By Leticia Fucuchima SAO PAULO (Reuters) -French sugar maker Tereos plans to expand the client base for its power contract sales in Brazil by tenfold within two years, aiming for over 1,000 corporate
Tereos Aims to Expand Power Sales to Over 1,000 Clients in Brazil
By Leticia Fucuchima
SAO PAULO (Reuters) -French sugar maker Tereos plans to expand the client base for its power contract sales in Brazil by tenfold within two years, aiming for over 1,000 corporate customers, an executive told Reuters.
Samuel Custodio, head of power commercialisation for Tereos in Brazil, said the growth will be driven by cross-selling to the company's existing sugar and ethanol clients as well as potentially to their suppliers and partners and through acquisitions.
WHY IT'S IMPORTANT
Tereos, the second-biggest sugar producer in Brazil, produces power from sugarcane biomass in some of its Brazilian plants.
The power business provides Tereos with a predictable revenue stream even though it represents a small portion of the company's total revenue in Brazil, Custodio said in an interview on Wednesday.
ADDITIONAL CONTEXT
The group used to sell the power mostly through the Brazilian regulated power system, which is basically run by concessions.
But as these contracts expired, the company has shifted its focus to the non-regulated power market, where corporate clients can choose their energy suppliers directly.
BY THE NUMBERS
Tereos generates approximately 1,500 gigawatt-hours of electricity annually at six plants in Brazil's Sao Paulo state. This output covers its own operational needs, allowing the company to sell the surplus.
(Reporting by Leticia Fucuchima. Writing by Andre Romani. Editing by Jane Merriman)
