The world is entering a
dangerous phase in which many countries are cheating the global trade;
China is of course devaluating its currency and Brazil is reacting.
With all these challenges, what are the strategic exterior and interior
challenges for Brazil?
 
There
are various sectors but ours, the publishing area, has some limitations
imposed through legislation. It’s deeply regrettable because there
shouldn’t be any legislation preventing foreign capital to access
content production.
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Today, bilateral agreements are much more important than a world round of opening economies. Brazil has been defending open trade, but many markets are still today protected. One of the only countries that Brazil cannot export food to is the United States of America due to technical barriers as well as others. So, opening the market should be an ideal, but what we see today is firm protectionism all over the world.
Recently, Brazil has taken a measure that I personally disagreed with: increasing taxes on imported cars. I think this is a bad move that will hopefully end very soon, as it was said that the measure would only be in place for a few months until the end of 2012. I am against protectionism, but I am pro-reciprocation. So, when dealing with a country that has fences, why should we open our country without reciprocity?
China is cheating the world.
They are undervaluing their currency, they are bypassing the market.
What do you think about this?
We signed a trade agreement with China by 2004 when Hu Jintao
visited Brazil. That agreement supposed that Chinese markets would be
opened to a list of Brazilian products. This has yet to be
accomplished. So, clearly bureaucracy is not in a hurry everywhere.
The strategic objective of
Brazil is to become the fifth largest economy in the world, maintain an
annual economic growth rate, maintain impressive rates of reduction of
social inequality, etc. However, there are many challenges, for
instance, it is currently running a deficit of 2.3%, and the stock
exchange is down by 15%. Do you think Brazil can overcome these
challenges and reach its goal?
First of all, I don’t think it is one of Brazil’s targets to be the
fifth largest economy. That will be achieved through the improvement
of certain factors. It would be natural to go upscale if you play the
game well and improve the economy and social issues. 30 to 40 million
people have crossed the poverty line to the lower middle class. If
that continues and there is an inertia favoring that, the Brazilian
economy and the Brazilian domestic market will keep improving. Today,
we have the lowest level of unemployment in the last 30 years: 5.8%.
There are many sectors looking to employ and can’t find workers; most
of the unemployed are 45 to 50 years old.Connectivity is one of the priorities of the private and public sectors. Brazil now has more than 200 million mobile phones. The use of Blackberries and iPhones in Brazil is growing rapidly. This means that information is easily accessible. We are a full democracy, we have 12 neighbors and no enemies and we have only one language and nationality. Therefore, the problems of deficit are not permanent. We have had a consistent trade surplus in last 10 years and the net external debt could be offset with the reserves. The fact that we have so many problems to solve, such as infrastructure, education, the tax burden, bureaucracy, high interest rates, corruption, means that as we fix each of these problems, the competitiveness of our society and country will keep improving. That is more an opportunity than a problem in my point of view.
It’s true that Brazil is
running a trade surplus, which many critics argue is thanks to the
prices of commodities, which have skyrocketed since 2003.
There was a period when everybody was talking about petrol dollars,
today you don’t hear about petrol dollars anymore, but Brazil has an
equilibrium of energy production – we are self-sufficient in energy and
food, which is a major advantage. Brazil has more than 50% of the
forests that existed 1000 years ago, compared to Europe with 0.2% and
North America with 19%.The official reserves of Brazil’s state-owned, wild areas put together are larger than the state of Texas. So, when you talk about the environment, we are perhaps one of the most preserved countries in the world in terms of biodiversity. These are assets for the 21st century; the green economy is increasingly important, as young people are more concerned about the environment than previous generations.
The World Bank is warning
Brazil that exports of agricultural products or commodities may lead to
the commodities curse and that Brazil needs to find a way of capturing
the aggregate value of exchanges with China and of absorbing knowledge
and technology. How important is innovation for Brazil, what is the
current state of affairs and do you agree?
I’ve have spoken to those in charge of producing business reports
for the World Bank and competitiveness reports for the World Economic
Forum and most of what is written there is correct. Brazil needs to
invest much more in innovation.We are doing well in some areas, like biotechnology; Brazil has developed plastic packaging from sugar cane and Coca Cola and Danone use plastic bottles they call green bottles - a development originating in Brazil. Today’s cattle farming in Brazil has been developed using animal breeds from India. Varieties of grass from Africa have been adapted and improved in Brazil and today we are able to help African countries, taking our experience with their own varieties of grass to them so that they can improve food production. In IT, there is a lot of creativity in the production of games, software, and services. Brazilian companies are expanding outside Brazil, in many countries including the US.
I believe that in the 21st century, each country will find its niche; the time when you could be self-sufficient in everything and the best in everything has passed. There will be more and more cooperation and interdependence among countries.
Brazil can be one of the leaders in the green economy; we have renewable energy at the level that no other country has in the world. We develop engines for cars that are flexible – they can use either ethanol, gasoline or gas - and, as far as I know, no country in the world that is using biofuels at the intensity we are; around 10 to 12 million cars use biofuels in Brazil.
So, we might not be a replica of China in the model of industry, but there are many niches in the market. Another point that I want to raise is that, even for commodity production, you need a lot of technology, for example, soya bean production requires a lot of technology. In the last 10 years, we have developed state-of-the-art harvesting machines in Brazil for almost every crop; including coffee, and sugar cane, which are normally harvested by hand. So, technology is not only for IT, but basic products as well.
You seem to be very positive
about Brazil, but what is your greatest concern for Brazil? What could
put an end to the Brazilian success story? Would it be the increase
of protectionism around the world? What could possibly go wrong?
I have two concerns for Brazil. Firstly, the speed at which the
country is moving is not ideal; we are not in a hurry. Countries that
are under pressure, normally hasten to get things done. As the
country is in good shape and government approval is high, we should
speed up the process. The other issue that could affect Brazil, more
than European crisis, is the pace of growth of China.China is the major business partner of Brazil today. We understand that China also depends on consumer markets, so if the US and Europe refrain from buying goods from China, there will be an effect on raw materials, and their suppliers and that means Brazil could suffer a decline of demand, although this concerns minerals and some other commodities more than food.
I believe that the demand for food will keep increasing because the habits of consumption are changing; China and many other countries are demanding more protein and Brazil is the natural supplier of food in the 21st century - this will keep moving the economy. In the field of renewable energy, Brazil also is developing new technologies in wind energy, solar energy, and these are more opportunities than challenges.
When we interviewed people
regarding economic, social and environmental sustainability, they said
that there is a lack of quality education, lack of infrastructure, a lot
of corruption, a lot of red tape and misallocation of resources. In
your opinion, are things improving in Brazil?
We are a country with a full democracy and free press, so you will
normally read about scandals almost instantaneously. In countries
that control press, you never know what is happening. In my point of
view, corruption in Brazil is not increasing; rather, it is becoming
more visible. This public awareness means politicians that are accused
of corruption and don’t have a reasonable explanation will not be
re-elected.So, free press in Brazil is one of the top positive points. The public highlighting what is wrong is also advantageous as it creates an awareness of what needs to be done. Last year, Brazil had the fastest growing number of passengers in the world, according to IAPA, with an increase of 19.5%. Of course, this almost created a collapse at the airports since the infrastructure was not available – but that put on the pressure we need to improve infrastructure.
So, next month there will be improvements to the facilities at the international airport. So, when you have free press that draws attention to problems, there is positive pressure on the government to solve these problems, as well as consumer awareness, which helps to come up with a solution.
What do you think of entrepreneurship in Brazil?
When you ask a young person in Brazil how they see their own future,
to be an entrepreneur is one of the dreams. Recently, there was a
simplification of bureaucracy and the tax system for micro-companies in
order to facilitate entrepreneurship. Brazil is still a very
complicated country for entrepreneurs, the cost of bureaucracy here is
very high, as is the time needed to start or improve a business – there
is still a lot of room for improvement. There are many companies opening research centers in Brazil in order to collect good ideas and develop new products and services using the Brazilian workforce and the young people coming out of new universities.
What other issues would you like to draw attention to?
Compared to other countries, I see Brazil as running a marathon.
Our country is running a marathon with a backpack full of stones that
reduces our competitiveness. These stones represent the issues I
covered: bureaucracy, infrastructure, education, high interest rates,
the tax burden and corruption. However, as long as we are finding
solutions, we can throw away these stones and become lighter and
compete better in the marathon.The good news is to solve our problems we don’t need external aid, it’s up to the Brazilians. These problems will be solved, in the short, mid and long term. By the 2016 Olympics, you will be surprised by the amount of progress in this country.
Looking through the eyes of an investor who could invest in any country, would you invest in Brazil?
All my money is here; it was my best application of assets. In
January 2003, the index of the stock market was 11,000 points, and
today it’s 56,000 points. So, imagine an investor who invested money in
2003, almost nine years ago, the assets would be five times bigger
now; not too many countries provided this kind of opportunity.Today, a lot of analysts are saying that the stock markets in Brazil are at a very good level for new investments, so I keep moving my investments inside the Brazilian economy. Consumer products and energy are particularly profitable fields; they will keep growing, because international and domestic demand is strong.
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Top 10 Companies in Brazil
Number 1
Petrobras
Maria das Graças Foster | CEO
Petrobras has operations in the entire oil and gas productive chain and in the production of biofuels and of other alternative energy sources. It has been voted the 3rd biggest energy company in the world by PFC Energy and 8th biggest global company in market value and the biggest in Brazil: $164.8 billion. It is an integrated energy company with a presence in 28 countries, on 5 continents.Petrobras has nearly 8000 service stations, 172 vessel fleet, 25 966 km of pipelines, 16 refineries and 2 fertilizer plants. It produces 2,583 000 barrels per day and 428 000 barrels of natural gas. It has estimated reserves of 16 million barrels and refines 2,052 000 barrels of oil per day. It has 80, 497 employees.
Total Assets: US$ 308,6 billion
Number 2
Banco Bradesco
Lázaro de Mello Brandão | Chairman
One of Brazil's largest private banks (non controlled by government) in terms of total assets. Banco Bradesco provides a wide range of banking and financial products and services in Brazil and abroad to individuals, small to mid-sized companies and major local and international corporations and institutions. It has the most extensive private-sector branch and service network in Brazil, which permits to reach a diverse customer base. Bloomberg reported that Banco Bradesco is one of the largest banks in the world, by market capitalization, placing 10th. It has been ranked as the largest private corporate group in Brazil by Valor Econômico newspaper. The balance of Bradesco Organization's Savings Accounts amounted to R$59.7 billion at the end of 2011, for growth of 10.35 versus December 2010, representing a 17.98% of the Brazilian Savings and Loan System (SBPE). The stock ownership structure: 59,95% Freely Floated, 24,38% Cidade de Deus, 8,54% Fundacao Bradesco, 5,34% NCF, 1,25% MUFG Bank. The income distribution is between 65% and 70% of the total result derive from activities related to the financial area, 25% to 30% from insurance, private pension plans, and savings bonds, and nearly 5% from other activities. Banco Bradesco holds stakes in Bradesco Insurance Group, Banco Finansa, BBI, Bradesco Leasing, Bradesco Consorcium, Bradesco Corretora, Bradesco Securities. It has nearly 104,684 employees.
Total Assets: US$ 441,9 billion
Number 3
Banco do Brasil
Aldemir Bendine | President
Banco do Brasil is the largest Brazilian and Latin American bank by assets, and the third by market value. The bank, headquartered in Brasília, was founded in 1808 and is the oldest active bank in Brazil — and one of the oldest financial institutions in the world. Banco do Brasil is controlled by the Brazilian government but its stock is traded at the São Paulo Stock Exchange and its management follows standard international banking practices (Basel Accords). The stock ownership structure: 51,86% National Treasury, 30,43% Freely Floated, 10,3% Previ, 4,8% Export Garantee Fund. The bank holds stakes in COBRA, BB Leasing, BB DVTM, BB Consorcios, BB Cartoes, BESCVAL, BB Corretora, BB Elo Participacoes, Nossa Caixa Capitalizacao, Banco do Brasil Securities LLC, BB Deguros Participacoes, BB Alianca Participacoes, BB Alianca Rev Participacoes, Aliancia do Brasil, Brasil Cap, Prasil Prev, SBCE, CIELO, EBP, CBSS. It has nearly 118,900 employees.
Total Assets: US$ 525,6 billion
Petrobras Maria das Graças Foster | CEO
Petrobras has operations in the entire oil and gas productive chain and in the production of biofuels and of other alternative energy sources. It has been voted the 3rd biggest energy company in the world by PFC Energy and 8th biggest global company in market value and the biggest in Brazil: $164.8 billion. It is an integrated energy company with a presence in 28 countries, on 5 continents.Petrobras has nearly 8000 service stations, 172 vessel fleet, 25 966 km of pipelines, 16 refineries and 2 fertilizer plants. It produces 2,583 000 barrels per day and 428 000 barrels of natural gas. It has estimated reserves of 16 million barrels and refines 2,052 000 barrels of oil per day. It has 80, 497 employees.
Total Assets: US$ 308,6 billion
Number 2
Banco BradescoLázaro de Mello Brandão | Chairman
One of Brazil's largest private banks (non controlled by government) in terms of total assets. Banco Bradesco provides a wide range of banking and financial products and services in Brazil and abroad to individuals, small to mid-sized companies and major local and international corporations and institutions. It has the most extensive private-sector branch and service network in Brazil, which permits to reach a diverse customer base. Bloomberg reported that Banco Bradesco is one of the largest banks in the world, by market capitalization, placing 10th. It has been ranked as the largest private corporate group in Brazil by Valor Econômico newspaper. The balance of Bradesco Organization's Savings Accounts amounted to R$59.7 billion at the end of 2011, for growth of 10.35 versus December 2010, representing a 17.98% of the Brazilian Savings and Loan System (SBPE). The stock ownership structure: 59,95% Freely Floated, 24,38% Cidade de Deus, 8,54% Fundacao Bradesco, 5,34% NCF, 1,25% MUFG Bank. The income distribution is between 65% and 70% of the total result derive from activities related to the financial area, 25% to 30% from insurance, private pension plans, and savings bonds, and nearly 5% from other activities. Banco Bradesco holds stakes in Bradesco Insurance Group, Banco Finansa, BBI, Bradesco Leasing, Bradesco Consorcium, Bradesco Corretora, Bradesco Securities. It has nearly 104,684 employees.
Total Assets: US$ 441,9 billion
Number 3
Banco do BrasilAldemir Bendine | President
Banco do Brasil is the largest Brazilian and Latin American bank by assets, and the third by market value. The bank, headquartered in Brasília, was founded in 1808 and is the oldest active bank in Brazil — and one of the oldest financial institutions in the world. Banco do Brasil is controlled by the Brazilian government but its stock is traded at the São Paulo Stock Exchange and its management follows standard international banking practices (Basel Accords). The stock ownership structure: 51,86% National Treasury, 30,43% Freely Floated, 10,3% Previ, 4,8% Export Garantee Fund. The bank holds stakes in COBRA, BB Leasing, BB DVTM, BB Consorcios, BB Cartoes, BESCVAL, BB Corretora, BB Elo Participacoes, Nossa Caixa Capitalizacao, Banco do Brasil Securities LLC, BB Deguros Participacoes, BB Alianca Participacoes, BB Alianca Rev Participacoes, Aliancia do Brasil, Brasil Cap, Prasil Prev, SBCE, CIELO, EBP, CBSS. It has nearly 118,900 employees.
Total Assets: US$ 525,6 billion
Number 4
Vale
Murilo Ferreira | CEO
Vale is a Brazilian multinational diversified metals and mining corporation and one of the largest logistics operators in Brazil. In addition to being the second-largest mining company in the world, Vale is also the largest producer of iron ore, pellets, and second largest of nickel.Vale is headquartered in Brazil and present in 38 countries. It has nearly 70,785 employees. Acquisitions: Socoimex, MBR, Samitri, Ferteco, Rio Verde, Inco. Vale's 53.3% common shares are owned by Valepar, a holding company, and 6.8% are owned directly by the Brazilian government. Brazil's national development bank owns a stake in Valepar, as do various Brazilian pension funds, and it is widely perceived as heavily influenced, if not controlled, by the Brazilian government.
Total Assets: US$ 128,7 billion
ValeMurilo Ferreira | CEO
Vale is a Brazilian multinational diversified metals and mining corporation and one of the largest logistics operators in Brazil. In addition to being the second-largest mining company in the world, Vale is also the largest producer of iron ore, pellets, and second largest of nickel.Vale is headquartered in Brazil and present in 38 countries. It has nearly 70,785 employees. Acquisitions: Socoimex, MBR, Samitri, Ferteco, Rio Verde, Inco. Vale's 53.3% common shares are owned by Valepar, a holding company, and 6.8% are owned directly by the Brazilian government. Brazil's national development bank owns a stake in Valepar, as do various Brazilian pension funds, and it is widely perceived as heavily influenced, if not controlled, by the Brazilian government.
Total Assets: US$ 128,7 billion
Number 5
Itaúsa
José Carlos Moraes Abreu | Chairman
Itausa s a Brazilian conglomerate company which controls several companies active in areas such as the financial and real estate sectors; industries including wood panels, pottery and metal; health; chemicals; and electronics. The main companies that Itaúsa controls are Itaú Unibanco, Duratex, Elekeiroz, Itautec. It is the largest private conglomerate in Brazil and one of the largest in the world. The control of the company rests with the Setubal and Vilella families, with the Camargo Corrêa family as minority holder. It employs around 126 800 people.
Total Assets: US$ 98 billion
Number 6
Telemar Norte Leste
Jose Mauro Mettrau Carneiro da Cunha | Chairman
Telemar Norte Leste S.A., is the largest telecommunications telephone company in Brazil and the second largest telco in Latin America, behind Mexican América Móvil part of Telmex, considering both lines in service and revenues. Currently, Oi has 22.2 million land lines in service, 31.7 million wireless customers, 4 million ADSL subscribers (2009) and about 44 thousand employees. Oi provides Internet access, mobile, fixed-line and pay- television services. It had a 19.4 percent share of the country's wireless market in December, while market leader Vivo had 29.7 percent, according to Brazil's telecommunications regulator.
Total Assets: Estimate US$ 75 billion
Itaúsa José Carlos Moraes Abreu | Chairman
Itausa s a Brazilian conglomerate company which controls several companies active in areas such as the financial and real estate sectors; industries including wood panels, pottery and metal; health; chemicals; and electronics. The main companies that Itaúsa controls are Itaú Unibanco, Duratex, Elekeiroz, Itautec. It is the largest private conglomerate in Brazil and one of the largest in the world. The control of the company rests with the Setubal and Vilella families, with the Camargo Corrêa family as minority holder. It employs around 126 800 people.
Total Assets: US$ 98 billion
Number 6
Telemar Norte LesteJose Mauro Mettrau Carneiro da Cunha | Chairman
Telemar Norte Leste S.A., is the largest telecommunications telephone company in Brazil and the second largest telco in Latin America, behind Mexican América Móvil part of Telmex, considering both lines in service and revenues. Currently, Oi has 22.2 million land lines in service, 31.7 million wireless customers, 4 million ADSL subscribers (2009) and about 44 thousand employees. Oi provides Internet access, mobile, fixed-line and pay- television services. It had a 19.4 percent share of the country's wireless market in December, while market leader Vivo had 29.7 percent, according to Brazil's telecommunications regulator.
Total Assets: Estimate US$ 75 billion
Number 7
Companhia Siderúrgica Nacional
Benjamin Steinbruch | Chairman
Companhia Siderúrgica Nacional is the largest fully integrated steel producer in Brazil and one of the largest in South America in terms of crude steel production. It employs around 16 000 people. Dorothea Steinbruch, Brazil's richest woman inherited her money from her late husband who controlled one of Brazil's largest steel producers. The company, Companhia Siderurgica Nacional ADR, was state-owned before the Steinbruch purchased it. Steinbruch's son, Benjamin, runs the company. Her other son, Ricardo, is chairman of the family's other firm, Banco Fibra. Steinbruch and family are worth $5.5 billion, which makes them the 136th richest people in the world.
Total Assets: USD 45 billion
Number 8
Usiminas
Israel Vainboim | Chairman
Usiminas has an installed capacity of producing 9.5 million tons of crude steel. The company also operates in the logistics sector through a stake in logistic company MRS Logística. The Usiminas industrial complex is the largest plain steel complex in Latin America and one of the top 20 in the whole world. The company was one of the largest shareholders in the Italian-Argentine company Ternium, accounting for 14.2% of total capital.
Total Assets: Estimate USD 30 billion
Number 9
Electrobras
Jose Antonio Muniz Lopes | CEO
Electrobras is a major Brazilian power utility. It's also Latin America's biggest power utility company, tenth largest in the world and is also the fourth largest clean energy company in the world. It is currently expanding its operations in the continent, as well as in Africa. The company's full name is Centrais Elétricas Brasileiras S.A.. Eletrobras holds stakes in a number of Brazilian electric companies, so that it generates and transmits approximately 60% of Brazil's electric supply. The company's generating capacity is about 40,000 MW, mostly in hydroelectric plants. The Brazilian federal government owns 52% of the stock of Eletrobras, which is traded on BM&F Bovespa.
Total Assets: Estimate USD 76,3 billion
Companhia Siderúrgica Nacional Benjamin Steinbruch | Chairman
Companhia Siderúrgica Nacional is the largest fully integrated steel producer in Brazil and one of the largest in South America in terms of crude steel production. It employs around 16 000 people. Dorothea Steinbruch, Brazil's richest woman inherited her money from her late husband who controlled one of Brazil's largest steel producers. The company, Companhia Siderurgica Nacional ADR, was state-owned before the Steinbruch purchased it. Steinbruch's son, Benjamin, runs the company. Her other son, Ricardo, is chairman of the family's other firm, Banco Fibra. Steinbruch and family are worth $5.5 billion, which makes them the 136th richest people in the world.
Total Assets: USD 45 billion
Number 8
UsiminasIsrael Vainboim | Chairman
Usiminas has an installed capacity of producing 9.5 million tons of crude steel. The company also operates in the logistics sector through a stake in logistic company MRS Logística. The Usiminas industrial complex is the largest plain steel complex in Latin America and one of the top 20 in the whole world. The company was one of the largest shareholders in the Italian-Argentine company Ternium, accounting for 14.2% of total capital.
Total Assets: Estimate USD 30 billion
Number 9
ElectrobrasJose Antonio Muniz Lopes | CEO
Electrobras is a major Brazilian power utility. It's also Latin America's biggest power utility company, tenth largest in the world and is also the fourth largest clean energy company in the world. It is currently expanding its operations in the continent, as well as in Africa. The company's full name is Centrais Elétricas Brasileiras S.A.. Eletrobras holds stakes in a number of Brazilian electric companies, so that it generates and transmits approximately 60% of Brazil's electric supply. The company's generating capacity is about 40,000 MW, mostly in hydroelectric plants. The Brazilian federal government owns 52% of the stock of Eletrobras, which is traded on BM&F Bovespa.
Total Assets: Estimate USD 76,3 billion
Number 10
EBX Group
Eike Batista | CEO
EBX is a Brazilian holding company founded by Eike Batista in 1983 and headquartered in Rio de Janeiro. Many of the companies in the group use a sequence of three letters ending in X in their names. These include LLX, a logistics company, and MMX Miner, a mining and metal company. The company employes around 19 300 people. Brazilian privately-held holding company EBX Brasil owns mining, energy, logistics, oil, gas, and renewable energy assets. EBX Brasil's companies have a production capacity of 10.8Mt/y iron, 29 oil and gas exploration blocks, electric power projects expected to generate 2.6GW in 2011, and two ports in southeastern Brazil. Grupo EBX is controlled by Brazilian magnate Eike Batista.
Total Assets: Estimate US$ 50 billion
EBX GroupEike Batista | CEO
EBX is a Brazilian holding company founded by Eike Batista in 1983 and headquartered in Rio de Janeiro. Many of the companies in the group use a sequence of three letters ending in X in their names. These include LLX, a logistics company, and MMX Miner, a mining and metal company. The company employes around 19 300 people. Brazilian privately-held holding company EBX Brasil owns mining, energy, logistics, oil, gas, and renewable energy assets. EBX Brasil's companies have a production capacity of 10.8Mt/y iron, 29 oil and gas exploration blocks, electric power projects expected to generate 2.6GW in 2011, and two ports in southeastern Brazil. Grupo EBX is controlled by Brazilian magnate Eike Batista.
Total Assets: Estimate US$ 50 billion
Top 10 Companies in Brazil
Number 11
GerdauAndré Bier Johannpeter | CEO
is the largest producer of long steel in the Americas, with steel mills in Brazil, Argentina, Canada, Chile, Colombia, Dominican Republic, Guatemala, India, Mexico, Peru, Spain, the United States, Uruguay and Venezuela. It also holds 40% stake in the Spanish company Sidenor and has a joint venture with Kalyani Group in India. It employs around 46 000 people. Gerdau is the world’s 14th largest steelmaker and the largest producer of long steel in the American continent.
Total Assets: Estimate USD 25,9 billion
Number 12
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADS (JBS)
Abilio dos Santos Diniz | Chairman
is the biggest Brazilian company engaged in business retailing of food, general merchandise, electronic goods, home appliances and other products from its supermarkets, hypermarkets and home appliance stores. Abilio dos Santos Diniz, chairman of Brazil's largest retailer is worth $3 billion. He inherited his wealth, but has grown it through smart business moves, including his orchestration of the merger between his company, Pao Acucar, and another retail giant, Casas Bahia. He sold a controlling share in his company in 2005 to a French supermarket chain for $860 million. Beyond his wealth, he is well known for being kidnapped as part of a political sabotage on the morning of Brazil's 1989 presidential election. The company employs around 158 000 people.
Total Assets: Estimate USD 33 billion
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADS (JBS)Abilio dos Santos Diniz | Chairman
is the biggest Brazilian company engaged in business retailing of food, general merchandise, electronic goods, home appliances and other products from its supermarkets, hypermarkets and home appliance stores. Abilio dos Santos Diniz, chairman of Brazil's largest retailer is worth $3 billion. He inherited his wealth, but has grown it through smart business moves, including his orchestration of the merger between his company, Pao Acucar, and another retail giant, Casas Bahia. He sold a controlling share in his company in 2005 to a French supermarket chain for $860 million. Beyond his wealth, he is well known for being kidnapped as part of a political sabotage on the morning of Brazil's 1989 presidential election. The company employs around 158 000 people.
Total Assets: Estimate USD 33 billion
Number 13
Brasil FoodsThe company has 42 factories and employs 120,000 people. BRF is the world's tenth-largest food company and Brazil's second in revenue, after global giant JBS. Sadia and Perdigão are BRF's main ongoing food brands. Brasil Foods is present in over 110 countries. The company has 60 industrial plants in Brazil and four worldwide, 36 distribution centers and 24 global offices.
Total Assets: Estimate USD 17 billion
What is your assessment of
industrial development in São Paulo/Brazil? How competitive is the
industry, globally? How important is the industry for São Paulo/Brazil?
Industry is a great Brazilian and São Paulo heritage and its
construction occurred over many decades, granting the economic
development of the country.Although its representativeness on the GDP is under 20%, the industry is the most dynamic sector in terms of qualitative job creation and impact in income generation in economy. It's noticeable that the Brazilian industry is very diversified in terms of sectors and that must be preserved and intensified, particularly in our state of São Paulo.
There are companies in the country that are strongly present in the international market, in sectors going from beverage to aeronautic, with Embraer – third largest civil aircraft producer in the world. These companies, besides being competitive, are also generating innovation.
5 years from now, how do you see the evolution of the industry in São Paulo/Brazil?
I believe that Brazil – with the state of São Paulo as a leader -
will offer excellent opportunities for manufacturers in the years to
come, between other reasons, because of its economic stability, the
organization of big world sport events and the exploration of new oil
fields.So, it's important for the country – including the state of São Paulo - to offer manufacturers full capacity to produce here and to profit from the new opportunities. I'm specially referring to the years that follow the creation of a more competitive environment, with lower capital costs to entrepreneurs, a more efficient logistic and an exchange rate that doesn't discourage the productive park.
Another crucial element that has been more important for the industrial sector is the aptitude of the companies to innovate. They are aware of the competitive challenges in a globalized world and have been increasing investments in innovation and in the creation of technologic advantages.
I
believe that Brazil – with the state of São Paulo as a leader - will
offer excellent opportunities for manufacturers in the years to come,
between other reasons, because of its economic stability, the
organization of big world sport events and the exploration of new oil
fields.
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What markets do you feel are
the future drivers of São Paulo/Brazil industrial exports? Which
bilateral or regional agreements have affected most the São Paulo/Brazil
trade patterns and export flows?
In the last few years the Brazilian Government has been committed to
conclude the Rodada de Doha and the opportunities of bilateral
agreements were less relevant.The most important countries for the export of the Brazilian goods are Latin-America, specially the Mercosul. In these markets, the great majority of Brazilian products are already a huge success, remaining the completion of a free trade space. In the traditional markets of the United States and of the European Union, the export of manufactured goods has been decreasing of importance over the years and only the sale of commodities have been raising.
It's a worrying situation, because Brazilian and São Paulo competitors have been making free trade deals, like the one that China signed with Peru and Chile or the one that the United States have signed with Colombia, Panama and South Korea.
This movement deepens the trade diversion in reaction to Brazilian exports, which has been occurring due to China's competition mainly because of the Yuan undervaluation.
What is the main challenge for São Paulo/Brazil's industry? What could hamper the Brazilian success story?
The main challenges continue to be those related to the competitive
agenda. Brazil needs to create, in the next years, a more favorable
business environment, especially in what concerns simplification and
reduction of tax burden.The Brazilian industry can leap forward if it takes advantage of the energetic wealth to be explored, but that needs an active and effective industrial policy. The growths of the Capital goods and equipment sector, or of the shipping industry to fulfill the Pre-Salt needs, are good examples of how to enlarge production in technologic niches and innovate in specific products, which can be good international players in the future.
An essential point is to deal with Oil exports. There are examples of countries that let the exchange rate appreciate without creating an internal dynamic, and that's not the way for Brazil.
What is the image of São Paulo/Brazil industry abroad?
The image of the industry is a reflex on the perception about
Brazilian products, which is very positive. In general, Brazilian
industries have important attributes, such as quality and delivery
capacity.In some goods, the country is known worldwide, like food and beverage, fashion related products, agricultural machinery and aircrafts. Those ones assure the good Brazilian and São Paulo image in the markets in which they are sold.
How would you describe your main strategy over the next 5 years?
The main strategy is to focus on innovation to diversify and promote
competitive advantages for the industry, especially in the more dynamic
small and medium size companies. In addition, we have to work together
with the government for the construction of a more favorable environment
to the entrepreneurial activity.
At present times, how easy is it to invest in São Paulo/Brazil?
It's undeniable that Brazil – and São Paulo - offers challenges for
the business development. Meanwhile, the opportunities found also
present exceptional advantages, like the dynamic growth and vast
consumer's market. Moreover, the perspectives are very positive in
several sectors and manufactures, regardless of the origin of the
capital, can obtain positive results in their companies.That doesn't make us forget about the existing obstacles to be overcome, many of which I already quoted previously. For all investors, mainly the foreign ones, there are difficulties regarding the tax system of the country or the worker's laws and those are the subjects that Brazil must work on over the next years.
Nossa equipe aqui do Brasiliausa Online nao poderiamos esquecer de um dos fatores mais impportantes e que tem contribuido grandemente ao longo dos anos para o desenvolvimento de Brasilia e tambem do brasil , por isso e muito mais nos aqui estamos trabalhando em uma nova plataforma esclusiva do Brasiliausa Online Services , o Portal Brasilia Investimentos , vamos trazer ate voces conteudo exclusivo que estara sendo atualizado diariamente com informacoes ,oportunidades ,jornalismo local e nacional , que sera decisivo , preciso no que se diz respeito a negocios e investimentos que estarao disponiveis para voce investidor empresario , em Brasilia e no Brasil , na hora de escolher o melhor e mais lucrativo negocio para voce e sua empresa .
Estamos trabalhando 24 / 7 para fazer em voce uma parceria em negocios onde voce ganha e a gente ganha , isso e ganhar e ganhar , um negocio bom para todos .
