I am a master in India
Chapter 253 Good news comes frequently
Chapter 253 Good news comes frequently
The power struggle in eastern Uttar Pradesh, which had just reached its climax, was abruptly suppressed.
Ron was somewhat disappointed that the Sue family hadn't been able to clear away all these obstacles at once, despite such a rare opportunity.
Yadav did not want things to fall into chaos. For those in power, maintaining the status quo was far less risky than overthrowing and starting over, and he was unwilling to take the risk.
At least the troubles at the Suer Cement Plant have been resolved, and those two local bullies have been severely weakened.
For a long time to come, they will likely remain quiet, secretly licking their wounds and waiting to recover.
The Suer family also needs to consolidate their influence; they haven't been here long enough to establish their dominance.
"Are you planning to go back to Mumbai?" Ratan asked as he exercised at the estate.
“With Yadav in charge, Uttar Pradesh will be peaceful for a while,” Ron said, sitting in a wicker chair and flipping through reports.
"It's a pity we didn't run out of bullets for the Bren light machine gun," Ratan said with some regret.
"Stop thinking about fighting and killing, time is on our side."
"I know, I know, we'll wait until the cement plant develops." Ratan finished his push-ups, clapped his hands, and stood up. "By the way, how have the cement sales been this past month?"
“Excellent!” Ron patted the report in his hand. “We’re basically selling as much as we can; demand exceeds supply.”
The cement plant has been in operation for a full month and has produced a total of more than 8,000 tons of cement.
Just as Ron said, there was simply not enough supply to meet demand. Freshly made cement was immediately hauled away, and many people were queuing up at the gate.
Uttar Pradesh has a huge need for cement, especially in urban areas where there is a severe shortage.
With a population of nearly 1.5 million, the civilian market alone is enough to keep the Suer Cement Plant running at full capacity.
Developers like Chada and Roy, who had just started getting involved in real estate, also shifted their external cement demand to Roy.
They buy cement from foreign lands, which not only incurs additional shipping costs but also results in some losses during transportation.
Ron is nearby, within a hundred kilometers, and they even offer door-to-door delivery; their service is impeccable.
They bought up almost all of the 8,000 tons of cement for the first month, and even the cement for the following month was pre-ordered.
The limestone mines in Mirzapur are of very high quality. The Sur cement plant uses modern equipment, producing cement that is more reliable than similar products from other parts of northern India.
Ron gave Chadda a price of 1800 rupees per tonne, far below the government tender offer of 2500 rupees.
Those who know about government projects understand that they're often inflated and designed specifically to exploit loopholes.
Real estate developers will be the main clients in the future, and most transactions will be large-scale, so it's reasonable to offer some discounts.
The retail price for other small customers is 2000 rupees. These are middlemen who will resell the goods again.
Just like selling water-cooled air conditioners, when selling cement, you need to leave about 10% of the profit for the distributors.
The final price that urban residents actually pay is roughly between 2200 and 2400 rupees, which is in line with the market price.
After shipping 8,000 tons of cement, the Suer Cement Plant made a fortune with sales of 14.4 million rupees in its first month.
This stuff sells like hotcakes, with a profit margin of 75%, so Ron is practically making money off of it.
For large transactions, Ron and Chadda signed an agreement that 90% of the payment for the previous month's goods would be made before the 10th of each month, and the remaining 10% would be paid within one month after the final settlement.
Other small customers and middlemen paid cash for all their goods.
There is absolutely no pressure to repay the loan; Ron expects to earn back his principal within a year.
Big investment, big returns, awesome!
In Uttar Pradesh, the cement business is almost a semi-monopoly.
"Damn, this looks even more promising than hemp," Ratan thought to himself, secretly amazed by the numbers on the report.
"It looks good in the short term, but the competition will become fierce in five years."
"With so many orders, we don't need to worry about Yadav's attitude at all."
“That’s a government project, there’s so much profit to be made! Besides, who would complain about having too much business? I plan to start the second phase of the cement plant this year.” Ron was very ambitious.
"Brother, the first phase isn't even finished yet, and you're already planning to expand and strengthen the business?"
“We can’t let such a good opportunity go to waste,” Ron patted the blueprints in his hand. “Phase two will go straight to a scale of 300,000 tons, with two production lines.”
“That means,” Ratan calculated with his fingers, “annual production of 70 tons?”
"Yes, we need to seize the opportunity while the market is still untapped and expand our territory as soon as possible."
Ron just didn't have the money, otherwise he would have wanted to go all out and directly increase the annual production capacity to one million tons.
Once a large-scale transaction like cement is established and the distribution channels are mature, it becomes very difficult for others to enter the market.
In the early days of the common people, all that mattered was audacity and recklessness.
“Expanding production capacity sixfold, that must cost a lot of money, right?” Ratan admitted that he wasn’t as daring as Ron.
"The estimated cost is 8 million rupees, with the equipment to be purchased directly instead of being leased."
“8 million? Brother, do you think the bank will lend us the money?” Ratan expressed his doubt, as they had just borrowed a sum of money.
"There's always a way. At worst, we can switch to a few different banks." Ron wasn't worried at all.
India's banking system is a mess, with too many loopholes to exploit.
As long as he shows them the financial statements of the Suer Cement Plant, he is guaranteed that most banks will not reject his loan application.
The completed cement production line is like a money printing machine; there's no need to worry about repayment ability.
“Brother, you’re destined for great things.” Ratan felt that he could sell hemp his whole life and still not make over 100 million rupees.
“This is the beginning of a great era, and we can still catch up,” Ron said with an optimistic shrug.
"Mumbai is indeed extraordinary. After you went there, your thinking is very different from that of the people of Uttar Pradesh. By the way, when are you leaving?"
"After the government contract is signed, probably next week."
The road in Kanpur is not expected to start construction until the end of the year, and the Suer cement plant is currently supplying the private market.
According to contracting practices, the government does not interfere with which company's cement the contractor uses.
However, there is a rule called supporting local businesses, or to put it more bluntly, designating suppliers.
Yes, Suer Building Materials Company is the only cement plant in Uttar Pradesh.
There was no other choice; this was typical Indian practice. A week later, Ron returned to Mumbai.
The phone calls here are frequent, mostly about the television production line.
"Boss, Xiao Tian has been going crazy with worry these past few months while you were gone," Ashish reported to Suer Electric Appliances immediately.
"Who?" Ron asked leisurely, still enjoying his first iced coffee of Mumbai's summer.
Yes, it's already the end of August, just as the rainy season is coming to an end.
"Oda, have you forgotten? Oda, the one in charge of the NEC negotiations."
"Oh." Ron suddenly realized, his mind still wandering to the political intrigue, shootouts, and heavy machine guns of the North.
The shift was too great for him to adjust to at first. The sense of disconnect felt as if he were in two completely different times and spaces.
"Didn't NEC's TV production line just arrive recently? Is it already set up and operational?"
"No, those Japanese people have diarrhea every few days, and they work even slower than us."
"Then why the rush?" Ron asked, puzzled.
"Uh, boss, according to the agreement, we should pay the final payment after the production line arrives."
"Working so slowly, how dare you ask for money?" Ron raised an eyebrow. "I'd like to deduct his pay."
"Huh?" Ashish was stunned.
"Tell Xiaotian that we'll talk about money once the production line is debugged."
"Then I'll make the arrangements."
"Wait, how's it going at Dongda University?" Ron called out to him.
"Boss, you have a keen eye. Their efficiency is several times faster than the Japanese."
Ashish was beaming with pride; one has to admit, the Chinese are truly excellent at their work.
The two black-and-white television production lines delivered exactly the promised one-month delivery time, without a single day's delay.
Once the equipment was confirmed to be in place, the other party immediately sent technicians to assist in the installation of the production line.
Unlike ordinary life, the goods were supposed to arrive in three months, but were delayed by two weeks due to the rainy season.
They're already asking for money before even starting the work! Thumbs down!
"No one from Dongda University has diarrhea?" Ron asked curiously.
"La, two people were admitted to the hospital on the second day after we arrived."
"Hiss~" Ron had a bit of a toothache.
"But they said it was a small matter and insisted on staying to work overtime."
“Look at them, our workers are several times worse.”
Ron was heartbroken, and Ashish was as ashamed as a child who had made a mistake.
Hmm, it's like someone else's child, the same old formula.
"How was the black and white TV production line doing those two days?"
“A batch has already been produced on a trial basis, and there are no problems.” Ashish became more assertive again.
"So fast?"
"I was just about to show you the finished product." Ashish brought in a cardboard box from outside.
It's square, about 20 centimeters wide. There's no pattern on it, it looks like it was found on a whim.
Ron’s office had a power outlet, and Ashish quickly moved it to his desk and plugged it in.
It's a very classic design, with a large rear end, a curved screen, a tuning knob on the right, and a speaker below.
The casing was black, while the knobs and frame were silver. For a moment, Ron felt as if he had returned to his childhood.
"This is the taste!" He excitedly stepped forward and lovingly stroked the frame of the television.
If it weren't for the shiny "SUR" logo in the upper right corner, he would have almost thought this television had traveled through time.
Like, so similar.
"Boss?" Ashish called softly.
"So fucking beautiful!"
At this moment, only the word "Holy shit" could express Ron's complex feelings.
“Yes, yes, yes,” Ashish nodded.
"Turn it on!" Ron waved his hand and sat back in his chair.
Ashish turned on the switch, turned the knob, and clicked and clicked as he began to tune the station.
Once the television screen showed a figure amidst static, he quickly spread his arms and, holding the antenna, moved left and right.
Finally, at some point, both the picture and the sound became clear.
He carefully backed away, afraid of hitting the antenna and ruining all his efforts.
“Excellent, very good!” Ron was very satisfied.
This 14-inch black and white television is exactly the same as I remember it, with no difference.
The visuals and sound are reliable and can definitely meet the daily needs of Indians.
"When can we start production?" he asked.
"This month will do, it's just a matter of your word."
"What about the cost?"
"Just as initially expected, around 1600 rupees. If mass production is achieved, subsequent costs can be reduced further."
"Start stocking up now, I'm going to drive down the price of TVs in India!"
Ron was full of ambition and focused on cost-effectiveness; he was familiar with that approach.
(End of this chapter)
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