Chapter 253: Good News
The power struggle in eastern Uttar Pradesh was suppressed just as it was reaching its climax.
Ron felt a little regretful that the Suhr family failed to clear all these obstacles at once despite such a rare opportunity.
Yadav doesn't want chaos here. For those in power, maintaining the current situation is much less risky than overthrowing it and starting over, so he is unwilling to take the risk.
But at least the trouble at the Sur Cement Factory was resolved, and the two local tyrants were seriously injured.
For a long time in the future, they will probably stay quiet, lick their wounds and wait for recovery.
The Suer family also needs to consolidate their influence. They have been here for too short a time and are still not mature enough.
"Are you going back to Mumbai?" Ratan was exercising in the manor.
"With Yadav in charge, Uttar Pradesh will be peaceful for a while." Ron sat in a rattan chair and flipped through the report.
"It's a pity that we didn't use up all the bullets in the Bren light machine gun." Ratan also felt a little regretful.
"Don't keep thinking about fighting and killing. Time is on our side."
"I know, I know. I'll wait until the cement factory develops." Ratan finished his push-ups, clapped his hands and stood up. "By the way, how are the factory's cement sales this month?"
"Very good!" Ron clapped his hands, "We basically sold as many as we could. Demand is outstripping 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 like Ron said, demand simply couldn't keep up with supply. The cement, fresh from the factory, was immediately taken away, and many people lined up at the door.
There are too many places in Uttar Pradesh that need cement, especially in urban areas, where the gap is huge.
In a state with a population of nearly 150 million, the civilian market alone is enough to keep the Sur Cement Plant running at full capacity.
Developers who were initially involved in real estate, such as Chadha and Roy, also transferred their external cement needs to Ron.
When they buy cement from foreign countries, they not only have to pay extra shipping costs, but there will also be some losses during transportation.
Ron's place is close, and they deliver goods to your door within a radius of 100 kilometers. The service is excellent.
They basically took up the first month's 8,000 tons of cement, and even booked them for next month.
The limestone mines in Mirzapur are of excellent quality, and the cement produced by the Sur cement plant, which uses modern equipment, is more reliable than similar cement in most parts of northern India.
Ron offered Chadha and his team a price of 1,800 rupees per ton, far lower than the 2,500 rupees quoted in the government tender.
Anyone who knows about state government projects knows that those are fake bids, designed to fleece people.
Real estate developers will be the main customers in the future, and most of the transactions are in bulk, so some discounts are reasonable.
The retail price for other small customers is 2,000 rupees. These are second-hand dealers who will resell them.
Just like selling water and air conditioners, selling cement requires leaving about 10% of the profit to the distributors.
The final price that urban residents actually paid was roughly between 2,200 and 2,400 rupees, which was consistent with the market price.
After shipping 8,000 tons of cement, the Sur Cement Plant made a huge profit with sales of 14.4 million rupees in the first month.
This thing has no trouble selling, with a profit of up to 75%. Ron can almost count the money without doing anything.
For large transactions, Ron and Chadha signed an agreement to pay 90% of the previous month's payment before the 10th of each month, and the remaining 10% within one month after the last settlement.
Other small customers and middlemen must pay cash to pick up the goods.
There is no pressure to recover the money at all, and Ron expects to make back the investment within a year.
Big investment, big returns, so cool.
The cement business is almost a semi-monopoly in Uttar Pradesh.
"Damn, it looks like there's more to it than hemp." Ratan was also secretly amazed at the numbers on the report.
"In the short term, it's correct. In five years, competition will become fierce."
"With so many orders, we don't even have to worry about Yadav's face."
"That's a government project, there's so much money to be made, you'll be full! Besides, who would complain about having too much business? I plan to start the second phase of the cement plant this year." Ron is very ambitious.
"Brother, the first phase isn't even finished yet, and you're planning to expand and become stronger?"
"Such a good opportunity can't be wasted," Ron patted the blueprint in his hand, "Phase II will directly reach 300,000 tons of production capacity, two production lines."
"That means," Latan calculated, "an annual output of 700,000 tons?"
"Yes, we should seize the opportunity of the market and stake out our territory as soon as possible."
Ron just doesn't have the money, otherwise he would want to do it in one go and increase the annual production capacity to one million tons.
Once bulk transactions like cement are established and the channels mature, it will be difficult for others to enter.
In the wild era, what counted was audacity and recklessness.
"Increasing production capacity sixfold, that's going to cost a lot of money, right?" Ratan admitted. He wasn't as bold as Ron.
"It is estimated that 800 million rupees will be spent on purchasing equipment directly instead of renting it."
"800 million? Brother, will the bank lend us money?" Ratan expressed doubt as they had just borrowed some money.
"There's always a way. At worst, we can just change a few banks." Ron wasn't panicked at all.
India's banking system is broken and there are too many loopholes to exploit.
As long as he shows them the financial statements of the Sur Cement Plant, I guarantee that most banks will not refuse his loan.
The completed cement production line is like a money printing machine, and there is no need to worry about repayment ability.
“Brother, you are a man who can do great things.” Ratan felt that even if he sold hemp for his whole life, he would not be able to make hundreds of millions of rupees.
"Now is the beginning of a great era, we can still catch up." Ron shrugged optimistically.
"Mumbai is truly extraordinary. After you went there, your ideas were very different from those of people in Uttar Pradesh. By the way, when are you leaving?"
"After we sign the government contract, probably next week."
The road construction in Kanpur is expected to start by the end of the year. The Sur cement plant currently supplies to the private market.
According to contracting practices, the government does not care which company's cement the contractor uses.
But there is a rule called supporting local enterprises, or more bluntly, designating suppliers.
Well, Sur Building Materials is the only cement factory in Uttar Pradesh.
There is no choice, this is the authentic Indian operation.
A week later, Ron returned to Mumbai.
The phone calls here are urgent, mostly about the TV production line.
"Boss, Xiaotian was almost going crazy during the months you were away." Ashish was the first to report on the latest situation of Sur Electric Appliances.
"Who?" Ron said slowly, still enjoying his first cup of iced coffee in the Mumbai summer.
Well, it’s already the end of August, the end of the rainy season.
"Oda, have you forgotten? The Oda who was in charge of the NEC negotiations?"
"Oh." Ron suddenly realized that he was still thinking about the power struggles, gunfights, and heavy machine guns in the north.
The gap was too big for him to adjust to for a while. The sense of disconnection was as if he was in two completely different time and space.
"Didn't NEC's TV production line just arrive? Has it been debugged?"
"No, those Japanese have diarrhea every other day and work slower than us."
"What's the rush?" Ron asked puzzled.
"Uh, boss, according to the agreement, we should pay the balance after the production line arrives."
"He works so slowly, and you still have the nerve to ask for money?" Ron raised his eyebrows. "I want to deduct his money."
"Huh?" Ashish was stunned.
"Tell that Xiaotian that we can talk about the money after the production line is debugged."
"Then I'll arrange it."
"Wait, how's things going at Todai?" Ron called out to him.
"Boss, you have a keen eye. Their efficiency is several times faster than that of the Japanese."
Ashish was beaming with joy. One has to say that the Chinese are really good at their work.
The two black-and-white TV production lines said the goods would arrive in one month, and they arrived within one month, without a single day's delay.
After the equipment was confirmed to be in place, technicians were immediately sent from the other side to assist in installing the production line.
It was not a normal life at all. The delivery was supposed to take three months, but it was delayed by two weeks due to the rainy season.
You're asking for money before you even do the work. Bad review!
"Don't the people from the University of Tokyo have diarrhea?" Ron was a little curious.
"La, two people were admitted to the hospital on the second day after arriving."
"Hiss~" Ron had a slight 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 than them."
Ron was heartbroken, and Ashish was ashamed like a child who had made a mistake.
Well, other people’s children, a familiar formula.
"How was the black and white TV production line those two days?"
"A trial batch has been produced and there is no problem." Ashish became stiff again.
"So soon?"
"I was just about to show you the finished product." Ashish brought in a cardboard box from outside.
It was square, about twenty centimeters wide, with no pattern on it, as if it had been found at the last minute.
Ron's office had an existing outlet, and Ashish quickly moved it to his desk and connected it to electricity.
A very classic style, with a big butt, curved screen, a tuning knob on the right, and a speaker below.
The case was black, with silver knobs and bezel, and for a moment Ron felt like he was back in his childhood.
"This is the taste." He walked forward excitedly and touched the frame of the TV lovingly.
If it weren't for the shining "SUR" logo in the upper right corner, he would almost think that this TV had traveled through time and space.
Looks like, very similar.
"Boss?" Ashish called softly.
"So fucking beautiful!"
At this moment, only the word "Fuck" can express Ron's complicated mood.
“Yes, yes,” Ashish nodded.
"Turn on!" Ron waved his hand and sat back in his chair.
Turning on the switch, Ashish twisted the knob and started changing channels with a click.
When a human figure accompanied by snowflakes appeared on the TV, he quickly opened his arms and held the antenna, moving left and right.
Finally, at a certain moment, the picture and sound became clear.
He retreated cautiously, fearing that he would hit the antenna and ruin all his efforts.
"Not bad, very good!" Ron was very satisfied.
This 14-inch black and white TV is exactly the same as I remember it.
The picture and sound are reliable and can definitely meet the daily needs of Indians.
"When can production start?" he asked.
"It will be done this month. Just a word from you."
“What about the cost?”
"It's the same as originally estimated, around 1,600 rupees. If we go into mass production, the subsequent costs can be further reduced."
"Start stocking up now. I'm going to drive down the prices of televisions in India!"
Ron is full of enthusiasm and is familiar with the cost-effective route.
(End of this chapter)
Continue read on readnovelmtl.com
