Chapter 423 Take
After getting confirmation from his subordinates in all aspects, Ron quickly made up his mind.
With the help of the Reddy family, he met with the factory owner and the talks went smoothly.
Ron will purchase ownership of the entire steel mill for $150 million, and management will remain in place for the time being.
The factory owner had already decided to immigrate overseas with his family, so the contract was signed smoothly.
Given that the factory's steelmaking technology was somewhat backward, Ron lowered the price, but the other party did not refuse to give in.
Almost on the same day that the handover procedures were completed, the other party hurriedly flew to the other side of the ocean, as if he didn't want to stay for a moment longer.
This is perfect, as it prevents Ron's team from causing any more trouble.
The steel plant is only part of this transaction, and Reddy's iron mine is also a target.
They had met before and had a rough idea of each other's bottom price.
In the end, Ron bought the iron mine for $80 million, and the main purpose of his trip to Goa had been achieved.
Iron ore mined nearby is sent directly to the steel mill, completing the entire process of raw material processing.
However, the transaction was completed, but it does not mean that the factory will take big action immediately.
"The steel mill's technology is a bit outdated and will become uncompetitive in two or three years."
"Boss, the market conditions are not good right now. Are you sure you want to make technological changes?" asked the factory manager Nambiya.
He has worked in this steel plant for almost fifteen years, and now that Ron has taken over the company, he has no plans to replace him for the time being.
"The bad market conditions are only temporary. Do you know what the current economic situation is like?"
“Globalization?”
"That's right! Trade will only increase, and the demand for various large-scale transactions will naturally rise."
"Boss, I mean no offense. You've never been involved in the steel industry before, so why are you so sure?"
Nambiar is a qualified manager. He will not flatter his boss unconditionally just because of one-sided words.
The factory's profitability is related to his job. If the decision is not good, he will have to stand up and take the responsibility in the end.
"Do you know our neighbors?" Ron asked with a smile.
"Todai?"
"Yes, they're about to turn into infrastructure maniacs. The demand coming from there will shock the whole world. It's going to be a carnival!"
"Well, even so, isn't the risk too great? I mean, upgrading the factory's technology requires a lot of money."
"Aside from the impact of the University of Tokyo, India is also developing rapidly domestically. Construction is underway everywhere, including New Delhi and Bangalore."
Apart from other things, Ron's own company, Sur Real Estate, is currently investing in and building several business districts and ports, and these projects require large quantities of cement and steel.
In the spirit of keeping the resources within his family, these materials will be provided by his own factories in the future.
This is also one of his advantages. The construction cost of large projects is much lower than that of his peers.
Unknowingly, Ron's business has covered multiple industries and formed a linkage effect and scale effect.
“Where do the steel mills’ orders mainly come from now?”
“Most of them are construction companies in the state, and some are to be sent to Karnataka.”
"As for production capacity, I remember the factory was designed with a maximum annual output of 1.2 million tons."
"Well, because of the financial crisis, this year's production capacity has been reduced to less than half."
"Once we have completed all the orders, we will directly cut those that are losing money or have low profits."
"Boss?" Nambiya was anxious.
Once a factory stops production, it's difficult to reopen it. Many companies would rather lose money than not run their production lines.
"Don't worry," Ron waved his hand. "Starting this month, production capacity will be fully utilized."
"Ah?" Nambiya was completely confused.
"I have four ports, two large commercial districts, and a special economic zone that are about to be built. 1.2 million tons of steel is far from enough, and we even have to purchase it from abroad."
"This, this." Nambiya was excited.
There is business only when there are orders. His performance is closely related to these.
"So the factory still needs to recruit a lot of people, and the busy state will last for at least two years."
"Don't worry, boss. We have a mature intermediary mechanism here, so workers are not a problem."
Ron thought back to the last time he visited the workers' dormitory. The situation there was hard to describe.
"Speaking of the workers, the dormitories are filthy and messy. If we cram in a large number of people, it will be overwhelmed."
“You mean?” Nambiya blinked.
"Let's see if we can improve it next year. It would be best if we could build a new dormitory area. I see there's still a lot of open space behind the factory."
"Oh, of course. If you like."
He was very surprised and couldn't understand why his boss suddenly cared about the lives of his workers.
This is totally unreasonable. No other factory owner is like him.
In the eyes of the original boss, workers were consumables and were basically no different from animals.
The steel plant has been in operation for nearly twenty years, but the workers' dormitory has never been set foot there once.
But this is a good thing, Nambiya himself is also a worker.
He is very handsome, has thick hair, and is very frank.
He is not as cold and cruel as the iron ingots produced in the factory and is very unkind to the workers.
On the contrary, he is very compassionate. Nambiar has a degree in industrial chemistry.
Before joining the steel mill as general manager, he had worked in other mills in Karnataka, Kerala and Maharashtra for nearly 20 years.
He started as a chemist here, analyzing the quality of finished steel bars, and worked his way up to the position of general manager.
He has a high salary, a big house and a private car, but he also has to make a lot of sacrifices, such as often having to work overtime on weekends.
Perhaps because he worked his way up from the workshop to his current position, he has a lot of sympathy for the workers.
Ron was willing to improve the workers' accommodation, so there was no reason for him to object.
"But so many workers still have to sort it out, all the rat droppings have to be cleaned out, and child labor cannot be used."
“I’ll have someone do it.” Nambiya nodded.
"It's best to pick a reliable leader among them. The workers understand the workers best. I will also send someone over to assist with the factory's adjustments."
"Yes, boss."
"What do you think about the technological upgrade of the steel plant?" Ron asked again.
"The best option is Germany, whose technology is both efficient and environmentally friendly."
"What's the approximate budget?"
"It might cost more than 20 million US dollars, and the factory will have to pay a certain amount of patent fees for every ton of steel produced."
Ron nodded and roughly understood that this was a traditional practice in the industry.
"I have some connections in Germany, and someone will help introduce me when the time comes. We'll try to finalize this matter this year and complete the technical transformation next year."
"No problem, this is a good thing." Nambiya shook her head.
"The coal needed for power plants and coking coal for steelmaking will also be supplied internally in the future."
"What?" Nambiya was confused.
"Oh, I forgot to mention that I also have a coal business under my name. I own coal from Dhanbad. The shipping company will ship it from Calcutta, then go around South India and stop at the port of Goa. It's very convenient."
By the way, the shipping is also his own.
Tsk, if you calculate carefully, it seems that the entire industrial chain is controlled by him again.
Mining, smelting, steel, cement, power plants, shipping, ports, real estate construction
Before he knew it, Ron's business empire had grown to this size.
What he needs to do next is to calm down. He will not make any big moves in the short term.
US$230 million is the amount of investment he made in Goa, and he will have to add some more for the subsequent factory technology upgrades, totaling US$250 million.
It’s a lot of money, but it also has its advantages, which is that you can buy ready-made products instead of having to make them from scratch.
Ron is only responsible for finalizing the deal, and the subsequent matchmaking will be handled by the team.
The financial adjustments alone may take several months, and the workers will also be in trouble, so it will take a lot of effort to rectify the situation.
It's still a makeshift team now, with no signs of being a group enterprise at all.
After staying in Goa for more than two months, Ron finally returned to Mumbai with Urmila.
The rainy season has just ended and October, a cool and refreshing month, has arrived.
Both children were already a year old, and the older one, Agalon, was already taking his first steps in the yard. A few timid servants often followed behind his small figure.
On his occasional free time, Ron would take his children to the "Sky Garden" to play. There were many day trips from Malabar Hill to the city center: clerks with families would dress their children in their best clothes, and elderly women would tremble with picnic baskets.
Ron felt safe letting his children walk among these people instead of being surrounded by heavy protection.
As Anand once said, children are protected by the gods.
Everyone has the most simple wish: that their next generation can start a family and build a career, and at least live a better life than when they were young.
It is not a bad thing to let children experience the real world. There are not many such opportunities after they grow up.
On his birthday, Ron took little Ravi to the Lakshmi Temple, which was what Isha insisted on doing.
She lives in Delhi, a city with a strong religious tradition, and even though she went to university, she still retained some of her Hindu traditions.
There was a small path outside the temple. A woman was sitting on the side of the road, leading a cow, with grass in a basket in front of her.
Ron gave her five rupees, and she handed little Ravi a bunch of grass. With Isha's help, Ravi carefully fed the grass to the cow, accumulating the so-called "merit" and satisfying his curiosity.
The animals that children read about in Western storybooks, such as elephants, camels and peacocks, can be seen easily on the streets of Mumbai.
They continued walking towards the Temple of the Goddess of Good Fortune and saw a bookstore next to the gate, which was the authoritative Indian Studies Literature Publishing House.
Ron visited the bookstore's branches in Varanasi, Delhi and Chennai, and each time he came away with a full bag.
Most of the books I brought for Muna were bought from this store.
Naturally, I had to go shopping today. When the bookstore manager saw Ravi wearing a birthday hat, he asked the clerk to grab a handful of chocolate candies.
They happily browsed through the various books in the store, slowly and carefully selected the books they wanted, and decided to buy them when they came out of the temple.
Before that, they must first enter the Jixiangtiannu Temple and see with their own eyes how the ancient myths and philosophical systems in the book are reflected in contemporary temples.
Little Ravi can't walk yet, but he is always cheerful. When he smiles, his two baby teeth are exposed, like snow-white eggshells.
Ron looked at all this and felt a sense of peace and tranquility.
But the break from busy work is always short-lived, as Ashish from Sur Electrical Appliances called again.
There's already news from Huazi.
(End of this chapter)
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