Chapter 235: Mingxiu Plank Road
"Boss, then why did we spend millions of dollars to buy NEC's production line?" Ashish was puzzled.
"Because this is our technological reserve for the next few years, LCD TVs are something we need to consider ten years from now."
“Oh,” Ashish suddenly realized, “so black and white TV is the first step!”
"That's right. Todai has a mature black-and-white TV production line. Their prices must be cheaper than the Japanese."
A 14-inch color TV costs as much as 20,000 rupees in India, and the price of a new 21-inch color TV is double that.
This is still a "cheap product" produced by local assembly plants. If it is an imported TV from Sony or Panasonic, it is normal to double the price.
How many families in India can afford 20,000 rupees to buy a color TV? Not even a million.
The plate is too small, and there is no advantage for Sur Electric to squeeze in now.
After all, they have little experience, and it will take at least two or three years for them to fully master NEC's technology.
Ron was unwilling to wait in vain, let alone invest two million dollars.
Black and white TVs are much cheaper, costing less than 10,000 rupees.
This is not unbearable for most families here in Mumbai.
The cost-effective route is more approachable, which is the forte of Sur Electric Appliances.
However, the speed is fast. As policies become more and more relaxed, other domestic electrical appliance manufacturers in India are also seeking to localize television production.
As far as he knows, the two brands Videocon and Onida have been very active recently.
They used to be an assembly plant, but they only assembled loose parts, which did not require much technical expertise.
This is basically the model that LG wants to use. All parts are imported from abroad and the finished products are shipped from Indian factories.
The only difference is that Videocon and Onida are allowed to put their own brands.
But there is no doubt that the profit of this type of TV is extremely low, and the bulk of the profits are taken away by foreign manufacturers.
If India completely opens its doors, or if a strong competitor emerges locally, bankruptcy will surely await them.
Without advantages in technology and cost, failure is inevitable.
The two brands have seen this and are now negotiating with foreign companies to introduce real technology.
Sur Electric has to be fast, at least faster than its two competitors.
Looking around the world, which country's people work the most skillfully and efficiently?
Of course it’s Tokyo University. China’s speed is world-renowned.
"You personally lead the team and find a manufacturer willing to sell us a complete production line. As long as the technology is mature and the price is negotiable, we will buy it in US dollars."
"Boss, can they really get a TV there?" Ashish was a little skeptical. In his impression, the University of Tokyo was not as good as India.
"It's '94, not '49." Ron chuckled. "I'm sure their technology is more than enough for India."
"So what's our reserve price?"
"$500,000. We also promised them that the cathode ray tubes and circuit boards would be sourced from Dongda in the early stages. We'll discuss the production line for the core components later on."
Hiss, Ashish gasped. He could already sense his boss's ambition.
This is the preparation for building a complete TV factory, including core components.
"I know what to do." Ashish knew what to do.
"If you have any questions during the negotiation, feel free to call me on the satellite phone."
Ron planned to have Ashish leave in the next two days, sooner rather than later.
He also has to thank the Japanese for reminding him that black and white televisions had already been very popular in his hometown.
The entire industrial chain has been opened up, including some of the most core components.
The reason why he felt confident in purchasing the production line from Dongda was that he knew there were no risks in the supply chain.
India does not have the ability to produce cathode ray tubes and circuit boards, but Tokyo University can.
It is better to buy than to make, so do this in the early stages.
Ron equipped Ashish's team with translators, technical experts, and various other personnel.
With the reputation of Sur Park as a prestigious institution, top talents from the University of Mumbai and the Indian Institute of Technology have sent in their resumes.
The vast construction site and the concrete skeleton that grows taller day by day are proof of their strength.
When running a business, you can't keep a low profile, and Ron doesn't mind Kaavia bragging about herself a few more times in the newspapers.
As soon as Ashish left, the NEC negotiation team returned to Japan with satisfaction.
Very good, two-pronged approach.
He wanted both color and black and white televisions.
"You haven't come to see us much recently?"
"As you know, Suer Electric is discussing cooperation with the Japanese. Those dwarfs have a lot on their minds."
"Wow, Japanese." Mary raised her eyebrows with contempt.
"Have they offended you?" Ron asked in surprise.
"I have, but I can't stand a beating." She chuckled.
"Okay, I knew it." Ron shrugged. The relationship between Mao Xiong and Xiao Rizi was not good.
"We'll talk about it in detail after Director Chopra finishes filming this scene." Mary stared at the film and television studio not far away.
Today, the finale of "Love in the Heat of the Storm" was filmed. Chopra has a habit of destroying the set at the end of the film.
The huge set in front of them cost 8 million rupees, but now it was going to be burned down.
Just imagine how exciting the scene would be. Not only was Ron curious, but many Mumbai officials also came to watch the fun.
Chopra, a tall, energetic man in his early forties, wore his signature baseball cap on set.
It's not that he likes exercise, it's purely to cover up the slightly sparse hair on top.
He held the microphone and shouted at the crew, warning them to get it done in one go because the set could only be burned once.
To be honest, the environment here is not very good. It is late April and the weather is hot.
The microorganisms in the water near the film and television city rot and decompose, emitting a strong stench from time to time.
Chopra and the crew worked here for more than a month, trying to control the water, mist, and wind to the most ideal conditions, until they were so saturated with the stench that no amount of showering could completely remove it.
From time to time, the wind blew the smell of gasoline, which was the fuel for the explosion, a full 750 liters of gasoline.
After double-checking that all the cameras were set up, Chopra yelled into the microphone: "Go!"
Boom! The specially built ten-story shed was engulfed in a blazing column of fire.
The explosion sent debris and ash raining down, which was then blown by the wind in a blinding manner, and the crew members fled.
Because Chopra was too close, the impact of the explosion knocked him backward and flew out.
Nervous exclamations came from the loudspeaker, and soon orders came from the large speakers on the set.
"Get some ice! The director's butt is hurt!"
Ron laughed heartily, and pulled Mary and the others' hands and ran up the hillside beside the artificial lake.
The fire was so big that even from such a distance, you could hear the continuous explosions from the gas pipes on the set.
People standing on the hillside can clearly see flames of various colors rising from all directions.
Various burning props fell from the sky and set fire to the ground. The scene was quite spectacular.
Panicked crew members ran around trying to put out the flames.
Several officials and their wives who had come to join in the fun stopped running up the mountain, turned around, and watched with relish, with a hint of pleasure of "watching the fire from the other side of the river".
This kind of grand scene is rare to see, even Ron was very excited.
After the situation was under control, Ron took Mary and the others back to the film city.
Chopra was limping and covering his butt, communicating with the photographer, as if he was concerned about whether the shot just now had captured him.
"Do you need me to take a look at you? I'm a doctor." Ron joked.
"No thanks, I'd rather let the nurse take a look." Chopra waved his hand unhappily.
His baseball cap was gone, and his sparse hair was covered with ashes. He held an ice pack in one hand against his butt, and he was covered in dust.
Only after he confirmed that the last shot was recorded perfectly did he wave his hand to indicate that the filming was finished.
Cheers were heard from the set, and the crew members hugged each other to celebrate.
"Is everything going well?" Ron asked him.
"What?"
"About the record."
"Oh, of course!" Chopra beamed. "T-Series has already signed a contract with us, and the price is still the same as before."
"That's great. Where's Nadim from that band?" Ron didn't ask about such a minor character personally.
"He came up to me the next day and touched my feet," Chopra laughed.
"These people just bully the weak and fear the strong." Ron was not surprised at all.
"Not only him, even Salem called me and said: We are all brothers, and we offended each other before."
"Mumbai police have a long way to go."
"Man, to be honest, it's more effective to talk to you than to the Bombay police."
"It just happened. There are still good policemen in Mumbai."
Speaking of this, when should we transfer Aijie back? He can’t always stand aside.
"By the way, when will the movie be released?" Ron asked casually.
"Probably July, and the remaining two months will be used for post-processing."
"Okay, I'm looking forward to the finished film."
With the 300 million rupee contract secured, a profit of 50 million is a foregone conclusion.
Of course, Ron wanted more. If the movie was a hit, he would have more confidence to invest in the Sur Park.
In order to cooperate with the next TV production line, he even suspended the progress of the office building and focused on the construction of the factory.
It will take at most one month, once the infrastructure such as water and electricity is in place, the production line can be brought in and started.
NEC has already given a preliminary response, and in principle they agree to this cooperation.
The specific details will be finalized in the subsequent negotiations.
As Ron expected, they required that all key components of televisions produced in India, including cathode ray tubes, integrated circuits, etc., be imported from Japan.
In addition, the televisions produced must have the NEC logo, and of course the Sur Electric logo can also appear at the same time.
Life is very bad. Not only do they want profits, but they also want fame.
The cost of a TV is mainly concentrated in those core components. If all of them are imported, it means that the Japanese manufacturers will take the lion's share of the profits.
Then, 40% of the profit from each TV set sold in India will be given to NEC.
Sur Electric Appliances was essentially harvested by them twice, and all the money they earned was hard-earned money.
Maybe NEC will take advantage of it later if things pick up momentum.
Because as more and more televisions are sold, NEC's reputation will gradually spread in India because their logo is on it.
When the time is right, it is not impossible for them to kick out Sur Electric Appliances and create their own brand.
OEM manufacturers really have no future.
But Ron still agreed to them. As he said before, he had to stabilize the other party first.
At this time, Ashish, who was on a business trip to Southeast University, also brought good news.
(End of this chapter)
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