RANDON GROUP
WHEELS OF GROWTH
RANDON GROUP
Sergio L. Carvalho, VP & COO, Randon Group.
2 | BUSINESS FOCUS MAGAZINE
Photo: Jefferson Bernardes
BUSINESSFOCUSMAGAZINE.COM
RANDON GROUP
RANDON GROUP, OPERATING ON A GLOBAL SCALE IN THE MOBILITY SECTOR, IS PURSUING A GROWTH STRATEGY DRIVEN BY THE SYNERGY OF TRADITION AND INNOVATION.
WHEELS OF GROWTH PROJECT MANAGED BY: DEAN BROWN
The Brazil-based business is a traditional conglomerate of companies with experience in the mobility sector spanning seven decades. The Group, headquartered in Caxias do Sul, RS, Brazil, consists of two manufacturing divisions - Assembler (trailers and rail cars) and Autoparts (brakes, friction materials, brake actuation, axles, suspensions, hubs and drums, fifth wheels) - and a Financial Services division (bank, consortium and ventures). The Randon Group’s products are available in over 100 countries, supplied from 24 manufacturing facilities and 6 distribution centres.
O
ver the last few years, the company has grown with an annual compound growth rate of 25%, driven by favourable market conditions as well as acquisitions, and recent financial performance indicates that this fast expansion is set to continue. “We are a traditional business with a strong heritage and experience, but with the energy and enthusiasm of a startup. This youthful energy is an important factor in the business culture,” affirms the Group’s COO and Executive VP Sergio L. Carvalho, noting that that the company has almost doubled in size over the last five years.
A PEOPLE BUSINESS
The Group’s business model is one of Randon’s key strengths. Diversification across several
BUSINESSFOCUSMAGAZINE.COM
segments provides for a robust footing, and individual units benefit from the Group synergies in terms of procurement, technologies and innovation. Mr Carvalho points out that it is also its organisational culture that differentiates Randon from competitors. “Our people are the core of the business. This is not something we have framed on the wall, but consider it a true company value and act accordingly,” he affirms. He further explains that during the pandemic, the Randon companies have two main focus points: preserving the health of employees and the population and the sustainability of the local and global economy. The company has developed dozens of actions aimed at reinforcing collaborative initiatives aimed at controlling the pandemic.
BUSINESS FOCUS MAGAZINE | 3
Our Next Generation Mobility We make electric driving fit for the future and everyday use. EVplus is the next generation of fully integrated plug-in hybrids from ZF. With more than 100 kilometers of electric driving possible on only one battery charge, EVplus meets the daily needs of most families and commuters. For longer journeys, the hybrid drive offers the flexibility of a combustion engine and removes the need to worry about range. With EVplus, drivers have the best of both worlds – a smooth ride while helping for a significant reduction of CO2. zf.com/emobility
RANDON GROUP
High-performance and protective coatings for trailers and trucks.
“WE ARE A TRADITIONAL BUSINESS WITH STRONG HERITAGE AND EXPERIENCE, BUT WITH THE ENERGY AND ENTHUSIASM OF A START-UP.”
PPG’s coating solutions bring technology and innovation to the Randon group; driving efficiency, while transporting people and goods.
“Our group has been donating mechanical respirators to local public hospitals in addition to rapid tests, masks, hand sanitizer, food supplies, among other items. The company has also made some adjustments to its factories so that they could manufacture ventilators, an initiative developed in partnership with Brazilian aircraft manufacturer Embraer, as well as plastic parts for face shields.” Mr Carvalho further points out that despite the impact of Covid-19, the company achieved record performance in 2020
To learn more, scan the QR code or visit www.ppg.com
We are pleased to have been a part of the growth, consolidation and continued success of the Randon group as one of the biggest Latin America companies in the global transportation segment. Our partnership goes far beyond the delivery of quality coatings and services. A key tenet of The PPG Way is “We partner with customers to create value.” And that is a driving force in our relationship.
Photo: Daniel Streit
PPG
Our partnership is marked by dedication, transparency and development of innovative solutions that provide productivity, cost reduction and improved performance for Randon – while also creating a better experience for the company’s customers around the globe. With operations in more than 70 countries around the world, PPG provides innovative solutions for a wide range of segments, including industrial, transportation, consumer goods and construction. Through leadership in innovation, sustainability and color expertise, PPG maintains a long tradition of developing cutting-edge technologies and delivering lasting value to all its stakeholders, ensuring the highest industry standards and respecting the environment. For PPG – and I know also for Randon – operating with integrity, safety and sustainability is much more than a commitment. It is a high priority. The rich diversity of PPG’s 47,000 employees around the globe comprises various cultures, ethnicities and areas of knowledge that provide us with great competitive advantages. Those advantages make PPG a market leader – and a highly engaged partner committed to helping Randon to continue its global growth and success. Marizeth Carvalho, Industrial Coatings Director, PPG Latin America. www.ppg.com
BUSINESSFOCUSMAGAZINE.COM
Automatic Guided Vehicles transporting brake linings at Fras-le unit, in Brazil.
BUSINESS FOCUS MAGAZINE | 5
RANDON GROUP
Photo: Marcio Campos
Traditional conglomerate of companies with experience in the mobility sector spanning seven decades.
and managed to keep its supply chain reliable. “We have doubleor triple-sourcing so production remained unaffected during the pandemic. A large part of our supply chain is located in Brazil and we have supported the smaller suppliers to help them get through.”
DIGITAL TRANSFORMATION
In recent years, the Group has invested considerably in its future in line with its strategy of expanding its portfolio, capacity and global footprint as well as further supporting innovations and implementing digital transformation. Mr Carvalho affirms that focus on innovation is a key part of the game, reflecting growing trends in the industry such as sustainability and environmental protection. The innovative edge is provided by the Group’s Technology Centre, located on an area of more than 90 hectares, which is regarded as one of the
6 | BUSINESS FOCUS MAGAZINE
main development complexes for Brazil’s mobility industry. The Centre’s recent achievements include the new electric trailer, the Randon Hybrid R - the first electric trailer developed in South America - launched by the Assembler Division, and new products using advanced materials developed for the Autopart Division including new copper-free brake pads, a new trailer ABS system, new piston-type brake chambers, a lightweight trailer suspension system, a truck full-air suspension for MAN trucks and many more. Seeking to improve the innovation of manufacturing processes, Randon companies are creating a new unit to act in the support and development of industrial automation - the Randon Tech Solutions (RTS) Industry, which will focus on providing solutions, special machines and smart manufacturing. The new unit, expected to be commissioned in the first quarter
Warehouse for the trailer manufacturing unit at the group’s headquarters in Brazil, considered one of the largest and most modern in Latin America, with more than 800 storage positions and over 17 processing stations.
BUSINESSFOCUSMAGAZINE.COM
RANDON GROUP
Organisational culture differentiates Randon from competitors. Our people are the core of the business.
Photo: Cesar Lopes
of 2021, will expand synergy between all Group units in the development of processes and intelligent systems of productivity. “Added to a culture of constant innovation in processes and the qualification of the technical, operational and engineering staff, RTS Industry will accelerate the growth of our company with sustainability,” stresses Sergio Carvalho. “All of our 24 plants worldwide are going through a technological transformation aiming to get to the same degree of automation that can be seen in the most advanced countries such as Germany within the next three years.”
GLOBAL EXPANSION
Investments of recent years have gone not only into the internal capability but also into global expansion. Over the last
Photo: Marcio Campos
BUSINESSFOCUSMAGAZINE.COM
four years, the company has completed some 12 acquisitions, the most recent of which include Ferrari Industrial, aluminium die casting operation, Nakata Automotive, a large suspension manufacturer, CNCS machining focused on the AG sector and Auttom in the field of industrial automation. Business partnerships have been just as important a part of the growth strategy. In 2020, Suspensys, a unit that integrates Randon companies, and Volkswagen Trucks and Buses (VWCO) signed a partnership agreement for the company’s entry into the Modular Consortium maintained by the assembler. In an unprecedented partnership between the two brands, Suspensys will be responsible for the preassembly of pneumatic suspensions for Volkswagen trucks and buses. It will also be the supplier of the modular fullair suspension system jointly
designed by Suspensys and VWCO for its vehicle portfolio. According to Sergio Carvalho, the consolidation of this business model, amid the challenging scenario that the world is living through, shows that the company is thinking about a future in which innovation and partnerships like this will be even more strategic. “For many years Randon has kept a robust cash position, and financial management has stayed strong during the crisis. This position has allowed Randon to honour all its obligations and continue most of its investment plans in M&A, capacity expansion, innovation and technology and digital transformation. Always in line with the principles of business and environmental sustainability, and always valuing people and their talents - it is committed people that make Randon a group with a global presence,” he affirms, in conclusion.
BUSINESS FOCUS MAGAZINE | 7
RANDON GROUP
WWW.RANDON.COM.BR