I'm a Master in India

Chapter 234: Trick Them In First

Xiao Tian couldn't understand the Indians' thoughts. Did they not want the technology? Advanced CRT display technology.

This was the bait he specifically prepared. No ambitious company would refuse it.

"Mr. Xiao Tian, perhaps you don't understand India very well," Ron said unhurriedly in the conference room. "It's different here from Japan."

"Don't you want to build your own color TV production line? NEC can provide the most advanced technology."

"Alright, since you insist, let's first talk about NEC's conditions." Ron knew these Japanese wanted to show off their technological strength.

"Could we borrow an outlet here?"

"Of course."

At Xiao Tian's signal, someone from the accompanying team brought a box from somewhere.

They unpacked it in front of Ron and took out an extremely thin and light TV, probably only as thick as a slice of bread.

Ron raised an eyebrow slightly, while Ashish and the others were dumbfounded.

It was too thin. Compared to the bulky CRT TVs, it was completely a product of two different eras.

These Japanese were very well prepared. In addition to the TV, they also had a VCR for playing videotapes.

They even had voltage adapters. Japan's 110V mains power and India's 220V mains power are not directly compatible.

What followed was just as Ron expected. The NEC people demonstrated their latest display technology on the spot.

"This is the industry's first true-color active matrix liquid crystal display, NEC's unique display technology." Xiao Tian's voice was full of confidence.

As expected, when the screen lit up, everyone in the conference room was captivated.

Ashish and these bumpkins even trembled slightly. The ultra-clear and vibrant colors were too shocking for them.

"How is it?" Xiao Tian asked, his face full of self-satisfaction.

"It's indeed impressive." Ron nodded.

"LCD is the cutting-edge technology of the industry, it is the future! We can help Sur Electrical Appliances become the most high-end TV manufacturer in India. No one will be your competitor."

"What are the conditions?" Ron asked calmly.

"As stated in the fax, NEC will contribute technology as capital, and your side will invest ten million dollar to establish a joint venture." Xiao Tian said with a smile.

"Technology as capital?"

"Yes, LCD technology is valuable. NEC will hold at least 75% of the shares in the joint venture. This is our bottom line."

This... Ashish and the others looked serious. Wasn't the price too high?

But it's LCD after all, fascinating.

Xiao Tian was full of confidence. He firmly believed that NEC's technology would be nothing short of a bomb for Sur Electrical Appliances.

Everyone in the conference room turned to look at the main seat, but Ron suddenly broke into a smile.

"How about we talk about CRT TVs instead?"

"Wha-what?" Xiao Tian was stunned.

"I only have one question," Ron looked at him. "How much does this TV cost?"

"Around 300,000 Japanese yen. This price is indeed a bit high, but LCD is a groundbreaking technology."

"300,000 Japanese yen, which is about 3,000 dollar," Ron turned to ask Ashish. "What is the average salary of an Indian?"

"1,000 rupee, 32 dollar."

"Nani?!" Xiao Tian himself couldn't keep a straight face.

"See," Ron spread his hands. "100 times, that's almost impossible."

People in which country in the world would be willing to use 100 times their monthly salary to buy a TV?

Even with excessive spending, it's not this excessive.

In many cities, 100 times the monthly salary might even buy an apartment.

"But it can serve as a technology reserve. The cost of LCD TVs will definitely decrease in the next few years, and by then the Indian market will also have developed rapidly." Xiao Tian still didn't give up.

"It's too early," Ron shook his head. "Indians don't need such advanced TVs."

"Mr. Sur, you underestimate the speed of technological iteration and updates."

"No, like I said, it's different here from Japan. No one understands India better than I do." Ron boasted shamelessly.

"Then..." Xiao Tian suddenly felt a bit absurd.

In other countries, those peer companies drooled over NEC's technology.

They went out of their way to please them, hoping to get NEC's technical support.

India, on the other hand, didn't eat the meat delivered to its mouth, wasting heavenly treasures!

"CRT TVs are the future of India. Let's talk about them." Ron's eyes were burning.

"What are your thoughts?" Xiao Tian said, lacking interest.

"Is NEC willing to sell the production lines? Both black and white and color."

"Black and white TVs have been phased out by NEC," Xiao Tian said dismissively. "Only East Asia has that kind of junk."

"What about the color production line?" Ron continued to ask.

"As for color..." Xiao Tian's eyes darted. "We can consider transferring the color CRT TV production line, but it still has to be according to the proposal just now."

"Joint venture?" Ron's eyes flickered.

"Still contributing technology as capital. Your side invests 5 million dollar, and NEC holds 60% of the shares."

"2 million dollar, Sur Electrical Appliances holds 70% of the shares." Ron counter-offered.

"NEC's color TVs are no less inferior to Sony's Trinitron. Such an offer is too excessive!"

"We are also negotiating with Sony."

"What!" Xiao Tian raised his voice.

"As you said, CRT color TVs are not advanced technology. Too many manufacturers have mastered it."

"NEC provides not only the production line, but we will also be responsible for training Sur Electrical Appliances workers. I think everyone should take a step back, each holding 50% of the shares. This is NEC's bottom line!"

"If NEC agrees to authorize technology for key components such as picture tubes to Sur Electrical Appliances, then our side can reduce the shareholding ratio to 60%."

"Such an offer, we cannot accept..."

"Mr. Xiao Tian," Ron reminded him. "This is also the biggest concession we can make, because Indian law has restrictions on this."

"Nani?" Xiao Tian was puzzled.

"According to the 'Foreign Exchange Management Act', the shareholding ratio of foreign capital in a joint venture shall not exceed 40%." Ron spread his hands.

The Japanese looked at each other. They thought India had opened up its policies and that this was a free economic market.

"Of course, as compensation, Sur Electrical Appliances will bear all training costs, including the expenses of the Japanese personnel."

"We need to discuss it." Xiao Tian turned his head and whispered to the people beside him.

NEC never simply wanted to sell production lines. They were interested in the vast market of India's nearly one billion people.

They knew India was poor, but as long as one-tenth of the population had demand, that represented an extremely large market.

Therefore, establishing a joint venture was an inevitable choice. NEC would not be short-sighted enough to only do a one-time deal.

Besides, it's just a CRT TV production line, not really cutting-edge technology. NEC has five or six competitors in Japan.

Sur Electrical Appliances is not just in contact with them. Including South Korea, NEC has even more competitors.

LCD is the future. Xiao Tian expects this technology to be officially released in two years.

CRT, another technology about to be phased out.

"We agree to this share distribution, but before the technology transfer, the joint venture must first purchase core components for a period of two years."

After the period expires, our side will authorize key technologies such as picture tubes. In addition, in the newly established joint venture, Japanese personnel must serve as the chief technical officer."

The Japanese' calculations were loud and clear. Technology authorization is possible, but only after two years.

The core components used in the initial production line can only be imported from NEC Japan.

Hmm, this is preparing to take the bulk of the color TV profits first, making the joint venture work for it for two years for free.

Ron knew it perfectly well, but still agreed immediately.

"No problem."

"Then, Mr. Sur," Xiao Tian stood up with a smile and extended his hand. "Pleasure working with you!"

"Welcome to India!" Ron nodded.

Both sides reached a preliminary cooperation intention. One provided funds, the other provided technology, and everyone was happy.

The NEC people were very happy. They didn't spend a single penny and secured the Indian market.

Ron was also happy. Finally, he had tricked one in.

As long as the conditions weren't too excessive, he agreed to them all. Let them in first, the real work is for later.

The preliminary negotiation was completed in just one day, and the NEC people were beaming with joy. They shed their serious demeanor from the meeting and excitedly shouted about wanting to experience Indian culture.

Easy enough. Ron directly had someone take them to a high-end bar, where there were plenty of call girls.

Ah, it's a pity The Palace was burned down by him. Otherwise, he would have definitely let this group of Japanese open their eyes.

Xiao Tian had a great time. In the bar, he even openly mocked Sur Electrical Appliances' stupidity in Japanese.

The 2 million dollar investment, most of which would be used to purchase NEC's color TV production line.

This deal itself was not a loss, and the newly established company even had 40% of their shares.

This was completely free. A market of nearly one billion people was waiting for them.

As for the promised picture tube technology, it wasn't that Xiao Tian looked down on Sur Electrical Appliances, but this thing couldn't be handled by anyone in the whole of India.

What if they were given it? This country couldn't achieve self-production within five years.

Besides, it wasn't given for free. A bunch of hidden licensing fees were waiting for them.

Also, the chief technical officer would be Japanese personnel. NEC had countless ways to delay Sur Electrical Appliances' independent research and development.

In the end, this company could only rely on NEC and be manipulated by them.

A complete victory! The Japanese were very pleased.

"Boss, wasn't today's negotiation too fast? We could have fought for more favorable conditions." Ashish always felt that by agreeing to the Japanese so easily, Sur Electrical Appliances would suffer a loss.

"They have the same idea as us, trying to get something for nothing." Ron smiled.

"You knew?"

"Even a fool could tell. Maybe they are laughing at us right now."

"Boss, how do you plan to deal with them?" Ashish's eyes sparkled.

"No hurry. What we want is the TV production line. We'll talk about it after we get the goods."

Did they really think he didn't know the Japanese' little tricks? He didn't need to guess to know there would be countless tricks waiting for him later.

Just in the procurement of core components and technology authorization, there were multiple traps. Who would honestly hand over technology to others, not even a cooperation partner.

If Sur Electrical Appliances grew strong, what would NEC have to do with it? The Japanese would most likely use this as an excuse to make things difficult for him.

Trading technology for the market, the Japanese have already mastered this trick in a certain large country in the East.

The Japanese were certain of the other party's determination to get the technology. Not only were there various unfair terms, but they also never gave them a good look in their daily work.

The Japanese were addicted to acting like lords and were preparing to play the same game in India.

Heh heh, would Ron care whether India's technology was backward or not?

Naive!

Once NEC comes in, no matter what, they must be served the Indian package.

"Ashish, we should send someone to East Asia."

"Where?"

"The East," Ron tilted his head. "You don't really think Sur Electrical Appliances is going to focus on promoting color TVs next, do you?"