international-business-brazil

1. República Federativa do Brasil
(Ordem e Progresso)
Thakur Institute of Management Studies and Research
(Saturday , 17 September, 2016)
Presented by
Mr. Manish Tripathi ( I – 15-18-19)
Ms. Bandana Kotal (H-15-18-4)
Ms. Karishma Vazirani(H-15-18-11)

2. History of Brazil
• The history of Brazil starts with indigenous people
in Brazil
• The first European to colonize Brazil was Pedro
Álvares Cabral on April 22, 1500 under the
sponsorship of the Kingdom of Portugal
• From the 16th to the early 19th century, Brazil was
a colony and a part of the Portuguese Empire
• On September 7, 1822, the country declared its
independence from Portugal and became Empire
of Brazil

3. Brazil Economic Data

4. Introducing Brazil
• Capital: Brasília
• Largest city: São Paulo
• Official languages: Portuguese
• 5th largest country by size
• Ethnic groups (2010)
• 47.73% White
• 43.13% Pardo
• 7.61% Black
• 1.09% Asian

5. Brazil – Home to Amazon rain forest

6. Brazil Macro Economic Indicators
• Population: 205,338,000 (2015, World 5th )
• Population Density: 23.8/km2 (190th)
• GDP (nominal) 2016 estimate
• Total: $1.534 trillion (9th)
• Per capita: $7,447 (69th)
• GDP (PPP) 2016 estimate
• • Total: $3.101 trillion (7th)
• • Per capita: $15,048 (77th)

7. Brazil Macro Economic Indicators
• Currency: Real (R$) (BRL)
• 1 US$= 3.34 R$
• Bank interest rate: 14.25%
• Cash Reserve Ratio: 45 %
• Unemployment Rate 11.6 %
• Positive balance of Trade: USD 4.14 billion in August
2016
• HDI: 0.755, high · 75th (2014)
• Corporate Tax Rate: 34 %
• Personal Income Tax Rate: 27.5 %

8. Brazil Annual Growth Rate

9. Brazil Annual Inflation Rate

10. Brazil Top 5 Exports
(2015)

11. Oil seed: US$21.2 billion (11.1% of total exports)

12. Ores, slag, ash: $16.7 billion (8.7%)

13. Oil: $13.7 billion (7.2%)

14. Meat: $13.1 billion (6.8%)

15. Machines, engines, pumps: $11.4 billion (5.9%)

16. Brazil Top 5 Imports
(2015)

17. Oil: US$24.9 billion (14.5%)

18. Machines, engines, pumps: $24.8 billion (14.5%)

19. Electronic equipment: $20.4 billion (11.9%)

20. Vehicles: $13.6 billion (7.9%)

21. Organic chemicals: $9.3 billion (5.4%)

22. Indian Company in Brazil

23. Shree Renuka Sugars Limited
• Founded in 1998
• India's largest sugar refiner and ethanol producer
• Segments: Sugar, ethanol and power
• Accounts for 20% of India's international sugar
trade
• It has 21% market share in India's fuel ethanol
market
• The Company produces power from bagasse (a
sugar cane by product) for captive consumption
and sale to the state grid

24. Shree Renuka Sugars in Brazil
• Largest sugar producing & exporting country: Brazil
• Largest sugar consuming country: India
• Operations in Brazil are favoured by low operating
cost, high scalability and highly conducive climatic
conditions
• Between November 2009 and July 2010, Shree
Renuka bought out two sugar companies—Vale Do
Ivai SA Acucar e Alcool and Equipav—in Brazil for a
combined $332 million

25. Results of Shree Renuka Sugars in Brazil
• Renuka Vale do Ivai has reported profit till FY2012-
13.
• In March 2015, the company reported net loss of
Rs295 crore ($45 million) on revenues of Rs5,744
crore ($876 million)
• For FY15, the consolidated debt of parent
company Shree Renuka Sugar was at Rs.8,896.72
crore
• In September 2015 its both Brazilian subsidiaries
have filed for bankruptcy protection

26. Reasons of failure of Shree Renuka Sugars
In Brazil
• Brazil faced a severe drought in 2011 and then again in
2014
• The Brazilian real has depreciated over 30% in 2015
against the US dollar
• Brazil is grappling with a high budget deficit, political
instability, increasing unemployment and a rising
inflation
• Sugar prices globally have been spiralling downwards
for the last few years. The main reason for this fall is
an excess supply globally