Chapter 27 [Showdown to the Old Butler]
Being able to accept new things and changes in the family's industry is a good sign. At least he didn't have to persuade the loyal old housekeeper, which saved him a lot of trouble. Seeing the old man frowning, Felsinger couldn't help but laugh. In the blank eyes of the grandfather and grandson, he said with a smile.
"I have been wandering around the town these two days. Don't you think I found a good business opportunity? You often hang out in the town. Don't you think that our Sinjar town, except for the bustling central cross street and the high-end wealthy areas on both sides of the temple, are all very old buildings?"
After Belsinger reminded Jamal and his grandson, they couldn't help but think about it. It was really like this. A large town with a population of more than 100,000, except for the central cross street and the two wealthy areas on both sides of the temple. Most of the buildings are two-story buildings made of stone, mud and wood, and the roofs are covered with thatched roofs. The slums, or suburbs, not only have a bad living environment, but most of the houses are made of wooden planks, which are ventilated everywhere. Fortunately, there is no winter in India, otherwise many people would freeze to death.
In the end, it was the old butler Jamal who was knowledgeable and carefully tasted the meaning of Belsinger's words. Suddenly, he felt very incredible and asked Belsinger seriously.
"Master, do you want our family to transform and do some building materials business? You know, the investment in building materials business is too large. Can our family afford it? Besides, those poor people have problems with food, so how can they save money to build a house for themselves? Even if we successfully start the building materials business, the market sales will also be a problem."
Seeing the old butler say this, Belsinger was still very happy in his heart. At least the old butler's head was not rigid. However, due to the limitations of his own knowledge and narrow vision, he still couldn't see the essence of the matter. The only thing he could use was the grandfather and grandson. Although the old and the young are young, fortunately, both of them are loyal. It is necessary for him to explain his development ideas to the two loyal butlers. Don't let the old man worry and get angry. If you really make one, who will use it? So he said with a smile.
"Butler, you are right. Ordinary people can't afford to build houses now. The reason is that the cost of transporting building materials is too high. We don't have a cement plant or an asbestos tile plant in Sinjar Town. All building materials need to be transported back from Udaipur, which is a hundred kilometers away."
"The journey is extremely difficult. Labor costs and transportation costs have increased exponentially. A bag of 50 kilograms of cement can only be sold for 200 rupees in Udaipur. But the retail price in Sinjar Town will exceed 300 rupees, and the cost will increase by half. The price is so high. Who can afford it? Am I right?"
Yes, you are right, but this problem cannot be solved. If you want to blame, you can only blame the Indian Congress government for its low efficiency. There is no road or railway between a town with a population of more than 100,000 and a large city with a population of more than one million. The transportation cost has always restricted the development of the town.
Seeing that the grandfather and grandson nodded to admit what he said, Bel Singh smiled mysteriously at this time. "Let me give you a different way of thinking. Think about it. We have plenty of mineral resources in Sinjar. Why can't we buy a set of cement production equipment? Set up a concrete production company, buy a set of cement asbestos tile production equipment to produce cement asbestos tiles. Local production and local distribution save a lot of unnecessary transportation costs."
"The sales price of these building materials has been reduced. In this way, do you think the business can be bad? Who wants to live in those houses built of stone and mud? Who doesn't want to live in tall, spacious and bright cement houses?"
Good guy, the two men of the Jamal family were almost shocked. Their own master Bel Singh was too bold. How much money do you have to invest? The Singh family has some background and can dominate the town of Sinjar and become a local emperor. But this little asset and the establishment of two such large enterprises, the production of building materials seems to be a drop in the bucket. No matter how good the idea is, it can't be realized.
If you borrow money from the bank in the name of the Singh family, it's still okay, but if the business is not good and you can't pay back the loan, you will end up bankrupt. Selling houses and lands won't be enough to pay back the bank loans. In this way, the entire Singh family's accumulation of hundreds of years will be destroyed. At that time, the Singh family will never recover. Master, are you too brave?
The grandfather and grandson looked at each other in shock, and saw the sweat on each other's heads at a glance, which really scared Master Singh. The old butler took a few deep breaths before standing up, trembling with the teapot to add a new cup of tea to Master Bel Singh. Half of it was spilled outside the cup, and it can be seen how nervous the loyal old butler is now.
At this time, Bel Singh just smiled and ate the chocolate cake bit by bit with a small fork without any nervousness. After the old butler poured the hot tea, he picked up his cup and drank it all in one breath. At this time, he breathed a sigh of relief and said to Bel Singh.
"Master, your idea is very grand. If you develop it according to your idea, you will definitely make a lot of money. But Master, our Singh family does not have that much money. If we don't have enough money to buy machinery, land, and mines, do we have to borrow money from the bank? If something goes wrong, our family will be bankrupt."
The old housekeeper still has limitations. Apart from the capital New Delhi, the old housekeeper has almost no experience of living in a big city. The reason why the old housekeeper is afraid is that he thinks he needs to buy equipment from two factories in the machinery manufacturing plant in India, and the cost is huge. And it takes a long time. Now it is a blessing to get the machine two years after placing an order. You can imagine how low the work efficiency is. Moreover, these machines are expensive, the quality is not very good, and they always break down.
However, the cost of purchasing imported machinery and equipment from foreign countries has been rising. What can the Belsinger family do with the little money? No matter how the old housekeeper thought about it, he didn't think that Belsinger imported machinery from foreign countries, but the exporting country was not Europe but China. The machinery is still 90% new. Although the machinery manufactured in China is not as good and strong as that manufactured in Germany, it is more than ten times better than the machinery manufactured in India. And the most important thing is that the price is cheap, which is more than three times cheaper than the machinery manufactured in India.
A set of machinery purchased for 900,000 yuan, the same model of machinery in India is not as strong and durable as the other party, and the cost is about 2.7 million yuan. This is why the old housekeeper is so worried even though he knows that opening a concrete factory and an asbestos tile factory is a sure-win business. The cost is too high, the production efficiency is low, and the market in Sinjar is too small.
You can produce products, but if you can't sell them and make money, then you are losing money, right? How much money can you lose like this? Within 35 years, the wealth accumulated by the entire Singer family for hundreds of years can be squandered, and then Bel Singer can only live on the streets.