I am a master in India

Chapter 234 Lure them in first, then we'll talk.

Xiaotian couldn't understand the Indians' thinking. Didn't they want technology? Advanced CRT imaging technology.

This was a bait he specifically set out, and any ambitious company would not refuse it.

“Mr. Oda, perhaps you don’t know much about India,” Ron said calmly in the conference room. “It’s different here than in Japan.”

"Don't you want to establish your own color television production line? NEC can provide the most advanced technology."

“Alright, since you insist, let’s talk about NEC’s terms first.” Ron knew these guys wanted to show off their technical skills.

"Could I borrow a power outlet here?"

"of course."

At Xiaotian's instruction, someone from the other party's entourage brought out a box from somewhere.

They unpacked the television in front of Ron and brought out an unusually thin television set, about the thickness of a slice of bread.

Ron raised an eyebrow, while Ashish and the others stared in disbelief.

It's so thin; compared to the bulky CRT TVs, it's like they're from completely different eras.

These Japanese people were very well prepared; in addition to a television set, they also had a VCR that played videotapes.

Even voltage adapters are available, as Japan uses 110V AC and India uses 220V AC, making them incompatible.

Just as Ron had predicted, NEC representatives then demonstrated their latest imaging technology on-site.

"This is the industry's first true-color active matrix LCD display, a display technology unique to NEC," Oda said confidently.

Sure enough, when the screen lit up, everyone in the conference room was drawn to it.

Ashish and the other country bumpkins even trembled slightly; the ultra-high-definition, vibrant colors were too shocking for them.

"How was it?" Oda asked smugly.

“That’s really impressive.” Ron nodded.

"LCD technology is cutting-edge in the industry; it is the future! We can help Suer Electric become India's top-of-the-line TV manufacturer, and no one will be your competitor."

"What are the conditions?" Ron asked calmly.

"As the fax says, NEC will contribute its technology as equity, and your company will invest ten million US dollars to establish a joint venture," Oda said with a smile.

"Technical investment?"

"Yes, LCD technology is invaluable. NEC must hold at least 75% of the shares in the joint venture; that's our bottom line."

Ashish and the others looked grave. Was the price too high?
But it is an LCD screen after all, which is fascinating.

Oda was full of confidence, firmly believing that NEC's technology was nothing short of a bomb for Suer Electric.

Everyone in the conference room turned to look at the person in the head seat, but Ron suddenly broke into a smile.

"How about we talk about CRT televisions?"

"Wh-what?" Xiaotian was stunned.

“I only have one question,” Ron looked at him, “how much does this television cost?”

"Around 30 yen, that price is indeed a bit expensive, but LCD is a revolutionary technology."

“30 yen, which is about $3000,” Ron turned to Ashish and asked, “What is the average salary in India?”

“1000 rupees, $32.”

"What?!" Oda couldn't hold back any longer.

“Look,” Ron shrugged, “100 times, that’s almost impossible.”

Which country in the world would people be willing to spend 100 times their monthly salary to buy a television set?
There's no such thing as overspending.

In many cities, a monthly salary 100 times higher might be enough to buy an apartment.

"But it can serve as a technological reserve. The cost of LCD TVs will inevitably decrease in the next few years, by which time the Indian market will have already developed rapidly." Xiaotian was still unwilling to give up.

“It’s too early,” Ron shook his head. “Indians don’t need such advanced televisions.”

"Mr. Suer, you underestimate the speed of technological iteration and updates."

“No, like I said, this place is different from Japan. Nobody knows India better than me,” Ron said boastfully.

"That..." Xiaotian suddenly felt it was somewhat absurd.

In other countries, those competing companies are extremely interested in NEC's technology.

They went to great lengths to curry favor in hopes of gaining technical support from NEC.

India, on the other hand, doesn't even eat the meat that's practically handed to them—what a waste!

“CRT televisions are the future of India, let’s talk about it,” Ron said, his eyes burning.

"What are your thoughts?" Oda asked, his interest waning.

"Is NEC willing to sell production lines? Both black and white and color."

“Black and white televisions have been phased out by NEC,” Oda said dismissively. “Only the University of Tokyo has that kind of junk.”

“What about the colored production line?” Ron continued.

“Color?” Xiaotian’s eyes lit up. “We can consider transferring the color CRT television production line, but we still have to follow the previous suggestion.”

"A joint venture?" Ron's eyes flickered.

"It will still be a technology-based equity investment. Your company will invest $500 million, and NEC will hold 60% of the shares."

“Two million US dollars, with Suer Electric holding a 70% stake,” Ron countered.

"NEC's color TVs are no less capable than Sony's Trinitron; this price is outrageous!"

"We are also in talks with Sony."

"What!" Xiaotian raised his voice.

"Just like you said, CRT color televisions are not an advanced technology, and too many manufacturers have mastered it."

“NEC provides more than just production lines; we will also be responsible for training Suer Electric workers. I think everyone should compromise and each hold 50% of the shares—that's NEC's bottom line!”

“If NEC agrees to license its technology to Suer Electric for key components such as picture tubes, then we can reduce our shareholding to 60%.” “We cannot accept such an offer.”

“Mr. Oda,” Ron reminded him, “this is the biggest concession we can make, because Indian law restricts this.”

"What?" Oda asked, puzzled.

“According to the Foreign Exchange Control Act, foreign ownership in a joint venture cannot exceed 40%,” Ron said, shrugging.

The group of young people looked at each other, assuming that India had already relaxed its policies and that this was a free economic market.

"Of course, as compensation, Suer Electric will bear all training costs, including the expenses of the Japanese personnel."

"We need to discuss this," Xiao Tian whispered to the person next to him.

NEC has never simply wanted to sell production lines; what they're eyeing is India's vast market of nearly 10 billion people.

They know India is poor, but if even one-tenth of the population has demand, that represents an extremely large market.

Therefore, establishing a joint venture is an inevitable choice; NEC will not be so short-sighted as to engage in only one-off transactions.

Moreover, it's just a CRT TV production line, not some cutting-edge technology. NEC in Japan has five or six competitors.

Suer Electric is not just contacting them; including those in South Korea, NEC has even more competitors.

LCD is the future, and Oda predicts that this technology will be officially launched in two years.

CRT, yet another technology that is about to be phased out.

"We agree to this share allocation, but the joint venture must first conduct a two-year procurement of core components before the technology transfer."

Only after the term expires will we license key technologies such as cathode ray tubes. Furthermore, in the newly established joint venture, Japanese personnel must serve as the chief technical officer.

They're making quick and easy plans for their new life; technology licensing is possible, but it'll have to wait two years.

The core components used in the initial production line could only be imported from NEC in Japan.

Yes, this is a plan to take the lion's share of the profits from color TVs first, making the joint venture work for them for free for two years.

Ron knew exactly what was going on, but he still agreed without hesitation.

"no problem."

“Well then, Mr. Su,” Oda stood up with a broad smile and extended his hand, “it’s a pleasure to do business with you!”

“Welcome to India!” Ron nodded.

Both parties reached a preliminary cooperation agreement, with one providing funding and the other providing technology, resulting in a win-win situation.

NEC employees were thrilled; they had captured the Indian market without spending a single penny.

Ron was also very happy; he had finally managed to trick someone into coming in.

He'd agree to anything as long as it wasn't unreasonable. Let them in first, the real trouble is later.

The initial negotiations were completed in just one day, and the NEC representatives were all smiles. Their serious demeanor from the initial meeting vanished, replaced by excited shouts about wanting to experience Indian culture.

No problem, Ron simply had someone take them to a high-end bar where there were plenty of prostitutes.

Oh dear, it's a pity he set the palace on fire; otherwise, he could have certainly given these lowly people a taste of their own medicine.

Oda had a great time, and in the bar he even mocked Suer Electric's stupidity in Japanese.

The $200 million investment will largely be used to purchase NEC's color television production line.

The deal itself wasn't a loss, and the newly established company still had a 40% stake in them.

This is practically free; a market of nearly a billion people is waiting for them.

As for the promised cathode ray tube technology, it's not that Oda looks down on Suer Electric, but the whole of India can't make it work.

What good would it do to give them to them? This country is unlikely to achieve self-sufficiency within five years.

Besides, it's not like it's free; a whole bunch of hidden licensing fees are waiting for them.

Furthermore, the chief technical officer is also a Japanese figure, giving NEC countless ways to delay Suer Electric's independent research and development.

In the end, this company could only rely on NEC and let them control it.

A resounding victory! The kids are extremely pleased.

"Boss, wasn't today's negotiation too fast? We could have negotiated for more favorable terms." Ashish felt that Suer Electric would suffer a loss if they agreed to the Japanese so easily.

“They’re thinking the same thing as us, trying to get something for nothing,” Ron laughed.

"You know?"

"Even a fool could see that they're probably laughing at us right now."

"Boss, so how do you plan to deal with them?" Ashish's eyes lit up.

"No rush, what we want is the television production line. We'll talk about that after we get the goods."

Did he really think he didn't know what the Japanese were thinking? It's obvious he'd have countless tricks up his sleeve.

There are multiple pitfalls just in the procurement of core components and technology licensing. Who would willingly hand over their technology to someone else? Even potential partners are no good.

If Suer Electric grows and expands, what chance will NEC have? NEC will most likely use that as leverage to make things difficult for Suer Electric.

The strategy of exchanging technology for market access has been thoroughly mastered by the Japanese in a certain major Eastern country.

Taking advantage of the other party's determination to obtain the technology, the little guy not only imposed various unfair terms but also never gave them a friendly attitude in their daily work.

The Japanese have gotten so used to acting like big shots that they're planning to do the same thing in India.

Haha, would Ron care whether India's technology is backward or not?

Innocent!

Once NEC comes in, we absolutely have to include them in the Indian package.

"Ashish, we should send someone to East University."

"where?"

“East,” Ron tilted his head, “you don’t really think Sull Electric is going to focus on color televisions next, do you?”

(End of this chapter)