Patience and a good road map: The Brazilian giant in gas, hydrocarbons, and chemicals has capitalized on opportunities to grow inorganically.

Author:Ogier, Thierry

The Sao Paulo-based Ultrapar has implemented well-crafted strategies to expand from a distributor of LPG for household use in the late 1930s to become one of the largest conglomerates in Brazil, with activities in fuel distribution at home and chemistry across the Americas.

"Strategy is always a mix of organic and non-organic moves, opportunities and execution capabilities, and a road map that entails both dimensions", Thilo Mannhardt, president and CEO Ultrapar until the third quarter of last year, told Latin Trade. At Ultrapar, "We have taken very consistent steps towards solid execution rather than just growing business organically," Mannhardt said. One of the essential ingredients is that you need to create a very clear understanding and alignment between the executive team, the leadership of the company, the shareholders, and the board, he told Latin Trade.

"It has to do with alignment, it has to do with patience and the long-term view of the development of the company. You need to create a deep understanding within management and the board of the company to have a very clear road map for execution," he said.

But those journeys normally depend on opportunities. Companies may have great ideas but no opportunities to realize them, and opportunities may take time to ripen before...

To continue reading