I'm a Master in India

Chapter 235: Openly Repairing the Gallery Road

"Boss, why are we spending millions of dollar to buy NEC's production line?" Ashish asked, puzzled.

"Because this is our technical reserve for the next few years. LCD TVs are something to consider ten years from now."

"Oh," Ashish suddenly understood, "So black-and-white TVs are the first step!"

"That's right, East Asia has mature black-and-white TV production lines. Their asking price will definitely be cheaper than the Japanese."

A 14-inch color TV sells for as much as 20,000 rupee in India, and the price of a new 21-inch color TV is even double that.

These are still "cheap goods" produced by local assembly plants. If they were imported TVs like Sony or Panasonic, doubling the price again would be normal.

How many families in India can afford 20,000 rupee to buy a color TV? Not even a million.

The market is too small. Sur Electrical Appliances entering now won't have much of an advantage.

After all, they don't have much experience, and it will take at least two or three years to fully grasp NEC's technology.

Ron wasn't willing to wait for nothing, let alone invest two million dollar.

Black-and-white TVs are much cheaper, less than 10,000 rupee.

For most families in Mumbai, this is not unaffordable.

The cost-effective route is more approachable, which is Sur Electrical Appliances' specialty.

However, they need to be fast. As policies become more relaxed, other appliance manufacturers in India are also seeking localized TV production.

As far as he knows, the two brands Videocon and Onida have been making frequent moves recently.

They used to be assembly plants, but they only assembled scattered parts with little technical content.

It's basically the model that LG wants to use, where all parts are imported from abroad, and the finished products are shipped from Indian factories.

The only difference is that Videocon and Onida are allowed to put their own brands on the products.

But there is no doubt that the profit margin for this type of TV is extremely low, with the majority taken by foreign manufacturers.

If India completely opens its doors, or if strong local competitors emerge, then bankruptcy will surely await them.

With no advantages in technology or cost, failure is inevitable.

These two brand owners saw this point and are now also negotiating with foreign companies, preparing to introduce real technology.

Sur Electrical Appliances must be fast, at least faster than these two competitors.

Looking globally, which country's people work the most efficiently and with the highest speed?

Of course, it's East Asia. Heavenly Dynasty speed is renowned throughout the world.

"You personally lead a team to find a manufacturer willing to sell us a complete production line. As long as the technology is mature, the price is negotiable. We'll pay in dollar."

"Boss, can they really handle TVs there?" Ashish was a little skeptical. In his impression, East Asia was not even as good as India.

"It's 1994 now, not 1949," Ron chuckled. "I can assure you, their technology is more than enough for India."

"So what's our bottom price?"

"500,000 dollar. Also promise them that picture tubes and circuit boards will also be sourced from East Asia in the early stage. Production lines for core components will be discussed later."

Hiss, Ashish gasped. He could already feel his Boss's ambition.

This is preparing to build a complete TV factory, including core components.

"I know what to do," Ashish knew.

"If there are any problems during the negotiation, call me anytime via satellite phone."

Ron planned to have Ashish depart in the next couple of days. The sooner, the better.

He also had to thank the Japanese for reminding him that black-and-white TVs were already very popular back home.

The entire industry chain has been established, including some of the most core components.

The reason he was confident in buying production lines from East Asia was that he knew there were no risks in the supply chain.

India doesn't have the ability to produce picture tubes and circuit boards, but East Asia can.

It's better to buy than to build. Let's do it this way in the early stage.

Ron equipped Ashish's team with translators, technical experts, and various personnel.

With the golden signboard of Sur Industrial Park, top talents from Mumbai University and the Indian Institute of Technology have sent in their resumes.

That large construction site, and the concrete frames growing taller day by day, are proof of their strength.

When running a business, being low-key is not an option. Ron didn't mind Kavia boasting about herself in the newspaper a few more times.

As soon as Ashish left, NEC's negotiation team also returned to Japan satisfied to report back.

Very good, a two-pronged approach.

He wants both color and black-and-white TVs.

"You haven't been coming to see us much lately?"

"You know, Sur Electrical Appliances is discussing cooperation with the Japanese. Those little guys have many intentions."

"Wow, Japanese," Mary raised her eyebrows slightly, with contempt.

"Have they offended you?" Ron was a little surprised.

"They have, but they couldn't take a punch," she chuckled.

"Okay, I knew it," Ron shrugged. The relationship between the Polar Bear and the Japanese isn't exactly good.

"Let's talk more after Director Chopra finishes shooting this scene," Mary stared at the film city not far away.

Today was the shooting of the finale of "Love During the Flames of War." Chopra had a habit of destroying the set at the end of the film.

The massive set in front of them cost a full 8 million rupee, but now it was going to be burned down.

Just imagine the scene and you'll know how exciting it will be. Not only was Ron curious, but many Mumbai officials also came to watch the fun.

Chopra was in his early forties, tall and energetic, wearing his signature baseball cap on set.

This wasn't because he liked sports, but purely to cover his slightly thinning hair.

He held a microphone and yelled at the crew, warning them that they must get it in one take because the set could only be burned once.

To be honest, the environment here wasn't great. It was late April, and the weather was hot.

Microorganisms in the water near the film city decomposed and emitted a strong foul odor from time to time.

Chopra and the crew worked here for over a month, trying to control the water, fog, and wind to their ideal state, until they were saturated with the stench, which couldn't be completely removed no matter how many times they showered.

From time to time, the wind carried whiffs of gasoline, which was the fuel for the explosion – a full seven hundred and fifty liters of gasoline.

After repeatedly confirming that all camera positions were set up, Chopra shouted into the microphone: "Action!"

Boom, the specially constructed ten-story-high shack was engulfed by towering flames.

The flashover caused debris and soot to fall like heavy rain, and then the wind blew it into people's eyes, causing the crew members to scatter.

Because Chopra was too close, the force of the explosion knocked him flying backward.

Anxious gasps came from the loudspeakers, and soon a command came from the set's large speakers.

"Quick, get some ice! The director's butt is injured!"

Ron burst into laughter, while also pulling Mary and the others by the hand and running towards the hillside beside the artificial lake.

The fire was too big. Even from this distance, they could hear the gas pipes on the set continuously bursting.

People standing on the hillside could clearly see flames of various colors shooting up from all directions.

Various burning props fell from the sky, setting fires on the ground, creating a spectacular scene.

Panicked crew members ran around, trying to extinguish the flames.

Several officials and their wives who came to watch the fun stopped running up the hill, turned back, and watched with relish, enjoying a slight sense of "watching the fire from the opposite bank."

Such a grand scene was rare, and even Ron exclaimed how thrilling it was.

After the scene was slightly controlled, Ron took Mary and the others back to the film city.

Chopra limped, covering his butt, and was communicating with the cinematographer, as if concerned about whether the shot was captured.

"Do you need me to take a look? I'm a doctor," Ron joked.

"No thanks, I'd rather have a nurse look," Chopra waved his hand impatiently.

His baseball cap was gone, his sparse hair was covered in bits of ash, one hand held an ice pack to his butt, and his whole person was covered in dust and dirt.

Only after he confirmed that the last shot was perfectly recorded did he wave his hand to signal the wrap.

Cheers erupted on the set, and crew members hugged each other in celebration.

"Was it smooth?" Ron asked him.

"What?"

"About the record."

"Oh, of course!" Chopra showed delight. "T-Series has signed a contract with us, still at the previous price."

"That's great. What about Nadeem from that band?" Ron didn't personally inquire about such a minor character.

"He ran up to me the next day and performed the touch-foot ritual on me," Chopra laughed heartily.

"These people just bully the weak and fear the strong," Ron wasn't surprised at all.

"Not just him, even Salem called me and said: 'We're all brothers, I offended you before.'"

"The police in Mumbai have a long and arduous road ahead."

"Brother, honestly, coming to you is more effective than going to the Mumbai police."

"It just so happened. There are still good police in Mumbai."

Speaking of which, when should Ajay be transferred back? He can't always be sidelined.

"By the way, when will the movie be released?" Ron asked casually.

"Around July. The remaining two months will be used for post-production."

"Alright, I'm looking forward to the finished film."

With the 300 million rupee contract secured, a profit of 50 million is already a certainty.

Of course, Ron wanted more. If the movie was a hit, he would have more confidence to invest in Sur Industrial Park.

To accommodate the upcoming TV production line, he even temporarily slowed down the progress of the office building and focused all efforts on constructing the factory buildings.

In at most a month, once infrastructure like water and electricity is in place, the production line can be brought in and start operating.

NEC has given a preliminary response, agreeing in principle to this cooperation.

Specific details will be finalized in the upcoming negotiations.

As Ron expected, they demanded that the TVs produced in India, including key components like picture tubes and integrated circuits, must be imported from Japan.

In addition, the NEC logo must be on the TVs produced, and of course, the Sur Electrical Appliances logo can also appear simultaneously.

The Japanese are very bad. They want not only profit but also reputation.

The cost of a TV is mainly concentrated on those core components. If they are all imported, it means the majority of the profit will be taken by Japanese manufacturers.

Then, for every TV produced and sold in India, 40% of the profit must be shared with NEC.

Sur Electrical Appliances is equivalent to being harvested twice by them, earning only hard-earned money and sweat.

It's possible that after gaining momentum later, they could still be taken advantage of by NEC.

Because as more and more TVs are sold, NEC's reputation will gradually spread in India, as their logo is on them.

When the time is right, it's not impossible for them to kick Sur Electrical Appliances aside and start their own brand.

OEM manufacturers indeed have no future.

However, Ron still agreed to them. It was still the same saying: first stabilize the opponent.

Just then, Ashish, who was on a business trip in East Asia, also sent good news.