Chapter 271 Enbi Network

India has no legal restrictions on political donations, which is a completely blank area.

During elections, people from all parties talked a lot about corruption and nepotism, but avoided talking about political donations, as if everyone had become deaf and blind.

No one touched on this topic. Except for a few individual editorialists who grumbled about it, the whole of India tacitly accepted the rationality of this thing.

The reason is simple: elections cost money.

Developed Western countries can also raise election funds through crowdfunding.

Why don't you try crowdfunding in India? Most people here are poor and can't even afford food. You're still trying to raise money?

The reason why the poor actively vote is that they hope the elected party will give them benefits.

It is impossible and unrealistic to ask them to pay financial support instead.

The poor really don’t have many rupees in their pockets. That is all they have. Who would be willing to spend all their money to support a political party?

Ultimately, the problem comes down to funding. Politicians can only get money from businessmen to participate in elections. They might even have to give money to the poor to get them to vote.

The Indian National Party, which has more radical political views, also cannot do without money. Both Adniwal and Mody are well aware of this.

Local businessmen like Adani are one way, and there is no reason to miss out on outsiders like Ron.

Those lands and mines have been left there for hundreds and thousands of years, and when no one is interested, they are worthless.

Now that someone needs it and it's election time, it's just the right time to exchange some money.

To be honest, after spending a few days together, Adeniwa and Modi had a good impression of Ron.

He is not a cunning businessman who tells lies all the time, and Suer Electric Appliances is a real brand.

There is no reason why such a reliable person who can make considerable political donations should be turned away.

This is 10 million rupees. The BJP has not yet been elected, and local businessmen like Adani do not have such courage.

Adeniwa values ​​Ron very much and he intends to maintain the relationship.

Because campaigning is only part of the expense, both building a patronage network and cultivating more candidates require a lot of money.

As the party leader, Adeniwa is not only thinking about winning the election, but also about maintaining his position for a long time after taking office.

This requires interest maintenance, which is the so-called patronage network, consisting of the poor, politicians and businessmen.

India is poor, the quality of public services is questionable, and social welfare programs for the poor are ineffective.

Public schools and hospitals are in name only, and the country cannot even guarantee the most basic water and electricity for the working people.

This is when politicians take advantage of the situation. The poor cannot afford the public services they want, but they have the voting rights that politicians want.

So politicians promise all kinds of benefits during their campaigns, the poor vote for them, and after being elected, the politicians provide them with government jobs, relief funds, or simply give them money.

However, the campaign funds politicians need to do all this can only be afforded by wealthy businessmen.

Of course, businessmen don't give their money for free. They will get public resources or contracting contracts from politicians at preferential prices.

A chain of interests has been formed. Voters continue to vote for politicians when they benefit, allowing politicians to be re-elected, and voters turn a blind eye to the dealings between politicians and businessmen.

This is the patronage network, the tacit understanding formed between the poor, politicians and businessmen.

So is this operation considered corruption? Is it considered nepotism?

It's hard to say, because the poor have indeed benefited and their lives have improved a little bit.

At the same time, politicians will also ask businessmen to provide resources to support public infrastructure.

For example, Adniwal asked Sur Electric to invest a quarter of its profits in the development of Gujarat.

Even if Ron uses this money to invest in other businesses, it will indirectly provide jobs.

In terms of results, this interest network, which is clearly inconsistent with the fair process, has done good things.

Contradictory, very contradictory.

Of course, the prerequisite for a good result is that the politicians and businessmen in the patronage network really have a conscience.

From the perspective of agency, they are in a strong position and the poor cannot impose strong constraints on them.

If politicians are greedy, or businessmen are dishonest, then the patronage network will produce completely different results.

This is India's electoral politics, it is sick and contradictory, and the law is powerless to deal with it.

In addition, once the patronage network forms a positive cycle, it means that politicians and businessmen do have some conscience.

This closed loop of nepotism will be self-reinforcing. The closer the relationship, the richer the businessmen will be, the easier it will be for politicians to get political donations, and the poor will eventually benefit from development.

The BJP is currently taking this path in Gujarat, and Ron is their ideal wealthy businessman.

Once this cooperation is successful, other people in the Enbi network will consciously protect Ron's interests in the future.

A closed loop is thus formed and will become increasingly stable.

Well, that's why Ron is willing to spend 10 million rupees to support the BJP's election campaign.

He knew that Gujarat would be ruled by them for a long time to come.

Usually, the merchants in the patronage network are locals, and local people are more trustworthy.

The reason why Ron was able to come in now, besides the unknown outcome of the election, was that his reputation was also a very important factor.

Who doesn't know that Dr. Sur is a good man?

The longer the rumor spreads, the more deeply it becomes accepted by people.

What's more, Sur Electric Appliances has already made a name for itself. Not only is it of good quality and low price, it is also a genuine domestic product.

After the two sides reached an agreement, Ron did not leave Gujarat immediately.

In the following days he began to accept interviews, such as those from newspapers, magazines, or TV programs.

Since the government's comprehensive liberalization policy in 1991, Gujarat has also become its own television broadcaster.

Ron's appearance in front of the media was nothing more than saying a few good words for the BJP.

This is the condition agreed upon by both parties. With the election approaching, all propaganda means must be used.

Of course, we can't be so definite. For example, regarding the construction of the Sur Electric Factory, it is currently only said that it is still in the investigation stage, but he had a very pleasant conversation with Adeniwa.

That’s enough, just send a signal to the outside world and stop there.

Because of these things, Ron stayed in Gujarat for more than half a month.

By the time he returned to Mumbai, it was already December.

You have to come back, Sur Electric has new products.

The 18-inch line shipped from Dongda University was assembled as early as two months ago, and after debugging, it took another month to prepare the stock.

Now the entire team at Sur Electric Appliances is very confident and dares to stock large quantities of 18-inch TVs, which are slightly more expensive.

One of the important reasons is that the products from Todai are really cheap.

"Boss, after research, the marketing department plans to price the 18-inch TV at 6,000 rupees, still sticking with the low-price strategy you set."

"It's 5999 rupees," Ron corrected him.

"Yes, yes, you are still the boss!"

“What’s the cost?”

"Rs 2,100, mainly concentrated in the picture tube part."

"Not bad, more profitable than the 14-inch model."

According to market rules, the higher the price of electronic products, the greater the profit.

For each of these 18-inch TVs shipped, Sur Electric makes about 2,400 rupees.

It's very impressive. If the shipment volume can keep up, it will be more promising than the 14-inch version.

"Where's the TV?"

“Here!”

Ashish very servilely brought over the latest 18-inch TV.

I have to say, after getting used to the 14-inch model, I don’t think there’s anything wrong with it.

But when you put the two sizes together, the difference is immediately apparent.

There is beauty in greatness. Human aesthetic pursuit is so simple and unpretentious.

"This generation has some improvements. Boss, do you think the screen is much smoother than before?" Ashish pointed at the TV.

"Is this a flat-angle TV?"

"Boss, you really know a lot! They say that with the technological advancements, the electron beam tubes have become shorter, so the screen can be made flatter."

"Good. Is the cathode ray tube production line ready?" This was another point of concern for Ron.

"The glass tube forming furnace and vacuum exhaust system are a bit troublesome, but they will definitely be fine next year. The people at Todai are working on it, and they're very fast."

"This matter is more important than the assembly line. We will try our best to meet their requirements."

"Yes, boss." Ashish nodded in agreement.

The cathode ray tube is a core component. Now that Sur Electric has mastered it, we don’t have to worry about being strangled in the future.

This is a key step to becoming self-reliant, and Ron is willing to do it even if it costs a little more money.

The pricing of 18-inch TVs is still at a high level compared to its peers, and is even cheaper than their 14-inch products.

How do you play this way?

Ron doesn't care, he just wants to take over more of the market.

When the market is fully liberalized in the future, there will be even more brutal price wars.

After looking at the 18-inch black and white TV, Ron went to NEC's color TV production line.

Well, there are two new products, and the joint venture's 18-inch color TV has also begun mass production.

Oda couldn't wait any longer and was eager to enter the Indian market.

I have to say that in this era, people are really good at making a living.

Compared with black and white TVs, the clarity and color are a qualitative leap.

"Mr. Soul, how is it?" Oda fiddled with the remote control in his hand proudly.

This is a high-end product, and the previous mechanical knobs and other things have all disappeared.

The bezels of the TV are made very narrow, which makes the screen look visually larger.

"Very good." Ron sighed. There was still some gap.

“We think the price point of Rs 22,000 is reasonable.”

"18,000 rupees."

"What?" Oda said anxiously, "Mr. Soul, don't you think color TVs are a luxury in India? If that's the case, there's no need for us to go the low-price route."

"More than 20,000 rupees, that's almost the same as the original imported products. Can you tell me why they buy joint venture products?"

“But the technology is the same.”

"Indians don't think so. The potential consumers of color TVs are all educated. They believe that foreign workers are more reliable, even if all the technology and materials are the same."

"Why?" Oda was puzzled.

"Because the moon is rounder abroad."

"What?"

"It's settled." Ron waved his hand. He was the major shareholder of the joint venture.

He has many meetings to attend near the end of the year, such as the continued expansion of Sur Electric's product line.

This time, Ron and his team are targeting juicers and rice cookers, which are very promising products in India.

Because Indians like to squeeze fruits, the South Asian subcontinent is also rich in fruits.

The same goes for rice. Indian basmati rice is very famous internationally.

The choice of these two products depends entirely on local conditions.

However, before we decided which company's technology to introduce, a flood of news suddenly came out.

On January 1, 1995, India was about to join the World Trade Organization.

(End of this chapter)