Global Business Environment
Feasibility study for investment in the
Brazilian Paper and Pulp Industry
Report By:
Ashish Jindal (063011)
Avneesh Luthra (063012)
Aayush Singhal (063013)
Deepak Arora (063014)
Feasibility study for investment in the
Paper and Pulp industry in Brazil
An overview of Brazil
Brazil is the largest country in South America. It is the world’s fifth largest country, both by geographical area and by population, with over 192 million people. It is the only Portugese-speaking country in South America.
Brazil is the largest national economy in Latin America. It is the world’s sixth largest economy at market exchange rates and seventh largest in terms of purchasing power parity, as per the International Monetary Fund and the World Bank. Brazil has a mixed economy with abundant natural resources. The Brazilian economy has been predicted to become one of the five largest in the world in the decades to come. It has large and developed agricultural, mining, manufacturing and service sectors, as well as a large labour pool. Brazil’s current GDP is estimated to be $2.294 trillion and Per Capita GDP $11,769
The Paper and Pulp Industry in Brazil
Brazil is the largest producer of paper and pulp in South America. On the world stage, it is the 4th largest producer of pulp with a production of 13,315,000 tonnes and 9th largest producer of paper with 9,428,000 tonnes (2009).
Brazil’s Pulp & Paper Production
Source: Bracelpa
Brazil is predominantly a tropical country. As a result, the soil and climate in most regions of Brazil are favourable to forest growth. The main geographical areas in the paper and pulp industry are the states of Sao Paulo, Parana and Santa Catarina.
Furthermore, eucalyptus trees in Brazil have short growing cycles (approximately 7 years), compared to 10-12 years in Chile and 25 years in the United States. Thus, production of wood in Brazil requires less time and a smaller growing
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