São Paulo – Medical product maker Loktal, from São Paulo, already has 30% of revenues coming from exports. Now, the company has turned its focus even more towards the foreign market and has the Arab nations in its crosshairs.
The company, which makes electronic scalpels for small and medium procedures in several specialties, started exporting to the United Arab Emirates two years ago, after participating in the Arab Health fair. Currently, the company is undergoing the registration process at the Health Ministry of Egypt so as to be able to trade its products in that country, where the organisation already has a distributor.
Luciano Rodriguez, the International Sales manager at the company, does not mention revenues, but says that Loktal aims to grow 15% this year. "Around 60% should come from foreign sales,” he said. “We are working hard on exports, investing in fairs and trade delegations promoted by the Apex (Brazilian Export and Investment Promotion Agency) and by the Ministry of Development,” he said. According to the executive, with entry into the Egyptian market, sales to the Arabs should reach between 5% and 10% of company exports.
The company is betting on the high buying power of the Arab countries and on the low cost of equipment to win more clients in the Middle East and North Africa. "Our main competitors are the North Americans, and we are not talking about Chinese products, but about competition with quality products. Our product goes for half the price [of US products],” he explained. While the price of an electronic scalpel made in the United States is US$ 11,000, the price of the Loktal equipment ranges from US$ 5,000 to US$ 6,000.
In October, the company should participate in a delegation to Saudi Arabia but, for the time being, Rodriguez is betting on Egypt as the Arab country with the greatest potential for Loktal exports. “Due to the (medical) needs of that country. We are aiming at the modernisation of equipment of hospitals and clinics there,” he explained.
Apart from Rodriguez’s work and that of his team, Loktal also hired a market consultancy to prospect new clients in different countries. The manager explained that the consultancy is helping open markets in countries like Ecuador and Angola. Another front that Loktal is starting to operate on is governmental sales. “You sell much greater volumes and, certainly, return is much better,” he detailed.
Currently, the main Loktal markets are Peru and Mexico. The company was established 20 years ago and has 50 employees. Annual production of scalpels is 3,500 items. Loktal also produces microkeratomes, devices used in the transplant of corneas.
Contact
Loktal
Tel: (+55 11) 3722-0345
E-mail: comex@loktal.com
Site: www.loktal.com.br
*Translated by Mark Ament
