Interview with Ricardo Paixão, MRV’s planning director.

Posted by Mereo
at Thursday October 22nd, 2015.

Currently, MRV Engineering is absolute leader in the market of residential property in Brazil, and one of the biggest in the world. MRV operates in the low income segment and built almost 300 thousand units, since it was founded 36 years ago.

The number of construction of units per year, revolving around 40 thousands. Only in 2014, the sales reach the amount of 6 billion reais.

The Director of investors relationship and planning from MRV, Ricardo Paixão Pinto Rodrigues, held an interview with Mereo, where he reveals the market expectative for the following years beyond MRC differentials ahead its competitors. Paixão also points out the importance about the use of Mereo suit to consolidate the manager system and organization to reach goals and improve results.

Ricardo Paixão, has a degree in Civil Engineering from Universidade Federal de Minas Gerais (UFMG) in 2004, and an Executive MBA from FDC in 2011. Paixão joined in MRV as Project Manager in 2008 and was Director of Shared Services Center (SSC) since 2009 to 2014. In 2015, he was nominated Director of investor relationship and financial planning.

Ricardo Paixão Pinto RodriguesMEREO – How do you evaluate the actual scenario of civil construction at Brazil? 

RICARDO – In a general way, the macroeconomic scenario is not favourable to Brazil and Industry. In the civil construction the segments of high and low incoming have been more affected by recent alterations at credit, tax surcharge of interests, and sources shortage, knowing that it highly dependent of the balance of savings. In the low incoming, the demand stills strong.

MEREO – What are the main challenges that you passed thought at the segment and how did you overcome it?

RICARDO – The labour is a critical factor in the industry. In 2009, with the advent of the MCMV we observed a strong migration of constructors from the high and middle incoming to the low incoming segment, increasing the competitiveness to attract new collaborators. As a way of talent retention, we have the MRV Trainee Program for over 8 years. With more than 700 placement students, we offer courses of qualifications and alphabetization in our beds. All the executives and a great part of the leadership positions of the company have Long Term Incentive, a program of Stock Options.

MEREO – What are the trend of the market to civil constructions for the next 5 years? 

RICARDO – Currently the scenarios are very uncertain. The political crisis we are facing worsen the economic scenario and drive us to a stagnation in 2016 and 2017. The counterpoint of this scenario is the habitational deficit that focuses on the families of low incoming, which already reached 5 million units, according to Caixa Econômica Federal bank. For our sector, we still facing a wide market and growth opportunities. There is no speculation in the low incoming, the demand is for the first property which, in our case the client changes the amount of rent for a portion of their own property.

MEREO – How is MRV positioned in the actual scenario and getting ready for the next years?

RICARDO – The advantage of MRV is that over 85% of our products are popular property, which are designed for low incoming population, where the financial source is cheaper because the sources come from the severance pay indemnity fund.

In this segment, we are facing a low competition and if it occurs, it is a local competition. Furthermore, the demand still much bigger than the offer.

We have a differentiated team, composed by an excellent land bank and we are ready for a new cycle of growth.

MEREO – How does Mereo help MRV to reach strategic results? 

RICARDO – The system will helps MRV to consolidate its manager system, and consequently reach goals and improve results. The Mereo suit will standardize the ascertainment of laws in the PLR program, and it will economize a lot of time in the calculus of reach for goals and ascertainment of awards.

MEREO – Which competitive advantages MRV presents related to its competitors?

RICARDO – For 35 years, we have focused in the same segment that we currently actuate. We constitute a strong brand nationally recognized. The quality of the product, customer contact structure, among others are important factors in the acquisition of the own property dream. Frequently we realize satisfaction researches with our clients, and as a result, we can say that over 85% of our clients would indicate a property purchase at MRV. Without a doubt, the greatest differential is the committed team MRV has.

MEREO – MRV presented an interesting growth in recent years, how does MRC still growing in times of crisis? 

RICARDO – In the past 10 years, the Brazilian demographic changes are very positive. The age group of the population, the real yield growth, the job formalization, beyond other factors. Our competence and differential are in the fact we perceived this demand 35 years ago, and developed expertise for this segment. Our clients arose 25 – 30 years ago.

In the resumption moment of the Brazilian growth, we have a prepared structure to increase the operational capacity. The moment is to continuously improve the efficiency of our process to be prepared for a new growth one more time, and that is what we are doing.

MEREO – What is the importance level of the economic and political factors in the current crisis?

RICARDO– The political factors increases the uncertainties, which consequently worsen the economic crisis. The confidence level of investors and clients is the key factor to make decisions, especially in our business where cycles are so long.


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