From lubes to fungicides, Total increases bet in the country
Valor Econômico 09/03/10
The French Total, the fifth largest global oil company wants to increase the operations of its lubricant division in Brazil. Diversified, the area sells from lubricant, inputs for cosmetics industries to fungicides to fight diseases on banana plantations - segment with significant growth for the company in the country. The Managing Officer of Total Lubrificantes do Brasil, Patrick Cazaban, told Valor the company is investing R$ 7.5 million (US$ 4.3 million) this year and another R$ 4.5 million (US$ 2.57 million) in 2011 to double the productive capacity of lubricants in the country, from the current 25 thousand tons/year to 50 thousand tons. The investments will be made in the unit of the company in the country located in Pindamonhangaba (SP).In Brazil for 12 years with penetration in the South and Southeast, the sales of lubricants of Total should be expanded to the North, Northeast and Midwest, by means of distributors. The French company bets in Brazil as the country with strong growth potential in the businesses of the group in the world. Investments in Pindamonhangaba will be made in order to keep up with the evolution of the volume of sales of the company and the development of new lines of products. The segment of lubricants generates nearly R$ 10 billion (US$ 5.71 billion), with 1.25 billion liters sold, according to the Sindicom (National Association of Fuel and Lubricant Distributors).
The agricultural division, by means of the fungicide, went into operation this year, said Cazaban. The company has already been selling the fungicide Banole, intended for banana plantations since the beginning of the year. "Our share in such market already gets to 10% in the country", he said. The raw material used in this product is a petrochemical byproduct developed by the French company. "We bring the product from France to sell it in the country", he said. Another important segment in expansion in the division is the segment of inputs for cosmetics companies - with the supply of fluids for the composition of lipsticks and creams, for example.
According to Cazaban, those two products - Banole and fluids - are part of the division in which lubricants are responsible for 80% of the earnings. The company sells two brands in the country - Total and Elf (which was acquired by the oil company in 2000). The company also has a marketing operation in the market called "Total Invasion", aimed at clients that consume 4 or more liters of Total/Elf products. Seven kits will be raffled off. They will contain 4 liters of Total product plus 1 ticket to watch the Brazilian formula 1 GP and another 3 packages for two people, with all expenses paid, for the consumer to spend the New Year's in Paris.
With operations in the exploration and production of oil, refineries and in the petrochemical area, the group has an eye on businesses involving the pre-salt layer in the country.