The Brazilian Navy Request for Proposals (RFP) for a new generation of corvettes was published in December 2017, the first contract being for an initial 4 units.
MEREGE brought India (this was the very first time an Indian shipyard had participated on a bidding in Brazil) through Goa Shipyards Ltd (GSL) to participate. One of the most prestigious naval construction companies in India, GSL is a long term supplier to the Indian Navy.
MEREGE fully supported the Indian executives at GSL, since its enrollment on the bid until the end of the entire bid process, at the proposal opening.
All along, MEREGE delivered consulting services to support the proposal making, especially on the 40% local content requirement (rather than just having the minimum price, the winning bid had to propose to build it in Brazil with, at least, a 40% rate of national sourced components).
Such RFP local content requirements made mandatory to select a local shipyard in Brazil to form the consortium. Among the eligible Brazilian shipyards, MEREGE identified and selected Indústria Naval do Ceará (INACE).
MEREGE also supported the entire local procurement process, advising on who to buy components from, at the Brazilian industry market, as per the significant local content required percentage.
MEREGE recommended INACE shipyard, in the northeastern city of Fortaleza as the best candidate and accompanied GSL in all the process of setting up the necessary consortium.
The collaboration between the two companies allowed for technology transfer from the Indian partner to INACE and would also have allowed the creation of a regional production base in Ceará, covering most of the GSL’s products.
The bid also involved a number of complex offset sub-offers to the Brazilian Navy, hence the consortium assembled for this bid also included 2 other members: (1) ATech- a member of the Embraer group, (2) SKM, a specialist in engineering projects (electrical, software and instrumentation), and production of Main Electrical Panels, Distribution panels and energy management systems. SKM also had know-how and experience on applying those systems in ships with of conventional propulsion and diesel-electric, including control systems, automation, supervision etc.
Although GSL did not win this bid, it ended up at the top 5, as the 5th position, almost breaking into the four short listed offers. This was considered a great success, bearing in mind there was absolutely no previous cooperation or interaction in shipbuilding between Brazil and India.
Hence, we believe that in future bids GSL and the Indian naval industry will certainly be even better positioned to win contracts in Brazil.
On March 4th, 2020, the Thyssen-Krupp consortium, a very traditional supplier, won this BRLR$ 6.4 Billion (USD 1,6 Billion), 10-years long contract.
Beyond Tamandaré project, the Brazilian Navy is just starting a huge long-term plan for ordering a lot of other vessels, submarines etc. A multibillion program for total fleet modernization, of which the described bid was just the beginning.
Goa Shipyard Limited (GSL) established in 1957, is a leading ISO 9001-2015 certified shipyard on the West Coast of India, functioning under the administrative control of Ministry of Defense, Govt. of India.
GSL is strategically located on the banks of river Zuari in Goa, a major international tourist destination well connected by its international airport and major port enroute all important shipping lines.
Beginning as a small barge building yard, GSL has garnered reputation as one of the most sophisticated ship builders in the Country. For over four decades, GSL has designed, built and commissioned a wide range of sophisticated vessels for varied applications in the Defense and commercial sectors with special expertise in building modern patrol vessels of Steel and Aluminum hull structure.
MEREGE was particularly suited to assist GSL due to our deep knowledge of the Brazilian Navy long-term needs, as well as its strong relationships developed with top decision makers in the Brazilian shipyards and Brazilian defense industry companies.
MEREGE has been developing the relationship with top decision makers at the Brazilian Navy related departments and top management as well, for keeping up all along the process evolution.
SOURCES: BRAZILIAN NAVY and BRAZILIAN DEFENSE official websites.
Please, check out other KEY ON-GOING BUSINESS CASES at Brazilian Air Force (FAB), Brazilian Navy and other opportunities for Latin America:
- BUSINESS CASE SGDC 1 & 2
- BUSINESS CASE FAB / AEB “ALCANTARA launching base”
- BUSINESS CASE FAB – CARPONIS-1 / HR Remote Sensing
- BUSINESS CASE SMART AGRICULTURE – NB-IoT
- BUSINESS CASE INPE REMOTE SENSING SATELLITE “AMAZONIA-1”
- BUSINESS CASE INPE REMOTE SENSE SATELLITE “CBERS”
- BUSINESS CASE ELETROBRAS – HYDROELETRIC POWER
- BUSINESS CASE VALE – ENERGY STORAGE
- BUSINESS CASE MB “UNMANNED AIRCRAFT”
- BUSINESS CASE SISFRON – BRAZILIAN TERRESTRIAL BORDER
- BUSINESS CASE “AMAZÔNIA AZUL”
- BUSINESS CASE BRAZILIAN NAVY NUCLEAR PROGRAM
- BUSINESS CASE AIRCRAFTS SAAB F-39E GRIPEN
- BUSINESS CASE MB “ANTI-SHIP MISSILE”
If your company is interested in opportunities such as those above, please let us know. MEREGE would be more than glad to act as your bridge into Brazil.
Unfolding relationships previously developed, MEREGE partners are able to quickly build a specific network that reaches the market the costumer needs.
MEREGE Legal & Regulatory team has a long and vast knowledge and experience, hence able to help your company to set the safest and the strongest path.
Always count on the widely respected experience and networking of MEREGE Consulting Partners to reach out to the right people at the right time.
