67

India and Latin Am

erica and the Caribbean: opportunities and challenges in trade and investm

ent relations

Table A.3

INDIAN COM

PANIES IN LATIN AMERICA AND THE CARIBBEAN: M

AJOR O

PERATONS AND FUTURE PRO

JECTS, BY SECTOR

A. Inform

ation technology

Mahindra Satyam

(Satyam

Com

puter Service Ltd)

This software developm

ent company set up its first design centre in Brazil in São Paulo in M

ay 2007 and its second in Londrina in the state of Paraná. It em

ploys 900 Brazilian employees.

Patni Com

putersIt opened its first delivery centre in Latin A

merica in June 2009 to augm

ent its global delivery capabilities and serve the N

orth Am

erican and Latin Am

erican markets. It has a centre in Q

uerétaro, M

exico, and acquired a Brazilian company in C

ampinas in the state of São Paulo, Brazil.

Tata Consultancy Services

(TCS)

This company has operations in A

rgentina, Brazil, Chile, C

olombia, Ecuador, M

exico, and U

ruguay. It employs 7,500 softw

are professionals in these countries. It has signed a contract worth

US$ 200 m

illion with A

BN A

mro Bank in Brazil to be im

plemented in five years. It has also signed

a US$ 140 m

illion contract with Banco Pichincha of Ecuador to be im

plemented in five years. It has

a US$ 200 m

illion contract from the Social Security Institute of M

exico (IMSS). It has established a

Global D

elivery Centre and a separate R

egional Training Centre in M

ontevideo, Uruguay. It set up

a Global D

elivery Centre in G

uadalajara, Mexico, in M

ay 2007. It is expected to set up operations in Peru.

Infosys Technologies Ltd

It set up its first development centre in Belo H

orizonte in Decem

ber 2009, offering a complete set

of services to Brazilian clients and Brazilian subsidiaries. It will also provide language support in

English, Portuguese and Spanish. One of its m

ajor clients is Philips Latin Am

erica. It also has two

other centres in Mexico that serve 32 clients and em

ploy 357 professionals.

Aegis

Aegis is part of Essar G

roup. It acquired Actionline, an A

rgentine business process outsourcing (BPO

) company w

ith 5,000 staff, in 2010. It is the largest Indian BPO in Latin A

merica and the

Caribbean. It has centres in Buenos A

ires, Córdoba, Tucum

án and Bahía Blanca. The company has

another centre in Costa R

ica.

Cognizant

The company has set up operations in A

rgentina with 200 staff.

Copal partners

This financial research company established an office in Buenos A

ires in the second half of 2010.

HC

L TechnologiesIt opened centres in Buenos A

ires, São Paulo and Porto Alegre in June 2009 to service local and

global clients.

PolarisThis com

pany identifies Latin Am

erica as an integral growth m

arket for its expansion strategy. It opened a R

egional Innovation and Developm

ent Centre in Santiago, C

hile, in May 2009, hiring 100

people.

Sasken Com

munications

It has set up a subsidiary company for IT developm

ent and support in Nuevo León, M

exico.

Wipro

This company set up operations in M

onterrey, Mexico, in 2007 to serve N

orth Am

erica and Latin A

merica and has a payroll of approxim

ately 1,000 employees. It has a BPO

centre in Curitiba, Brazil,

that provides shared services to Am

Bev, a leading brewery com

pany, and recently inaugurated its new

global delivery centre in the city.

68

Economic C

omm

ission for Latin Am

erica and the Caribbean (EC

LAC

)

Aptech

Aptech entered into a 51:49 joint venture w

ith Falgo Group to set up IT training centres in Brazil. A

t present, the com

pany has centres in Mexico, El Salvador and Peru.

Aptech, N

IIT and Tata Infortech

These three companies have collaborated w

ith Colom

bian universities and private companies to

establish about 20 IT education centres in various Colom

bian cities.

ICIC

IThis com

pany has a BPO in A

rgentina with 350 em

ployees.

CR

ISILIR

EVN

A, a division of C

RISIL, has set up a know

ledge process outsourcing (KPO

) unit in Buenos A

ires for equity research with 70 A

rgentine staff.

E-ValueserveThis m

arket research firm started operations in C

hile in 2007. It is located in Valparaíso and it currently generates 10%

of the global sales of the firm and hires 6%

of its labour force.

IflexThis com

pany has contracts for banking solutions worth U

S$ 40 million in the Bolivarian R

epublic of Venezuela, C

hile, Mexico and Panam

a, among other countries. It has an office in Santiago, C

hile.

Flatworld Solutions

This company opened a centre in Buenos A

ires in January 2010. It has other operation centres in C

olombia, Paraguay, Peru and the Plurinational State of Bolivia.

24/7 Costum

erIt opened a BPO

in Guatem

ala in 2008, employing 500 local staff.

Geodesic Ltd

It has acquired a Uruguayan softw

are company w

ith 40 staff in Montevideo.

Hexaw

are TechnologiesThis com

pany has acquired Fox Frames, a M

exican-based IT company, for U

S$ 34 million to expand

its software business.

Manthan System

sThis provider of business intelligence and analysis solutions for the retail and consum

er goods sectors has opened an office São Paulo.

Global Sourcing Solutions

This company has call centres and a BPO

in Argentina, C

olombia, Peru and the Plurinational State

of Bolivia.

B. Pharm

aceuticals

Ranbaxy Laboratories

Limited

This company started up operations in Brazil in 2000. C

urrently, it is the sixth largest generic drug com

pany in Brazil and it directly hires 130 employees.

Cellofarm

Cellofarm

’s facility in Brazil was acquired by A

spen for US$75 m

illion. Aspen is based in South

Africa.

Glenm

arkG

lenmark took over A

rgentine company Servycal S.A

. in 2005. It invested in a new facility near São

Paulo and has a plant for the production of oncological medicines in Buenos A

ires.

TorrentTorrent has a Brazilian subsidiary, em

ploying 300 Brazilian professionals.

BilcareBilcare is setting up a plant in Brazil for the m

anufacture of pharmaceutical packaging m

aterials.

Zydus C

adilaThis com

pany has acquired Brazilian company N

ikkho, which has a turnover of over U

S$ 60 m

illion.

69

India and Latin Am

erica and the Caribbean: opportunities and challenges in trade and investm

ent relations

Manish Pharm

aThis com

pany has acquired companies in the states of São Paulo and Santa C

atarina, which are

already operational.

Dr.R

eddy’s LabsThis com

pany acquired a pharmaceutical plant for U

S$ 60 million in M

exico in 2006.

Cipla

Cipla has presence in Brazil and is in the process of form

ing a subsidiary.

Claris Lifesciences

This company has a local subsidiary in Brazil.

PICA

LabsThis com

pany has production facilities in Brazil and an office in Colom

bia.

Aurobindo

Aurobindo has invested in a w

arehouse facility in Anápolis, Brazil.

Unichem

Unichem

, Intas and Sunpharma have established subsidiaries in Brazil.

Lupin, Zydus C

adilla and Em

cureThese firm

s are among the pharm

aceutical companies actively looking for acquisition opportunities

and joint ventures in the region.

C. M

inerals and metals

Videocon Industries Ltd and

Bharat Petroresources

This consortium w

as awarded an exploration contract in Brazil for U

S$ 283 million. They acquired

all of the shares of Encana Brasil Petróleo Limitada that belonged to the C

anadian EnCana

Corporation.

Jindal Steel and Power

Limited

Jindal Steel and Power Lim

ited has branched into the mining sector through a U

S$ 2.3 billion investm

ent in the El Mutún iron ore project in the Plurinational State of Bolivia. M

ost of the iron ore w

ill be exported. Jindal Steel and Power Lim

ited has also bought a mine in northern C

hile for US$

53 million to extract m

agnetite.

Tega Industries LtdTega Industries Ltd acquired C

hilean company A

cotec S.A. in February 2011. A

cotec is a $35 million

company providing products and solutions for abrasion, corrosion and fluid transportation system

s to the m

ining industry in Argentina, C

hile, Peru and the Plurinational State of Bolivia.

Aditya Birla G

roupThe group has acquired three alum

inium plants in Pindam

onhangaba, Ouro Preto and A

ratu in Brazil. It plans to invest U

S$300 million in increasing its alum

inium production capacity by 20%

to 250,000 tons by 2014.

GA

IL (India) LtdThis com

pany announced, in September 2008, its plans to build a petrochem

ical complex in C

olombia,

along with a gas pipeline netw

ork.

Ispat Industries LtdThe com

pany will start iron extraction operations in Brazil and carbon exploitation in C

olombia. The

mine in Brazil has reserves of approxim

ately 300 million to 500 m

illion tons, while the C

olombian

mine has betw

een 60 million and 70 m

illion tons.

JSW Steel

JSW Steel obtained a licence for exploring and extracting m

agnetite in an area spanning 1,200 hectares in northern C

hile, specifically in the region of Atacam

a, at a cost of US$ 53 m

illion. This licence w

as awarded in 2008, and m

ention has been made of future plans of continuing to expand

its operations in the region.

70

Economic C

omm

ission for Latin Am

erica and the Caribbean (EC

LAC

)

Arcelor M

ittalThis com

pany has steel plants in Argentina, Brazil, M

exico and Trinidad and Tobago. It has also acquired steel-finishing and distribution com

panies in Argentina, C

osta Rica and U

ruguay.

Essar group

Essar Steel Ltd is building a steel plant in Trinidad and Tobago with a capacity of 2.5 m

illion tons. This is part of the group’s plan to increase its capacity from

the present level of 8 million

tons to 25 million tons by 2012. The com

pany was aw

arded a mining concession in A

mapá,

located in the north of Brazil, and the material from

that concession will be processed at the

plant in Trinidad and Tobago. The area of the concession in Am

apá measures 7,851.69 hectares.

It is 150km from

the Santana Public Port in Macapá, on the banks of the A

mazon river, and

close to Essar’s proposed steel plant in Trinidad and Tobago. This would be Essar Steel’s second

international raw m

aterial deposit.In 2007, Essar Steel acquired M

innesota Steel, which had m

ore than 1.4 billion tons of iron ore resources in the M

esabi Range in the U

nited States.

Indo- Borax LtdThis com

pany acquired a borax mine in A

rgentina.

NA

LCO

NA

LCO

has announced plans to invest in copper mining in C

hile.

Zam

in Resources

Zam

in Resources, founded by Pram

od Agarw

al, who is based in London, has w

on an iron ore m

ining concession in Uruguay. This billion-dollar project Is one of several investm

ents the company

has made in m

ining in South Am

erican countries.

D. Energy

Oil and N

atural Gas

Corporation Ltd (O

NG

C)

The company has been aw

arded oil fields by the Governm

ents of the Bolivarian Republic of Venezuela

and Cuba. It has acquired oil fields in Brazil, C

olombia and Trinidad and Tobago. Its overseas arm

, O

NG

C V

idesh Ltd is expected to invest over a billion dollars in these projects.O

NG

C signed an agreem

ent to explore Cuban w

aters in the Gulf of M

exico for oil. This area covered m

easures 4,300 square kilometres. In 2008, O

NG

C invested U

S$ 356 million to acquire 40%

of a joint developm

ent with Petróleos de Venezuela S.A

. (PDV

SA) in the fields of San C

ristóbal and Junín, both belonging to the O

rinoco Oil Belt. O

NG

C, in a joint venture w

ith Sinopec, acquired Colom

bian oil com

pany Om

imex in 2006. This com

pany has proven reserves totalling more than 300 m

illion barrels and a daily production of approxim

ately 20,000 barrels. In addition, in 2007, the company

was aw

arded a deep water block and a shallow

water block in the ninth round of the bidding process

opened by the Brazilian regulator, the Agencia N

acional do Petróleo de Brasil. ON

GC

– along with

the Indian Oil C

orporation, Oil India, and R

eliance Industries – is considering a joint investment in

the Orinoco O

il Belt, which has the potential to produce 200,000 barrels of light crude oil per day.

The investment in this project w

ould come to betw

een US$ 16 billion and U

S$ 18 billion.O

NG

C V

idesh Ltd has offshore oilfield concessions in Cuba on its ow

n and as part of a consortium

led by Repsol.

Bharat Petro Resources

(BPR)

BPR, along w

ith Videocon International, acquired ten blocks in Brazil from

EnCana of C

anada valued at U

S$ 280 million. BPR

and Videocon have discovered m

ore than 90 feet of high-quality oil in their W

ahoo-2 well block, also identified as BM

-C-30.

71

India and Latin Am

erica and the Caribbean: opportunities and challenges in trade and investm

ent relations

Reliance Industries Ltd

This company acquired the Borojo offshore oil block in the Tum

aco basin on the Pacific coast of C

olombia. In a joint venture w

ith China N

ational Petroleum C

orporation and Pluspetrol Energy, it w

as awarded block 155 in Puno, Peru. In June 2008, it acquired 10%

of block 39.The com

pany signed a technical evaluation agreement, w

hich subsequently became a production

and exploration agreement w

ith the National H

ydrocarbon Agency (A

NH

) of Colom

bia.

Jindal Steel and Power

Ltd, Enigma O

il and Gas

Exploration Ltd

These companies w

ere awarded blocks 147, 153 and 159 in the round of bids for oil and gas in Peru

in 2008. Jindal Steel and Power Ltd also acquired gas blocks in the Plurinational State of Bolivia.

Suzlon Energy LtdIn 2006, Suzlon Energy Ltd secured a contract for a w

ind energy project in north-east Brazil. The project has a capacity of 225 M

W, com

prising 107 units of the Suzlon S88 – 2.1 MW

turbines for installation in six projects.

Indian Oil Ltd

This company is currently exploring the possibility of setting up an ethanol refinery in Brazil.

Assam

company

Assam

Com

pany has entered into a farmout agreem

ent with Sism

opetrol and R3 in C

olombia for

the exploration and production of an oil block known as A

NH

El Triunfo located in Casanare in

Colom

bia. The block size is 10,200 hectares and contains one discovered well (La C

abana). Assam

C

ompany has a 70%

participating interest in the block, with Sism

opetrol holds a 30% participating

interest.

Burlington Resources Inc.

This company set up an alliance w

ith Woodside Petroleum

to acquire 50% of block 108 from

Pluspetrol Energy, the com

pany that had acquired 90% of block 141 from

Pan Andean R

esources Plc. in A

pril 2008.

E. Construction

Larsen and ToubroThis com

pany was aw

arded a project for supplying equipment to Petrobras in 2008. In addition,

early this year, the company started operations in Brazil, w

here it is planning to set up its oil and gas, cem

ent and paper divisions.

DS C

onstruction

In a joint venture with Israeli com

pany Israel Corp., D

S Construction acquired assets for pow

er generation in Brazil. Its other assets include natural gas and hydroelectric pow

er plants in Peru and the Plurinational State of Bolivia, and fuel-based pow

er assets in the Dom

inican Republic, El

Salvador, Guatem

ala, Jamaica, N

icaragua and Panama, w

ith a total capacity of over 2,180 MW

.

F. Agribusiness

Shree Renuka Sugars Ltd

In February 2010, the country’s major sugar producer signed a U

S$ 329 million deal w

ith a Brazilian conglom

erate for a 51% share in Brazil’s Equipav S.A

. Açúcar e Á

lcool, which ow

ns two large sugar

mills w

ith integrated co-generation facilities and has 115,000 hectares of cane-growing land in south-

eastern Brazil.In N

ovember 2009, Shree R

enuka Sugars Ltd acquired sugar and ethanol producer Vale Do Ivai S.A

. A

çúcar e Álcool for U

S$240 million, w

ith its two sugar and ethanol production facilities in the state

of Paraná.W

ith these Brazilian acquisitions, Shree Renuka Sugars Ltd becam

e the third biggest sugar company

in the world, the num

ber one sugar firm in India and am

ong the top five in Brazil.

72

Economic C

omm

ission for Latin Am

erica and the Caribbean (EC

LAC

)

Bajaj Hindustan

This company has set up a subsidiary in Brazil and earm

arked US$ 500 m

illion for investment.

Sterling Group

Sterling Group has bought a 2,000 hectare olive farm

in Argentina.

Olam

This non-resident Indian company w

ith headquarters in Singapore has entered into agricultural production in A

rgentina and cultivates 30,000 hectares. Peanut is the company’s m

ain crop and it has also acquired tw

o peanut processing plants. In addition, it grows soybean and w

heat and is starting rice production in U

ruguay and Argentina. In Brazil the com

pany has a turnover of US$ 750

million in agrocom

modities trading.

Solvent Extractors A

ssociation of IndiaThis consortium

of 16 companies has a proposal to invest U

S$ 50 million in acquiring land to grow

oilseed in U

ruguay.

G. O

ther sectors

Tata Motors

This company’s cars are being sold in several Latin A

merican and C

aribbean countries. The company

has also forged a joint production agreement w

ith Fiat to refloat the Fiat plant operating in Córdoba,

Argentina.

Bajaj Auto

This motorcycle producer has entered into an association agreem

ent with the G

uerrero Group in

order to assemble m

otorcycles in Argentina.

Mahindra &

Mahindra Ltd

This manufacturer of all-terrain vehicles and tractors, in a joint venture w

ith Bramont, has set up an

assembly plant in M

anaus, Brazil. It has also joined with Venezuelan com

pany Corporación Elice

2222 to manufacture tractors on M

argarita Island.

TVS

This company has joined up w

ith DA

FRA

Motos, a Brazilian com

pany of Grupo Itavem

a, which

has a manufacturing plant in M

anaus with capacity to produce 200,000 m

otorcycles annually. TVS

Apache RTR

150 motorcycles are now

being produced at this plant.

United Phosphorous Ltd

United Phosphorous Ltd has set up tw

o operating plants in Argentina, one in R

eposo and the other one in Icona. In addition, it started operations in Brazil in 2003. The com

pany’s has a turnover of about U

S$ 100 million. In 2008, U

nited Phosphorous Ltd bought Evofarms, a C

olombian

agrochemical com

pany.

BescoBesco has entered into a joint venture in southern Brazil for the m

anufacture of railway w

agons.

BEML Ltd

This company has set up an assem

bly plant in the state of Espírito Santo, Brazil, to manufacture

mining, earthm

oving and railway equipm

ents.

Aditya Birla G

roupH

indalco Industries, part of the Aditya Birla G

roup, acquired the United States-based alum

inum

sheet maker N

ovelis Inc in a deal worth about U

S$ 6 billion. Novelis has assets in Brazil in the cities

of Ouro Preto, Pindam

onhangaba and Utinga in the states of M

inas Gerais and São Paulo.

Punjab Chem

icals and Crop

Protection Ltd (PCC

PL)This com

pany acquired Sintesis Quim

ica, an Argentine com

pany with tw

o factories in Argentina

and a turnover of US$ 50 m

illion.

73

India and Latin Am

erica and the Caribbean: opportunities and challenges in trade and investm

ent relations

IFFCO

IFFCO

, India’s largest fertilizer producer and the world’s largest in the cooperative sector, has

invested US$ 25 m

illion in Am

ericas Petrogas, a Canadian com

pany, which has oil and gas projects

in Argentina and a potash m

ine in Peru. IFFCO

is working on the potash project in Peru, as part of

its global fertilizer production strategy. It is planning the construction of a potassium chloride plant

in Bayóvar (Piura), which w

ill involve an investment of U

S$ 200 million. It is considering a new

am

monia plant in A

rgentina for US$ 800 m

illion.

PidilitePidilite has acquired a Brazilian adhesive com

pany with a turnover of U

S$ 70 million.

Havells

Havells has acquired the assets and business of Sylvania in Latin A

merica, w

orth US$ 200 m

illion. It has plants in Brazil, C

olombia and C

osta Rica. The chief of operations of the A

mericas, M

r. Kapil

Gulati, m

anages the regional business from C

osta Rica.

BirlasThis com

pany is setting up a carbon black plant in Mexico.

Videocon

Videocon acquired a TV

manufacturing plant, ow

ned by Thomson, in M

exico for about half a billion dollars.

Vijai Electricals Ltd

This company acquired a transform

ers plant in João Pessoa in the north-east of Brazil for over a m

illion dollars. It will invest m

ore to expand capacity and reach a turnover of over US$ 50 m

illion.

ELGI Equipm

ents LtdELG

I Equipments Ltd launched a subsidiary in São Paulo, Brazil, to m

arket its products directly.

Godrej

Godrej acquired tw

o Argentine com

panies, Issue Group and A

rgencos, in 2010. The two com

panies are in the cosm

etics business with their core strength in hair colour. They have a turnover of U

S$ 50 m

illion and export their products to other Latin Am

erican countries.

Essel PropackThis com

pany has acquired plants in Colom

bia and Mexico that produce lam

inated plastic tubes.

Megatherm

This company has set up a Brazilian subsidiary, M

egatherm G

roup Brasil Ltda, in the foundry sector.

74

Economic C

omm

ission for Latin Am

erica and the Caribbean (EC

LAC

)

Table A.4

LATIN AMERICAN CO

MPANIES IN INDIA: M

AJOR O

PERATIONS AND FUTURE PRO

JECTS

Com

panyC

ountry of origin

Brazil

Marcopolo

This company has a joint venture w

ith Tata Motors for the production of buses in India. P

roduction capacity is 14,000 vehicles per year.

Petrobras

Petrobras has been aw

arded three offshore blocks for exploration in collaboration with O

NG

C Videsh Ltd.

CVR

DC

VRD

has set up an office in India and is looking for investment opportunities.

Weg

This supplier of heavy electrical motors and generators has set up a subsidiary operation in India.

Stefanini

Stefanini has set up IT design centres in B

angalore and Hyderabad.

Gerdau

This company has invested U

S$ 71 m

illion in a joint venture with K

alyani Steel.

Dedini

Dedini has signed a m

emorandum

of understanding with the W

alchand Group for the supply of equipm

ent for ethanol production in India.

CO

FAP

CO

FAP

has set up a 50:50 joint venture in India with the Endurance G

roup for shock absorbers.

Perto

This Porto A

legre-based ATM m

achine manufacturer is setting up facilities in India. It has already sold 825 ATM

machines to the S

tate Bank of India.

Argentina

IMP

SA

IMP

SA

has set up an office in Gurgaon to seek opportunities in the hydroelectric pow

er sector.

Biosidus

This company has show

n interest in establishing a plant in India to produce biotech products.

Galileo

This global leader in compressed natural gas (C

NG

) technologies has supplied technology and equipment to Indian com

panies and is looking for opportunities to w

ork with gas com

panies such as Reliance.

Mexico

Hom

exH

omex has set up a joint venture w

ith Daksh B

uilders to construct low-cost housing.

Cinepolis

This company w

ill invest US

$ 160 million in India to set up m

ultiplexes across four states, making India their largest m

arket outside Mexico.

Chile

CS

AVThis shipping com

pany has offices in several major cities in India.

Colom

bia

FAN

ALC

AThis com

pany has won a contract for garbage collection and processing in one-third of the city of C

hennai and employs 2,600 Indian w

orkers.

Cuba

Biocon

Biocon has entered into a joint venture for the m

anufacture of vaccines in India with C

uban technology.

Source: Econom

ic Com

mission for Latin A

merica and the C

aribbean (ECLA

C), on the basis of inform

ation from R

. Viswanathan, “B

usiness with Latin A

merica”, M

arch 2011, ww

w.businessw

ithlatinamerica.

com; S

ELA (S

istema Econom

ico Latinoamericano y del C

aribe), “India’s Economy and R

elations with Latin A

merica and the C

aribbean: Current S

tatus and Prospects”, S

P/ R

RR

EE-CH

INA

-IND

IA-R

US

IA-

ALC

/DT N

o. 3-09, July, Caracas; and D

eloitte and FICC

I (Federation of Indian Cham

bers of Com

merce and Industry) (2010), “India and Latin A

merica and the C

aribbean (LAC

): Business environm

ent and opportunities for C

ollaboration”, Deloitte-FIC

CI them

e paper, for India LAC

Business S

umm

it, 30 March 2010.