Iycee Charles de Gaulle Summary 1. Brazil are same, thus helps in

1. Brazil are same, thus helps in

Introduction: The Brazilian Corporate Landscape

Advantages of working in Brazil

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Time zones of North America and Brazil are same, thus helps
in better coordination among the global employees

Growing domestic market

Rapid pace with which IT industry in Brazil is increasing

Massive economic power lies in Brazil, being the 10th
largest economy and also 5th largest country in the world

Brazilian Culture

Brazilians Prefer soft-spoken clients, rather than aggressive
clients to work with

They generally are more comfortable if one knows their
language more clearly. They are not so good at English, thus becomes a cherry
on the top of pie, if any client knows their own native language i.e.

Businesses in Brazil are built and developed based on the
relationships. They give a lot of value to personal connections and contacts

For businesses, its cost is relatively higher but has its own
perks if done correctly

While visiting Brazilian homes, taking a present or flowers
is its tradition. But one thing to be kept in mind is that the gift or flowers
shouldn’t be of black or purple colour as they are used during funerals

Business Etiquettes

During business meetings, exchange of business cards are
necessary for introducing one another. Also having a Portuguese translation of
the business card is highly appreciated

They don’t like the Indian way of negotiating prices

Prefer to develop relations and follow the policy of give
respect and take respect

Boss of the company is give utmost respect and the decisions
of boss are final

Brazilians are particular about their dress code.
Executive-level people generally wear 3-piece suit

In Brazil, its common to hire a middleman in business called

No stress on punctuality, for meetings they usually arrive

In Brazil, Deadlines are not followed strictly and
flexibility is considered in positive sense

JOGO DE CINTURA: Last minute planning, here employees are not
keen on long term planning, they believe in short term planning specifically
today and tomorrow


Body Language

They appreciate good eye contact and backslapping is very
common among Brazilians

In case of disinterest, they show it by clapping using the
back of one hand and the other hand’s palm

O.K. – using this in Brazil is considered rude way of talking
or writing

Greetings and Conversation Etiquettes

Common form of saying hello- “como vai”, “tudo bem”, etc.
When meeting for the first time, it is customary to say “Muito Prazer” meaning
my pleasure

When addressing a person, it is considered appropriate to
address that person with his/her surname or title

Gossips they prefer: Football (they love conversing about
football), songs & music, relationships, etc.

They generally don’t like to talk about politics or religion,
they consider Argentina as their enemy

Backslapping, handshakes, hugging are common form of

Work place & Hierarchy at work

General working hours at
Brazilian offices are from 8:30 till 5 in the evening. For business meetings,
it is required to appoint or schedule the meeting 2-3 weeks before the meeting
and also their meeting are not too formal. They love to socialise and spend
much time understanding each other and building up relations and connections
are a very important aspect for businesses.

Also, the hierarchy in
Brazil is not horizontal, rather it is vertical where the decisions taken by
the head of the office are final.


India Brazil Relations

Historical Background

Deep-rooted historical
ties between India and Brazil can possibly be traced back to the Asian
migration to South America, which contributed to the evolution of the
indigenous people of Americas. Between the 16th -18th centuries, Brazil and
Goa, both outposts of the Portuguese imperialist outreach, had bilateral
exchanges, which found reflection in the flora and fauna, food and dress as
well as folk traditions of Brazil. The interesting similarities between folk
traditions of Boi Bumba in the north of Brazil and the Poikam Kudharai of South
India, for instance, draw attention to the strong under currents of cultural
and popular exchanges that have taken place in the centuries by-gone. The
telecasting of tele-novella called ‘Caminho das Indias’ (Paths to India) made a
great impact in enhancing the consciousness of India in the Brazilian public
mind. India’s contribution to farming in Brazil is remarkable, though
relatively a lesser known facet of our bilateral relationship. The bulk of
Brazilian cattle livestock is of Indian origin. The ‘Ongole’ strain from Andhra
Pradesh led to the production of the zebu variety known in Brazil as ‘Nelore’.
Brazil still imports fresh embryos from India to rejuvenate its cattle breed.
India opened its diplomatic mission in Rio de Janeiro on May 3, 1948, which
later moved to Brasilia on August 1, 1971. The Indian Consulate General in Sao
Paulo, the industrial and commercial hub of Brazil, was opened in 1996. The
Brazilian Embassy has been functional in India since 1949 and has Consulate
General in Mumbai.

Indian Community in Brazil

 The Indian community of PIOs/NRIs in Brazil is
small, numbering about 2000 persons. A majority of them lives in Sao Paulo, Rio
de Janeiro and Manuas. The community mainly comprises of professionals and businessmen
and some scientists/researchers in agriculture, physics, etc. There is Indian
Association in Sao Paulo.

Visas/Air links/travel

Under a bilateral
agreement, diplomatic and official passport holders are exempted from visa for
a stay of maximum of 90 days. There are no direct flights between India and
Brazil. Convenient connections are however available via Europe (London,
Frankfurt, Paris, Amsterdam), the US (New York and Chicago) and via Dubai.

Cultural Exchanges

 There is enormous Brazilian interest in India’s culture,
religion, performing arts and philosophy. The first forms of Indian Culture to
reach Brazil were all somehow related to spirituality, philosophy and religion.
Folkloric identities and celebrations from India could relate very much to the
jolly and colourful nature of the festivities such as the typical dances and
parades of north and northeast of Brazil. The first classical art to come to
Brazil was Bharatanatyam dance, with Odissi, Kathak and Kuchipudi to follow
later. Not only for their distinct character but also due to the exoticism of
costumes, ankle bells and, head dresses, impacting make-up and angular postures
are immensely appealing to Brazilian eyes. In classical music, Brazil has
already a share of those who have learnt Sitar, Tabla and other instruments and
not only play some of the original ragas and rhythms but go beyond to create
fusion music in conjunction with Brazilian artistes. There are numerous 6
organizations teaching Yoga, all over Brazil. Ramakrishna Mission, ISKCON,
Satya Sai Baba, Maharishi Maharshi Yogi, Bhakti Vedanta Foundation and other
spiritual gurus and organizations have chapters in Brazil.

Mahatma Gandhi is highly
regarded in Brazil and the government and NGOs are trying to circulate the
philosophy of non-violence among students, youth and even police. Statues of
Mahatma Gandhi have been installed in Rio de Janeiro, Sao Paulo and Londrina.
In recent year the cultural exchanges have taken place at increased frequency
supported by two governments. The Brazilian cultural troupe had given splendid
performances in India in 2008 and a large group of Indian artists gave several
popular performances in Brazilian cities in May-June 2011. A ten-day long
Festival of India was organized in Brasilia, São Paulo and Rio de Janeiro by
the Ministry of Culture, Government of India and Embassy of India in Brazil
from August 31 to September 9, 2017, to celebrate the completion of 70 years of
India’s independence.

Indian cinema is also
popular among Brazilian people. Indian Film weeks organized by Embassy and
Consulate have always received good responses. Brazilian Post issued a
commemorative stamp in May 2014 on “100 years of Indian Cinema” and marked
International Day of Yoga on 21 June 2015 with the issue of another commemorative
stamp. Caminhos das India (paths of India), a TV serial inspired from Indian
society, is extremely popular in Brazil and is being re-telecast on the popular
Brazilian TV channel Globo.

India- Brazil Bilateral Two-way Investments

 There have been two-way investments
between India and Brazil. While the Brazilian companies have invested in
automobiles, IT, mining, energy, biofuels, footwear sectors in India, the
Indian companies have invested in such sectors as IT, Pharmaceutical, Energy,
agri-business, mining, engineering/auto sectors. Indian companies such as TCS,
Wipro, Infosys, Cadilla, Mahindra, L, Renuka Sugars, United Phosphorus,
Polaris are present in Brazil. The Brazilian companies present in India include
Marco Polo (automobiles), Vale (biggest mining company), Stefanini (IT), Gerdau
(Steel). A separate note on investments and joint ventures is attached.

Figures – 2016 (USD in Billion)





Growth % of Export

Growth % of Import

Brazil’s trade with






Brazil’s total global






India-Brazil trade
remained low in 2016. However, this must be seen in the context of overall
decline in Brazil’s global trade which was down to even less than year 2008
levels when it was USD 370 billion- the period when Brazil’s trade started to
rapidly increase. Brazil’s total trade even attained a high of USD 481 billion
in 2013, at the height of Brazil’s growth but the recent years’ sharp economic
and political turmoil has greatly affected the country’s overall growth and
trade. Consequently, sharp declines in import of diesel from India and the
world in general, is the main reason for the current low trade figures. Despite
this, India sustained its position among the top trade partners of Brazil and
slipped only one spot to 11th position. With an economic recovery expected in
2017, trade may begin to pick up in the coming months.


Brazil and India signed an
agreement in 2003 for defence cooperation which was ratified by Brazil in 2006.
The agreement calls for cooperation in defence related matters, especially in
the field of Research and Development, acquisition and logistic support between
the two countries. Subsequently, Defence Wing was established in the Embassy of
India, Brasilia on 24 December 2007 and Brazil opened its Defence Wing in the
Embassy of Brazil, New Delhi on 14 April 2009.

The Joint Defence
Committee flows from Article 3 of the Defence Cooperation Agreement. Four JDC
meetings have taken place so far between the two sides. The 4th JDC meeting was
held on 16-18 Jun 2015 in Brazil. The 5th JDC meeting is scheduled to be held
in New Delhi in 2017.

ITEC Programme

About 55 Brazilians have
gone to India under ITEC programme for training in communications, management,
defence etc. in the last seven years. ITEC courses continue to gain popularity
amongst Brazilians, and a number of students have enrolled for the current

Indian Pharmaceutical Industry in Brazil


Before 1999, not one Indian
pharmaceutical firm had established operations in Latin America. Pre?1999,
Indian firms without a local base worked through traders and distributors to
bring their products, which were predominantly APIs or other pharmaceutical
inputs, to the market. In the pre?1999 period, Indian APIs accounted for an
almost insignificant proportion of imports in this category, ranging around 2.5
per cent of total imports. The rapid entry – via green field investments,
joint?ventures, acquisitions or licensing agreements – of 11 Indian
pharmaceutical firms in Brazil post 1999, provides a valuable example of
emerging patterns in FDI from India to Brazil.

The entry of Indian
pharmaceutical firms in the Brazil pharmaceutical market can best be understood
through analysis of some important characteristics:

First, in terms of
location, Indian investment in the Latin American region is overwhelmingly
concentrated in the Brazilian market. With over half of all Indian
pharmaceutical companies in Latin America located in Brazil, and Brazil serving
as the first stop for companies establishing operations in the region, Brazil
became the headquarters of Indian pharmaceutical activity in the region.

The second major common
characteristic of Indian FDI in the Brazilian pharmaceutical market is the mode
of entry used by firms. Indian pharmaceutical companies expanding in the region
chose to do so predominantly through green field investments, as opposed to
acquisition, licensing, mergers or joint ventures. Reticence to acquire in the
region may reflect a dearth of significant trade history through which to
establish potential partners, combined by significant geographical distance,
which increases the complexity of principal agent problems for Indian firms in
the region.

Establishment of Generics

The most important
catalyst for Indian investment and activity in Brazil, however, was the
establishment of a generics category in 1999.In the year before the law was
passed, no Indian firm had local activities in the region. In the year following
the generics law, five Indian companies established subsidiaries in Brazil, all
pursuing market?seeking strategies. The creation of the generics category
opened doors for Indian firms with a historical strength in manufacturing
generic finished formulations.


India exports bulk drugs
(pharmaceutical raw materials known as API) to Latin America. These companies
in Latin America manufacture Pharmacy products. Bulk drugs exports are over
$300 million worth. This helps Latin American manufacturers reduce their cost
of production, thanks to the low-cost inputs from India. Apart from this, Indian
pharmaceuticals are never a competition or threat to the Latin American
industry, which has been hurt badly by the large-scale entry of Chinese manufactured
products in many sectors.

The success that Brazilian
generics companies have enjoyed has been shared by Indian companies which are
both competitors and suppliers to Brazilian generics companies. Indian firms
competed with national firms for the newly formed generics market. At the same
time, they became key suppliers of APIs for local generic producers,
integrating themselves into both the final step of the supply chain and
becoming suppliers to their competitors.

New directions in Indian strategy: from
generics to similares

Two major differences
distinguish the regulation of generic and branded generics products in
Brazil. Generics labelling is distinct; packaging must prominently display a
“G” and the name of the active ingredient, while similares may be
labelled with a commercial name. In terms of distribution, generics products
are offered to customers by a pharmacist. Similares, by contrast, are
prescribed by a doctor using the product’s commercial name.

Many Indian EMNCs first
focused on registering products in the generics category,
avoiding similares and trusting that competitively priced goods could
win over locally produced generics. Other firms pursued pure similares
strategies, avoiding generics. A third group focused on APIs.

The firm Glenmark, for
example, markets APIs, generics and similares, but most of its revenue is
generated through sales in APIs. Although Ranbaxy recently moved into
the similares segment and is also present across all segments, it
derives most revenues from generics. Only two firms, Cellofarm and Torrent,
achieved similares?based business models.

A pure Similares model:

In 1999, Torrent entered
Brazil focusing exclusively on the similares segment and targeting
Brazilian doctors and the wider public:

In building a brand,
Torrent targeted the medical community. It established a lecture series,
“Corações e Mentes”, or “Hearts and Minds,” in cities across the country. In
addition, it minimized its offering of products, registering primarily in
cardiovascular and central nervous system segments and only introducing
products not offered by Brazilian competitors.

As a result of its public
relations, focus on the medical community and
pure similares strategy, the Brazilian market provided Torrent a
significant portion of its foreign generated revenue during the mid?2000’s.

By 2017, it is the largest
Indian generics player, with revenue growing by 25 per cent in April-December
to INR 484 Cr.

Indian IT
Sector in Brazil

India & Brazil have
started investing in one another’s countries. Over the years they have
developed synergy in their businesses. Brazil exports crude oil, agricultural
products such as coffee, sugar, etc. to India whereas Indians have started
joint ventures in the field of IT sector in Brazil. Many Multi-National
companies such as Wipro, Infosys, and TCS have started capturing the market of

TCS: One of the India’s largest IT Company, has started joint
ventures in Brazil. Initially TCS established a development centre in Tambore,
in Sao Paulo and slowly entered into the service industry by focussing on cloud
computing, mobile internet, big data, ERP systems, IT sourcing etc. In 2002,
TCS started a joint venture with 51%-49% venture through group TBA.

Infosys: Infosys also started focussing on doing business in Brazil,
by starting with the establishment of development centre in Nova Lima in 2009,
similar to other IT firms started joint ventures and acquisitions to establish
IT business in Brazil. In 2012, Infosys acquired Lodestone, speciality in SAP
system. Gradually it started giving IT services in Brazil focussing on ERP
systems, BPO, SAP based consultancy, etc.

Wipro: Wipro started to do business in Brazil since 2007 by
providing IT services similar to other Multi-national IT firms such as Big Data,
Oracle, SAP, Analytics, cloud computing, etc.

Like other IT firms it
also started acquisitions in Brazil such as acquiring the company Enable- a
retail consulting firm.

Tech Mahindra: Tech Mahindra also started acquisitions by acquiring
51% share in IT Complex, a Brazilian SAP consulting company in 2013. This
acquisition was mainly for enhancing the service portfolio in Brazil focussing
majorly on BPO & Cloud computing. Partner with “Equinix” for sharing data
centre platforms & also for entering and expanding its business in Brazil.

Similarly many IT firms
started eyeing on Brazil for providing a portfolio of IT services. Recently it
signed an agreement with IBM for cloud based application and many other joint
ventures and acquisitions started soaring up.

Brazil is among the top 10
countries which are acing in IT growth. Currently Brazil is the 7th largest in
IT Sector market across the world beating India in 8th position. In America
too, the market of IT sector contributed by Brazil is around 49%, thus
dominating the market. The current rate of growth of IT sector in Brazil is
around 6.7% and rate of investment growth is 4.04%. Its market cap is around
USD 60bn.