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 funerals1.3       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 BackgroundDeep-rooted historicalties between India and Brazil can possibly be traced back to the Asianmigration to South America, which contributed to the evolution of theindigenous people of Americas.

Between the 16th -18th centuries, Brazil andGoa, both outposts of the Portuguese imperialist outreach, had bilateralexchanges, which found reflection in the flora and fauna, food and dress aswell as folk traditions of Brazil. The interesting similarities between folktraditions of Boi Bumba in the north of Brazil and the Poikam Kudharai of SouthIndia, for instance, draw attention to the strong under currents of culturaland popular exchanges that have taken place in the centuries by-gone. Thetelecasting of tele-novella called ‘Caminho das Indias’ (Paths to India) made agreat impact in enhancing the consciousness of India in the Brazilian publicmind. India’s contribution to farming in Brazil is remarkable, thoughrelatively a lesser known facet of our bilateral relationship. The bulk ofBrazilian cattle livestock is of Indian origin. The ‘Ongole’ strain from AndhraPradesh 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, whichlater moved to Brasilia on August 1, 1971. The Indian Consulate General in SaoPaulo, the industrial and commercial hub of Brazil, was opened in 1996. TheBrazilian Embassy has been functional in India since 1949 and has ConsulateGeneral in Mumbai.

2.2       Indian Community in Brazil The Indian community of PIOs/NRIs in Brazil issmall, numbering about 2000 persons. A majority of them lives in Sao Paulo, Riode Janeiro and Manuas.

The community mainly comprises of professionals and businessmenand some scientists/researchers in agriculture, physics, etc. There is IndianAssociation in Sao Paulo.2.3       Visas/Air links/travelUnder a bilateralagreement, diplomatic and official passport holders are exempted from visa fora stay of maximum of 90 days.

There are no direct flights between India andBrazil. Convenient connections are however available via Europe (London,Frankfurt, Paris, Amsterdam), the US (New York and Chicago) and via Dubai.2.4       Cultural Exchanges There is enormous Brazilian interest in India’s culture,religion, performing arts and philosophy. The first forms of Indian Culture toreach Brazil were all somehow related to spirituality, philosophy and religion.Folkloric identities and celebrations from India could relate very much to thejolly and colourful nature of the festivities such as the typical dances andparades of north and northeast of Brazil. The first classical art to come toBrazil was Bharatanatyam dance, with Odissi, Kathak and Kuchipudi to followlater.

Not only for their distinct character but also due to the exoticism ofcostumes, ankle bells and, head dresses, impacting make-up and angular posturesare immensely appealing to Brazilian eyes. In classical music, Brazil hasalready a share of those who have learnt Sitar, Tabla and other instruments andnot only play some of the original ragas and rhythms but go beyond to createfusion music in conjunction with Brazilian artistes. There are numerous 6organizations teaching Yoga, all over Brazil. Ramakrishna Mission, ISKCON,Satya Sai Baba, Maharishi Maharshi Yogi, Bhakti Vedanta Foundation and otherspiritual gurus and organizations have chapters in Brazil. Mahatma Gandhi is highlyregarded in Brazil and the government and NGOs are trying to circulate thephilosophy of non-violence among students, youth and even police. Statues ofMahatma Gandhi have been installed in Rio de Janeiro, Sao Paulo and Londrina.

In recent year the cultural exchanges have taken place at increased frequencysupported by two governments. The Brazilian cultural troupe had given splendidperformances in India in 2008 and a large group of Indian artists gave severalpopular performances in Brazilian cities in May-June 2011. A ten-day longFestival of India was organized in Brasilia, São Paulo and Rio de Janeiro bythe Ministry of Culture, Government of India and Embassy of India in Brazilfrom August 31 to September 9, 2017, to celebrate the completion of 70 years ofIndia’s independence. Indian cinema is alsopopular among Brazilian people. Indian Film weeks organized by Embassy andConsulate have always received good responses. Brazilian Post issued acommemorative stamp in May 2014 on “100 years of Indian Cinema” and markedInternational Day of Yoga on 21 June 2015 with the issue of another commemorativestamp.

Caminhos das India (paths of India), a TV serial inspired from Indiansociety, is extremely popular in Brazil and is being re-telecast on the popularBrazilian TV channel Globo.2.5       India- Brazil Bilateral Two-way Investments There have been two-way investmentsbetween India and Brazil. While the Brazilian companies have invested inautomobiles, IT, mining, energy, biofuels, footwear sectors in India, theIndian 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 includeMarco Polo (automobiles), Vale (biggest mining company), Stefanini (IT), Gerdau(Steel). A separate note on investments and joint ventures is attached.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 traderemained low in 2016. However, this must be seen in the context of overalldecline in Brazil’s global trade which was down to even less than year 2008levels when it was USD 370 billion- the period when Brazil’s trade started torapidly increase. Brazil’s total trade even attained a high of USD 481 billionin 2013, at the height of Brazil’s growth but the recent years’ sharp economicand political turmoil has greatly affected the country’s overall growth andtrade. Consequently, sharp declines in import of diesel from India and theworld in general, is the main reason for the current low trade figures. Despitethis, India sustained its position among the top trade partners of Brazil andslipped only one spot to 11th position. With an economic recovery expected in2017, trade may begin to pick up in the coming months.

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. Subsequently, Defence Wing was established in the Embassy ofIndia, Brasilia on 24 December 2007 and Brazil opened its Defence Wing in theEmbassy of Brazil, New Delhi on 14 April 2009.

The Joint DefenceCommittee flows from Article 3 of the Defence Cooperation Agreement. Four JDCmeetings have taken place so far between the two sides. The 4th JDC meeting washeld on 16-18 Jun 2015 in Brazil. The 5th JDC meeting is scheduled to be heldin New Delhi in 2017.2.7       ITEC ProgrammeAbout 55 Brazilians havegone to India under ITEC programme for training in communications, management,defence etc. in the last seven years.

ITEC courses continue to gain popularityamongst Brazilians, and a number of students have enrolled for the currentsession.3. Indian Pharmaceutical Industry in Brazil3.

1       BackgroundBefore 1999, not one Indianpharmaceutical firm had established operations in Latin America. Pre?1999,Indian firms without a local base worked through traders and distributors tobring their products, which were predominantly APIs or other pharmaceuticalinputs, to the market. In the pre?1999 period, Indian APIs accounted for analmost insignificant proportion of imports in this category, ranging around 2.5per cent of total imports. The rapid entry – via green field investments,joint?ventures, acquisitions or licensing agreements – of 11 Indianpharmaceutical 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 green field 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 year followingthe generics law, five Indian companies established subsidiaries in Brazil, allpursuing market?seeking strategies. The creation of the generics categoryopened doors for Indian firms with a historical strength in manufacturinggeneric 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 Chinese manufacturedproducts 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 belabelled with a commercial name. In terms of distribution, generics productsare offered to customers by a pharmacist.

 Similares, by contrast, areprescribed by a doctor 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 largestIndian generics player, with revenue growing by 25 per cent in April-Decemberto 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 Big Data,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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