I am a master in India

Chapter 120 Make a fortune
Mumbai was already very hot at the end of March. Dayanita was so hot that she couldn't breathe after just mopping the floor in the living room a few times.

Her husband, with his slicked-back hair and long clothes, was sitting on the sofa reading a newspaper, as if Dayanita in front of him was an invisible person.

"Are you just going to watch like this?" she couldn't help but ask.

"What?" The innocent husband looked confused.

"It's so hot, I'm mopping the floor, and you're sitting there reading the newspaper. Can't you think of a solution?"

"The fan is on full blast, and I can't hide the Mumbai sun." The husband felt his wife was being unreasonable.

"I want air conditioning. I'm tired of this furnace-like weather!"

"That would cost at least 20,000 rupees, which is not even enough for my two months' salary combined." The husband was a little angry. What kind of a deal is this? He even dared to dream of air conditioning?

"Then buy this one!" Dayanita snatched the newspaper from her husband's hand. "It's only over 2,000 rupees. You can't get any cheaper than this."

"Water-cooled air conditioner?" The husband was stunned by the advertisement in the newspaper.

"A water-cooled air conditioner is also an air conditioner! The Sharma family next door bought an identical one, and his wife has shown it off to me six times!"

"This advertisement looks fake. How can an air conditioner be so cheap?" The husband was a little unconvinced.

"It's the latest technology, invented by Dr. Soul. He's a good man. Indians don't cheat Indians."

"Do you want to ask again?"

"I don't care. I don't want Mrs. Shamal showing off in front of me for the seventh time!"

"Okay, I'll call now." The husband picked up the landline helplessly and started dialing the number in the advertisement.

Comparison happens all the time in big cities like Mumbai. It is amplified by desire and spread through desire.

Married people yearn to be single, singles long to get married, the middle class envy the rich, and the rich envy the poor for not having to worry about paying taxes.

Therefore, Mumbai is also a city of jealousy.

The number of workers at the Sur Electric Appliance Factory has rapidly expanded to more than 150, roughly three times its previous size.

The three rows of workshops of the original textile factory have been renovated and are now all put to use. Now this place finally has a new look.

"What is our production capacity like now?" Ron was inspecting the workshop.

"The standard model produces 400 units a day, the light luxury model produces 200 units a day, and the luxury model produces only about 100 units a day." Workshop supervisor Anis skillfully reported a set of data.

He had only been working there for two weeks, having previously worked at a plastic basin factory. Ron had used his connections to recruit him with a salary of 6,000 rupees.

Anis was originally the workshop director of a plastic basin factory. After arriving at Sur Electric Appliances, he quickly managed the workshop in order.

"Based on the current production capacity, how long will it take us to process the orders we have?" Ron was quite satisfied with the workshop supervisor.

"At least two and a half months, but dealers from further afield are still coming here after hearing the news. Our production capacity will be in short supply for a long time to come. Boss, we have to continue to expand."

"The other two injection molding machines have been shipped from Europe, and construction of the new workshop will begin soon. We'll have to wait a little longer. The most urgent task is to continue hiring people and implement a two-shift system. The machines here can't stop for a moment!"

Ron didn't expect that the orders from the Sur Electric Appliance Factory would suddenly surge. The previous 20,000 to 30,000 units were already surprising enough, and he didn't feel any sense of urgency at the time.

After all, an injection molding machine can press out a shell in just over ten seconds. Even if other plastic accessories are included, it can easily produce 500 sets of shells and accessories in a day.

Two injection molding machines, thousands of sets, should be enough. But he was soon disappointed, so he hurriedly contacted Leon again.

The bond of the last two thousand dollar check still remained, so Leon helped him contact the equipment supplier, so that Ron could communicate directly with the manufacturer in the future.

But distant water cannot put out a nearby fire. If we want to expand production capacity in a short period of time, we can only work in two shifts.

"Tell the workers that there is an extra allowance of 20 rupees for night shifts. They can arrange for anyone they know to come in as long as they meet the requirements."

"Okay!" Anis wrote it down hastily.

Don't underestimate these 20 rupees. After working the night shift for a full month, you can earn 600 rupees more than others. Many people in the slums don't even earn 600 a month, so this is definitely a very considerable incentive.

Ron, the black-hearted capitalist, reluctantly cut off a little bit of flesh in order to squeeze the last bit of labor from the workers.

In fact, he wasn't really that black. He hadn't seen the real factories in India that operated around the clock. The workers there ate, drank, defecated, and urinated in the factories, with no way for them to leave. Night shift allowances were unheard of.

But Ron disdains to do so. He is very ambitious and has been consciously managing the corporate image.

“Ashish, Zamil, how is your production line transformation going?”

"Boss, it's much faster than before. Look, they don't even have to tighten the screws themselves."

Following the direction Ashish pointed, Ron saw a worker holding a pneumatic screwdriver and fastening a screw in two clicks.

Okay, this is semi-automatic.

It used to take me over ten seconds to tighten a screw, but now it only takes two seconds. That’s a huge improvement.

A country like India is struggling with industrialization, so how advanced can you expect its production line to be?
After walking around the workshop, Ron had a rough idea in his mind.

The first batch of thousands of water air conditioners had already received a payment of 70 yuan, and Sur Electric had even shipped another water air conditioners of various models.

This wasn't a slow pace, considering it had only been a little over two weeks since the bombings. All 10,000 water-cooling units were sold to local Mumbai dealers, who were close to the water and could easily get the moon. They were only a half-hour drive from the Sur Electric Factory.

The benefits are also obvious, local dealers can get their money back very quickly.

A water-cooled air conditioner with the lowest configuration costs 350 rupees. After deducting the material cost of 70 rupees, the labor cost of 10 rupees, and the dealer's 20% commission, the net profit of Sur Electric Factory is about 200 rupees.

A 57% profit margin is quite good. Of course, this is because we're in Mumbai. If we sell to more distant destinations, after deducting shipping costs, middlemen, and state taxes, we can guarantee a profit margin of over 40%, which would be a huge profit.

The profit of the light luxury model is about 460 rupees per unit, and the luxury model is about 1300 rupees.

Of the 1 water-cooled air conditioners sold, the standard model accounted for the majority, 6000 units! The light luxury model accounted for 3000 units, and the deluxe model accounted for only 1000 units.

For this batch of goods, Sur Electric can get a net profit of 388 million rupees.

I made a lot of money. In half a month, I will be able to make back all the money I spent on buying the land.

Of course, Ron invested a total of 1200 million rupees in the Sur Electrical Appliance Factory, which is still a little short of a payback, but it will be soon.

The last 388 million rupees is the pre-tax profit. The corporate tax in India at this time is very abnormal.

Before 91, India was a “socialist” capital country, with corporate taxes as high as 45-50%. This was because most companies were state-owned, so profits were irrelevant.

Although policies have been gradually liberalized and tax rates have been adjusted, most companies still have to pay a tax rate of over 40%, which is simply working for the Indian government for nothing.

But as for India, if it doesn't use some unorthodox methods, it would be unworthy of its name.

Each state has the power to give preferential tax rates to its own companies. In addition, emerging industries also have various tax rate subsidies, and the manufacturing industry also has equipment depreciation subsidies.

With all the various pretexts added up, there's a lot of room for maneuver. Ron, a popular figure in Mumbai, certainly has to resort to some tricks.

Some gave money, some made phone calls. After all this, not only did they not have to pay taxes, they also received a subsidy of 20 rupees.

Damn, that's outrageous.

But Ron also knew that his Suer Electric Appliance Factory was just established this year, and there would be no such good thing next year.

Corporate tax is paid uniformly in October, which is the Indian New Year, so his electrical appliance factory can still operate smoothly for about half a year.

Anyway, with more than 400 million rupees in his pocket, Ron is now feeling proud.

Otherwise, where would he get the money to buy equipment and build factories? There is still a large area of ​​these 100 acres of land waiting for him to develop.

By the way, there are also TV commercials, which need to be done too.

Agee has an abiding hatred of the film industry; his father, a director, has recently become depressed by his lack of power.

Old Lal had signed Rajesh Khanna as the male lead. He got the superstar's schedule, rented a studio, and had the movie scenes carefully arranged, waiting for Khanna to shoot a set of singing and dancing scenes.

On Monday, the big star Khanna did not show up, nor on Tuesday. The crew was already in place, and all the staff were eagerly waiting, and every day of waiting cost a huge amount of money.

Kanner didn't show up for a whole week, and on Saturday the set had to be dismantled. The dream was just that: a dream, because that same day, Ajay's father suffered a stroke.

Fortunately, this did not completely destroy him, and old Lal finally survived.

But recently, Aij woke up at three in the morning and found that his father was not in the bedroom. He found old Lal smoking in the garden.

"I have borrowed money from a loan shark at an interest rate of 36%. What should I do?" Old Lal was at a loss as he had already lost 25 lakhs in the previous play.

Aggie didn't want his father to be ruined by movies, even though he hated them, so when Ron asked for it, he spoke up.

No matter how selfless he is, he cannot get around the hurdle of family affection.

One day in early April, Ron visited the Edger family's courtyard in Bandra.

It's a great place to be. Bandra and Juhu are roughly Mumbai's equivalent of Beverly Hills - where Bollywood stars live and work.

"Mr. Lal, I've long heard of you." Ron and Mary came to visit together.

"Please come in, Dr. Sur." Old Lal was in high spirits. He had already learned the purpose of Ron's visit from his son.

Dr. Sur was a well-known figure, and old Lal had high expectations for their cooperation.

While the family warmly entertained Ron, they also kept looking at Mary beside him. Aggie's wife looked at her and asked if she was Ron's girlfriend.

Aijie gave him a helpless look. How could he know? The last time they met, this guy was accompanied by a cute Indian girl.

"Mary also works in Bollywood. She is mainly responsible for the agency issues of foreign actors." Ron took the initiative to introduce her.

"Oh, I seem to have heard of it." Old Lal had an impression. After all, Bollywood is not that big.

"See, that's easy. We're all in the same industry, so it shouldn't be that difficult to work together."

Ron didn't leave the commercial to Mary and the others. He was just hinting to Ajay, intentionally or unintentionally, that he was not alone in Bollywood. I only gave the contract to your father out of your consideration.

Aijie understood and sighed to himself.

Debts of favor can be more troublesome than monetary transactions.

(End of this chapter)