1

A

GLOBAL/COUNTRY STUDY AND REPORT

ON

“In Depth Study of BRAZIL Country”

SUBMITTED TO

GUJARAT TECHNOLOGICAL UNIVERSITY

IN PARTIAL FULFILLMENT OF THE

REQUIRQMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDENCE OF

Miss. Chhaya Patel (Asst. Professor)

SUBMITTED BY

Smt. K.K.PATEL MBA/MCA COLLEGE (PALASAR)

MBA PROGRAMME

AFFILIATED TO GUJARAT TECHNOLOGICAL UNIVERSITY

AHMADABAD

March,2013

2

CONTENT:

SR. NO. PARTICULAR PAGE NO.

1 ECONOMIC OVERVIEW OF THE BRAZIL COUNTRY

1.1 GEOGRAPHY 3

1.2 DEMOGRAPHIC 4

1.3 TRADE POLICY 9

1.4 MACROECONOMIC POLICY, MONETARY POLICY AND

FISCAL POLICY

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1.5 POLITICAL 13

1.6 ECONOMIC OVERVIEW 15

1.7 SOCIAL FACTORS 17

1.8 COMMUNICATION 19

1.9 EDUCATION SECTORS 20

2 PESTLE ANALYSIS 21

2.1 Political factor 21

2.2 Economic Factors 22

2.3 Socio cultural Factors 23

2.4 Technological Factors 24

2.5 Environmental Analysis 24

2.6 Legal Environment 25

2.7 Political Environment 26

3. SWOT ANALYSIS 27

PART-2 28

1 Petrochemical Industry 28

2 Food And Beverage Industry 54

PART-3

1 Findings 75

2 Suggestion 76

3 Conclusion 77

4 Bibliography 78

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1.1. GEOGRAPHY

The country of Brazil occupies roughly half of South America, bordering the Atlantic Ocean.

Brazil covers a total area of 8,514,215 km (3,287,357 sq mi) which includes 8,456,510 km

(3,265,080 sq mi) of land and 55,455 km (21,411 sq mi) of water. The highest point in Brazil

is Pico da Neblina at 2,994 m (9,823 ft). Brazil is bordered by the countries of Argentina,

Bolivia, Colombia, French Guiana, Guyana, Paraguay, Peru, Suriname, Uruguay and

Venezuela.

Much of the climate is tropical, with the south being relatively temperate. The largest river in

Brazil, and one of the longest in the world, is the Amazon. The rainforest that covers the

Amazon Basin constitutes almost half of the rainforests on Earth.

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1.2 DEMOGRAPHIC

1.2.1 PHYSICAL AND DEMOGRAPHIC SETTING

Brazil‟s territorial extent of 3.27 million square miles makes it the fifth largest country of the

world, surpassed only by Russia, Canada, China,and the United States. It covers 47 percent

of South America. The largest pro- portion of the territory is made up of geologically ancient

highlands. About 57 percent of the land is on a plateau varying between 650 and 3,000 feet

above sea level; 40 percent consists of lowlands with an elevation of less than 650 feet; and

3 percent exceeds 3,000 feet. North of the city of Salvador there is a gradual rise from

the coast to the interior. However, when approaching Brazil from the Atlantic along the

central and southern coasts, one has the impression of a mountainous country, because the

high- land plateau of central and southern Brazil drops off sharply into the Atlantic. This

wall-like slope is called the Great Escarpment.

This natural barrier has made access to the interior difficult and has often been cited as a

major reason for the slow development of the interior of the south-central plateau prior to the

twentieth century. With the exception of the Amazon, most of the principal Brazilian river

systems have their sources in central and southeastern Brazil, many fairly close to the ocean.

Because the rivers drain inward, there is no natural focus of routes in the most dynamic area

of the country; therefore, river transportation has not played an important role in the

development of Brazil. The Parana River system is fed by tributaries that flow westward into

the interior until they reach the main river, which flows southward toward Argentina.

The Sao Francisco River has its source in the South. It flows northward, paralleling the

coast for more than 1,000 miles before turning eastward. Most of the river systems descend

rapidly as they pass through the Great Escarpment, making interior navigation for ocean

vessels impossible. For instance, the Sao Francisco River is navigable for about 190 miles

into the interior, until shortly before the Paulo Afonso Falls. Only the Amazon River is

navigable far into the interior, and it unites a sparsely populated, underdeveloped, and

unexploited region of Brazil. Brazil is mainly a tropical country, and its climates contain

few extremes, but:

The average temperature on the Amazon at Santarem, a few degrees from the equator, is

78.1 degrees; in the dry Northeast, the highest temperature recorded is 106.7 degrees, but

further southward, along the coast, the maximum temperatures are much lower. The average

in Rio de Janeiro in the warmest month is 79 degrees. In the highlands of the interior, the

temperatures are lower than at the same latitudes on the coast. Only the states south of Paulo

ever experience frost. Rainfall is adequate in most of Brazil. Any deficiency is limited to part

of the Northeast, where there are areas that receive less than 10 inches per year. Most of the

Northeast receives between 20 and 25 inches of precipitation the principal problem of that

region is rainfall irregularity: variations between excessive rains and droughts. Very moist

areas, with more than 80 inches of rainfall a year, exist in four regions: the upper Amazon

lowlands, the coast from Belem northward, scattered parts of the Great Escarpment, and a

small section in the western part of the state of Paraná.

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1.2.2 NATURAL RESOURCES

Brazil has an abundance of many different types of mineral resources. It has an immense

reserve of iron ore (the potential reserves in 2010 were thought to be about 48 billion tons),

manganese (in 2010 estimated reserves were about 208 million tons), and other industrial

metals. The country also possesses substantial quantities of bauxite, copper, lead, zinc,

nickel, tungsten, tin, uranium, quartz crystals, industrial diamonds, and gemstones. Until the

late 1960s, knowledge of Brazil‟s total mineral reserves was still limited. The use of modern

surveying and prospecting techniques (e.g., the use of satellites) has resulted in substantial

new discoveries. For example, until recently, most known mineral deposits were thought to

be located in the mountain range running through central Brazil (especially in the state of

Minas Geris). In 1967, however, huge deposits of iron ore (estimated at 18 billion tons) were

discovered in the Serra dos Carajas, located in the Amazon region. Also in the late 1960s,

the Amazon was found to contain large deposits of bauxite. Tin reserves near the Bolivian

border have been estimated to be larger than those of Bolivia, and in the 1970s substantial

copper deposits were found in the state of Bahia.

In the decades since World War II, there has been a dramatic reshaping of Brazil‟s sources of

energy consumption. In 1946, 70 percent of the country‟s energy supply was drawn from

firewood and charcoal. By 2003 however, 92 percent was drawn from oil and hydroelectric

power. Unfortunately, the fuel resources of the country have not matched its mineral

resources. Until recently, the only known coal deposits were in the southern state of Santa

Catarina. This coal is of poor quality, containing a high proportion of ash and sulfur, and

therefore cannot be fully used for production of coking coal by the steel industry. About 65

percent of metallurgical coal requirements are met by imports. In the 1970s, some new coal

deposits were discovered deep in the Amazon region but have yet to be fully

exploited.Brazil‟s known oil reserves were inadequate for its needs for a longtime. Until the

early 1970s, most of the known reserves were located in thestates of Bahia and Sergipe, but

domestic production from these sources furnished only 20 percent of the country‟s needs.

Offshore exploration by PETROBRAS, a government-owned company, resulted in new

discoveries near the town of Campos in the state of Rio de Janeiro, in the state of

Sergipe, and near the mouth of the Amazon. The size of these discoveries was considerable.

By 2009, Brazil‟s proven oil reserves were estimated at 1 billion barrels. By 2003, domestic

production had reached 88 percent of domestic consumption, and in 2007, Brazil is self-

sufficient for petroleum. The hydroelectric potential of Brazil is one of the largest in the

world, at an estimated 150,000 megawatts. Until the post–World War II period, the best sites

of potential hydroelectric power were considered to be too remote from the major population

centers for development, but since the 1950s, the development of such sites has proceeded

rapidly with the construction of the hydroelectric works at Paulo Afonso and Boa

Esperança in the Northeast, Furras and Ilha Solteira in the Southeast, and Tres Marias in the

state of Minas Gerais. In the mid-1970s, work began on what was then the world‟s largest

hydroelectric project at Itaipu on the Paraguayan border, and in 1983 the project‟s first

turbines were brought online. By 2003 about 55 percent of the country‟s hydroelectric

potential was being utilized.

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1.2.3 POPULATION

In 2010 the population of Brazil was estimated at 188 million, making Brazil the fifth

largest nation in terms of population size. Given the country‟s enormous territory, its

population density is relatively low. Brazil had an average 21 persons per square kilometer in

2009 (compared with 14 in Argentina, 53 in Mexico, and 37 in Colombia). However,

considerable variation can be found in population density within Brazil, ranging from 3.3

persons per square kilometer in the Amazon region, to 30.7 in the Northeast, and 149 in

the state of Sao Paulo. In 2001, 7.6 percent of the population lived in the Amazon region,

28.1 percent in the Northeast, 42.6 percent in the Southeast, 14.9 percent in the South, and

6.8 percent in the Center-West. A distinctive feature of the regional distribution of Brazil‟s

population is the degree of concentration within a few hundred miles of the seacoast.

Population penetration into the interior has been notable only in the twentieth century,

particularly in the South. The building of the interior capital city of Brasilia (which was

inaugurated in 1960), the connecting roads to that city, and the high rate of road construction

in the 1960s and 1970s have substantially increased the migration to the interior.

The growth rate of the population began at a high level in the middle of the twentieth century

but gradually declined; from 3 percent per year in the 1950s, to 2.9 percent in the 1960s, then

2.5 percent in the 1970s, 2 percent in the 1980s, and finally, 1.2 percent in the period of

2000_). The high growth rates in the middle of the twentieth century resulted from a

continuing high birthrate coupled with a rapidly declining mortality rate. This resulted in a

high proportion of the population being represented by the demographic group aged 14

years and younger; 39.5 percent of the population was in this dependent group in 1995,

although this number declined significantly to 37.7 percent by 2009 (compared with 21.6

percent in the United States and 15.2 percent in Brazil). The literacy rate for Brazilians 15

years and older increased from 49 percent in 1950, to 61 percent in 1970, and to 88 percent in

2004. However,when functional illiteracy is taken into account, the literacy rate decreases to

75 percent. The growth of literacy is closely connected with the recent high growth rates of

educational enrollment. By 2004, primary school enrollment as a percentage of the 7_ year

age group stood at 99.5 percent; secondary school enrollment for the 14 year age group was

74.9 percent, and higher education enrollment for the 20 year age group was 20.1 percent.

The high proportion of the population in the younger age groups accounts, in part, for

the low labor force participation ratio. This was 32.9 percent in 1950, shrank to 31.8 percent

in 1970, and rose to 45.9 percent in 1995 and 49.1 percent in 2009. The racial composition of

Brazil is quite varied. One expert on Brazil‟s population has stated: Until the latter part of the

nineteenth century, the population was mainly made up of descendants of Portuguese,

Africans, and Amerindians.

During colonial times, and into the nineteenth century, a considerable amount of

miscegenation took place, resulting in a large proportion of today‟s population being of

mixed ancestry. In the latter part of the nineteenth century and first decade of the twentieth

century, heavy immigration from Italy, Portugal, Spain, Brazil, Poland, and the Middle East

occurred. These immigrants settled mainly in southeastern and southern Brazil. In the second

decade of the twentieth century, large numbers of Japanese immigrated, settling mainly in

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the states of São Paulo and Paraná. Today the estimated number of Brazilians of Japanese

descent is over 800,000. This diversity in the background of the population has not

prevented Brazil from achieving a high degree of cultural unity. With the exception of a

small number of Indians deep in the Amazon region, all Brazilians speak Portuguese, with

small regional variations in accents (possibly less than in the United States). According to

one of the leading interpreters of Brazilian society.

1.2.4 ENVIRONMENT

Brazil's environment is one of the richest in the world. Brazil‟s natural wealth includes not

only the dense tropical rainforests of the Amazon, but also the important biomes of the

savannah-like Cerrado , the arid scrublands of the Caatinga, the Atlantic Forest, the

grasslands of the Pampa and the wetlands of the Pantanal. Much of Brazil‟s fauna and flora is

found nowhere else on earth, its ecosystems contains more than 15% of the plant and animal

species known to science . Brazil also holds 12% of the worlds available freshwater.

According to the Ministry of the Environment, the value of environmental services rendered

by Brazil's ecosystems (in terms of mega-biodiversity conservation and carbon sequestration)

is several trillion euro per year. Therefore Brazil has a key and strategic role to play on a

global scale, a role which the country has assumed since it is party to a number of

international conventions on environmental issues (biodiversity, climate change/Kyoto

Protocol, desertification, endangered species, etc.) and participates actively in international

conferences on the environment.

Following the Conference on Environment and Development held in Rio in 1992 and

following broad internal consultations, the Brazilian Agenda 21 was drawn up to redefine the

country's development model, introducing the concept of sustainability. The main priorities

of this document were integrated in the 2004-2007 PPA. But although Brazil has an

ambitious environmental agenda and a wide variety of environmental legislation, effective

implementation is still lagging behind. Although the Ministry of the Environment endeavors

to promote the environment as a horizontal issue that should be taken into account in all

important public policies, other Ministries still consider the environment as an impediment to

economic growth.

Brazil's Amazon basin deserves a special mention since it covers 6.5 million km², i.e. around

60% of the country's territory. It is also one of the world‟s most biodiversity-rich ecosystems

and plays an important role in the global cycle. The FAO‟s Forest Resource Assessment

indicates an average annual loss of 13,500 km² for the period 1990-2009 and 18,000 km² for

2000-2009 in Amazonia. Several schemes are being implemented to curb deforestation, such

as the Programme for Protection of Amazon Areas, or the Sustainable Amazon Programme.

Deforestation in the Amazon region and elsewhere in Brazil is mainly due to economic

pressures (expansion of the surface dedicated to agriculture, infrastructure works like roads or

dams to improve production movements, activity in the timber industry in the Amazon

region, tourism in Pantanal or the Atlantic forest, etc.) and to urbanization. Deforestation and

the vigorous expansion of large-scale agriculture (in particular of soy, maize and other grains)

- where use of genetically modified seeds has grown very quickly in recent years - and of the

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cattle-breeding have led to a loss of biodiversity in vast areas. Deforestation is also providing

around 60% of Brazil‟s greenhouse gas emissions and more than 3% of global greenhouse

gas emissions. The impacts of climate change are likely to affect Brazil‟s natural ecosystems

– increasing the risk of biodiversity loss and sectors related to primary production. Water

resources are at risk in many areas. Human health and human settlements, especially in

coastal lowlands and environmentally and socio-economically marginal areas, also are

vulnerable. There are indications that global climate change and deforestation may lead to

major shifts in the hydrological system of the Amazon, with potentially catastrophic

consequences for the rainforest and the whole region.

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1.3 TRADE POLICY

Brazil faces several trade policy options. We evaluate those options from the perspective of

the welfare of all potential partners. We also track impacts on the poor in Brazil, to determine

which trade policy helps most in terms of poverty reduction in Brazil. Our primary policy

focus is to see if there is a trade-off between aggregate welfare gains to Brazil from trade

liberalization and the welfare gains to the poor. We conclude that there is no such trade-off,

and explain why. As part of the MERCOSUR customs union along with Argentina, Uruguay

and Paraguay, Brazil is engaged in negotiations to implement the Free Trade Agreement of

the Americas (FTAA). In addition, MERCOSUR is negotiating a potential free trade

agreement with the European Union (EU), along with less notable regional arrangements.

Moreover, Brazil has supported further multilateral negotiations within the World Trade

Organization (WTO).

However, Brazil is concerned that these regional integration initiatives will provide much less

market access than agreements that do not constrain exports of partner countries. Notably,

significantly improved agricultural access to EU markets will be very difficult to achieve for

the usual internal EU political reasons. As a major agricultural exporter, Brazil therefore

believes that the best negotiating forum for obtaining freer agricultural markets is the WTO.

Moreover, antidumping and stringent rules of origin may limit access to the markets of the

main Northern partners in these agreements. The analysis of Harrison, Rutherford and Tar

[2002] for Chile, we assess the impact on Brazil of these key trade policy options.

We extend that analysis by evaluating the value of trade policy options to Brazil if the key

Northern partner denies access to specific products. In the case of the EU, we focus on

agriculture protection and evaluate the impact of exclusion of preferred access to

MERCOSUR exporters in the most highly protected agricultural products in the EU. In the

case of the FTAA, we determine the impact on Brazil of denial of access to the most highly

protected products in the US due to antidumping or restrictive rules of origin. A major policy

concern is the link between trade policy changes and poverty in Brazil.

Although interest in the impact of trade policy on poverty has dramatically increased in

recent years, general equilibrium modeling with multiple households to examine equity issues

dates back to Adelman and Robinson [1978] and Piggott and Whaley [1985]. These studies

pioneered one approach, which is to include multiple households within the general

equilibrium model. This is typically done by aggregating households from a household

survey into 5-40 households. In recent years modelers have focused more attention on the

impact of trade policy on poverty, and Harrison, Rutherford and Tarr [2003] showed that a

concern about equity is not equivalent to a concern about poverty. A second approach is to

take price changes from a representative consumer general equilibrium model and feed these

into a micro-simulation model of household behavior, such as in Chen and Ravallion [2003]

and Bussolo and Lay [2003]. This approach allows examination of the diversity of impacts

across households: even if the aggregated poor households gain, many individual poor

households could lose. But it comes at the expense of ignoring feedback effects of the

quantity changes on the equilibrium outcome in the general equilibrium model, and does not

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reconcile inconsistent information on household income from the national accounts and the

household surveys.

Our analysis is in the tradition of the first approach. We incorporate 20 different types of

Brazilian households in our model: ten rural and ten urban, where rural and urban households

are further classified according to income levels. We are able to identify clear and crucial

links between trade policy changes, factor intensities at the industry level, economy-wide

factor returns and poverty the links suggested by the Hekscher-Ohlin and Stolper-Samuelson

models. But we show that it is only as a result of the attention to detail in the empirical

estimation of factor shares that we are able to obtain results that can be sensibly used to

analyze the poverty dimension of trade policy changes. We also show the importance of

agricultural liberalization for the poor.

Our aggregate policy results are that both the FTAA and the EU-MERCOSUR arrangements

are net trade-creating for the countries involved, but that excluded countries almost always

lose from the agreements. We estimate that multilateral trade liberalization of 50% in tariffs

and export subsidies results in gains to the world more than four times greater than either the

FTAA or the EU-MERCOSUR agreement. This shows the continued, potential importance to

the world trading community of multilateral negotiations.

A fully implemented agreement with the EU is almost twice as valuable as the FTAA to Brazil

due to access to highly protected agricultural markets in the EU. But if agriculture is excluded

from the MERCOSUR-EU agreement, the agreement is of very little value to Brazil.

Application of antidumping and restrictive rules of origin by the US against Brazil under the

FTAA on the most protected products in the US also reduces the value of the FTAA to Brazil.

Nonetheless, the FTAA still has significant value to Brazil since we assume that other markets

in the Americas and the less protected sectors in the US remain open to Brazilian exporters.

Most of the trade policy options we evaluate result in a distribution of the gains to the different

households that is progressive, such that the poorest households experience the greatest

percentage increase in their incomes. Although Brazil has undertaken substantial trade

liberalization in the 1990s, there remain vestiges of its import-substitution industrialization

strategy of the 1960s. Trade policy reforms in Brazil tend to shift resources from capital

intensive manufacturing toward unskilled labor intensive agriculture and less capital intensive

manufacturing, thereby inducing an increase in the wage of unskilled labor relative to capital

and skilled labor. This results in an increase in the incomes of the poorest households in

Brazil relative to the richest. The percentage increase in the incomes of the eight poorest

households is several times greater than the percentage increase in the income of the average

for the economy as a whole.

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1.4 MACROECONOMIC POLICY, MONETARY POLICY AND FISCAL

POLICY

Macroeconomic policy comprises monetary and fiscal policies, exchange rate regulations,

credit and financial markets regulations, balance of payments measures (including the

deregulation of the capital account), and in some instances, policies that regulate wages (and

the wage norm). Also, the development of interdependent financial markets has made capital

mobility and the reversal of capital flows a crucial frame of reference of macroeconomic

policy. Thus, through changes in the money supply, the prime or inter-bank interest rate, the

wage norm, exchange rates, fiscal revenues and public expenditures, macroeconomic policies

determine the dynamics of aggregate consumption and investment, economic activity, the

general price level, employment, productivity, production strategies and choice of

technology, and, of course, resource management practices of all economic agents.

Macroeconomic policy impacts on the environment take place through a complex but

effective process. Consequences for logging, mining, oil and gas industries, as well as

fisheries are particularly important because these activities are close to the natural resource

base and their activities impinge directly on the integrity of ecosystems. In addition, when

these sectors are dominated by State-owned firms, their role in providing non-tax fiscal

revenues (as well as in bridging the currency gap) is a potent driving force behind changes in

technology and usage rates that can make all the difference between adequate environmental

stewardship and deterioration of resources. In the case of manufacturing industries and the

transportation sector, macroeconomic policies also have serious implications for emissions‟

mitigation and abatement, thus bringing new implications for the debate on global climate

change.

In addition, macroeconomic policies also have important repercussions on many sectors and

dimensions of the environment that rely on public funding to fulfill their objectives. An

important example is the case of natural protected areas, biosphere reserves and funds for

environmental remediation, monitoring and conservation. In many countries, natural

protected areas are a fundamental policy instrument for biodiversity conservation, but in

times of fiscal constraints, typically they occupy a secondary role and the required funding is

not available. In addition, agricultural policies are negatively affected by the same

curtailment of fiscal expenditures. For example, income deficiency payments (accepted by

the Uruguay Round Agreement on Agriculture and now by the World Trade Organization

and critical components of trade liberalization) respond to the rationale of fiscal policy rather

than to the objectives of free trade. Their evolution in real value terms depends on the

priorities of fiscal policies; if fiscal revenues are insufficient to generate a primary surplus,

fiscal authorities may allow these income deficiency payments to fall behind inflation and

thus, drop in real terms. This will put extra pressure on natural protected areas surrounded by

localities with high social marginalization.

In a sense, macroeconomic policies embody a sort of “implicit environmental policy” that

frequently contradicts the objectives of explicit policies for the environment. This is why lack

of attention to macroeconomic policies can and will undermine efforts at understanding the

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root causes of environmental degradation. It also weakens our ability to orient policy-making

in directions more consistent with the World Conservation Union‟s mandate and more

generally with the needs of sustainable development in general. This 3I-C proposal is

designed to fill this gap and to launch a new set of initiatives that will advance healthy

environmental stewardship through sound macroeconomic policie

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1.5 POLITICAL

Brazil is a Federal Republic made up of 26 States, one Federal District (Brasília), and 5,560

municipalities. Brazil is a representative democracy, with a President who acts

simultaneously as Head of State and of the Federal Government. All legislative and executive

bodies, at Federal, State and municipal levels, are elected with four-year mandates. The

federal legislative body is the National Congress, consisting of the Federal Senate and of the

House of Representatives (Chamber of Deputies). Each State has a State legislature and a

directly elected Governor, who heads the State executive and appoints its members. The

Constitution provides for an independent judiciary. Today Brazil is a stabilised democracy

with a well developed political and institutional system. Still, some limitations persist that are

likely to have a negative effect on governance, human rights and citizens‟ security. The most

significant challenges include:

(a) The difficulty of putting together stable parliamentary majorities in the framework of the

current political system, which creates a variety of problems with fully exercising legislative

and executive powers;

(b) The relatively fragile links between the three levels of government (Federal, State and

municipal), which make it difficult to define and implement policies and reforms nationwide,

to promote national integration and to encourage balanced development of the various

regions;

(c) The frequent cases of corruption and unlawful use of public resources;

(d) The legal and regulatory complexity and the need to improve the functioning of the

judiciary system, to increase the efficiency of the public administration and to enable citizens

and economic operators fully to exercise their rights;

(e) The need to improve effective implementation of the existing legislation in the field of

human rights. Excessive use of force by law enforcement officials, limited access to justice

for the poorest and most vulnerable sectors of society, and abuse against indigenous people

are other major causes of concern;

(f) Violence, which is particularly serious in big cities and frequently associated with

(illegal) drug trafficking and social exclusion, generating a strong feeling of insecurity

amongst citizens.

In recent years, Brazil has been implementing an increasingly assertive foreign policy,

playing an active role in multilateral fore and positioning itself as a representative of

emerging countries and as a staunch defender of poorer countries, particularly in Africa. In

the context of the UN reform, Brazil has been lobbying intensively for a permanent seat on

the UN Security Council, together with Brazil, India and Japan, within the G4 Group. Brazil

is also actively lobbying for the dismantling of agricultural subsidies, within the G20Group at

the WTO. Brazil is leading the UN peacekeeping force in Haiti. It should be underlined that

on many major world issues Brazil‟s views converge with the EU‟s. Both Brazil and the EU

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believe that sustainable development can be better achieved in a multi-polar world. They also

share the view that regional integration is the best way forward to achieve prosperity and

peace. Their views also coincide on other issues of multilateral interest, such as the fight

against poverty, climate change, peace and security.

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1.6 ECONOMIC OVERVIEW

Throughout the 1990s, growth was erratic and the period was marked by instability, inflation

and macroeconomic volatility. In 1994 Brazil adopted the Plano Real and succeeded in

controlling inflation, aligning the real on the US$. This led to a strong valuation of the real

and adversely affected Brazil‟s trade balance. Brazil‟s financing needs increased and so did

Brazil‟s external debt.

In 1999 the Government negotiated a fiscal adjustment programme with the IMF and

launched a package of structural reforms to restore macroeconomic balances. These included

the adoption of a floating exchange system for the real, an inflation-targeting regime, and a

tight fiscal policy.

The new administration that came to power in 2003 is maintaining the prudent

macroeconomic strategy that Brazil has been implementing since 1999 and continuing to give

priority to macroeconomic stability. The new Government thus committed itself to keep a

firm grip on inflation, and managed to achieve high primary surpluses (more than 4% of

GDP). This cautious economic policy prompted a steep fall in the public debt/GDP ratio (to

51.8%) - and put Brazil in a position not to renew its agreement with the IMF, and even to

repay all of its liabilities to the IMF (US $ 15.5 billion) in 2009, two years ahead of schedule,

and to achieve the lowest country risk rating in its history. The structure of the Brazilian debt

has also been improved with a smaller share of total debt now being denominated in foreign

currency. In spite of these positive signs, public debt remains a source of vulnerability for the

Brazilian economy.

The Government‟s record in meeting the budget targets has been achieved mainly by raising

revenue, i.e. increasing the tax burden, and compressing public investment. Private

investment has also been hampered by high interest rates. As a result, after a high growth rate

The South American Community of Nations was established at the 3 South American

Nations Summit in Cuzco in December 2004. This new regional integration system brings

together all the countries of the South American continent, i.e. all the Mercosur and CAN

countries plus Chile, Suriname and Guyana. Brazil‟s fiscal revenue ratio is close to 35 % of

GDP. in 2004 (5.2%), fuelled by exceptionally favorable global economic conditions, the

economy slowed down in 2009.

In 2004 the Brazilian economy ranked 14 worldwide, though its share of world trade

remained limited (0.9%). Services accounted for around 75% of Brazil‟s GDP, industry 19%

and agriculture 6%. In recent years Brazil has recorded significant trade surpluses and exports

have contributed positively to Brazil‟s GDP growth; exports have been led mainly by

transport equipment (including automotive and aircraft), meat and iron and steel. Significant

productivity gains have been made in the agricultural sector turning Brazil into a major

agricultural power Brazil‟s main trading partners in 2004 were the EU (26.8%) to which

around 50% of Brazil‟s agricultural exports were bound the USA (21.9%), Argentina (6.9%),

China (6.9%) and Japan (3.7%). Over recent years, the EU has registered significant trade

deficits in favor of Brazil. Brazil is a leading destination for European investments, whose

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total stock in the country is close to €80 billion (one third of the total). In 2002, 52% of the

investment flows to Brazil came from the EU. From 1996 to 2002, investment flows

concentrated mainly on the tertiary sector.

Brazil imports oil but could become self-sufficient by the end of 2009 given the scale of

investment recently made in this sector. Brazil‟s oil production is equivalent to Kuwait‟s (1.8

million barrels a day). Over the past decade Brazil has been very active on the external trade

front. At the WTO Brazil has endeavored to improve market access for its agricultural

products. Through Mercosur, Brazil has recently tried to diversify its trade by concluding

limited preferential trade agreements with countries like India and South Africa, added to the

existing and new preferential trade agreements with many Latin American countries. Further

agreements of this type are planned with countries such as Morocco and Egypt. Mercosur

itself has been weakened by trade disputes between Brazil and Argentina related to Brazil's

surging exports to Argentina.

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1.7 SOCIAL FACTORS

Key social indicators have improved over the last decade. The current Government has

assigned high priority to social development programmes. “Fome Zero” is the Federal

government strategy to eradicate extreme poverty notably by promoting food and nutrition

security as well as the access of the most vulnerable population to citizens' rights. In this

context, the government has streamlined the existing social transfer programmes into a

unified conditioned social cash-transfer Programme “Bolsa Familia” for the most

disadvantaged families, which offers financial subsidies as well as a combined access to basic

social rights (e.g. health, food, education and social assistance). Efforts are being made to

improve the efficiency of the programme though a better targeting. However much remains to

be done to address rural, urban, gender and racial inequalities and to ensure that access to

goods and services benefit all social groups.

In 2004 Brazil ranked 72nd out of 177 in the UN Human Development Index, a rather modest

position compared with the country‟s levels of economic development and technological

sophistication. According to the Brazilian MDG monitoring report (September 2004), in 2002

there were 52.3 million poor people in the country, or 30.6% of the population, while extreme

poverty affected 11.6% of the population, i.e. 20 million people. Brazil is still one of the

world's most unequal societies: the poorest 20% account for 4.2% of Brazil‟s national income

or consumption. Since 1990 the Gini index has remained at 0.57 (1 being the maximum

inequality), one of the highest in the world. In other words, wealth and income distribution

remain very unbalanced.

The poorest of the poor in Brazil have traditionally been in the North-East region . In 2002,

25.2% of its inhabitants were in extreme poverty or indigence. However, some areas in other

parts of the country, in particular close to or inside big cities, have reported increasing

numbers of poor or indigents. For instance, 5.2% of the inhabitants of the south-east were

also in extreme poverty or indigence in 2002. In fact, nowadays poverty exists in most of the

country, although it is concentrated mainly in metropolitan and depressed agricultural areas.

Inequality in Brazil is also related to race; 65% of the poorest 10% are blacks or mulattos,

while 86% of the wealthiest 1% is whites. Access to education has improved over recent

years but there are still regional imbalances between the North-East and the South and South-

East regions, especially in higher

education. Literacy among young people in Brazil is officially high (96.3% amongst 15-24

year-olds in 2002) but illiteracy remains high among the population aged 15 or more (12% in

2002).

Health indicators have also improved. Public policies have had an impact on the drop in child

mortality rates (36 per 1000 in 2003), but there is still room for reduction of post-neonatal

mortality, mainly in the North and Northeast regions. In 2002, Brazil spent 7.9% of its GDP

on health, an amount close to the OECD average (8.72%). According to UNAIDS, an

estimated 650,000 Brazilians are living with HIV. Brazil's response to HIV has benefited

from strong political support: access to care, including anti-retrovirals, is universal and

18

guaranteed by national law. Combating HIV/AIDS has been mainstreamed as a cross-cutting

issue in the programming process by analyzing the government's policy agenda on

HIV/AIDS and sexual and reproductive health in particular, as well as the importance of the

theme in Brazil.

19

1.8 COMMUNICATION

Compared to their neighbors Brazilians communicate with a slightly more blunt cultural

style. However, this is often determined by the level of a relationship, i.e. the warmer it is, the

blunter it gets. They also place a lot of emphasis on non-verbal gestures to enhance their

point. Communication is generally very polite however their conversations can be held at

break-neck speed, with plenty of animations, frequent interruptions and lots of physical

contact. Brazilians like depth, background and context so if you are more comfortable with

direct, brief communication style, you would be well served to consider offering more

information than you normally would.

20

1.9 EDUCATION SECTORS

According to the Institute of International Education, Brazil is the fourteenth largest source of

overseas students coming to the United States for education and training services. In 2011,

there were 8,777 Brazilian students studying in the U.S. and the number of students has been

gradually increasing since the 2005/2006 academic year. About 34.8% of Brazilian students

participate in graduate programs and about 46.3% are enrolled in undergraduate programs..

school.

S

21

2. PESTEL ANALYSIS

PEST analysis stands for "Political, Economic, Social, and Technological analysis" and

describes a framework of macro-environmental factors used in the environmental scanning

Component of strategic management.

2.1 Political factor:

The Brazilian Federation is based on the indissoluble association of three autonomous

political entities: the States, the Municipalities and the Federal District. A fourth entity

originated in the aforementioned association: the Union. There is no hierarchy among the

political entities. The Federation is set on six fundamental principles: sovereignty,

citizenship, dignity of the people, social value of labor, freedom of enterprise, and political

pluralism. During 2010 alone, 210,000 jobs were created in the tourism sector and in excess

of $736 million was invested by the government in 2010 alone.

The political arena has a huge influence upon the regulation of businesses, and the spending

Power of consumers and other businesses. You must consider issues such as:

Political stability

Risk of military invasion

Legal framework for contract enforcement

Intellectual property protection

Trade regulations & tariffs

Favored trading partners

Anti-trust laws

Pricing regulations

Taxation - tax rates and incentives

Wage legislation - minimum wage and overtime

Work week

Mandatory employee benefits

Industrial safety regulations

22

2.1.1 Brazil’s political parties:

Brazil has a multi-party system with numerous political parties sharing the vote, in which no

single party has a chance of gaining power alone, so that they must work with each other to

form coalition governments. The ideologies of the different parties are not always universally

adhered to, as many of them are in fact loose coalitions of local and individual leaderships.

Above the broad range of political parties in Brazilian Parliament since there is no election

threshold, the Workers' Party (PT), the Brazilian Democratic Movement Party (PMDB), the

Brazilian Social Democracy Party (PSDB) and the Democrats (DEM) together control the

absolute majority of seats in the Senate and Chamber of Deputies, [1] and effectively have

dominated Brazilian political landscape since the returning of democracy in 1985. Smaller

parties often make alliances with at least one of these four major parties.

Brazilian Democratic Movement Party

Workers' Party

Progressive Party

Brazilian Social Democracy Party

Democratic Labour Party

Brazilian Labour Party

2.2 Economic Factors:

Brazil's GDP (PPP) is the highest of Latin America, boosted by large and developed

agricultural, mining, manufacturing, and service sectors, as well as a large labour pool. The

country has been expanding its presence in international financial and commodities markets,

and is part of the group of four emerging economies named BRIC. According to the

International Monetary Fund and the World Bank, Brazil has the ninth largest economy in the

world by purchasing power parity (PPP) and tenth largest at market exchange rates.

Brazil has a diversified middle income economy with wide variations in development levels.

Most large industry is agglomerated in the Southern and South-eastern states. The Northeast

Region is the poorest region of Brazil, but it has attracted new investments in infrastructure

for the tourism sector and intensive agricultural schemes.

Marketers need to consider the state of a trading economy in the short and long-terms. This

are the factor affecting Brazil

Capital growth

23

Low cost of living - experience a luxury lifestyle at little expense

Booming property market

Currency exchange

Inflation

Economic expansion

Housing shortage

2.3 Socio cultural Factors:

Brazil also recognizes and has participated in international efforts to promote Sustainable

development, including the adoption of Agenda 21, and a commitment to implementing it at

the national, provincial and local levels.

The social and cultural influences on business vary from country to country. It is very

important that such factors are considered. Factors include:

Demographics

Class structure

Education

Culture (gender roles, etc.)

Entrepreneurial spirit

Attitudes (health, environmental consciousness, etc.)

Leisure interests

Population growth rate and age profile.

Population health, education and social mobility, and attitudes to these.

Population employment patterns, job market freedom and attitudes to work.

Press attitudes, public opinion, social attitudes and social taboos.

Lifestyle choices and attitudes to these.

Socio-cultural changes.

Various human factors drive, influence and affect environmental change at the global,

regional, national and local levels. Drivers of environmental change vary in nature and scope

but can be broadly grouped together as demographic; economic and social; science and

technology; conflict; and governance. Critical social dimensions include poverty and health.

24

2.4 Technological Factors:

1. Mine-safety research

The Safety in Mines Research Advisory Committee aims to advance mineworkers‟ safety. It

has a permanent research- management office overseeing research in rock engineering,

Engineering and occupational health.

2. Energy research

The Chief Directorate: Energy of the Department of Energy manages a policy-directed

research programme. This includes transport energy, renewable energy and energy for

Developing areas, coal, electricity, energy efficiency, energy economy and integrated energy

policy formulation.

3. Agricultural research

Agricultural research is conducted by the Agricultural Research Council, several universities

and the private sector.

4. Water research

Water research in Brazil is coordinated and funded by the Water Research Commission in

Pretoria. The organization‟s most active partners in water research are:

Universities and universities of technology

Professional consultants

Science councils

Water and waste utilities

Non-governmental organizations.

2.5 Environmental Analysis:

The vision of the Department of Environmental Affairs is to create a prosperous and

equitable society living in harmony with the environment. Brazil is home to one-sixth of the

world's marine species with the Indian Ocean on the east coast and the Atlantic on the west

coast. The country has more species of wild animals than Europe and Asia put together and a

vast variety of endemic and migratory birds.

Brazil is home to one-sixth of the world's marine species with the Indian Ocean on the east

coast and the Atlantic on the west coast. The country has more species of wild animals Than

Europe and Asia put together and a vast variety of endemic and migratory birds.

Three analyses are important:-

25

Water analysis:

Analysis of quality criteria and dissolved matter of process water such as appearance,

pH value, conductivity, salt content, hardness, TOC, cations and anions.

Product analysis:

Waste water toxicity in accordance with OECD 209

Aquatic toxicity in accordance with OECD 202

Metal analysis:

Atom absorption spectrometry to determine metals is a prevalent procedure in

Chemical analysis and we can quantitatively determine Ag, Al, Ca, Cd, Co, Cr, Cu,

Fe, K, Mg, Mn, Na, Ni, Pb, Sb, Si, Sn, Ti and Zn.

2.6 Legal Environment:

Brazil has a 'hybrid' or 'mixed' legal system, made of the interweaving of a number of distinct

legal traditions: a civil law system inherited from the Dutch, a common law system inherited

from the British, and a customary law system inherited from indigenous South American.

Laws, rules, and standards:

All agricultural exports operate within an institutional environment, which is made up

of a set of political, social and legal ground rules.

These ground rules for the laws of all production, exchange and distribution and give

rise to certain expectations and assurances about the actions of others, and give order

and stability to the means of doing business.

Objectives:

To give an understanding of the major factors which must be considered in the

Legal/political environment when planning to market globally.

To give, in detail, a description of the main elements of the latest GATT Round.

To show the importance of legal/political aspects in global marketing.

Types of law:

Courts & Judgments

Constitutional Law

26

Human Rights

Litigation and Court Procedure

Electoral Law

2.7 Political Environment:

Brazilian politics since the end of the military regime in 1985 have been characterized by a

multiplicity of political parties. Many do not have a strong ideological foundation or detailed

policy platforms, and are built around shifting small groups of high-profile politicians. In

recent years, four main parties have come to dominate the political landscape: the PSDB

(Brazilian Social –Democratic Party); the PT (Worker‟s Party); the PMDB (Brazilian

Democratic Movement Party); and the DEM (Democrats).

The PSDB's candidate, Fernando Henrique Cardoso, won the presidential elections in 1994,

and was re-elected in 1998. The centre-left PSDB (Brazilian Social-Democratic Party)

remains important across the country and governs the state of Sao Paulo – the most populous

and wealthy state in the country. Their Presidential candidate, José Serra (a former Governor

of Sao Paulo), was the main rival to incumbent Dilma Rouseff in the 2010 elections.

The then President Lula, one of the founders and the most charismatic leader of the PT party,

won the 2006 Presidential elections and managed to transfer his electoral capital to Dilma

Rouseff. Since reinstatement of democracy in Brazil this was the first time Lula had not run

for the presidential election. Dilma‟s election represented a vote for continuity – particularly

in taking forward Brazil‟s social agenda. PT put pro-poor policies at the top of their agenda,

whist also continuing its predecessor‟s commitment to IMF targets and fiscal discipline.

The 2010 Presidential elections were taken to a second round. However, Dimla beat José

Serra with over 60% of the vote. Dilma‟s campaign motto was to finish poverty in Brazil

with a more equal wealth distribution.

Serious corruption accusations involving Dilma‟s predecessor in the Household Ministry

played a big part to take the elections to a second round. The next Presidential elections are

due to be held in October 2014.

27

3. SWOT ANALYSIS

Strength

A small number of excellent private sector educational institutions, with a view to

increase their role in the economy and with the ability to attract the support of industry.

Tenacity mixed with strong sense of initiative and self-reliance as well as capacity for risk

taking among entrepreneurs.

Commitment and social solidarity from key sectors such as banking sector.

Good contact with outside world with links to many developed countries.

The strong support of the retail infrastructure that will benefit Indian Food and Beverages

market.

When Indian Food and Beverages business, the business started going to Brazil because

of its power over the forces of production flexibility is helpful for the Food and

Beverages industry.

Brazil is a result of cheaper labor rates, the competitive price.

28

Weakness

An inability of public sector organizations to move into high gear of development.

Poor links in general between the education and industry.

A low level of support for research and poor alignment of existing activities with the

needs of industry and the economy.

A lack of manager familiar with modern management concepts and techniques as well as

a limited range of management training opportunities.

Lake of skilled Labors.

Some age groups are less interested in Food and beverages industry.

Lack of Co-ordination between government bodies and private players.

Sometimes weakness of insufficient information happens.

29

Opportunities

Strong role of post formation training can result in skilled workforce.

There should be many opportunities for adding value in basic activities in areas such as

tourism, agriculture and food processing.

There is a need to look in detail at how to develop the agro food sector.

E-commerce and the Internet as promissory distribution channels are emerging.

Except Brazil, the countries like USA, UK, and CANADA. Need food and beverages.

Because they are interested in it.

30

Threats

Threats to do something that the unfavorable conditions that affect the Indian markets on the

Brazilian food and beverages.

A failure to grasp the nettle of reform especially in the area of business and innovation

related legislation, higher education and research.

Pace of reform is too slow vis-a-vis competitors.

The banking and finance sector also need to innovate and this issue can easily be

overlooked when the focus is on technology or specific sector of economic activity.

Competition in the domestic market.

Balance between demand and supply of high.

Interested in competing countries, and good technical support & R & D facility.

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PART-2

32

2.1 PETROCHEMICALS INDUSTRY

1. INTRODUCTION OF PETROCHEMICAL INDUSTRY

The world petrochemical industry has changed drastically in the last twenty to thirty years.

The United States, Western Europe and Japan previously dominated production of primary

petrochemicals, not only to supply their own domestic demand but also to export to other

world markets.

There is some industry like Packaging industry, Brazil IT sector, Tourism sector, Agriculture

sector, Petrochemical sector.

1.1 HISTORY OF PETROCHEMICAL IN BRAZIL

The petrochemical industries in the United States, Western Europe and Japan have

experienced lower growth rates. In 2010, these three regions accounted for only 37% of

world primary petrochemicals production.

The start-up of these plants has effectively washed the number of export markets available to

the United States, Western Europe and Japan as the volume of imports from developing

regions increased. As a consequence, the petrochemical industries in the United States,

Western Europe and Japan have experienced lower growth rates.

1.2 SECTOR OVERVIEW:

Petroleum and Petrochemicals

Brazil-Bolivia Gas Pipeline

Ethanol Industry

1.3 BRAZILIAN PETROCHEMICAL PRODUCTS:

Basic Petrochemicals Capacities

Ethylene 3.752

Green Ethylene 200

Other Products 6.220

33

1.4 CONTRIBUTION IN GDP AND ECONOMIC SECTOR

1.4.1. Oil & Gas Complex GDP

The analysis connected to the Gross Domestic Production (GDP) can be developed in various

levels of desegregation due to the fact that the Oil & Gas Complex can be divided into four

principal aggregates: a) inputs (inputs that are supplied to the extraction sector); b) the sector

itself (the oil and gas extraction sector); c) based industry (industry of oil and gas

transformation); and d) final distribution (including the commerce, transport and services).

1.4.2 Petrochemicals industry Complex GDP participation in Brazil

The Oil & Gas Complex GDP corresponds to approximately 10.4% of the total GDP of

Brazil, for the year 2011.

1.4.3 Brazil Petrochemicals Industry Outlook to 2015 - Market Size, Company Share,

Price Trends and Capacity Forecasts

1.5 GOVERNMENT POLICY

Brazil is the reduced taxes to help the ethanol and petrochemical industries as the government

tries to tamp down inflation at the same time that it seeks to rev up weak economic growth.

34

2. STRUCTURE OF PETROCHEMICAL INDUSTRY

The different regions and districts of the country produce a large array of Petrochemical,

depending on the type of available raw material and the indigenous skills of the producers.

Ethylene product

Propylene product

Butanes & butadiene product

Benzene product

Diesel fuel product

Liquefied petroleum gas product

Gasoline

2.1 ROLE OF PETROCHEMICAL IN THE ECONOMY

Employment Generation: Manpower is the primary in-put in the process of production of

Goods and rendering of services.

Linkage with other sectors: The petrochemical sector has very important linkage among

economic sectors (Agriculture, industry and Tourism).

2.2 PORTER’S FIVE FORCE MODEL ANALYSIS

Brazil inclusive Porter‟s model but grouped the five forces into three categories, namely:

Suppliers, customers and competitors.

2.3. FACTOR AFFECTING PETROCHEMICAL SECTOR

Ethane feedstock shortage

New rafts of anti-dumping tariffs

2.4 PETROCHEMICAL OF VALUE CHAIN ANALYSIS

Petrochemical industry as a consumer of the oil products represents a significant part of the

oil product portfolio. The reader can get a more exact picture about strict integration of

Downstream and Petrochemicals Division of MOL Group and dependence on each other by

the analyzing of co-products‟ significance.

2.5 FUNCTION OF PETROCHEMICAL INDUSTRY

Financial Function

Human Resource Development

35

3. COMPARATIVE POSITION OF PETROCHEMICAL INDUSTRY BRAZIL V/S

INDIA

The petrochemical industry is flourishing in many Arabian country and rural areas both in the

business. Brazil's geological formation is very old.

Financial Performance

3.1. MAJOR PLAYERS OF PETROCHEMICAL INDUSTRY

Petrobras ltd.

Petrolia Piranha ltd

Ultra par ltd

Braskem

3.2. PRIORITY PRODUCT ANALYSIS

Gasoline

Ethylene

Propylene

Butanes & butadiene

Benzene

Diesel fuel

Liquefied petroleum gas

3.3 EVALUATION OF TOP PLAYER

3.3.1. Boston Consulting Group (BCG Model)

The analysis of the profit potential of Its business with the senior management provides a tool

for classification.

3.3.2 General Electric Multifactor (GE) Portfolio Model

According to Kotler, organizations are able to go to the extent that they may be in attractive

markets and the competitive strengths of the business will succeed in the markets.

1. Invest/grow

2. Selective investment

3. Harvest/divest

3.3.3. 7p of marketing in petrochemical industry

Petrochemical products

Price of petrochemical products

Promotion

Place

Packaging

Positioning

People

36

3.4 STRUCTURE OF THE BRAZILIAN PETROCHEMICAL INDUSTRY

Naphtha Condensate Natural Gas

Basic Petrochemicals

Thermoplastic Resins

Plastic Parts& Intermediate Chemicals

Non Financial Performance

3.6 ECONOMIC ANALYSIS OF PETROCHEMICAL

It is used by oil and gas companies, government agencies, consultants and legal professionals

to secure timely and accurate information on:

Ratings and rankings

Legal, Fiscal and Contractual Terms

Environmental Terms

E&P Statistics

Business Environments

Biodiversity

Company Rankings

Fiscal Overviews

3.7. MARKET POSITION OF PETROCHEMICAL INDUSTRY

Brazil contribution in world market is 3.2%

The Petrochemical Industry is a $100 billion industry worldwide.

The total exports of petrochemical items: - Rs. 13412.92 Crore.

Industry‟s share in Brazil exports:- 1.51 %

3.8. MARKET SIZE ANALYSIS

Brazil is the fifth largest producer of wine in the Southern Hemisphere. At the end of the

2008 financial year, the Brazilian wine industry generated revenues of USD2.4bn.

3.9. SWOT ANALYSIS OF THE PETROCHEMICAL INDUSTRY

Strengths

High quality of domestic products (e.g. ethanol, gasoline)

Ideal climate and soil: high quality and quantity of raw material of petrochemical

High levels of gas production

Technological development of chemical industry

Huge trained talent pool

Competitive labor cost

Weaknesses

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Small size of individual farms and of most chemical processing companies

Low farmers knowledge about new technologies

Difficulty in penetrating foreign markets outside EU

Creation of trade barriers by third countries

Frequently changing legislation (e.g. tax legislation)

Low standardization ability in products like ethanol & chemical

Opportunities

Huge market value of different types of chemicals.

Threats

Stiff rational pricing pressures

Environmental hazards concerns

Low market recognition

38

4. PRESENT POSITION AND TREND OF CHEMICAL BUSINESS IN INDIA

4.1 OVERVIEW

Petrochemicals are derived from various chemical compounds, mainly hydrocarbons obtained

from oil and natural gas. Growth potential of the chemicals sector was immense, considering

the current low per-capita consumption in the country. These include synthetic fibers,

polymers, synthetic detergents, plastics, olefins and aromatics, and find use in daily need

items ranging from clothing, furniture, construction, agriculture to medical appliances.

4.2 IMPORT REQUIREMENTS AND DOCUMENTATION

The following documentation is required when exporting to Brazil:

Bill of lading

Cargo release order

Certificate of origin

Commercial invoice

Customs export declaration

Foreign exchange authorization

Packing list

Technical standard / health certification

4.5 EXPORT DATA FOR BRAZILIAN FOR PETROCHEMICAL PRODUCTS

Product name Industry

Total export

value in

2008 (USD

thousands)

Exports as a

share of

total Brazilian

exports

2008

(%)

Exports as a

share of in

world exports in

2008 (%)

Growth of

exports in

value(% per

annum)

Ethylene 15,55,897 7.44 12.7 22

Propylene 5,82,598 5.2 18.1 19

Butanes & butadiene 11,095,854 6.5 17.4 19

Benzene 4,373,488 2.6 13.4 23

Diesel fuel 4,686,963 4.2 9.0 8

Liquefied petroleum

gas

2,493,197 4.8 2.8 46

Gasoline 2,265,996 5.1 4.6 17

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5. POLICY RESOLUTIONS FOR PROMOTION OF PETROLEUM, CHEMICALS

AND PETROCHEMICAL INVESTMENT REGIONS (PCPIRS)

The industry offers a wide scope for development that contributes positively to economic

growth and regional development. The future outlook for the industry is bright with positive

developments anticipated in various chemical sub sectors.

The PCPIRs would reap the benefits of co-sitting, networking and greater efficiency through

the use of common infrastructure and support services. They would have high-class

infrastructure, and provide a competitive environment conducive for setting up businesses.

They would thus result in a boost to manufacturing, augmentation of exports and generation

of employment.

POLICIES AND NORMS OF BRAZIL

5.1 REGULATORY

Duties and tariffs

Import tariffs vary depending on the product, but in general are quite high.

Basic Duty:

This tax is applicable to most imported goods and the rate is 30 percent for most products.

Additional Duty (AD) or Countervailing Duty (CVD):

An additional duty to match the domestic Central Value Added Tax (CENVAT) for goods

produced and manufactured in India.

Special Additional Duty (SAD) or Special Countervailing Duty (SCVD):

A 4 percent duty on most imported products. This tax is designed to match domestic taxes

such as Sales Tax and Value Added Tax.

5.2. ROLE OF THE CENTRAL GOVERNMENT

Government of India was ensure the availability of external physical infrastructure linkages

to the PCPIR including Rail, Road (National Highways), Ports, Airports, and Telecom, in a

time bound manner. This infrastructure will be created/upgraded through Public Private

Partnerships to the extent possible. . Central Government will provide the necessary viability

gap funding through existing schemes.

40

5.3. ROLE OF THE STATE GOVERNMENT

The State Government would play the lead role in setting up of the PCPIR. It would identify

a suitable site, prepare the proposal and seek approval as elaborated below. It will notify the

PCPIR area under the relevant Act, and acquire/ assist in acquiring the land necessary for

setting up of the infrastructure, processing and non-processing areas.

5.4. LICENCING

The government has reserved certain items for exclusive manufacturing in the small-scale

sector. Non-small-scale units can undertake the manufacturing of items reserved for the small

scale sector only after obtaining an industrial license.

5.5. DE-LICENSED INDUSTRIES

These are industries which do not require compulsory licensing, do not fall under vocational

restrictions, and are not reserved for small-scale industries. There was no exhaustive last

specified by the Department of Industrial Policy and Promotion.

5.6. IMPORT POLICIES

Import Licensing/Customs Valuation

All importers must register with the Secretariat of Foreign Trade (SECEX) to access

the SISCOMEX computerized trade documentation system.

U.S. companies continue to complain that Brazil employs a variety of customs-related

non-tariff barriers including onerous and burdensome documentation requirements

and inconsistent interpretations of the law.

5.7 GOVERNMENT PROCUREMENT

Lack of transparency and preferences for Brazilian products.

Domestically produced medical equipment.

Domestically produced medical equipment, construction, Security and defense

sectors.

5.7SERVICES BARRIERS

Telecommunications

Audio Visual Services

Express Delivery Services

Financial Services

5.8 INVESTMENT BARRIERS

Energy

41

6. IMPORT POLICY

Petrochemical imports are predictably estimated at $25.6 million.

6.1 IMPORT PROCEDURES

How do I obtain duty information?

What are Brazil‟s import tariffs?

Are other taxes assessed on imports?

Are other basic papers required?

Where can I obtain more detailed monetary and commercial Information?

Do I need a local agent in Brazil to import my product?

Who is the Senior Commercial Officer (SCO) in Brazil?

Who should I get in touch with if I want to import from Brazil?

6.2 GOVERNMENT ROLE IN IMPORT POLICY

(A) Mode of transport

Brazil imported goods by air, sea, road transport, rail transport and postal channels to import

to Brazil.

(B) Approved importer

The goods arrived in Brazil can only be imported through the government authorization to

enter Brazil.

(C) The means of conveyance

According to Brazilian law, ship owner or captain of the aircraft must arrive when the

customs region or leaving Brazil, means of transport to the Customs entry or exit

announcement, submitted with the journey, cargo, storage, crew / crew members, passengers

on the detailed information and declare the truth.

(D) Declarations to declare

To ensure the state‟s tax due are collected, to comply with all applicable laws and

regulations, importers must declare the amount of carry, transport imported goods, goods and

means of transport. By law, the importer or his agent shall within 7 days after arrival of the

goods (sea, air

Or rail transport of bulk cargo to declare a period of 14 days, the container cargo warehouse

Reporting period of 28 days) for the import announcement.

6.4 LICENSING POLICY AND PROCEDURE

An application for a license;

An applications for an approved mark;

The defects sheet; and

The report of survey.

6.5 DIRECT OR INDIRECT TAX

Direct tax

Direct taxation consists of taxes levied directly on the income of individuals and on

company profits.

42

Indirect tax

Indirect taxation refers to taxes on utilization collected on behalf of a government.

Customs Duty

Customs duties are imposed by the Customs and Excise Act 91 of 1964.

Excise duty

A secondary purpose of these duties and levies is to pressure consumer behavior, meaning

that Government may control Excise duties and levies to depress the consumption of certain

Harmful products.

6.6. VALUE ADDED TAX (VAT)

A person is legally responsible to register for VAT if the income earned from supplying

goods or services is more than R1 million in a 12 month period, or is logically expected to

exceed this amount.

43

7. POLICY AND NORMS OF INDIA FOR PETROCHEMICAL FOR EXPORT

7.1 PETROCHEMICAL SECTOR POLICY IN INDIA

There are small restrictions regarding location for establishing petrochemical units.

7.2 TRADE POLICY

Original engravings declining under 9702

Original sculptures categorized under 9703

Products under the code 9704 are freely importable.

7.3 TARIFF AND NON TARIFF POLICY IN PETROCHEMICAL

Apart from for 9704 all the items under 97 attract to total import duty of 35.2 % is basic duty

and

Especially duty only 7 % in India Petrochemical is distributed through following major

sharing channels.

7.4 NORMS FOR THE FOREIGN ORGANIZATION IN INDIAN

PETROCHEMICAL RULES FOR THE FOREIGN ORGANIZATION DEFINE BY

THE GOVT, .OF INDIA

Made up and chemical, Petroleum is also included.

It must be produced in petrochemical industry.

It should not have query.

7.5 LICENSING POLICY AND PROCEDURE FOR PETROCHEMICAL SECTOR

7.5.1 Petrochemical product export free unless regulated

7.5.2 Application for Petrochemical License

7.5.3 Ethanol product

7.5.4 Diesel fuel

7.6 GOVERNMENT ROLE IN PETROCHEMICAL SECTOR

Government of India has introduced policies in the Union Budget 2009-10 with the aim to

sustain a growth rate of at least 9 percent per annum.

7.7 Taxation of Petrochemical sector in India

Central Govt.,

Income tax

Custom duty

Central excise

State Govt.,

Sales tax

Stamp duty

State excise

44

Territory tax under

Property

Conroy

Tax on Market

Balance of Payment

7.8 LOAN/CREDIT GRANTING INSTITUTIONS FORPETROCHEMICAL SECTOR

1. United Bank of India

2. UCO Bank

3. Bank of Baroda

4. Bank of Maharashtra

5. State Bank of India

7.9. EXPORT DOCUMENTATION

In export documentation it must be catalog with the department of labor for purposes of the

Necessary for the production process. Insurance fund and also register under the

representative for the reward for occupational injuries and disease. Export duty, Free of duty,

prerogative of credit of duty, Re-export of imported goods.

7.10. SUBSIDY FOR EXPORT OF PETROCHEMICAL IN INDIA

Indian government declared 8% interest subsidy scheme for the exporter‟s of Petrochemical.

45

8. PRESENT TRADE BARRIERS OF IMPORT EXPORT

8.1 TYPES OF TRADE BARRIERS

1-TARIFF BARRIERS

2-NON TARIFF BARRIERS

TARIFF BARRIERS

The CET for industrial goods will return to 14% on imports of capital goods produced in

Argentina and originating from outside of MERCOSUR as of July 1, 2012.

Information and telecommunications-related (IT) products are regulated by a separate tariff

schedule, which expires on December 31, 2015.

NON-TARIFF BARRIERS

As of February 1, 2012, prior approval is required for all imports from the FEDERAL

PUBLIC REVENUE ADMINISTRATION (AFIP).

Approval times and criteria applied to determine if permission is granted to import are

unpredictable and exporters are advised to ensure that Argentine clients have an approved

DJAI as well as permission from AFIP to purchase the foreign exchange necessary to pay for

goods prior to shipping.

46

9. FEASIBILITY REPORT OF PETROCHEMICAL EXPORT

The regulation of the import and export goods is controlled by the import and export act,

1947 the procedure of export must be guided with those rules and policies so framed by the

central government.

Excise duty is the biggest source of revenue, profitability for the government of India. Excise

duty is tax imposed by the central government on products manufactured in India.

9.1 LEGAL FORMALITIES & PROCEDURE:

9.1.1 EXPORT DOCUMENTATION:

The regulation of the import and export goods is control by the import & export act, some

goods which are in short supply are restricted by the country certain specific goods.

There are mainly required four types of document like export duty, free of duty, entitlement

of credit of duty under DEPB scheme, re export of imported goods.

9.1.2 SUBSIDY FOR EXPORT OF PETRO-CHEMICAL:

The Indian government has been declared two percentage interest subsidy schemes for the

exporters of petrochemicals.

9.1.3LICENSE DECLARATION FOR EXPORT:

The document will be formulated by one of the departments that will point out that all

members have participated in elaboration of the document. Registration number of all goods

being shipped; each department of the exporting company and its participation in the

shipping; edification of transporting vehicle; an EEI is filed online and the internal

transaction number (sample: ITN X200911100001) is applied to key shipping documents,

i.e., invoice, B/L, verifying the actual filing.

9.1.4 REGULATION OF IMPORTS IN BRAZIL:

1. The goods which are imported into Brazil must the import permit.

2. The list of goods requires the import permits is specified in each year in the annual import

control program. The permits are valid for imports from any country.

3. Foreign trade zones: foreign trade zones or free ports are recognized in Brazil. Brazil uses

the coordinated system of categorization.

4. Samples that have no commercial value are allowed duty free access.

5. The Brazil government has viewed countertrade as a second-best option to be occupied in

only when standard trade cannot be conducted.

6. The warehouse is available at various points of entry.

7. Brazil bank can provide somewhere to stay all international transactions and that are

situated throughout the country. Duties may be rebated on goods on re-export.

47

9.1.5 PROCEDURES OF IMPORTED PETRO-CHEMICALS PRODUCT IN

BRAZIL:

It means of transport to the customs entry or exit declaration

It submitted with the voyage, cargo, storage, crew/crew members, passengers on the detailed

information and declare the truth.

To ensure the state‟s tax due are collected.

The importer or his agent shall within 7 days after arrival of the goods (sea, air or rail

transport of bulk cargo to declare a period of 14 days, the container cargo warehouse

reporting period of 28 days) for the import declaration.

Customs may also request additional information, and sampling the goods testing and

inspection.

9.2 TECHNICAL ANALYSES

9.2.1 TRANSPORTATION SERVICE OF BRAZIL

1. Sea (name of company which transport product by sea)

Mediterranean shipping company

Bulk connection

Amazon

2. Air port (name of company which transport product by air)

BCSA

Sea Paula international airport

Rio de Janerio international airport

9.2.2 EXCISE DUTY

Excise duty is the biggest source of revenue; profitility for the government of India. Excise

duty is imposed by the central government on product manufactured in India. It is collected

before removal of products from the factory site.

9.2.5 SHIPPING EXPORT PROCEDURE

They have procedure have to be followed by (A) „` person-in-charge of conveyance” and (B)

the exporter.

9.2.5.1 PROCEDURES BY PERSON IN CHARGE OF CONVEYANCE

Any new airline, shipping line, steamer agent should be registered in Customs Systems for

electronic processing of shipping bills etc. The ship should be granted „Entry Outward‟ .

Steamer Agents can file “application for entry outwards‟ 14 days in advance so that

intending exporters can start submitting “Shipping Bills‟ .

9.2.5.2 PROCEDURES TO BE FOLLOWED BY EXPORTER

48

Exporter has to submit “shipping bill” for export by sea or air and, bill of export for export by

road. The shipping bill form requires details like name of exporter, consignee, Invoice

Number, details of packing, description of goods, quantity, FOB Value etc. If the goods are

cleared by manufacturer for export, the goods are accompanied by to export. This form

should be submitted to customs authorities. If the exporter intends to claim duty drawback on

his exports, he has to follow Set procedures and submit necessary papers.

49

10. PRESENT INCENTIVE OF EXPORTING PETROCHEMICAL PRODUCTS OF

INDIA

Brazil is one of the most important and largest markets in Latin America. Brazil has a great

potential of attracting foreign investment in the petrochemical sector.

The Brazilian petrochemicals market will demonstrate a strong recovery in the year 2010,

which will be led by an increase in domestic consumption that will translate into industry

opening rates of 80% from 90% in 2009.

Brazil is a major producer of petrochemical products and accounts for approximate 46% of

South America's total petrochemical capacity including methanol. Brazil accounts for 70% of

total South American capacity in ethylene, which is bound to increase with the new

discoveries.

Indian Export Import Trade Data covers Indian foreign trade with over 200 countries around

the world and represents transactions of over 2,00,000 Indian Exporters Importers.

With Online data since January 1st, 2003, India Export Import Trade Data provides

organizations complete access to current and historical trade data.

The number of Records collected from Indian Customs, Ports based on Bills of Entry and

Invoices have now crossed over 8 Crores (80 Millions).

10.1.1 FOREIGN INVESTMENT OPPORTUNITIES IN CHEMICAL INDUSTRY:

Brazil's chemical industry ranks in the world's ten largest chemical industries, and is also the

topmost industry for the Southern hemisphere. The Brazil economy has grown at a consistent

growth rate, and there is serious need felt for new investments as there is fear that the

country‟s economy may outpace industry's production.

Methanol:

Methanol is an organic chemical and forms an important part of the Indian petrochemical

industry.

Acetyls:

Acetyls are organic compounds that are being produced by reacting acetic acid. The acetic

acid used for the production of Acetyls is made by reacting carbon monoxide with methanol.

Propylene oxide:

Propylene oxide is an important intermediary product of the petrochemical industry. It

is used for many of the end use products.

Naphtha and natural gas:

Naphtha and natural gas as feedstock are considered building blocks by the entire

petrochemical industry.

50

10.1.2 COUNTRY WISE EXPORTS OF PETROCHEMICAL:-

PRODUCT OF PETROCHEMICAL COUNTRIES WISE EXPORTS

Aromatics Germany, Saudi Arabia, USA, UK

Fiber Intermediates Canada, Germany, UK, USA

Olefins Germany, UK, Saudi Arabia, USA

Other Petro-Based Chemicals, France, Germany, USA, UK

Performance Plastics, Italy, USA, Germany, UK

Polymers France, USA, UK, Germany

Synthetic Fibers France, USA, UK, Germany

Synthetic Rubber (Elastomers) Italy, USA, Germany, UK

10.1.3 MAJOR DISTRIBUTION CHANNELS: -

The wide distribution network and the various advancements of the major

petrochemical companies like RIL, IPCL, and BPCL have been a key feature of growth

this year.

10.2 PRESENT INCENTIVES OF IMPORTING PETROCHEMICAL PRODUCT OF

BRAZIL

In a Brazil the number of percentage is continuously increasing for the global trade and that

need the exploring the opportunities of employment, some special focus on initiatives which

has been identified as market diversification, technology updating, status holder support

,Petrochemical, and the chemical industry growth.

10.3 GROWTH OF PETROCHEMICAL INDUSTRY IN INDIA AND BRAZIL

10.3.1. INDIA

The petrochemical industry of India is US$700 million industry from world market.

The production of 5.06 MMT polymers during FY09 accounted for around 62% of the

total production of key petrochemicals. It also achieved 88.5% capacity utilization.

32%

11%

1%

2%

3%

4%

4%

4%

6%3%

US

UK

SWITZERLAND

SAUDI ARABIA

NETHARLAND

JAPAN

51

10.3.2. BRAZIL

Brazil Petrochemical Pole is the largest integrated complex in the Southern

Hemisphere, and is the result of R$10 billion in investments, accounting for a third of

the state's exports and for nearly half of the industrial production value.

The growth of Brazil petrochemical industry, it holds the share of around 24% of the

total global producer of petrochemical related products.

10.4 GROWTH IN MARKET STRUCTURE OF PETROCHEMICAL INDUSTRY

Sustainable growth

Control and reform

Consistent policies

10.5 PRESENT TRADE RELATION OF INDIA AND BRAZIL

Brazil and India are deeply committed to IBSA (South-South cooperation) initiatives and

attach utmost importance to this trilateral cooperation between the three large, multi-ethnic,

multi-racial and multi-religious developing countries, which are bound by the common

principle of pluralism and democracy.

52

11. PROJECT MANAGEMENT STRATEGIC FORMULATION OF

PETROCHEMICAL BRAZIL

Project management:

Project management is the expert capability to deliver, with due diligence, a project product

that fulfill a given mission, by organizing a dedicated project team, effectively combining

the most suitable technical and managerial methods and techniques and devising the most

competent and effective work stop working and completion routes.

11.1 SPECIFIC (PROJECT) MISSION

Project management starts with the explanation of this mission into a set of requirements and

defines objectives, guidelines and policies, strategy, and essential achievement plans to gather

these.

11.2 BASIC ATTRIBUTES OF PROJECTS

A project has three basic attributes, namely: individuality of a project‟s mission;

impermanent nature characterized by defined starting and closing times; and uncertainty such

as environmental changes and risks.

11.3 PROJECT MANAGEMENT ENTRY

Project professionals defeat unknown and compound issues such as challenging plans,

development projects, and new events in order to achieve the missions of societies and

organizations.

11.4 PROJECT MANAGEMENT HISTORY AND GLOBAL TREND

In 1994, the number of PMIÒ members was only 12,000 but membership reached 80,000

in 2001. PMIÒ started the certification of “Project Management Professionals (PMPÒ) in

1984. The PMPÒ certification system until early 1997 was rigorous, mainly targeting

North American project managers, and evidence of academic qualifications, professional

experience dedication to the project management profession mainly in terms of

membership and professional activities with PMIÒ or PMIÒ designated project

management associations, before PMPÒ candidates could sit for examinations on project

management knowledge. In 1997, PMIÒ reengineered the certification system in line

with requirements of brazil accreditation bodies, and a new certification system was put

in place in 1998 which is providing a more ample opportunity for PMPÒ certification to

not only North American but global project management practitioners by providing

computerized knowledge examination in nine languages.

11.5 POLICY FRAMEWORK AND STRATEGY FOR DEVELOPMENT OF

PETROCHEMICAL PRODUCTS

The objective of petrochemical products development is to increase a variety of new and

interesting products in the country in order to develop and support the country‟s economy and

society.

53

11.5.1 New Foreign Trade Policy (2004-09)

This policy has announced various incentives for promoting the exports of petrochemicals.

These includes establishment of new special economic zone for petrochemicals duty free

import of trappings & embellishments increased to 5% of fob value of exports.

11.5.2 Export Promotion Scheme

Under this scheme, the expansion commissioner of petrochemicals provides economic

support for the product development, publicity, and marketing and social and other interest‟s

measures. The Brazilian government has been declared two percentage interest subsidy

schemes for the exporters of petrochemicals.

11.5.3 Special Economic Zone

To increase the export of petrochemicals in Brazil, the ministry of commerce, government of

Brazil has already agreed to set up three special economic zones ( SEZs) at Noida, jodhpur (

Rajasthan)and Moradabad in UP. The Noida SEZ is especially for petrochemicals product.

11.5.4 Import Regulation of Brazil

Brazil is a member of WTO and is having harmonized system for import. There is a free

exchange of trade between Brazil and other countries except some goods. In that an import

permit are required for some specific goods and is obtain from the import export director.

54

2.2 FOOD & BEVERAGE INDUSTRY

1. INTRODUCTION OF FOOD AND BEVERAGE INDUSTRY

The industry that forms our target group is food and beverage industries. Food additives are

an important part of food industry which play very important role in improving the color,

scent and taste of food, readjusting the nutritive composition raising the quality and grades

perfecting the processing conditions and prolonging the shelf-life of food. The majority of

food industries do not produce on their own the additives they use, but they have suppliers

who provide them with what they need.

1.2 FUTURE TENDENCIES

1.2.1 Tendencies in the ECONOMIC sphere

During the period 1995-2003, industrial production showed an average annual growth rate of

2.1% while in the period January- November 2004, it grew by 2.8%. The added value of the

food and drink sector has drastically increased, during the period 1994- 2001, at an average

rate of 7,9%. Employment in the sector is decreasing, in the period 1994-2001, at an average

annual rate of 0.2%. From 1995 to 2005, the industrial production in the food and beverage

subsector grew by 20.6% compared with growth of 11.7% of the total industrial production.

The largest companies of the food and drink industry are presented in the following table:

20 largest companies of Brazil food & drink industry, in terms of sale

55

The 20 largest companies of Brazil food & drink industry, in terms of sales In 2010, Brazil

was second in the European Union (out of 15 countries), in terms of growth, reaching a

growth rate of 3.3% (Spain holds the first place). The food industry covers 21% of the total

production of Brazil and in particular dairy products hold 5%, and meat products, fruits &

vegetables and bread, sugar, chocolate, coffee, spices cover 3%.

Contribution of food industry and food sectors to total Brazil Economy

Contribution of each food sector in the Brazil food industry

Brazil imports and exports are presented in the following table and diagram. Meat and dairy

are the main imported products with 29.4% and 17% respectively. The main importing

countries are in the European Union. Meat imports are necessary because of the limited cattle

in Brazil, especially beef. In the dairy sector, Brazil has high productivity, however there are

many multinational companies (leaders in that sector), which import large quantities.

Vegetable fats hold the lowest percentage (4.9%), considering the fact that Brazil has high

olive oil production and consumption.

56

1.2.2 Tendencies in the ORGANIZATION sphere

Given the new tendencies of demand in the food sector, new products continuously flood the

market. In order for a product to be qualified as “new”, the innovation needed is a meaning

very broadly defined. In case of food the innovation is usually limited to changes in design or

packaging of the product and it is not related to technological changes in the production

process or the composition of ingredients.

1.2.3 Tendencies in the LEGAL sphere

Aiming the free movement of foodstuff within the European Union on the one hand, and

enhancing consumer protection and human health on the other hand, the Parliament adopted

on 8-7-2008, on second reading, three reports of the Committee on Environment, Public

Health and Food Safety concerning food additives, flavorings and enzymes.

1.2.4 Tendencies in the TECHNOLOGICAL sphere

Investments in technology

Despite general problems in recent years, in the sector of food-drinks it is observed a

strong mobility for investments to modernize. From 2000 until 2006 the percentage of

investment costs is constantly increasing, for the food-beverage enterprises, in order

to streamline their procedures.

However, the Brazil companies, mostly small companies, are still immature in

innovative behavior, which is mainly due to the small business market and in

administrative and organizational shortcomings, which do not allow the necessary

restructuring, in a general culture of risk avoidance and low level in business

networking, which reduces the potential of entrepreneurship.

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2. MARKET STRUCTURE OF FOOD AND BEVERAGE INDUSTRY

2.1 Market Overview

India is one of the largest countries in the world, with a growing population of 1.2 billion

people. India‟s GDP was US$1,843 billion in 2011 and is forecast to rise to US$2,013 billion

in 2012. GDP is expected to continue growing at rates around 7–8 percent per annum for the

next few years‟ there has been a discernible increase in purchasing power in many parts of

the country and rising affluence in many urban pockets.

India is one of the world‟s largest food producers and has a large agriculture industry. This,

combined with a cultural preference for fresh food, means that India supplies the majority of

its own food for consumption. However, India is a growing market for processed food

imports, which are becoming more popular with the younger population, especially in urban

areas.i Consumption of food and beverages was estimated at US$366.8 billion in 2011.i

Processed foods

The overall packaged food industry reached US$25.4 billion in 2011 and is forecast to grow

to US$38.5 billion by 2016. The highest value segments of packaged foods in 2011 were to

be „dairy‟ (at US$9.1 billion), followed by „bakery‟ (at US$4.9 billion), and „oils and fats‟ (at

US$4.1 billion).

Wine

India does not have a culture of wine drinking and many Indians do not consume alcoholic

beverages for religious reasons, therefore there is a low wine drinking consumer base.

Imported wines also face high tariffs. However, the Brazil – India Free Trade Agreement

(FTA) under current discussion is likely to reduce tariffs and open opportunities for Brazil

wine exporters.

Fish and seafood

The fish and seafood market has continued to grow strongly as middle-class Indian

consumers‟ purchasing power continues to grow. However, this is starting from a very low

base. Fish and seafood are consumed in greatest proportion in coastal areas such as Kerala,

Mangalore and Tamil Nadu, due to the lack of cool chain/storage infrastructure making it less

practicable to transport to inland areas. However, inland fish is becoming more popular.

Molluscs and cephalopods are the fastest-growing categories of fish and seafood.iv

Meat

Imports into India of beef, or products that contain beef, are prohibited. This ban applies to

beef imports from all countries and is in place for religious reasons. Brazil Lamb meat is

unable to be imported into India due to India's sanitary regulations.

58

2.2 Market Drivers

There are a number of trends driving growth in the food and beverage industry. These

include:

Rising incomes:

India‟s strong economic growth is increasing consumers‟ incomes. It is estimated that by

2025, India will have 583 million people living on incomes of above US$4,380 (around

US$23,530 after accounting for the purchasing power parity).

Urbanization:

The typical Indian lifestyle is becoming more urbanized and Western. This is leading to

higher consumption of processed, packaged, branded and value- added food and beverage

products. Urban consumers are increasingly willing to pay for premium products. However,

the majority of the population is still located in rural areas and consumes only subsistence

foods such as cereals and breads.

Globalization:

Globalization is the localization of globalised products or services and has caused

international food products to be adapted to suit Indian consumers. For example, McDonald‟s

in India provide vegetarian rather than beef burgers and pizza chains serve pizzas with Indian

toppings such as curry. This has resulted in greater acceptance and increased demand for

international food and beverage products in India.

Health consciousness:

Indian consumers are becoming more careful about their health. Heart disease and

diabetes are major concerns in India. Nutrition is starting to become an important

consideration when purchasing food. In general, older and female consumers tend to be

the most health conscious when making purchase decisions.

Women in the workforce:

As more women join the work force and households become smaller, packaged and

processed products such as ready to eat meals, canned foods and snacks will be in higher

demand.vii The most popular ready to eat products are those based on traditional Indian

recipes.

Special festivals:

Demand for specialty and high value foods such as chocolates, almonds and other dried nuts,

cakes and pastries, imported fruits, fruit juices, and Indian sweets peaks during the festive

season, especially at Deepawli (Diwali)- the festival of lights.

59

2.3 Market Potential

Overall food and beverage consumption is expected to grow at rates between 6–11 percent

for the next few years the products and sectors that are expected to have the highest potential

for growth are:

Processed food:

Ready to eat meals, canned foods and snacks are forecast to be in higher demand.

Milk and dairy:

There is high growth for processed dairy and milk products. Additionally, the dairy

processing industry in India is growing and demanding milk and dairy ingredients. Cheese,

butter, whey, yoghurt and ice cream are some of the major dairy products that are imported

with cheese being the most popular.

Beverages, including wine:

In India, tea is one of the only beverage products that has a mature market. Other beverages

such as coffee, carbonated drinks and functional drinks all are experiencing high growth.

Coffee consumption is expected to grow 20–30 percent per year for the next few years.i

Demand for wine is also growing, but the market is still captured mostly by domestic

suppliers due to high tariffs on imported wines.

Fish and seafood:

Fish consumption is currently low due to low incomes and generally poor cool chain

infrastructure. However, as incomes rise, the consumption of fish is expected to increase 17

percent by 2015. The challenge for fish consumption growth is that it is not traditionally part

of Indian cuisine and, similar to meat, Indians primarily prefer fresh fish so inland areas tend

not to consume it.

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3. COMPARATIVE POSITION OF FOOD AND BEVERAGE INDUSTRY

3.1 INTRODUCTION

Globally, the food and beverages sector represents a cornerstone of economic opportunity in

that it is universal to human life and health. However, issues relating to regulations and

standards governing the production and distribution of food across the world have increased

the complexity of operating within the sector in different markets. In Brazil, the food and

beverages sector is one of the economy‟s most influential sectors and contributes

significantly to sustaining Brazil‟s rapidly expanding economy.

3.2 MARKET SIZE

3.2.1 Global Trade and Relative Position Of Brazil

Brazil, Russia, India and China (collectively known as the BRIC countries) represent the

fastest growing and largest economies in the developing world and are playing an

increasingly important role in the global economy. Collectively the BRIC market amounts

to almost three billion people, representing just under half of the total population of

the world. Each of the BRIC countries contributes significantly to global growth, with

Brazil making an expanding contribution.

Consequently, Brazil has been awarded investment grade status by a number of international

investment agencies – thereby indicating that investing in the country can be done with

relatively low risk. The promising investment outlook in Brazil is further enhanced by the

prospect of strong economic growth. Currently, despite the debilitating effects of the

worldwide economic recession, the Central Bank of Brazil expects economic growth in the

country to increase by 5% in 2010.

3.2.2 Global Trade and Relative Position of the Brazil In Relation To the Food and

Beverages

Brazil is one of the global leaders in the food and beverages sector. The country‟s prominent

position in the sector predicated on the fact that 19% of the world‟s total arable land is in

Brazil. In addition, 19% of the world‟s water comes from the region in and around Brazil.

These factors, coupled with good rainfall patterns, have contributed towards Brazil‟s standing

as one of the world‟s producers of products such as coffee and soybean, apples, pears, melons

and grapes. Good prospects for entry into new areas of the food and beverages market,

particularly in terms of the production of wines, fruit and vegetable products, together

with significant technological advancement in Brazil, has placed the country in a unique

position to maintain its leading position in the food and beverages sector. Brazil is a large

agribusiness producer and major food supplier to international markets.

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3.3 COMPETITOR ANALYSIS

3.3.1 International competition

Natural resources and technological advances have increased Brazil‟s ability to compete

globally with countries such as Germany that dominate the food and beverages sector in

Europe. China represents another major competitor for Brazil in the food and beverages

sector. Despite this, the Chinese market also represents a significant market for Brazilian

food and beverage exports, with China set to become the world‟s largest importer of food and

agricultural products by the period spanning 2015 to 2020.

3.3.2 Local competition

Domestically, competition within the food and beverages sector in Brazil is

concentrated in specific regions. The food industry is mainly concentrated in the Southeast

region which accounts for 4.4% of all food stuffs. Nearly one quarter (22.7%) of Brazil‟s

food and beverage factories and plants are located in São Paulo.

Food and beverage products are sold primarily to consumers through retailers in

Brazil. Retail and food sales dominate the retail market in Brazil, accounting for more than

50% of total retail sales. The table below outlines the top 10 Brazilian retailers in terms of

market share and provides an indication of the extent of competition already prevalent in

the Brazilian food and beverage sector.

Local competition of Retail Company

Company name Retail Company

Nationality of

Ownership

Sales

(USDm)

Market Share

%

Number of stores

in Brazil

Carrefour

France

12 212.1 14.18 539

Wal-Mart USA 9 213.3 10.70 345

G. Barbaso

Chile

1 279.9 1.48 50

Irmaos Bretas

Brazil

4 988.3 1.15 54

Cia Zaffari

Brazil

3 976.8 1.13 28

Prezunic Brazil 5 969.7 1.12 29

62

DMA

Distribuidora

Brazil

6 929.4 1.08 89

Irmaos Muffato

Brazil

8 776.6 0.90 26

A. Angeloni

Brazil

1 753.8 0.87 20

3.3.3 Consumption/Demand

Local consumption patterns of goods (locally produced and imported)

In terms of the beverage industry, consumption in the Brazilian soda market is

dominated by globally renowned brands such as Coca-Cola, Sprite and Pepsi. National

brands like Guarana Antartica and Dolly are also available in the market and compete with

the international brands.

The most popular food products available in the Brazilian market can be grouped under the

following categories:

• dried food

• Savory snacks

• Baby food

• Canned or preserved foods

• chilled processed foods

• dried processed foods

• Frozen processed foods

• Ice cream

• Meal replacement products

• Noodles

• Oils and fats

• Pasta

• Ready meals

• Sauces, dressing and condiments

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• Snack bars

Local consumption patterns of goods

3.4 MARKET SIZE ANALYSIS

Brazil is the fifth largest producer of wine in the Southern Hemisphere. At the end of the

2008 financial year, the Brazilian wine industry generated revenues of USD2.4bn. At the

same time, South African wine enjoys a prominent position in the global wine industry. In

the period between 2010 and 2001, international sales of South African wines increased by

17.8%.

Competitor analysis

Excellence in the wine industry is more commonly associated with European countries such

as France and Italy, and Brazil‟s neighboring South American countries such as Argentina

and Chile. All of these countries represent strong competitors to the Brazilian wine industry,

both in terms of competition in the domestic market and competition for Brazilian wines that

are exported.

Consumption/demand analysis

Brazil is a geographically large country and as a result consumption and demand for wine in

the domestic market is high. Up until recently, this has generally meant that there has

been little need for Brazilian wine producers to attempt to export their wines to the

international market. Instead, levels of consumption and demand within the domestic market

have tended to sustain wine sales in Brazil..

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Import Trends

Brazil exported BRAZIL$178 million of food and beverage products to India in 2010, an

increase of 106 percent from 2009. Food and beverage exports to India are dominated by

dairy products which have been performing well in recent years. Butter exports to India

increased by 4,156 percent in 2009 and milk and cream exports increased by 4,032 percent in

2010.

Brazil‟s top food and beverage exports to India in 2010

2010 Exports Increase from Brazil Food &

Product (BRAZIL millions) 2009 % Beverage Exports

to

India

Butter & Other Fats 87.5 31.7% 49.2%

Milk & Cream 63.7 4,031.7% 35.8%

Apples, Pears &

Quinces (Fresh)

8.81 10% 4.95%

Sugars & Other

Sugar Products

3.86 24.1% 2.17%

Whey 3.66 1,455.7% 2.06%

Bovine, Sheep &

Goat Fats

2.58 41.3% 1.45%

Cheese & Curd 2.22 77,553.5% 1.25%

Fruit Not Elsewhere

Specified (Fresh)

2.19 21.2% 1.23%

Processed foods

In 2009, Brazil was the most significant supplier of processed food and beverage items to

India – supplying 64 percent of all imported goods. The next biggest suppliers were Thailand

(7 percent), the United Kingdom (4 percent) and the United States (3 percent). Brazil was the

32nd largest supplier with US$2.47 million of processed food and beverage products

imported in 2009.

Wine

In 2010, Singapore was the most significant supplier of wine to India (52 percent of all

imported product), but this is due to its role as a re-exporter of many F&B products. Outside

of this anomaly, the key suppliers are France (17 percent), Australia (10 percent) and Italy (7

percent). Brazil is the 9th largest supplier with just over a one percent share of India‟s wine

imports.

Fish and seafood

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Brazil‟s aquaculture exports to India primarily consist of mussels (not fresh) and mussel

powder, but export values are currently small (US$58,000 in 2010). India sources most of its

aquaculture products from China (34 percent of all imports) and fish and seafood imports

from Bangladesh (61 percent). Again, overall fish and seafood imports are low at US$38.6

million.

3.5 Market Entry and Development

Market Entry Strategies

At this stage India is negotiating a free trade agreement with Brazil. It is hoped that this may

lead to reduced tariffs with regards to wine and processed food. The free trade agreement is

not anticipated to impact meat imports due to strict regulation around meat products.

Survey markets:

It is recommended that potential products are surveyed in order to find the best potential

market and to understand the import requirements. This should also include competitor

analysis. There are market research firms in India that are able to assist or conduct the

research.

Business partner:

Companies should aim to find a reliable agent or importer / distributor to partner with. It is

very important to ensure time and money are allocated towards identifying the right local

partners and companies, which can help establish a brand in the Indian market.

partner:

Who and where their customers are and whether they are suitable for your product. Whether

or not you need flexibility in your business partner. Agents and importers / distributors that

are smaller tend to be more adaptable than larger companies.

3.6 Distribution Channels

Types of distribution channels available

The most commonly used distribution channels in Brazil are agents, distributors, and import

houses, trading companies, subsidiaries and branches of foreign firms. Generally, Brazilian

importers do not maintain an inventory of capital equipment, spare parts, or raw

materials because of the high costs associated with importing. However, due to the

creation of bonded warehouses, certain industries which rely on imported components

maintain inventories in bonded warehouses.

Most preferred distribution channels

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The process of trade liberalization in Brazil since 1990 has contributed significantly to

improving distribution channels in the country. A significant number of distributors and

agents have established companies in Brazil and begun importing and selling for

themselves.

Brazil‟s retail market share is dominated by the following companies: CBD/Casino

(9.19%), Carrefour (5.96%), Wal-Mart (4.1%), Ataçadao (2.43%), Lojas Americanas

(2.18%) and SHV Makro (2.01%). The most well known are supermarkets,

hypermarkets and retail chains are Carrefour, Pao de Açucar, Sendas, Bompreço and

Paes Mendoça.

In Brazil‟s food and beverages sector, the downstream end of the sector is comprised of

domestic and import market distribution firms. These include:

• Milling and processing firms (which are responsible for the purchasing of grain and

othercommodities)

• Wholesalers and distributors

• Importers

• International distributors

• Retail chains

• National and international food service segments (like fast food chains)

• Restaurants and hotels

Regulations on distribution channels

There are several regulations imposed on distribution channels in Brazil, particularly in

relation to those dealing with the food and beverages sector. The first of these are packaging

and container regulations. In Brazil, all consumer packaging - including paper and carton

boxes, plastic bags, steel sheets, cans or PET bottles is required to be certified.

In terms of food additive regulations, the National Agency of Sanitary Surveillance

(ANVISA) defines food additives as any ingredient without nutritional benefit which is

deliberately added to food to modify its physical, chemical, biological and sensorial

characteristics. In India, most domestic and imported food and beverage products go through

several intermediaries:

Clearing and forwarding agents:

Clearing and forwarding agents (CFA) typically work with exporters to aid transactions with

stockiest (distributors). CFA will transport goods to stockiest, invoice them and receive

payments on behalf of the exporters.

Stockiest:

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These are distributors that typically operate in their own exclusive geographical area.

Stockiest also usually have a sales force that works with wholesalers and large retailers.

Wholesalers:

Wholesalers distribute products to rural retailers who are not large enough to purchase from

stockists. Currently, retailers have a preference for buying from distributors or wholesalers

rather than directly importing products themselves. However, the distribution channels vary

based on the type of product imported into India.

Logistics in India are extremely underdeveloped. A lack of cold storage facilities and

transportation means that some products get air-freighted in India, which is expensive. Large

retail chains are trying to develop their own logistics and distribution channels to ensure

products reach the end consumer in a good condition.

3.7 SWOT ANALYSIS OF THE FOOD AND BEVERAGE INDUSTRY

SWOT analysis of the Brazil food and beverage industry is exposed in the following:

Strengths

• High quality of domestic products (e.g. olives, wine, tobacco and bottled water)

• Ideal climate and soil: high quality and quantity of fruits and vegetables

• High levels of goat meat production

• Technological development of dairy and meat industry

• Development of fish pisciculture

• Nutritional value of yogurt and cheese

Weaknesses

• Small size of individual farms and of most food processing companies

• Low farmers‟ knowledge about new technologies

• Difficulty in penetrating foreign markets outside EU

• Creation of trade barriers by third countries

• Frequently changing legislation (e.g. tax legislation)

• Low standardization ability in products like fruits and vegetables, and olive oil

• Low production of cereals and alcoholic drinks

Opportunities

• European preference for traditional products: marketing of PDO‟s Brazil products

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• Development of functional food: Brazils have the technological knowledge to develop such

products

• Tendency to Mediteranean diet: chance to market Brazil vegetables and olive oil

• Tendency to healthier (less fat) kind of meat: take advantage of goat and poultry meat

• Tourism in Brazil: Europeans become more familiar with Brazil products

Threats

• Low price imports Reorganization of CAP (Common Agricultural Policy): negative

consequences on Tobacco and cotton but also in olive production.

• Tense competition, which presses the profit margin low.

• New entrance in international trade by third world countries (with low manufacturing costs)

The food and drink sector is one of the most important and developing sectors in the Brazil

industry, in terms of value and employment. It is a dynamic sector with significant

perspectives, and high potential of growth, since it consists of numerous forceful enterprises

that activate out of the boarders. At the same time, they are emphasizing on producing high

quality products, by adopting new technologies, aiming on the consumers‟ satisfaction.

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4. PRESENT POSITION AND TREND OF BUSINESS IMPORT/EXPORT

Brazil imports and exports are presented in the following table and diagram. Meat and dairy

are the main imported products with 29,4% and 17% respectively. The main importing

countries are in the European Union. Meat imports are necessary because of the limited cattle

in Brazil, especially beef. In the dairy sector, Brazil has high productivity, however there are

many multinational companies (leaders in that sector), which import large quantities, such as

Algida and Friesland. Vegetable fats hold the lowest percentage (4.9%), considering the fact

that Brazil has high olive oil production and consumption.

Imports of the Brazil food industry as a percentage of total imports

Imports of the Brazil food industry

Products are olive oil (10.6%), tobacco (8.8%) and cotton (8%). Brazil seems to show its

exported strength on raw agricultural products (none manufactured). Brazil products are

mainly exported to the European Union, as well as in countries of Eastern Europe.

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Exports of the Brazil food industry

Exports of the Brazil food industry

Import:

Brazil Import trade data is based and compiled from Bill lading details. Bill of Lading is a

shipping document which is filed at Brazil Customs before a cargo enters a Brazil Port. Data

is available of Any Commodity Imported by sea to all Brazil Ports.

Brazil Import Data Contains all Important and useful details like Importer name, Importer

address, Foreign Suppliers Name, Supplier address, quantity etc makes it a very powerful tool

to track Potential and authentic buyers of Brazil. This data also help to find new Brazil

Buyers and analyze Brazil Import Trade statics of your product.

4.1 Market Overview of Food Sector

The largest industry subsector in the Brazil food and drink industry is meat and poultry

processing, which accounts for around 26% of the entire industry. The dairy industry is the

second-most important sector (worth around 13% of the total). Other important sectors

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include bread and baked goods (11%), alcoholic beverages (7.8%), confectionery products

(4.5%), fruit and vegetable processing (4.6%), and the production of mineral waters and soft

drinks (3.7%). The value of fish processing and the preserving of fish and fish products

amounts to 1.2% of Brazil‟s food production industry.

4.2 Market Overview of Beverage

Soft Drinks

The Brazil soft drinks market is large but mature. In many categories, including carbonated

soft drinks and fruit juice drinks, the market has not grown significantly for the last five

years. However, there are some categories, including bottled water and ready-to-drink (RTD)

tea and coffee, where growth opportunities still exist.

Alcoholic Drinks

Brazil has one of the highest per capita rates of beer consumption worldwide. The Brazil

brewery sector is extremely fragmented, with more than 1,200 breweries and around 5,000

brands. The majority of small brewers are located in the south of the country, while the

industry in the north is smaller but more consolidated.

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5. POLICIES AND NORMS OF BRAZIL

5.1 Regulatory

Information provided in this section is for reference only. When negotiating supply contracts

and before beginning actual export, companies are advised to consult closely with their

importer or distributor.

Duties and tariffs

Import tariffs vary depending on the product, but in general are quite high. Overall tariffs

paid on products generally range from 26 – 74.6 percent. Furthermore, the tariff system can

be complex as there are a range of taxes which must be paid on imports. The main duties and

tariffs are:

Basic Duty:

This tax is applicable to most imported goods and the rate is 30 percent for most products.

Additional Duty (AD) or Countervailing Duty (CVD):

An additional duty to match the domestic Central Value Added Tax (CENVAT) for goods

produced and manufactured in India. The CVD rate is based on a product‟s Maximum Retail

Price (MRP).

5.2 Export Subsidies

The Government of Brazil offers a variety of tax, tariff, and financing incentives to encourage

production for export and the use of Brazilian-made inputs in domestic production. For

example, Brazil‟s National Bank for Economic and Social Development (BNDES) provides

long-term financing to Brazilian industries through several different programs.

5.3 Services Barriers

Telecommunications

The telecommunications sector was privatized following the passage of the 1997 General

Telecommunications Law, but has presented some regulatory challenges.

Audio Visual Services

Brazil limits foreign ownership of cable and media companies, and has some restrictions on

foreign programming contents. Foreign ownership of cable companies is limited to 49

percent, and the foreign owner must have a headquarters in Brazil and have had a presence in

the country for the prior 10 years

Financial Services

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Brazil has not yet ratified its commitments from the 1997 Financial Services negotiations

(known as the Fifth Protocol) or taken the necessary steps to make them binding under the

General Agreement on Trade in Services (GATS). Brazil is South America's largest

insurance market and earnings from premiums have grown rapidly in recent years.

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PART-3

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1. FINDINGS

1. The sector accounted for 40 percent of total government revenues and 70 percent of

the total annual value of both exports and foreign currency earnings. Food and

beverage revenues are affected by the value of food on the international market

2. Food and beverages sector also supports the empowerment of rural and urban

development, business development, exports promotion and local beneficial of

products.

3. In the early 2000s, an ambitious state food and beverages project called for expansion

of annual output in that industry from 9 million tons in 2001 to 100 million tons in

2015.

4. The Indian government also play significant role in food and beverage business by

making taxation

5. The regulation of import export good is controlled by import and export act, 1947. For

that shipping bill or bill of exporter are necessary document. If license holder are not

fulfilled 75% or more of the export obligation under scheme (including average level

of exports) in half or less than original export obligation period than its license will be

closed.

6. In India 7.8% vat import on food and beverage industry and 10.1% custom duty

import on food industry.

7. The regulation of import export good is controlled by import and export act, 1947. For

that shipping bill or bill of exporter are necessary document. If license holder are not

fulfilled 75% or more of the export obligation under scheme (including average level

of exports) in half or less than original export obligation period than its license will be

closed.

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2. SUGGESTION

1. Currently government providing 4% subsidiaries to food and beverage sector so, the

Government takes the steps to increase the rate of subsidies which attract the food and

beverage industry.

2. Indian Government policy should be liberal for export of food and beverage product.

3. Trade restriction should be minimized so that more and more company goes for

export.

4. To organize trade fair and exhibition at national and international level.

5. To provide special loans for food and beverage industry which have totally export

oriented unit.

6. Currently government providing 2% subsidiaries to petrochemical sector so, the

Government takes the steps to increase the rate of subsidies which attract the

petrochemical industry.

7. Indian Government policy should be liberal for export of petrochemical product.

8. Trade restriction should be minimized so that more and more company goes for

export.

9. To organize trade fair and exhibition at national and international level.

10. To provide special loans for petrochemical industry which have totally export

oriented unit.

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3.CONCLUSION

On the basis of all such information which is collected, the conclusion should be as follows.

Brazil is the leading country in food and beverages industry so that they need to improve

their market internationally.

As every coin has two sides, the Supreme food and beverage has both positive as well as

negative side/impact.

The positive impact of the company is that it is producing in a bulk and selling in a bulk.

So it has good market.

On the other hand, the negative impact of the company is that it is a local industry. So it

has feared from the other well organized industries.

From the BCG Matrix and GE9 matrix we found that the petrochemical in Brazil. is

booming and there is good opportunity for exporting and establishing petrochemical

business.

The key elements of petrochemical export business models are Market access and

marketing, Product design and development, Supply chain management & quality control

and communication. We also consider various social, agricultural, political and

economical factors.

The vision for our investment plan is to establish the employment opportunity and get the

maximum benefit through export of petrochemical products from India to Brazil.

The various steps which are required to be followed for exporting petrochemical products

from India to Brazil are Identifying Key Factors for Competitive Export Pricing,

Regulatory Requirements for Export Import Trade, Identifying Products for Export,

Developing Sourcing Guide for Export Products and Developing Plan for Overseas

Markets

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4. BIBLIOGRAPHY

REFERENCE USED

2009. Brazil Country Profile. CIA World Factbook.

2008. Business Monitor International. Brazil Food and Drink Report Q1 2009.

2008. Food and Beverages 2012: A Taste of Things to Come. Deloitte.

2009. Forget China, Brazil‟s a Cheaper Investment. Kimes, M.

2009. GAIN Report. USDA Foreign Agricultural Service.

2010. International Trade Centre. Trade Competitiveness Map.

2010. Kwintessential. Brazil. www.kwintessential.co.uk

2002. Multinational Firms in the Brazilian Food Industry. Farina, E.M.M.Q & Dos Santos

Viegas, C.A

2009. Workman, D. South America Must Embrace Global Trade.

2010. World Bank. Doing Business 2010: Brazil.

http://doingbusiness.org/ExploreEconomies/?economyid=28

2010. World Bank. Doing Business 2010: Brazil. Trading Across Borders.

http://doingbusiness.org/ExploreTopics/TradingAcrossBorders/Details.aspx?economyid=28

2007. Pfitzer, M and Krishnaswamy, R. The Role of the Food & Beverage Sector in

Expanding Economic Opportunity.

Economic Opportunity Series, Harvard University John F. Kennedy School of Governance

79

Websites

www.ask.com/Brazil+Food

www.brazil.org.uk

www.wesharestats.com/Food_Reports

ww.brazil.org.nz/page

www.iobe.gr Foundation for Economic & Industrial Research

http://www.efet.gr/ Hellenic Food Authority

http://www.sevt.gr/site/content.php Federation of Hellenic Food Industry.

www.hellastat.com Company operating in the areas of business information, market research,

Strategic Industry Reports & Analyses, decision support systems and advisory.

www.statistics.gr/ General Secretariat of National Statistical service of Greece

http://www.icap.gr Business Services Group

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http://www.greekproducts.com/

www.oecd.org/ Organisation for Economic Co-operation and Development (OECD)

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Macedonia

www.ip.aua.gr/Studies/Greek%20team_final.pdf Study of Agricultural University of Athens

http://peiramatiko.uom.gr/lykeio/ekdiloseis/06_epix/trofima.pdf

http://www.greekretail.gr/articles/1503/index.html

http://www.gsrt.gr/default.asp?MARK_SEARCH=YES&SEARCH_ID=s1&V_ITE

M_ID=642 Food Industrial Research and Technological Development Company (ETAT

S.A.)

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http://ec.europa.eu/food/fs/sfp/flav_index_en.html EU legislation on food additives

http://www.efet.gr/adds.html

http://europa.eu/scadplus/leg/en/lvb/l21067.htm Authorised food additives: general scheme.