I am a master in India

Chapter 304 Big Pie
"Mr. Suer, congratulations!"

"Same joy, same joy!"

The two had the same smiling faces, as if they were old friends who had known each other for a long time.

"With this headquarters, Sullair will become the most well-known brand in India."

"Mr. Oda, you are welcome to come anytime. You also have an office here."

The joint venture does not have a separate office space in the park and is temporarily using the sixth floor of the headquarters building.

The space here is large enough that even the employees of Suer Electric Appliances cannot fill it, so giving some space to the joint venture is perfectly fine.

"I am honored that your company's financial strength is truly astonishing."

"Excellent."

"The joint venture is also performing very well. In six months, we sold 8 television sets, surpassing the sales of domestic Japanese companies," Oda said, looking at him.

"As I've said before, the Indian market is huge."

“That’s right, your performance over the past six months is proof of that.” Xiaotian continued to look at him.

"Yes, it will get even better in the future."

“Half a year,” Oda emphasized.

"We need to take a long-term view."

“Mr. Su,” Xiaotian dropped the pretense, “the six-month period has passed, what about the promised repayment?”

"This Indian guy has no sense of propriety at all," Xiao Tian thought to himself. He hinted several times, but the other man seemed not to understand.

That's so rude of him to be so blunt about demanding payment.

"Repayment?" Ron was taken aback.

"Yes, 10,000 units were sold in the first month of its launch, but apart from the deposits, NEC has not received a single penny to this day."

"Well," Ron mentally prepared his answer, he had truly forgotten about it.

In his mind, there was only a deposit, and nothing like a final payment.

"NEC didn't even receive the deposit for the later shipments; it was all on credit!"

"Uh," Ron said awkwardly, taking a sip of his drink.

They didn't even pay a deposit? That seems a bit much.

Oda stared intently at him, as if he wouldn't give up until Ron gave him an explanation.

"How about this, I'll have someone set aside some funds to pay the deposit for some of the parts first."

"Only a deposit? According to the contract, the payment for the first shipment of $180 million should be settled in one lump sum."

“Listen to me,” Ron leaned over and clinked glasses with him warmly, “I’m planning to continue expanding the joint venture’s production capacity.”

"What do you mean?" Xiaotian raised an eyebrow.

"Don't you think that a single production line greatly limits our production capacity? SUR-NEC TVs have never been stockpiled; they are always picked up the same day."

“So…” Oda’s eyes flickered.

"Add two more 18-inch production lines, and ideally one 21-inch line as well. Some customers have asked us why we don't offer higher-end TVs."

"What?!" Oda exclaimed in surprise, "Three? Are you sure the Indian market can absorb that many television sets?"

"Then let me ask you, what are NEC's sales figures in Japan over the past six months?"

"Less than 10,000 units."

"So little?" Ron was taken aback.

“Japan’s economy is in a downturn, but NEC’s main sales are overseas,” Oda explained.

Oh dear, Ron almost forgot, these past two years have been the freezing period following the bursting of Japan's bubble economy.

The entire country was crippled, the economy was in a deep recession, and the previously prevalent consumerism was replaced by a low-desire value system.

It would be a miracle if TVs sold well. Many people are even selling their belongings secondhand at used stores because they're short of cash!
"Look, the Indian market is more than eight times the size of the Japanese market. Is it too much to add three more production lines?"

“This is a deal worth nearly ten million dollars, I can’t make a decision, and you’re only willing to pay a deposit.” Xiaotian’s expression was uncertain.

"It's because we don't have the money. We just got the first month's payment, and in the end, we have to give it all to you," Ron complained.

The first batch of 10,000 television sets will generate a payment of approximately 100 million rupees, which includes the cost of imported parts and profit sharing between the two companies.

Ron only planned to pay a deposit of $600,000 for another 10,000 sets of parts, and use the rest of the money to order equipment.

Two 18-inch cables and one 21-inch cable, the total deposit was almost 100 million rupees, not a penny left.

"I almost forgot if you hadn't reminded me. The final payments for the first two production lines haven't been settled yet. Are you going to add more now?" Xiaotian's eyes cleared.

"Next month! We'll definitely have the money next month! The payment for the other batch of goods will arrive then."

"How can you offer any guarantees? Contracts are out of the question!"

“It’s a fact that NEC is taking all the money the joint venture is making,” Ron said, shrugging.

“That’s because you want to order more equipment!” Oda emphasized.

"Isn't that money? We'll receive payments every month from now on, and we'll gradually settle the outstanding balances, provided that the core components imported from NEC don't stop!"

Oda was somewhat conflicted; he felt that what Ron said made some sense.

He didn't rush to pocket the profits from the joint venture's first month; instead, he handed them over to NEC in exchange for more equipment.

If this trend continues, next month's payments will be enough to settle a significant portion of the parts purchase bills.

The purchase amount of 8 sets of parts has far exceeded the value of the equipment itself.

Most importantly, the economic situation in Japan was really not optimistic. The bubble burst in 91, but its powerful destructive force did not begin to show until 94.

With sluggish consumer spending, NEC's financial reports are looking increasingly worse.

To make matters worse, Japan's chip industry is also being besieged by the United States, and 95 was a critical year.

The two sides signed the Semiconductor Agreement in 91, and four years later, Japan's chip shipments fell below those of American companies for the first time.

They have lost a significant share of the international market, and Toshiba is already reducing production capacity and closing some factories. The situation for Hitachi, Fujitsu, and Mitsubishi is also not optimistic; they will likely follow in Toshiba's footsteps sooner or later.

The company laid off employees, the factory closed, and a lot of equipment was sold off at bargain prices.

That was a real fire sale; it couldn't even sell for the $60 deposit.

Why didn't Oda immediately refuse Ron's outrageous demands?
It's because compared to selling at a bargain price, the deposit offered in India is actually quite good.

Once the Indian factory has the equipment, it will start production and will need to continue importing parts from Japan.

NEC's factories in Japan will not be closed; in fact, they may even be profitable.

Some Japanese companies are now willing to operate at a loss to keep their production lines running in hopes of weathering the downturn.

They knew that once shut down, it would be difficult to restart it.

Without sustainable R&D investment, the technological gap will only widen.

Compared to its competitors, NEC is doing very well; it wouldn't be an exaggeration to say that its Indian factories are supporting its Japanese headquarters.

How could the joint venture's production line stop at this time? Absolutely not!
What's the big deal about paying only a deposit for equipment? If you're pushed to a certain point, giving it away for free isn't out of the question.

The money earned from core components will make up for these losses.

Oda said he couldn't make a decision, but he knew headquarters would agree.

The performance of the Indian market gave them hope, and at this point, the six-month payment cycle was no longer a problem.

“Mr. Suer, I will contact the relevant authorities in China about this matter, but you will have to pay some more deposit no matter what.”

"no problem!"

$60?

"2400 million rupees."

"What?!" Oda exclaimed in surprise.

“I only have rupees on me. You can exchange them with the Indian government.” Ron shrugged innocently.

"Rupees are fine, cash either!"

"make a deal!"

NEC could also exchange rupees for US dollars through the international market, but it would lose some money.

As for the Indian government, Oda had no hope; their own foreign exchange reserves were pitifully small.

After spending some time dealing with Oda, Ron secretly breathed a sigh of relief.

Being a defaulter isn't so easy; every time you meet someone, you have to outwit them.

However, the debt has indeed been delayed for quite a while. The joint venture has been established for more than a year, and not a single bill for the purchased equipment and parts has been fully settled.

Ron even forgot which deposits he had paid and which he hadn't; there were too many to remember.

But there was one thing he didn't lie to Xiaotian about: the joint venture's revenue of over 100 million rupees in the first month was indeed all handed over to NEC.

Of course, he would prefer to use the money to order equipment rather than purchase spare parts.

The assets we bought are all fixed assets, which we can use to develop our own products in the future.

The spare parts are consumables and not very useful.

The real bulk of the joint venture's revenue, amounting to a billion rupees, is in Ron's hands.

He used all that money to expand the scale of Suer Electric Appliances. Giving it to NEC too early would have been a terrible mistake.

From now on, just promise Xiaotian a deposit every month, so that he won't complain or make a huge profit.

Well, finding the right balance is an art.

NEC is still somewhat useful; with this brand name attached, Suer Electric's image can be elevated.

There's no way around it; for Indians, the grass is always greener on the other side.

In addition, the picture tube equipment that was originally agreed upon has not yet been delivered.

Ron couldn't go too far; he had to give them some sweetness eventually.

The party lasted until evening, with people socializing—politicians, businessmen, minor celebrities, a veritable den of scoundrels.

Ron was no exception; he skillfully navigated between the two major parties, pleasing neither side.

Because the master is abstaining from alcohol, he left the scene after participating in the celebration.

The person representing the BJP at the party was Dhirubhai Shah, whom Ron had met in Gujarat.

He was not only a senior figure in the party, but also one of the party's moneybags, mainly involved in the videotape business.

After a detailed conversation, Ron learned that the Shah had also begun to enter the cable television industry, even earlier than SunTV.

He doesn't run a television station; he only provides operational services, yet he holds the copyrights to over five thousand Bollywood films.

Ron certainly wouldn't let such a good opportunity slip by, as Sun TV's movie channel was in dire need of resources.

Shah, as the operator, also needs SunTV to enrich its channel content, and both parties agreed to discuss the details at a later date.

While Suer Electric is expanding rapidly, Sun TV cannot lag behind.

Ron will now focus his energy on the television station, as today is the first day of the premiere on the general channel.

Yes, it's to cooperate with the publicity of Suer Electric's headquarters.

He was planning to enjoy the premiere news from Sun TV that evening, but unfortunately, the party ended and before he could even leave Suer Electric Appliances, someone came looking for him.

It was Johnny; he was waiting outside the gate.

He should have come earlier, but he was delayed because of Sanjay's matter.

Sanjay died. He held on for a day and a night in the hospital, but ultimately couldn't make it.

Johnny was heartbroken; another of his old buddies was gone.

“You don’t look too good.” Ron gestured for him to get in the car.

(End of this chapter)