I am a master in India

Chapter 233: A show of force

Suer Electric is already quite well-known in India, but its product range is not very extensive.

Water-cooled air conditioners and electric fans are strictly speaking the same type of household appliance, and they are significantly affected by the seasons.

During the rainy season or winter, Suer Electric's market presence will decrease sharply.

Therefore, television sets are Ron's core project going forward, and they represent a significant opportunity for Suer Electric Appliances to enter every household.

As early as the end of last year, he had people contact overseas manufacturers, with Ashish in charge of technical follow-up.

"Any progress in the past few months?" Ron asked.

"Boss, this is their reply fax." Ashish handed over the documents.

Ron picked it up and glanced at it casually before frowning.

"Are they all Asian companies?"

“Western brands are not interested in our inquiries at all,” Ashish said helplessly.

"These guys must be terrified," Ron muttered.

Given Coca-Cola's experience, Western investors are highly skeptical of India's business environment.

Coca-Cola rose to prominence in the Indian subcontinent as early as the 1950s.

However, with the signing of the Foreign Exchange Control Act, it withdrew from the Indian market almost overnight.

The bill stipulates that any foreign company wishing to operate in India cannot hold more than 40% of the shares, meaning Coca-Cola must relinquish 60% of its shares.

That wasn't all; the Indian government also demanded that Coca-Cola disclose its formula and share the technology with local companies.

It's almost like a joke; Coca-Cola didn't even bother to pick up the buckets, they just ran away.

It wasn't until the policy was relaxed last year that they announced their return to India.

However, due to the short timeframe, other foreign investors from Europe and the United States are currently in a wait-and-see mode.

When a small, unknown company like Suer Electric took the initiative to approach them, the other party didn't even give them a second glance.

The scale is too small to be considered.

Asian television manufacturers, on the other hand, were very proactive, exchanging faxes back and forth and chatting animatedly.

On top of the display was LG, the South Korean company. Ron glanced at the English name and realized it was the famous LG.

However, the conditions imposed by the Koreans are very demanding.

"They want to sell LG TVs in India, but we're excluded?"

"The other party agreed to help us introduce an assembly line, on the condition that Suer Electric could not produce its own televisions."

“A contract manufacturer, huh?” Ron laughed.

Although India has lowered tariffs on electronic products in the past two years, the tariff rate is still as high as 50% in order to protect domestic industries.

LG covets the Indian market but is unwilling to pay the high tariffs.

So what should we do? Break the whole machine down into smaller parts.

LG televisions will be shipped to India in a semi-disassembled form, with Suer Electric responsible for assembly.

The imported assembly line had to be purchased, with a price tag of $200 million.

The televisions produced have absolutely no connection to Suer Electric Appliances, from branding and pricing to sales.

It's definitely an OEM manufacturer, and a low-end assembly OEM manufacturer at that.

How much profit do we make from producing one of their television sets?

"That works out to about $1.5 per unit."

"Damn it, are the Koreans trying to fob me off like a beggar?" Ron cursed angrily.

That's not even the worst part; the assembly line itself has extremely low technological content.

All parts were manufactured in South Korea and were already in a semi-finished state when they arrived in India.

Ron doesn't need $200 million; 200 million rupees will do the trick.

Earning $1.5 per television set manufactured means that Suer Electric would need to manufacture 140 million television sets to break even.

Damn it, those Koreans are really bad.

Actually, if the contract manufacturer is profitable, Ron is not someone who can't be ruled out.

Just treat it as training workers, and maybe steal some techniques along the way.

As a result, the other party also demanded that Suer Electric sign a contract stipulating that it could not launch its own brand of televisions within three years.

What's in it for him? Wouldn't it be better to make his own water-cooled air conditioners?

Even a low-end water-cooled air conditioner can generate a profit of around 100 rupees, which is more than double that of buying a TV.

“Ask them if they’re willing to provide a more advanced production line; the price is negotiable.” Suddenly, Ron’s anger subsided, and his eyes gleamed.

"Boss?" Ashish asked, puzzled.

"Let's lure them in first," Ron waved his hand.

"what?"

"What we lack is a production line with advanced technology. If we can't assemble, we'll be obsolete in a few years."

“That cost could be more than $200 million,” Ashish said, feeling a pang of regret.

"Hmph!" Ron sneered.

$200 million? The Koreans know nothing about the amazing India.

Ron casually tossed LG's information aside and continued looking at the conditions of other manufacturers.

The companies willing to offer prices are all from South Korea and Japan, and these two are currently fierce competitors, vying for dominance all over the world.

Samsung has its own factories and doesn't bother with outsourcing. If it were interested in the Indian market, it would most likely invest directly there, hence the lack of a quote.

However, Japanese companies such as Fujitsu, NEC, Panasonic, Hitachi, and Sanyo all replied, expressing their willingness to further discuss cooperation.

NEC's offer was the most attractive to Ron; they were willing to provide a complete CRT television production line, and in color no less.

The demands are quite simple: both sides want to establish a joint venture to jointly develop the Indian market. It sounds good; at least it's not like the Koreans openly robbing us.

“Invite them to Mumbai for further discussions,” Ron decided immediately.

“Boss, NEC is demanding that the joint venture invest at least ten million US dollars, which is more than 3 million rupees.” Ashish blinked.

It's obvious that Suer Electric doesn't have that much money; their funds have all been invested in the construction of the Suer Industrial Park.

“Negotiation is like buying groceries; you can haggle over the price,” Ron said calmly.

"Then I'll contact them."

"We arranged for them to stay at the Taj Mahal Hotel so these little guys could experience Indian culture."

“Great, fantastic!” Ashish nodded happily.

He wanted to go to the Taj Mahal Palace Hotel too. It's a status symbol for successful people, the ultimate goal for countless slum dwellers.

Perhaps NEC was genuinely interested in the Indian market, because after Suer Electric extended an invitation, the trip was finalized within a week.

The leader, named Xiaotian, bowed repeatedly to Ron upon their first meeting, making it seem like he was the big spender.

How did Ron respond to him? He did it with the Indian-style head-shaking and waving.

It was a bit comical, but the atmosphere was still friendly.

Ron led them up the white marble steps of the Taj Mahal Hotel, pointing out the India Gate as he went.

Being a tour guide was his forte; he could readily recount many secrets, leaving the group of Japanese people amazed and astonished.

They had reserved a private room at the Samiana restaurant on the first floor, and the waiter led them to a long table to sit down.

There are tall windows nearby offering views of the shimmering sea.

The sightseeing ferry to and from Koh Chang Caves climbs the small waves with a confident and skillful ballet-like gait, and then glides back down.

Hundreds of smaller boats suddenly dipped their hulls in the shallow water, rocking up and down like birds preening their feathers.

The huge cargo ship, moored on the horizon, stood motionless like an island on the calm sea where the ocean meets the bay.

On the street not far away, tourists strolled about, their colorful garlands forming a pattern as they passed through the tall stone corridor that circled India Gate.

The Japanese were quite satisfied with Ron's arrangements; they loved the view and raved about the hotel's food.

Ron wanted to take them to visit nearby attractions, but Oda declined.

"Mr. Su, is it convenient for me to visit your company's workshop?"

“Of course.” Ron stood up calmly.

Ashish and his companions exchanged bewildered glances; they had never dealt with the Japanese before. According to Indian business practices, they would certainly indulge in a few days of feasting and entertainment before making any further decisions.

The palace and other exciting shows need to be arranged. Once all these steps are completed, the business deal is practically finalized.

The Japanese are really strange; they don't know how to enjoy life at all.

Ron first led them to the Sue Park, where a bustling scene was unfolding.

The yellow tower crane is very eye-catching, and clouds of dust rise from the construction site below as scaffolding is erected.

Busy workers swarmed around it like ants, as the cement mixer's large opening kept turning.

Stones, steel bars, and cement were piled up like small mountains to one side. Freshly poured concrete columns had already formed the load-bearing framework of the building.

“This entire area, two hundred acres, is within the Suer Park development plan,” Ron said proudly.

"Wow, that's impressive." Xiao Rizi was indeed amazed by the sheer size of the construction site.

In a small place like Japan, it would be difficult to allocate such a large plot of land to build a factory.

"That building is the future headquarters of Suer Electric Appliances. At the same time, a high-standard factory building is also under construction, which is the space we have reserved for the TV production line." Ron introduced each part of the construction site.

"Your company's strength is truly astonishing." It must be said that after seeing the construction site, Xiao Tian felt much more at ease.

To acquire such a large industrial site in a metropolis like Mumbai, both political and financial backing are indispensable.

Putting everything else aside, this at least reassured NEC about Suer Electric, proving that this wasn't some kind of get-rich-quick scheme.

"I heard that your company also produces a magical electric fan. Would it be convenient for me to come and take a look?" Xiao Tian still longed to visit the workshop of Suer Electric Appliances.

“Please follow me.” Ron led them around to the south.

It's a workshop, there's nothing to hide. Water-cooled air conditioners aren't high-tech, so there's no fear of being seen.

Moreover, given their modest lifestyle, they wouldn't even consider such a thing; air conditioning has long been widely available in Japan.

Unexpectedly, once they arrived at the workshop, the Japanese changed their previous amiable demeanor.

They criticized Suer Electric's workshop as utterly worthless, calling it a complete disaster in terms of production management, equipment, environment, and employees.

Their heartbroken expressions made it seem as if their wives had been publicly humiliated.

Ashish was furious and wanted to retort angrily. Suer Electric was clearly the company with the highest quality production in all of Mumbai, yet they were portraying it as a garbage dump.

Ron stopped him. NEC wasn't a competitor of Sullair Electric. What's the rush? Let him say what he wants.

“Mr. Oda, there are very few manufacturers in India with more advanced workshops than Suer Electric, and this is by no means an empty boast.”

"Advanced?" Xiao Tian seemed to have heard a joke. "Let me show you what true advancement is!"

He reached out and took a colorful booklet from his assistant; it was an introduction to NEC's workshops.

Ron opened it, and Ashish, who was beside him, immediately fell silent.

From an Indian perspective, NEC's production facilities look like something out of a science fiction movie.

Seeing that Suer Electric Appliances was stunned, Xiaotian felt even more smug.

Without first delivering a technologically superior blow, how can we gain the upper hand later?
Ron remained unfazed; these were all minor incidents.

“NEC’s workshops are advanced, but they are not suitable for India, and we don’t need them.”

"What?" Oda thought he had misheard.

“Gentlemen, it’s time to sit down and talk,” Ron said, extending his hand in invitation, his demeanor calm and confident.

(End of this chapter)