Flavio Maluf: Entrepreneur and Business Leadership in Brazil

Flavio Maluf currently serves as the CEO of Eucatex. Eucatex is a Brazilian company that began operating in 1951. He joined the company in 1987 in the area related to trade before joining the portion of the company dealing with industrial activities. After working in these departments for many years, he moved into administrative work, and he eventually joined the executive leadership based on his performance in the other departments.

The company has maintained a long reputation for environmental practices that make it a leader in the southern hemisphere. The history of this enterprise spans back multiple decades, so it is instructive to observe how the current CEO, Mr. Maluf, blended his style of leadership within the existing organization.

About Eucatex, Brazilian Company

Eucatex distinguished itself from competitors in South America by being the first factory to install and operate a recycling plant within the existing system. The tradition of environmentally friendly practices dates back to the opening years in the 1950s, which makes the company a leader that was far ahead of its own time. The main product of the enterprise is building supply materials, and there are several side products offered as well. The company focuses on providing materials made from quality Eucalyptus wood that is plentiful in this region, and they maintain a commitment to business practices that are environmentally friendly.

Eucatex offers a variety of building supplies, and this includes the following:

• Vinyl flooring
• Laminated floors
• Partitions for walls
• Doors and panels
• Paint
• Furniture
• Toys

Recent Eucatex News and Headlines

The organization known as the IBGE, or Brazilian Institute of Geography and Statistics, published some revealing data concerning the performance of the Brazilian economy during the last quarter of 2017 and the first quarter of 2018. Although there was a numerical increase in the growth rate of the economy, the beginning of the year still showed losses when compared to the first quarter of the previous year.

Therefore, although the final quarter of 2017 showed a growth rate of 1.2 percent, and the first quarter of 2018 grew 0.4 percent, this rate was significantly less than the the first quarter of 2017. Mr. Maluf pointed out this fact while also noting that agricultural performance also stalled between the months of April to June. He noted that almost 20 percent of sugarcane and over 30 percent of maize is harvested during these particular months.

eucatex CEO flavio maluf networking
Eucatex CEO Flavio Maluf (right)

A successful strike in the trucking sector caused a variety of effects to ripple throughout other sectors of the economy, according to Mr. Maluf. The harvest of 2017 maintained a record high level of nearly 240 million tons of product, and the growth rate increased almost 19 percent compared to the previous year. This set the stage for a decline in production, but workers’ demonstrations were also cited as contributing to the decreases. Notable impacts included the production of animals for human consumption. This loss was directly related to the lack of livestock feed when the truckers’ strike prevented livestock, corn and other feed products from circulating through the economy.

Coffee supplies were also affected, and this is a significant sector where more than 60 percent of the product is harvested during the second quarter. Since the strike occurred during this period, exporters were unable to load coffee products onto the shipments in regional ports on time. Therefore, the truckers’ strike had a significant effect on the GDP during the second quarter, according to the Folha report.

Even though these contractions were felt across multiple sectors of the Brazilian economy, the truckers’ strikes and demonstrations still had a wide base of popular support, according to Mr. Maluf. Additional contributing factors included the drop in price for diesel oil as well as additional regulations for freight hauls. A concurrent chain of events led to a series of losses in some sectors and shortages in others, and the agricultural sector was unable to maintain normal movement of their products. None of these effects diminished the amount of popular support for the truckers’ strikes.

About Flavio Maluf

Flavio Maluf was born in 1961, and he is the son of Paulo Maluf. His father was a recognized Brazilian political figure. His life was shaped by his father and uncle who provided him with opportunities to enter the world of business after completing his education. His early career began when he finished his studies at New York University for business administration. He also attended Fundação Armando Alvares Penteado where he earned a degree in mechanical engineering.

After graduation, he obtained experience working for Citicorp and GrandFood Group. His interest in leading his family’s business in new directions was realized in 1997 when he assumed control over the enterprise. After he stepped into the leadership role, Eucatex expanded their presence to nearly 35 countries through subsidiary office buildings. The building supplies of this company were used in the Olympic games when Brazil was the host country, and this occurred under his management.

Mr. Maluf continues to contribute to the overall society through a variety of activities. He is active in charity work especially for underfunded health organizations. One example of this was his donation of an X-ray machine to the Idio Carli Hospital and Maternity. In the public sphere, he writes articles and blogs on subjects that concern aspiring business owners, managers and entrepreneurs. The insights gained from running the company allow him to provide people with important and valuable advice when it comes to entering the world of business.

For example, he addresses the key issues of capital and time because these questions are always on the mind of fellow entrepreneurs. He offers the kind of advice that only comes from experience when speaking on issues of investments, which come primarily in these two forms. For example, many business models do not require complete funding during the initial stages, so lack of access to capital is not the major problem of an emerging enterprise. By advising entrepreneurs to evaluate revenue producing activities above initial capital investment, he is breaking a major assumption that still manages to prevent new businesses from reaching their full potential.

Be sure to follow Flavio on Twitter and LinkedIn


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