1. Introduction: The Brazilian Corporate Landscape1.1       Advantages of working in Brazil·        Time zones of North America and Brazil are same, thus helpsin 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 10thlargest economy and also 5th largest country in the world1.2       Brazilian Culture·        Brazilians Prefer soft-spoken clients, rather than aggressiveclients to work with·        They generally are more comfortable if one knows theirlanguage more clearly.

They are not so good at English, thus becomes a cherryon the top of pie, if any client knows their own native language i.e.Portuguese·        Businesses in Brazil are built and developed based on therelationships. They give a lot of value to personal connections and contacts·        For businesses, its cost is relatively higher but has its ownperks if done correctly·        While visiting Brazilian homes, taking a present or flowersis its tradition. But one thing to be kept in mind is that the gift or flowersshouldn’t be of black or purple colour as they are used during funerals 1.3       Business Etiquettes·        During business meetings, exchange of business cards arenecessary for introducing one another.

Also having a Portuguese translation ofthe business card is highly appreciated·        They don’t like the Indian way of negotiating prices·        Prefer to develop relations and follow the policy of giverespect and take respect·        Boss of the company is give utmost respect and the decisionsof 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”Despachante”·        No stress on punctuality, for meetings they usually arrivelate·        In Brazil, Deadlines are not followed strictly andflexibility is considered in positive sense·        JOGO DE CINTURA: Last minute planning, here employees are notkeen on long term planning, they believe in short term planning specificallytoday and tomorrow 1.4       Body Language·        They appreciate good eye contact and backslapping is verycommon among Brazilians·        In case of disinterest, they show it by clapping using theback of one hand and the other hand’s palm·        O.K.

– using this in Brazil is considered rude way of talkingor writing1.5       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” meaningmy pleasure·        When addressing a person, it is considered appropriate toaddress that person with his/her surname or title·        Gossips they prefer: Football (they love conversing aboutfootball), 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 ofgreetings1.

6       Work place & Hierarchy at workGeneral working hours atBrazilian 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 meetingand also their meeting are not too formal. They love to socialise and spendmuch time understanding each other and building up relations and connectionsare a very important aspect for businesses.

Also, the hierarchy inBrazil is not horizontal, rather it is vertical where the decisions taken bythe head of the office are final.  2. India Brazil Relations2.1       Historical BackgroundTheconnection between India and Brazil is five-century old.

Historical tiesbetween both countries can be traced back to the Asian migration to SouthAmerica that led to the evolution of the indigenous people of Americas. Betweenthe 16th -18th centuries, Brazil and Goa, both under Portuguese imperialistoutreach, had bilateral exchanges, which reflected in the flora and fauna, foodand dress as well as folk traditions of Brazil. India’s contribution to farmingin Brazil is significant, the bulk of Brazilian cattle livestock is of Indianorigin. Brazil still imports a major portion of fresh embryos from India torejuvenate its cattle breed. Indian embassy opened in Rio de Janeiro on May 3,1948, which later moved to Brasilia on August 1, 1971.

The Brazilian Embassyhas in India has been functional since 1949 and has a Consulate General inMumbai.2.2       Indian Community in BrazilThe Indian community NRIsin Brazil is small, numbering about 2000 persons. Many of them live in SaoPaulo, Rio de Janeiro and Manuas. The community mainly comprises ofprofessionals and businessmen and some researchers in agriculture, physics,etc.

2.3       Visas/Air links/travelUndera bilateral agreement, diplomatic and official passport holders are exemptedfrom visa for a stay of maximum of 90 days. There are no direct flights betweenIndia and Brazil. Favourable connections are however available via Europe (London,Frankfurt, Paris, Amsterdam), the US (New York and Chicago) and via Dubai.

2.4       Cultural ExchangesThereis huge Brazilian interest in Indian culture, religion, performing arts andphilosophy. The first forms of Indian Culture to reach Brazil were related tospirituality, philosophy and religion. Both Brazil and India are cultures inwhich people are colourful and noisy. Folkloric celebrations from India findaffinity towards the jolly and colorful nature of the festivities such as thetypical dances and parades of north and northeast of Brazil. In classical music,Brazil’s share of classical music goes beyond Sitar, Tabla and otherinstruments to create fusion music in collaboration with Brazilian artistes.There are numerous organizations teaching Yoga, all over Brazil, namely,Ramakrishna Mission, ISKCON to name a few. The connection between the cultures can be observed in socialmedia as well.

In 2002 after Google purchased Orkut to compete with Myspace andFacebook, the site lost its appeal in almost every country except India andBrazil which generated most of Orkut’s revenue.Indian cinema is popular among Brazilian people. Acommemorative stamp was issued by the Brazilian Post in May 2014 on “100 yearsof Indian Cinema”.

Several Brazilian actresses and models have also worked inBollywood. Caminhos das India (paths of India), an Indian themed Brazilian soapopera filmed in Agra and Jodhpur, is a Brazilian Indian love story, and isextremely popular in Brazil. It is being re-telecast on the popular BrazilianTV channel.2.5       India- Brazil Bilateral Two-way InvestmentsInvestments have beenhappening both ways between India and Brazil. While Brazilian companies haveinvested in areas such as automobiles, IT, mining, energy, biofuels, footwearsectors in India, the Indian companies have focused in sectors such as IT,Pharmaceutical, Energy, agri-business, mining, engineering/auto sectors. MajorIndian companies in Brazil are such as TCS, Wipro, Infosys, Cadilla, Mahindra,L, Renuka Sugars, United Phosphorus, and Polaris. The major Brazilianplayer operating in India are Marco Polo (automobiles), Vale (biggest miningcompany), Stefanini (IT), Gerdau (Steel).

TradeFigures – 2016 (USD in Billion)   Export Import Total Growth % of Export Growth % of Import Brazil’s trade with India 3.161 2.482 5.644 -12.61 -42.12 Brazil’s total global Trade 185.235 137.

552 322.787 -3.09 -19.77  India-Brazil trade remained low in 2016. However, this must be seen inthe context of overall decline in Brazil’s global trade which was down to evenless than year 2008 levels when it was USD 370 billion- the period whenBrazil’s trade started to rapidly increase. Brazil’s total trade even attaineda high of USD 481 billion in 2013, at the height of Brazil’s growth but therecent years’ sharp economic and political turmoil has greatly affected thecountry’s overall growth and trade. Consequently, sharp declines in import ofdiesel from India and the world in general, is the main reason for the currentlow trade figures. Despite this, India sustained its position among the toptrade partners of Brazil and slipped only one spot to 11th position.

With aneconomic recovery expected in 2017, trade may begin to pick up in the comingmonths.2.6       DefenceBrazil and India signed anagreement in 2003 for defence cooperation which was ratified by Brazil in 2006.The agreement calls for cooperation in defence related matters, especially inthe field of Research and Development, acquisition and logistic support betweenthe two countries. Defence Wing was established in the Embassy of India,Brasilia on 24 December 2007 and Brazil opened its Defence Wing in the Embassyof Brazil, New Delhi on 14 April 2009.2.7       ITEC ProgrammeAbout 55 Brazilians went to Indiaunder ITEC programme to get trained in communications, management, defence etc.

in the last eight years. ITEC courses are gaining popularity amongstBrazilians, and many students have enrolled for the current session.3. Indian Pharmaceutical Industry in Brazil3.1       BackgroundBefore 1999, not oneIndian pharmaceutical firm had established operations in Latin America.Pre?1999, Indian firms without a local base worked through traders anddistributors to bring their products, which were predominantly APIs or otherpharmaceutical inputs, to the market. In the pre?1999 period, Indian APIsaccounted for an almost insignificant proportion of imports in this category,ranging around 2.5 per cent of total imports.

The rapid entry – via Greenfieldinvestments, joint?ventures, acquisitions or licensing agreements – of 11Indian pharmaceutical firms in Brazil post 1999, provides a valuable example ofemerging patterns in FDI from India to Brazil.The entry of Indianpharmaceutical firms in the Brazil pharmaceutical market can best be understoodthrough analysis of some important characteristics: First, in terms oflocation, Indian investment in the Latin American region is overwhelminglyconcentrated in the Brazilian market. With over half of all Indianpharmaceutical companies in Latin America located in Brazil, and Brazil servingas the first stop for companies establishing operations in the region, Brazilbecame the headquarters of Indian pharmaceutical activity in the region.The second major commoncharacteristic of Indian FDI in the Brazilian pharmaceutical market is the modeof entry used by firms. Indian pharmaceutical companies expanding in the regionchose to do so predominantly through Greenfield investments, as opposed toacquisition, licensing, mergers or joint ventures.

Reticence to acquire in theregion may reflect a dearth of significant trade history through which toestablish potential partners, combined by significant geographical distance,which increases the complexity of principal agent problems for Indian firms inthe region.3.2       Establishment of GenericsThe most importantcatalyst for Indian investment and activity in Brazil, however, was theestablishment of a generics category in 1999.In the year before the law waspassed, no Indian firm had local activities in the region. In the yearfollowing the generics law, five Indian companies established subsidiaries inBrazil, all pursuing market?seeking strategies. The creation of the genericscategory opened doors for Indian firms with a historical strength inmanufacturing generic finished formulations.

3.3       API’sIndia exports bulk drugs(pharmaceutical raw materials known as API) to Latin America. These companiesin Latin America manufacture Pharmacy products. Bulk drugs exports are over$300 million worth. This helps Latin American manufacturers reduce their costof production, thanks to the low-cost inputs from India. Apart from this, Indianpharmaceuticals are never a competition or threat to the Latin Americanindustry, which has been hurt badly by the large-scale entry of Chinesemanufactured products in many sectors.The success that Braziliangenerics companies have enjoyed has been shared by Indian companies which areboth competitors and suppliers to Brazilian generics companies.

Indian firmscompeted with national firms for the newly formed generics market. At the sametime, they became key suppliers of APIs for local generic producers,integrating themselves into both the final step of the supply chain andbecoming suppliers to their competitors.3.4       New directions in Indian strategy: fromgenerics to similaresTwo major differencesdistinguish the regulation of generic and branded generics products inBrazil. Generics labelling is distinct; packaging must prominently display a”G” and the name of the active ingredient, while similares may be labelledwith a commercial name. In terms of distribution, generics products are offeredto customers by a pharmacist. Similares, by contrast, are prescribed by adoctor using the product’s commercial name.

Many Indian EMNCs firstfocused on registering products in the generics category,avoiding similares and trusting that competitively priced goods couldwin over locally produced generics. Other firms pursued pure similaresstrategies, avoiding generics. A third group focused on APIs.The firm Glenmark, forexample, markets APIs, generics and similares, but most of its revenue isgenerated through sales in APIs.

Although Ranbaxy recently moved intothe similares segment and is also present across all segments, itderives most revenues from generics. Only two firms, Cellofarm and Torrent,achieved similares?based business models.3.5       A pure Similares model:TorrentIn 1999, Torrent enteredBrazil focusing exclusively on the similares segment and targetingBrazilian 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.

Inaddition, it minimized its offering of products, registering primarily incardiovascular and central nervous system segments and only introducingproducts not offered by Brazilian competitors.As a result of its publicrelations, focus on the medical community andpure similares strategy, the Brazilian market provided Torrent asignificant portion of its foreign generated revenue during the mid?2000’s.By 2017, it is the largest Indian generics player, with revenue growingby 25 per cent in April-December to INR 484 Cr.4. Indian ITSector in BrazilIndia & Brazil havestarted investing in one another’s countries. Over the years they havedeveloped synergy in their businesses. Brazil exports crude oil, agriculturalproducts such as coffee, sugar, etc.

to India whereas Indians have startedjoint ventures in the field of IT sector in Brazil. Many Multi-Nationalcompanies such as Wipro, Infosys, and TCS have started capturing the market ofBrazil. TCS: One of the India’s largest IT Company, has started jointventures in Brazil. Initially TCS established a development centre in Tambore,in Sao Paulo and slowly entered into the service industry by focussing on cloudcomputing, 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 establishIT business in Brazil.

In 2012, Infosys acquired Lodestone, speciality in SAPsystem. Gradually it started giving IT services in Brazil focussing on ERPsystems, BPO, SAP based consultancy, etc.Wipro: Wipro started to do business in Brazil since 2007 byproviding IT services similar to other Multi-national IT firms such as BigData, Oracle, SAP, Analytics, cloud computing, etc.Like other IT firms italso started acquisitions in Brazil such as acquiring the company Enable- aretail consulting firm.

Tech Mahindra: Tech Mahindra also started acquisitions by acquiring51% share in IT Complex, a Brazilian SAP consulting company in 2013. Thisacquisition was mainly for enhancing the service portfolio in Brazil focussingmajorly on BPO & Cloud computing. Partner with “Equinix” for sharing datacentre platforms & also for entering and expanding its business in Brazil.Similarly many IT firmsstarted eyeing on Brazil for providing a portfolio of IT services. Recently itsigned an agreement with IBM for cloud based application and many other jointventures and acquisitions started soaring up. Brazil is among the top 10countries which are acing in IT growth. Currently Brazil is the 7th largest inIT Sector market across the world beating India in 8th position.

In Americatoo, the market of IT sector contributed by Brazil is around 49%, thusdominating the market. The current rate of growth of IT sector in Brazil isaround 6.7% and rate of investment growth is 4.04%.

Its market cap is aroundUSD 60bn.

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