Canada's Dorel Industries Inc. is launching a new division to manufacture and sell children's car seats in Brazil, the company announced Tuesday.

Montreal-based Dorel said it will spend $4 million to set up a company that will be able to flog its car seats in the seventh most populous country on the planet.

The subsidiary will be headed by Anjos Camarano, who had headed the local company that represented Safety 1st, one of Dorel's brands of children's products.

The Canadian company has had its eye on expansion outside of Canada's borders and believes it has the capability to tap into the growing Brazilian kids' market.

"Dorel has the global scope and the experience to maximize the prospects in Brazil," said Martin Schwartz, the company's president and chief executive officer.

The Canadian company want to capitalize on Brazil's high birth rates — almost 19 per 1,000 people, more than 30 per cent higher than the U.S. equivalent — and the country's recent law making car seats mandatory.

Three month stock chart for Dorel Industries Inc.

Dorel will spend cash from $30 million worth of reserves to gain what the company estimates will be $10 million in sales in the first year of operation.

"[I]t is expected that the business will grow significantly over the next couple of years," Dorel said in a press release.

Molson Coors Brewing Co., when it was a solely Canadian concern, failed to crack the thirsty Brazilian beer market after buying out a local brewery in 2002, using Brazil's large population as its justification.

By 2006, Molson had sold most of its Brazilian stake to a Mexican company.