INDUSTRIAL PLAYERS
Industrial powerhouses, whether looking to further penetrate the Colombian market or looking for a foothold to grow business in the region, swear by Colombia as the place to be.
We are sure that the implementation of the peace process will generate many growth opportunities, especially in the two areas with the biggest limitations in Colombia today, infrastructure and agriculture. Of course, Dow is active in both sectors through agrochemicals and seeds in agriculture and additives, cement, and other solutions for infrastructure. Our merger with Dupont in 2017 is another opportunity to increase growth. Both Dow and DuPont have a presence in the region, but DuPont does not have assets on the ground whereas we do. Thus, we are not competitors in any of the lines we have in Colombia or anywhere in the Andean region; however, we are complementary. For example, in infrastructure it has some solutions that will be a great addition to what we already have. We are expecting to grow in Colombia between 8% and 10% this year.
One of our company's key focuses is on creating long-term relationships. Mitsubishi Electric de Colombia sold its first elevator in the Colombian market in 1964 and ever since we have focused on nurturing and developing a long-term relationship with the market. Though the country has faced difficult times over the last 50 years, we never left because we believed the market was an excellent long-term source of growth. We have a long history in Colombia and have contributed to the sustainability of its economy and society in important ways. The impact of business operations on society as a whole is one of Mitsubishi's core considerations, and we have transferred that type of thinking and strategizing to the Colombian market. Our 50-year presence in Colombia has shown the people that we are dedicated to the country in many different ways.
The Colombian market is important because our participation here is not as high as in other countries. On average, we have a market share of 30% in countries in which we operate, while in Colombia it is around 17-18%. The idea is to achieve similar levels of market participation by introducing new technology in the Colombian market. For example, we have industrial heaters that use 30% less energy than the rest of the market. But the problem is the price, which is important in the Colombian market. The biggest opportunity I see is in the hydraulic line because here we only have 4% of market share and the potential is high in mining and oil, among others. The oil industry is not so high-tech, and we can offer this technology here. It is high-tech in Europe, and we have a chance to introduce this technology here and upgrade the existing machinery accordingly.
Colombia represents the second-largest country in South America and the second-largest market in the region for Michelin. In the last two years, we experienced a devaluation of the currency and deceleration of the major motor of growth of the economy that helped the previous growth from 2012-2014. In terms of business, this meant we had to reorganize our operation by looking for efficiencies, cost reduction, and focusing on customers' needs to really be consistent in our delivered value. Despite the last two years being difficult, we performed well and outperformed the market by growing in market share in every segment. We did this because we are focused on innovation and renewed approximately 80% of our portfolio. In every segment, we consistently innovate to be able to deliver great added value to customers for bikes, trucks, passenger cars, light trucks, and the mining sector.
For years, multinationals such as Diageo had been looking at Mexico and Brazil as the main sources of investment and growth. But after a few years, the best market for investment is now Colombia because of the size of its population, its stable economy, and, in this particular industry, there is a great deal of potential for development. When you think about LATAM priorities, Colombia is now up there, and we are getting the investment to capture many of these opportunities. The main area of investment that we have had is behind our brands. The largest category of imported spirits in Colombia is whiskey, and Diageo holds approximately 80% of that category. We are the leaders in Scotch and we have the largest portfolio of malt in the world. We will start to see more consumers in Colombia interested in understanding the nuances of the taste profiles of the different malts.
Essilor has been in Colombia a long time, but only since 2013 have we partnered with Servioptica. We used to work with optometrists and ophthalmologists for a long time, and that is why the Essilor is well known in the country and the community. Our partnership with Servioptica gave us the distribution that we lacked. With Servioptica, we have been able to launch and introduce new products faster than ever and promote our products better in the market. We provide in Colombia all the products that are available in the rest of the world. The penetration of some products might be different based on purchasing power, so mid-tier products in France might be high-end products here. However, we have all the technologies the consumer needs here. That is also why it is important to have our labs here, so we can provide innovation faster.
INDUSTRIAL PLAYERS
TABLE OF CONTENTS
Focus: Nobel Prize
Eyes on the Prize
Juan Manuel Santos' Nobel Prize demonstrated the international community's recognition of his efforts toward forging permanent peace with the FARC, but the process of ratifying the treaty reveals that the issue remains as complicated as ever for Colombians.
read articleGuest Speaker
Luís Guillermo Solís Rivera, President, Costa Rica
TBY talks to Luís Guillermo Solís Rivera, President of Costa Rica, on respecting the sovereign power of the Colombian people, the critical areas of Caribbean security where both countries can work together, and the importance of burgeoning industrial ties between Colombia and Costa Rica.
read articleInterview
Ernesto Samper Pizano, Secretary-General, Union of South American Nations (UNASUR)
TBY talks to Ernesto Samper Pizano, Secretary General of the Union of South American Nations (UNASUR), on working with regional powers to bolster the peace process, boosting citizen participation at home and in the region, and forging a new concept of hemispheric security.
read articleInterview
María Claudia Lacouture, Minister, Commerce, Industry, and Tourism
TBY talks to María Claudia Lacouture, Minister of Commerce, Industry, and Tourism, on integrating Colombia's markets with natural regional partners, boosting underserved areas, and making sure that areas like bird-watching flourish.
read articleInterview
Patricia Tovar, Executive Director, Colombian British Chamber of Commerce (BRITCHAM)
TBY talks to Patricia Tovar, Executive Director of Colombian British Chamber of Commerce (BRITCHAM), on standing behind the UK despite Brexit, the opportunities offered by 4G, and why Colombia is one of the UK's best long-term bets in Latin America.
read articleInterview
Ricardo Ávila, Editor-in-Chief, Portafolio
TBY talks to Ricardo Ávila, Editor-in-Chief of Portafolio, on the biggest social, political, and structural changes Colombia must make to reap a full peace dividend, maximizing its huge agricultural potential, and the cornucopia of sustainable energy possibilities.
read articleInterview
Juan José Echavarría, Governor, Banco de la República (Central Bank of Colombia),
TBY talks to Juan José Echavarría, Governor of Banco de la República (Central Bank of Colombia), on the bank's cultural role in securing a broader peace, the importance of saving, and why the economy must still open up even more.
read articleInterview
Marcela Vaca Torres, Colombia General Director , GeoPark
TBY talks to Marcela Vaca Torres, Colombia General Director of GeoPark, on GeoPark's assertive moves in exploration investments, regulatory opportunities to encourage exploration, and new opportunities in shale gas and offshore resources.
read articleInterview
Francisco José Lloreda, Executive President, The Colombian Oil & Gas Association (ACP)
TBY talks to Francisco José Lloreda, Executive President of The Colombian Oil & Gas Association (ACP), on expectations for the year, increasing the feasibility of hydrocarbon projects, and the state of the offshore sector.
read articleFocus: Gold
The Road to El Dorado
2016 has been a mixed and sometimes challenging year for the mining industry in Colombia, especially for gold, due to legal issues, competitiveness, and high volatility in international markets. While gold exports rose 40.5% in 2016 to USD1.5 billion, the Colombian Mining Association estimates that up to 80% of gold production is done illegally.
read articleInterview
Guilherme Franklin, Managing Director , Tetra Pak Andina
TBY talks to Guilherme Franklin, Managing Director of Tetra Pak Andina, on the decision to locate the regional headquarters in Bogotá, the plan for double-digit growth, and its efforts on digital innovations and sustainable operations.<span></span>
read articleInterview
Ricardo Bribiesca, President & Director General of the Andean Region , PPG Industries
TBY talks to Ricardo Bribiesca, President & Director General of the Andean Region of PPG Industries, on strategic areas of growth, product segmentation, and raising the bar for industry sophistication.
read articleInterview
Zully Salazar Fuentes, President, The Cartagena Tourism Corporation (Corpoturismo)
TBY talks to Zully Salazar Fuentes, President of The Cartagena Tourism Corporation (Corpoturismo), on the successes of the past year, becoming a model for other regions, and focusing on sustainability.
read articleFocus: Buenaventura Port
Good Fortune
Colombia is blessed with being the only country in South America with direct access to the Pacific Ocean, the Caribbean Sea, and the Atlantic Ocean, but its Pacific ports have long been overshadowed by their flashier Caribbean counterparts. With an ambitious investment initiative from the public and private sector, that is about to change.
read articleReview: DOING BUSINESS
Doing Business in Colombia
The first year of Colombia's extensive fiscal reform has made doing business slightly more difficult in the immediate short term. Yet, if the state achieves even half of its goals in doing so, it will significantly improve the long-term corporate outlook for the country.
read articleInterview
Michelantonio Bosso, Regional Manager & Director of Operations of Latin America, Grupo Menarini
TBY talks to Michelantonio Bosso, Regional Manager & Director of Operations of Latin America of Grupo Menarini, on the importance of Colombia to the company and its goals for the local office.
read articleFocus: Zika VIrus
Ending the Epidemic
The Zika virus posed a special threat to the 26 million Colombians living in 900 municipalities below 2,200m. Nevertheless, due to proper surveillance, international cooperation, and an immediate government response, Colombia was the first country in the Americas to announce the end of the Zika epidemic.
read articleInterview
Alfonso Prada Gil, Director General, The National Service of Learning (SENA)
TBY talks to Alfonso Prada Gil, Director General of The National Service of Learning (SENA), on its key role post conflict, upcoming development projects, and its focus on technical and technological training.
read articleInterview
Cecilia María Vélez White, Rector, Universidad de Bogotá Jorge Tadeo Lozano
TBY talks to Cecilia María Vélez White, Rector of Universidad de Bogotá Jorge Tadeo Lozano, on the impact of its new university building, developing agricultural management programs, and becoming an innovative university.
read articleInterview
Fr. Juan Ubaldo López Salamanca, O.P., General Rector, Universidad Santo Tomas Colombia (USTA)
TBY talks to Fr. Juan Ubaldo López Salamanca, O.P., General Rector of Universidad Santo Tomas Colombia (USTA), on its growth plans across the country and its contributions to society.
read articleFocus: EDUCATION INVESTMENT
Striking A Deal
Teachers went on strike for the second time in two years in May 2017, fighting for increased wages, improved infrastructure, and more teacher development programs. Will the government's offer be more broken promises or will Colombia write a new chapter for the textbooks?
read article
