São Paulo – KRJ, a manufacturer of connectors for main power transmission lines, plans to increase its exports by 30% this year. The Arab market is one of the bets to achieve the goal. The company, headquartered in São Paulo, Brazil, also forecasts growth of 50% in production in 2013. "We always work with sales forecasts for three years ahead, and we aim to launch two new products a year. We are also investing in the development of new markets, such as the Arab market," said Roberto Karam, a partner at the company, who is of Lebanese descent.
KRJ has even already sold in the Arab market, to Lebanon and Jordan, but the volumes were not very relevant. If it depends on promotion actions undertaken and planned for the region, however, exports should take off soon. Since 2011, the company has participated in Project Lebanon, a construction sector fair in Beirut. In the country, KRJ has been prospecting business with Lebanon’s power utility, Electricity of Lebanon (EDL). For this purpose, the Brazilian company even has a trade representative, Usama Richami, in the Middle East.
"We are intensifying analysis of the type of power distribution systems and the number of consumers to verify the true potential," says Karam , regarding Lebanon. The products offered by KRJ have already been approved by Electricity of Lebanon. KRJ also participated in fair Middle East Electricity, in Dubai, United Arab Emirates, last year, and visited electric utilities in Jordan and the Emirates.
Two weeks ago engineers from Ideco – Irbid Electricity, the power distribution company of Jordan, visited KRJ for approval of the company and its products. KRJ will participate again in Project Lebanon once again, from June 4th to 7th this year, with Karam, the person responsible for export, and Richani. They will stay in the region for one week after the fair to visit potential clients in Jordan and the Emirates.
The connectors manufactured by KRJ are used by electricity distributors. The product is used to join two conductors, the one leaving the electrical consumption measurement clock and that of the distribution network. KRJ has five product families. All have a spring effect, ensuring constant pressure on the conductors connected, avoiding poor contact and electro-mechanical relaxation of the connection. Working life of the product, after installation, is 30 years. KRJ is known for innovation in Brazil. "If the connector that links the consumer to the distribution network fails, he will have no electricity," says Karam.
In 2012, KRJ manufactured a total of nine million units and generated sales of US$ 20 million. Ten years ago, at the beginning of the company’s operations, manufacturing was three million units and revenue totalled US$ 750,000. The 50% increase planned for production this year should be the result of the launch of new products last year, namely IBEX, KED, KATO and KITE. According to Karam, one of the measures the company uses to maintain growth is investing solely their own capital, without borrowing from banks. "The shareholders are the last in line. First comes development of the company. The next step forward, however, is always according to our cash generation," says Karam.
KRJ exports began in 2005 and were focussed on Latin America. Last year, they accounted for 15% of sales, and this year they should rise to 20%. In the Arab world, apart from the representative in Lebanon, there is a professional who works for the company in Jordan, under the coordination of Rachini. Karam believes in the potential of the Arab market for company connectors. "Existence of an overhead power distribution network, potential, new homes with funding from the World Bank and the reconstruction of a power grid destroyed in conflict", quotes the businessman, naming the reasons why he aims to invest in the region. For more information about the Arab market, KRJ recently became an Arab Brazilian Chamber of Commerce associate.
Karam and KRJ
Also weighing in the choice to invest in the Arab market, said Karam, are his Lebanese roots. Karam’s grandfather on his father’s side , Fellippe Karam, was born in Lebanon, in the town of Khirbet Anafar, and came to Brazil in 1911. His great-grandfather on his mother’s side, Pedro Manoel Cherfên, was originally from Kartaba, and arrived in Brazil in 1899. Both migrated as a result of local conflicts. The businessman explains that due to the death of his grandfather and father, he lost his ties with relatives in Lebanon. But he still maintains the tradition of eating Arab food on special occasions. His mother is called in to cook at such occasions.
"Unfortunately I learnt little Arabic, but I’m trying to rescue some of our history and family ties," says Karam. He recalls that his father spoke much about a Lebanese war hero, Youssef Karam Bay, and plans to visit a monument built in honour of the hero next time he visits the country.
KRJ was established in 2002, but started operating before that, importing products in partnership with Kron Electrical Instruments. Later, the company developed its own engineering and manufacturing began, through an agreement for association with Kron, representatives RUF and Jaltec Technology. KRJ currently has seven partners and is managed by Karam and Fernando Marchetti Bedicks. Karam is an electrical engineer and Bedicks a civil engineer.
Contact details
KRJ Indústria e Comércio
(+55 11) 2971-2300
www.krj.com.br
*Translated by Mark Ament
