Chapter 318 Behemoth
The Sur Cement Plant had changed so much that when Ron first came back, he stopped and watched for a long time.
When he left last year, there was only one feeding tower and rotary kiln here, but now there are four.
The huge production lines are crawling side by side in the wilderness like giant beasts, majestic and imposing.
Originally this area was only home to small and medium-sized factories, but now it has developed into an industrial cluster.
More land was expropriated in the surrounding area, more than 300 acres, and it is covered with concrete jungle.
The six-story office building has been renovated and looks as beautiful as a house in New Delhi.
Six or seven new staff buildings were built to the west of the factory, all made of concrete, and thousands of workers lived there.
When many people first moved into the staff building, they were so shocked that they didn't dare to take a step. To them, this house was as good as a palace.
What kind of places did farmers in Uttar Pradesh live in? You could call them pig sties.
The workers are so grateful that every morning when they wake up, in addition to praying to 36 million gods, they now have one more god, Lord Sur.
Of course, only the most loyal, hardworking and obedient people can move into the staff building, and everyone else still has to return to their own shack-like homes.
There were also those educated young people from towns and cities who were eligible for dormitory allocation. They were technicians and naturally superior to other workers.
In Uttar Pradesh, even in a factory, workers are divided into different levels according to their positions.
In the beginning, the coolies even had to pay a share of the money to a foreman.
Later, Ron stopped this phenomenon in time. Just kidding, fame and status cannot be given to others.
Here, only the Suer family has the absolute authority and is qualified to decide the workers' income.
Look, when the workers see Ron, they almost crawl on the ground. That’s the effect.
"What is the current production capacity of the factory?" Ron was inspecting the production here in the factory.
"We have added three 300,000-ton production lines this year, and our annual cement production now exceeds one million tons," replied Technical Director Gao Er.
“Yes, there is a huge gap in the cement market in Uttar Pradesh and it will continue to expand next year.”
Now the Sur Cement Plant is basically able to produce 3,000 tons a day, which is ten times more than last year.
His building materials company has deservedly become the largest manufacturing cluster in the east, and even the rural area of Mirzapur has a market.
Yes, right next to the factory staff building, not far from the western tributary of the Ganges, a brand new market was born.
Initially, vendors from Mirzapur town gathered here, and then more and more people came, attracting more merchants.
In order to occupy a fixed stall, the shrewd small businessmen simply built houses on the spot to serve as shops, building them along the river.
There is a cement factory next to it, which is cheap and easy to use.
In this way, shops popped up like mushrooms.
Some people even started building houses, as if they were settling down.
There is no way around it. In the countryside of Uttar Pradesh, the workers at the Sur Cement Plant are definitely a high-spending group.
The salary of ordinary workers has increased to 500-1000 rupees, and skilled workers earn several thousand.
What is the monthly expenditure for an ordinary farmer's family in the small village nearby?
Less than a hundred rupees.
The workers at the Sur Cement Factory are considered wealthy in the local area, and all consumption revolves around them.
Even if this place develops into a town in the future, no one will be surprised.
Even now, many shacks have been erected near the market. If left unchecked, they will soon become a slum.
Ron couldn't pay attention to all these trivial matters, as the management of the factory depended more on the Sul family's own people.
"Mr. Gower, the cement factory in Gujarat will also rely heavily on you."
"This is your trust in me." Gao Erle's mouth was drooping.
"Please rest assured, Suer Building Materials will soon establish a group company, and the position of General Manager of the Technical Department is vacant."
"Yes, I will go to Gujarat next month and stay there until the cement plant starts production." Gore immediately expressed his opinion.
"That's great. I plan to expand the cement business to other states and turn it into a real industry."
Ron already owns two limestone mines, one in Uttar Pradesh and one in Gujarat.
As far as he knew, there was also a limestone mine in Songbalad, which was completely unmined.
That place is close to eastern India, with many hilly areas and rich mineral resources.
He plans to use it as a bargaining chip in the next election in order to smoothly put it in his pocket.
To put it bluntly, Ron has already seen Songballard as a sure thing, and this election is a good opportunity.
The two parties are fighting so fiercely. If you want to win him over, how can you do it without attractive benefits?
Including Songbalad, Ron now owns three limestone mines and is fully qualified to establish a mining group company.
He attaches as much importance to this business as he does to Sur Electric.
When necessary, we will even allocate necessary resources to mining groups.
India's national conditions determined that he had no choice but to take this path, and he thought carefully for a long time before making up his mind.
Of course, Sur Electric Appliances was very prosperous and profitable, and it almost became a cash cow in his hands.
But how long can this era bonus last? Ten years later, by the millennium, the situation will be different.
To be honest, Ron had little confidence that Soul Electric could maintain its leading position in the global market.
When India completely opens its doors and tariffs are lowered to a certain level, the competitors to Sur Electric will not just be those local cats and dogs.
Foreign brands will flock in, and the high-tech halo of Japan and South Korea and the extremely exaggerated manufacturing boom of the University of Tokyo will all make Indian manufacturing fall apart.
Can Sur Electric Appliances survive and continue to lead?
It's very difficult!
When it comes to technology, India really has no advantages.
Sur Electric Appliances is now reaping the benefits of Dongda. If it fails to establish its own R&D system in the next few years, today's help will become tomorrow's opponent.
Ron is preparing for the future and planning the future industrial layout in advance.
What business does not require high technical content, but has a certain threshold and is very profitable?
Infrastructure! Minerals! Energy! Ports!
These industries have strong state-owned attributes, and the license alone is enough to keep most people out.
But as long as it is done, it will be a business that is guaranteed to make a profit regardless of the market conditions and will not be affected by trade or tariffs at all.
Because they target the domestic market and their clients are mostly from the government and public sectors, no one competes with them.
Several of India's current giants are doing this, making large-scale forays into heavy industries such as infrastructure, oil, steel, and energy.
They don't invest much in cutting-edge technology, and some of it is purely for show.
Do they not know that technology will dominate the future? No, they are just unwilling to take risks.
Compared with the uncertainty of technology, controlling the means of production is safer and more conducive to the continuation of the family.
Ron is now also ready to take this path, or to be more precise, two paths.
Sur Electric is a bet on the future, while minerals, cement and ports are laying the foundation for the family.
Cement is the first step. This industry has begun to emerge, and expansion to the surrounding areas of Uttar Pradesh is a natural choice.
After a walk around the industrial center, Ron had a general understanding of the situation here.
When they returned to the office, only their own people were left in the Sur family: Ratan and Arian from the eldest uncle's family, and Yash and Vihan from the third uncle's family.
They are all Ron's cousins, who have been managing the Sur Cement business for him during his absence from Uttar Pradesh.
Of course, the factory finances are managed by a professional team hired by Ron, and all accounts are faxed to Mumbai simultaneously.
Since everyone in front of him was his family, Ron wasn't polite.
"Brother Ratan, is Mirzapur peaceful recently?" He was first concerned about the surrounding situation.
"Don't worry, I'm here, nothing will happen." Ratan patted his chest.
“What about the Tripathi family?”
“They’ve become much more honest, but they’ve started the arms business again.”
"Um?"
"Brother, you know, there aren't many industries to start in Uttar Pradesh. Hemp is one, and arms is another. They don't require much investment, but they make money quickly.
The Tripathi family used the money from selling opium to buy equipment and build a factory, and that’s how the new factory came to be.”
"Did they give us any trouble?"
"Tsk, Sur is no longer the Sur of a year ago." Ratan didn't care.
The other cousins had similar expressions, and they all added to the conversation, saying how people in the east relied on their Suer family.
Just listening to their posture, it seemed as if Sur had become the overlord here.
"It's better to be careful. Karin Tripathi has probably guessed that we tampered with the munitions factory," Ron reminded them.
"That guy was fighting fiercely with Songlabad in the south and had no time to take care of himself." Ratan said gloatingly.
"Tilaka?"
"Yes, Karin's only son died, and he swore revenge in front of all his men. But with the election approaching, both sides have tacitly agreed to a ceasefire."
Elections are a big deal in Uttar Pradesh and gangsters cannot raise their guns during this period.
Anyone who dares to break the rules will become the public enemy of many state legislators, and it will be the state armed police force that will deal with them.
"Have Karin and Tilaka made any moves in the election?" Ron asked.
“They are all giving money to Yadav,” another cousin, Yash, replied.
"This guy can't stand being lonely." Ron raised his eyebrows.
"They are jealous of our Sur's power, so they have begun to increase their efforts to win over Yadav."
"I'm going to Lucknow tomorrow." Ron nodded.
"Brother, are you going to continue supporting Yadav in this election?" Ratan didn't like the bandit and the untouchable.
"That's not necessarily true. It all depends on which party can give us more benefits." Ron said with a smile.
"Yes, we don't have to stick to it anymore."
The Suer family is now qualified to say such things, as their size is completely not on the same level as those gangs.
"By the way, I plan to set up a family foundation."
"What fund?" Several cousins immediately perked up.
"From now on, 10% of the cement plant's profits will be deposited into this fund as dividends. You can discuss how to manage it."
"Ten percent, completely up to us?" Ratan said with a dry mouth.
"Yes, we are a family, of course we have to live a good life together." Ron said with a smile.
"Yes! We are family and brothers!" Several people waved their arms and nodded their heads.
Ten percent of the cement factory's profits is quite a lot.
Take this year for example, as much as 600,000 tons of cement was pulled out from here, with an average price of 2,000 rupees per ton.
Unfortunately, the profit margin of cement is extremely high, basically maintaining at around 75%.
After deducting various costs, the cement plant's net profit since its establishment is about 900 million rupees.
Ten percent is 90 million, a huge sum of money.
How much annual income could a landowner like the Suer family earn in the past? One or two million at best.
Now Ron has directly increased the family's income by fifty times!
Ratan's cousins were not dissatisfied because they knew that Ron owed the bank more than 1 billion rupees in order to build the cement plant.
Taking on so much debt and still giving out 100 million rupees in cash to the family shows that he is very considerate of family ties.
The most important thing is that the cement plant now produces 3,000 tons per day, and the profit next year will be at least 20 to 30 billion rupees.
Tsk tsk, how much is that 10 percent?
Ratan suddenly felt that hemp was just like that and not worth mentioning.
(End of this chapter)
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