come out of its boom and bust cycle. Brazil is the third country after Chile and Mexico to get investment grading. Brazil becoming creditor to IMF... no longer debtor Brazil will buy up to $10 billion in debt from the International Monetary Fund, converting the country into a net creditor of the IMF for the first time, Finance Minister Guido Mantega said on 4 october. Brazil will invest part of its foreign reserves to buy the two-year bonds denominated in the IMF’s special drawing rates, with quarterly interest payments based on the weighted average of the short-term rate in the U.S., the euro region, Japan and the U.K. That rate currently stands at 0.25 percent. Mantega said today’s “radical change” would help Brazil diversify its reserves. Congrats to the New Brazil !
Brazil discovers large new oilfields November 2007 Petrobras announced discovery of new oil fields with reserves of 8 billion barrels which ncrease by 40% the total reserves. The new fields are in the sao paulo off-shore area and are at a depth of over 2000 metres. Brazil is a global leader in deepwater oil drilling and production. Brazil used to import 50% of its crude oil requirements in the seventies. Discoveries of off-shore oil near Rio have made it self- reliant now. The new oil fields will make it a major exporter. Recent developments
Pharma Market The Government of Brasil has programmes to promote pharma as one of the three main strategic industries. Brasilian companies are getting into generics exports to other Latin American countries and Africa. The government has signed agreements with the governments of Nigeria, Zambia and Mozambique for supply of low cost HIV- Aids drugs. There are 550 pharma cos in Brasil.Multinationals account for 20 percent of the cos in Brasil and 70 percent of sales. Diabetes and hypertension are among the most commonly reported problems needing prescription drugs. These two are the target of the government to offer low cost medicines. The government is spending over 400 million dollars a year in providing free HIV-AIDS medicines. The government initiative to increase availability of generics has increased the volume of generic sales. |
Bilateral Trade (US $ million)
|
2000 |
2001 |
2002 |
2003 |
2004 | 2005 | 2006 | 2007 | 2008 | 2009 |
Exports from India
|
271 |
543 |
573 |
486 |
556 |
1203 |
1470 |
2200 |
3564 |
2191 |
Imports by India
|
217 |
285 |
654 |
553 |
662 |
1137 |
937 |
958 |
1102 |
3415 |
Reliance accounts for about 30 percent of the trade , with their export of diesel oil and import of crude oil.
The Indian pharmaceutical companies have made a success story of their entry in Brazil . Almost all the major pharma players of India have established their presence in Brazil with supply of bulk drugs, finished formulations and establishment of manufacturing units and joint ventures. Ranbaxy and Strides Arco labs have turnover of 40 million dollars each in Brazil .
Presence of Indian Pharma cos in Brazil
Indian Investment in Brazil
BEML is investing 20 million dollars to manufacture earth moving and mining machinery and railway wagons.
OVL has invested 700 million dollars in the acquisition of offshore oil blocs near Rio de Janeiro. They are getting 3 more oil blocks in a JV with Petrobras
TCS has established software development centres in Portuguese language in Brasilia, Sao Paulo and Campinas emplying about 1500 Brazilians..
Infosys Technologies has opened a software development and back office centre in Brazil in 2009.
Wipro has a BPO centre in Curitiba providing shared services to AmBev, a leading brewery company.
Vijaya Electricals of Hyderabad has acquired a plant in Joao Pessoa in north east brazil for the manufacture of transformers.
Stride Arco Labs, Aurobindo, Glenmark and Ranbaxy have manufacturing plants in Brazil
APTECH opens IT training centres in Brazil Oct 2009
The company has entered a 51:49 Jont venture with Falgo Group to set up IT training centres in Brazil.
Petrobras has signed MOUs for joint ventures with OVL, BPCL and GAIL of India for exploration of oil in India, Brazil and in third countries.
Petrobras gets offshore oil bloc in India
The Brazilian national oil company Petrobras has been given 30 percent stake in a discovered oil field in Krishna-Godavari basin by ONGC. In return ONGC Videsh Ltd ( OVL) his getting three offshore blocs in Brazil's east coast.
Zydus Cadilla buys Brazilian pharma firm Nikkho for $ 26 million
credit for this goes to Amit Dave, the rep in Brazil, who had worked hard on this deal. Congrats Amit ! Nikkho has a plant in Rio and markets 22 products and has 50 registered brands yet to be launched.
Pidlite Industries of India acquires companies in Brazil.
Wipro BPO to Set Up Business Shared Services Centre in Curitiba, Brazil for AmBev - the
Largest Brewery Company in Latin America - 31 october 2008
WIPRO announced that its Business Process Outsourcing division, Wipro BPO, is setting up a Shared Services centre for AmBev, the largest brewery company in Latin America with leading brands like Brahma, Becks, Stella and Antarctica. The Shared Services Centre will provide services to AmBev across Latin America in the areas of Finance and Accounting, Order Management, Customer Services and HR Services. The partnership is expected to provide significant financial benefits and leverage transformation opportunities across AmBev operations in the region. These services will be provided from Wipro's facility at Curitiba in Brazil.
Infosys sets up its first development centre in Belo Horizonte- december 2009
This is the company's third development centre in Latin America, the other two centres being in Mexico, which service 32 clients and employ 357 professionals.
The centre will offer Infosys' complete suite of services to its Brazilian clients and Brazilian subsidiaries of global customers and will provide language support in English, Portuguese and Spanish. One of the major clients to be servived from this centre is Philips Latin America.
Elgi launches 100% subsidiary in Brazil
Elgi Equipments, a leading manufacturer of compressors in India has launched a 100% subsidiary at Sao Paolo in Brazil to directly market its products. It would also start manufacturing the products in the country soon.
Elgi is based in Coimbatore in the state of Tamilnadu.
Elgi has made the first stage investment of around two million dollars. After an 18-24 months gestation period, the new company would set up a manufacturing plant and commence commercial production, he said. ‘Elgi Compressores Do Brazil’ would engage in marketing of electric and diesel screw compressors. It would also set up a wide network of distributors with main focus on service and after marketproducts.
Renuka Sugar buys another Brazilian company for US$ 329 million in February 2010
India's biggest sugar refiner Shree Renuka Sugars Ltd has signed a definitive agreement for a 51 percent stake in Brazil's Equipav SA Acucar e Alcool for $329 million. The Brazilian firm, which holds the sugar and alcohol assets of Equipav Group, owns two large sugar mills with integrated co-generation facilities, in southeastern Brazil. The sugar mills have a combined annual cane-crushing capacity of 10.5 million tonnes, co-generation capacity of 203 MW and 115000 hectares of cane growing land..The Indian firm will expand the co-generation capacity to 295 MW and cane-crushing capacity to 12 million tonnes annually with additional capital expenditure.
In November 2009, Renuka had acquired sugar and ethanol producer Vale Do Ivai S.A. Acucar E Alcool for $240 million.
With these Brazilian acquisitions, Renuka has become the third biggest sugar company in the world, the number one sugar firm in India and among the top five in Brazil.
Shree Renuka Sugars Ltd (SRSL), one of the largest producers in the country, has acquired Brazil’s Vale Do Ivaí SA Açúcar e Álcool (VDI) at an enterprise value of $240 million.
SRSL will pay $82 million (Rs 380 crore) now and the balance over eight years. It plans to finance the acquisition by leveraging the $105 million (Rs 506 crore) it raised through a qualified institutional placement (QIP) of shares in July.
The company operates eight sugar mills, five owned and three leased, with a cumulative daily crushing capacity of 35,000 tonnes.
The acquisition of VDI includes two sugar and ethanol production facilities in the southern Brazilian state of Parana, with a combined cane crushing capacity of 3.1 million tonnes a year. VDI holds strategic stakes in several logistics assets, including terminals for storage and loading of sugar and ethanol at the port of Paranagua.
The acquisition also includes 18,000 hectares of cultivable land under VDI, through which the company meets the larger part of its sugarcane requirements. The land is on long-term lease and used to cultivate cane with an average yield of 95 tonnes a hectare, with recovery of 13 per cent. In India, the yield (around 60-65 tonnes per hectare) and the recovery (a maximum of 11.5 per cent) are lower.
BPR : Bharat Petro Resources, wholly owned subsidiary of BPCL, alongwith Videocon International have acquired ten blocs in Brazil from Encana of Canada valued at US$ 280 million.
Bharat Petroleum and Videocon consortium strike offshore oil in Brazil - November 2009
The consortium has discovered additional oil in an exploration acreage in the Campos basin, off the Brazilian coast.
The consortium has discovered more than 90 feet of high-quality oil in their Wahoo-2 well block, also identified as BM-C-30, The well is five miles to the north from the original Wahoo discovery well. In October 2008, the consortium had made its first discovery in the block during drilling of Wahoo well.
Suzlon setting up wind turbine plant in Brazil - August 2010
Suzlon, which has already done projects and supplied equipments to Brazil has now decided to set up a manufacturing plant to produce 2MW turbines with annual capacity of 400 MW. Initial investment about 10 million dollars.
Brazilian investment in India
Tata Motors Joint Venture with Marcopolo of Brazil for bus body building- May 2006. Tatas will hold 51% in this venture of 40 million Dollar. Marcopolo which has been exporting buses from Brazil will make bodies out of Tata chassis in India with annual output of 7000 units. The facility will be commissioned in a year.
CVRD has set up on office in New Delhi and is interested in investment in mining.
Farida Shoes of Chennai has established a JV in India in collaboration with a Brazilian firm.
Brazilian infrastructure cos like Odebrecht, Camargo Correa and Andres Gutierrez are interested in entering India in infrastructure and construction projects.
India-Brazil CEOs Forum
This was formed in June 2007 with 17 from India and 14 from Brazil. Cochairman from India is Rattan Tata and from Brazilian side it is Jose Sergio Gabrielli, CEO of Petrobras. Composition of the delegation is given below.
Their first meeting held on 4 June at Taj Mahal Hotel, New Delhi. The CEOs had an interaction with the Indian Prime Minister and Brazilian President on 4 June.
It will meet once a year.
S.No. |
India |
Brazil |
1. |
Mr. Ratan Tata (Co-chair), |
Mr. José Sérgio Gabrielli (Co-chair), |
2. |
Mr. Subodh Bhargava, |
Mr. Armando Monteiro, |
3. |
Dr. Surinder Kapur, |
Vitor Hallack, |
4. |
Mr. V.R.S. Natarajan, |
Mr. Paulo Godoy, |
5. |
Mr. R. S. Sharma, |
Mr. Deonísio Petry, |
6. |
Mr. Dhruv Sawhney, |
Mr. Flávio Machado Filho, |
7. |
Mr. Malvinder Singh, |
Mr. José Antonio Martins, |
8. |
Mr. Pramod Chaudhari, |
Mr. Nilo Jose Panazzolo, |
9. |
Mr. Ramalinga Raju, |
Mr. Giacomo Feres Staniscia, |
10. |
Mr. S. Ramadorai, |
Mr. Rúbio Fernal, Director for Business Development, Odebrecht (Construction) |
11. |
Mr. Gautam Thapar, |
Mr. Nestor Giacomin, Managing Director, Randon (Transport equipment) |
12. |
Mr. Jamshyd Godrej, |
Mr. Orlando José Ferreira Neto, Managing Director, Embraer (aircraft) |
13. |
Mr. Sunil Kant Munjal, |
Mr. Rui Lopes, Vice-President, Grupo Gerdau, (steel) |
14. |
Mr. K.V. Kamath, |
Mr. Hermelindo Ruete de Oliveira, Managing Director, Copersucar (sugar and ethanol) |
15. |
Mr. Mukesh Ambani, |
|
16. |
Mr. Deepak Parekh, |
|
17. |
Mr. Tarun Das, |
|
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