The Brazilian subsidiary of the logistics multinational TNT inked a contract with Philips to distribute the consumer electronics produced by the company nationwide. The three-year agreement involves R$30mil turnover per year. It is the main contract signed by the subsidiary apart from the cars segment. The logistics company aims to grow in electrical & electronics and in the consumer goods segments and expects that by 2006 such segments account for 50% of its total income. TNT invested R$2.3mil in software, equipment and infrastructure to serve the audio and video equipment segments. It is already in charge of two distribution centers: one in Manaus (Amazonas state) and another in Campinas (Sao Paulo state). Over the past year, electrical & electronics and consumer goods accounted for 10% of the R$23mil income. For this year, the aim is that such segments account for at least 15%. The plan for diversifying businesses was outlined in 2001 and was supported by consulting company Booz-Allen. Over the past years, the company conquered clients as Xerox, Embraco, BSH Continental and Souza Cruz. TNT entered Brazil in 1997 to serve Fiat. Now, it leads the car segment. In 2002, it turned over R$237mil, up 17% from 2001.
Copyright: SABI (South American Business Information)
Source: Gazeta Mercantil