Flavio Maluf is a firm believer that it does not take a lot of money to start a business. He doesn’t suggest eschewing financial planning all together, of course, but if money can be made he thinks investors will quickly follow. The costs of opening a new business are perhaps better measured in time. This is particularly true in Maluf’s native Brazil where the World Bank indicates a start time for new businesses averaging 107 days; in the United States it is only 5 days.
Flavio Maluf knows what he is talking about. He is president of Eucatex, a growing name in the trade of paint, flooring, and wood paneling. Under Maluf’s guidance, Eucatex recently partnered up with panelling competitor Duratex in a deal estimated to be worth 60 million Brazilian Reals, more than $17 million, U.S dollars. Visit dino.com to learn more
Per the memo Maluf sent to his employees regarding the Duratex deal, Eucatex will have access to the production line at the Duratex site in Botucatu in exchange for a farm in Capão Bonito. Brazil’s notorious bureaucratic red tape, noted above, is the only thing holding back finalization of the deal. Maluf stated that once approval has been received from the Administrative Council for Economic Defense (CADE), he expects Eucatex to increase production capacity of fiberboards by 70%, paper printing by 40%, and paint by 30%.
Those are big numbers if Flavio Maluf’s estimates hold and there’s no reason to think they won’t, but this isn’t a man who is completely adverse to risk. His view in navigating the path from risk to success is to stay aware of the competition, study the market, and anticipate all possible outcomes, positive and negative.
If this recent deal is any indication, Flavio Maluf fully intends to fulfill the vision he set out in the memo: to expand Eucatex throughout Brazil and beyond.