Ipiranga S.A. - Introduction

Introduction

Rua Francisco Eugenio 329
Rio de Janeiro 20948-900 RJ
Brazil
Telephone: +55 21 2574 5591
Fax: +55 21 2569 4836
Web site: http://www.ipiranga.com.br

Public Company
Incorporated: 1933
Employees: 1,588
Sales: BRL 21.29 billion ($6.93 billion) (2003)
Stock Exchanges: Bolsa de Valores do Rio de Janeiro
Ticker Symbol: PTIP
NAIC: 324110 Petroleum Refineries; 424720 Petroleum and Petroleum Products Merchant Wholesalers (Except Bulk Stations and Terminals); 424710 Petroleum Bulk Stations and Terminals; 447110 Gasoline Stations with Convenience Stores

One of Brazil's largest privately held companies, Ipiranga S.A. focuses on the domestic oil and petrochemical sectors. The company operates through the following primary divisions: Companhia Brasileira de Petróleo Ipiranga (CBPI); Distribuidora de Produtos de Petróleo Ipiranga (DPPI); Refinaria de Petróleo Ipiranga S.A. (RPISA); Ipiranga Petroquímica; Ipiranga Comercial Química; and others. Ipiranga also holds stakes in rival Copesul, among others. The company is one of Brazil's top three oil refiners—although far smaller than state-owned Petrobrás, which has long operated a near-monopoly on the country's refining market. Ipiranga is also in the top three in the distribution market, particularly through its network of nearly 3,500 Ipiranga gasoline stations. The company's active implementation of a franchising strategy, adding a variety of new services and amenities, such as convenience stores and the like, in its service stations, has contributed strongly to that operation; these services account for as much as 15 percent of the group's total sales, which topped BRL 21 billion ($6.9 billion) in 2003. Unable to compete with Petrobrás in the refined oil market, Ipiranga has shifted its focus to lubricants and related products, and also has targeted expansion in the GNV (vehicular natural gas) arena. Through Ipiranga Petroquimica, the company is a leading Brazilian producer of petroleum derivatives, such as polypropylene, solvents, and asphalt, among other products. Although the Ipiranga holding company remains privately held (and owned in part by the founding families), the company's DPPI, CBPI, and RPISA subsidiaries are all listed on the Brazilian stock exchange, Bolsa de Valores do Rio de Janeiro.