Luis Pagani represents an all-time-favorite-classic in the top 100 companies’ ranking. Arcor’s top CEO has the recipe his rivals desire: not only has he reached the very first position in the list, he is also able to maintain that place year after year. His corporate colleagues believe his secrets are based on the combination between his low profile in regards media issues and his constant appearance in every launching business the company is involved. He was re-elected President of the Asociación Argentina de la Empresa, an entity which clusters organizations with sales over US$ 200.000 millions a year and employs more than 300.000 people. “El gigante de Arroyito”, as the company is called, has established strong positions in Brazil, Mexico and Chile and expects to earn US$ 2100 million.

¿Which are the specific business projects you are working on this year and in what areas?
We are still dealing with our biannual-US$ 180-million-plan that shows financial outlays in the cookies and biscuits area, where we hope to have new installations and product lines. Besides, we have just added new assorted goods in that domain. As regards the candies section, we have strongly invested in sweets and their shipping to other countries. We are also releasing a new lining up model of products together with La Campagnola, as well as with BC.

¿Which are the plans for international businesses?
In Brazil, our increase is related to chocolates and candies, and we have just entered the chewing-gum area exclusively for adults, where Adams has a remarkable participation. In Mexico, we are finishing the settling down of the new opened-last-year-factory. Our challenges there imply the financial area, so as to build up a business network. In Chile, we are ending up different details for the new corrugated cardboard installation, an attractive market for a promising fast-growing.

¿Are you watching closely new countries to invest in?
No, we are not. Nowadays, we are focusing in Latin America, even tough international trading has been having an important increase in 2007, and we hope that it continues during 2008. Last year, I had the chance to visit China, Vietnam, Thailand, Malaysia and Korea for 40 days: we have detected great opportunities in all of these places. In fact, we are actually running an office in Shanghai, which we opened in 2006. We are surely moving forward there, full of new projects.

¿What is you personal insight of Argentina? Are you concerned about something? Which are the positive aspects? 
Taking into account positive aspects, I can see a potential growth and the importance of consuming rates. Still, I believe that there’s a huge need to remark investments, which, also, need to be financed. This is not a new issue, and, despite takeovers, credits haven’t been done the way it should have been.

¿Are you referring to deeper long-term issues?
Of course, sometimes I’m concerned about ads not being finished through out the firming up of a project. I believe it is essential for the country to keep on growing, and for the people to consume products, buy a new car or move out into a different house. But it’s necessary to make the increase go along with investments and, to reach that, credits are missing. And another important issue has to do with countries competing to invest. Everyone is competing for something in particular, from land areas up to tax incentives: there is a huge need in moving forward with this idea.

¿Why is it that you think that is not happening here?
I think these topics need to be settled and that takes a long time. They are part of the agenda setting, but they should be taken into account more seriously. They might be even more relevant, probably in about a year or so.

I am forced to ask if you have received proposals so as to join new partners locally…
No, we haven’t.

¿Did that happen in the 90’s?
Yes, practically.

¿Have you postponed your entrance to the stock exchange due to a volatile market?
We were about to fall together with global markets and that made us get a credit with the financial corporation. That means we rescheduled our debt instead of establishing deals with financial corporations or banks.

What are the main issues you can find in Arcor nowadays? And the main opportunities?
An important problem would be the inflationary pressure in every area, from the work-related one up to domain dealing with suppliers. As regards opportunities, I believe that there’s a great chance not only for Arcor, but for every organization in the agro-industry, to export and fix affordable prices.

¿Are you looking for organizations to purchase?
Definitely. We are still looking for new companies and different categories to embrace. That way, we are able to build up long-term businesses.
How is it that you decide in what market segments to enter and when to do it?
By analyzing new trends. I think we are up to a more demanding consumer who is investigating what is behind every product, what is hidden. Habits are changing, too.

¿Is the corporate image important?
I believe that, to keep on being on top of the rankings, it is essential to maintain a fluent communication. Having a great issue is a key issue for a massive organization and that is exactly why we care a lot about our corporate image.

¿How can you describe the integration model in which Arcor has developed as a pioneer?
It’s a sort of model we tend to apply in the Argentinean market. For example, every time a sweet is produced, 95 per cent of it is made by Arcor, from the sugar element to the milk and the packaging. The idea is for the organizations to be complemented.

¿What is your exact position in our region?
Taking into account the Southern Cone (Argentina, Bolivia, Uruguay, Paraguay and Chile), Arcor is the top leader. In Brazil, we are leaders just in some areas (N f  T: premium line of sweets and chewing-gum for children, and are also moving forward in the cookies field).

However, Pagani is not satisfied with this. He is getting ready for new challenges, because he knows that the important thing is not just to reach the top, but to maintain it. That’s what it’s all about.

Translated by Natalia Bocassi