Rebirth of India: Superior

Mukesh had already experienced the magic of Shakru's prediction skills many times, so he thought about it and said: "Okay, then I will give our future prime minister a face and get rid of this golden trade sway. Support!”

On December 8, when the trade fair officially started, the personal presence of Shakru and Mukesh attracted great attention from the organizers and all the Indian media present, because although the organizers of this trade fair attached great importance to , but basically all the representatives from various Indian companies came, and only the two of them came in person. At the scene, both of them are absolute heavyweights. Needless to say, Mukesh is the absolute king of Indian petrochemicals. Shakru is also a well-known brand in Indian pharmaceutical companies because of his authority in Indian pharmaceutical companies. Ergan is the only patented drug that is famous all over the world, and other pharmaceutical companies produce basically generic drugs. India's compulsory patents facilitate the production of generic drugs, but it also stifles the development of patented drugs in India. After all, who is willing to spend money and effort to research when you can simply reach out and take them? But then again, if we all pursue borrowingism like this, where will new drugs come from? This is a bit like the current dispute between genuine and piracy in the online literary world. Everyone is looking at the pirated version, so who writes the genuine version?

Of course, the two of them just came to show their faces and cheer for each other without signing any contract. However, this was a great deal of face to the organizers. Even Mr. Singh, the organizer behind the scenes, specially invited the two of them to have the opportunity. They wanted to have dinner together, and that was what they came for, so naturally they agreed wholeheartedly.

Although the two did not sign any contract, the organizer's attention and welcome to them naturally attracted the attention of Chinese companies. After inquiring, they found out that these were two great figures in Indian companies, so all those who were interested in Chinese companies that have come to India for development have begun to study How can they establish a relationship with them? After some investigation, they found that although it is difficult to establish a relationship with Mukesh, there should be great opportunities for Shakru here, because the Chinese elements in him are really So many, not only do they have two branches in China, but they are also proficient in Chinese culture and language.

So a week later, Shaklu received a call from Mayor Qin, saying that two of his friends in the business world were coming to visit him to ask for some advice. For such a favor and free thing, Shaklu naturally It was a full promise.

The two people who came to visit Shaklu were both surnamed Wang. They were about forty years old and both were from Guangdong. They also came to participate in the Golden Trade Wind event. After a few people exchanged greetings for a while, Lao Wang first said: "Mr. Pandit, we are really not familiar with the investment environment in India at all. We would like to ask you to help answer some questions."

"No problem, Mayor Qin's friends are my friends. If you don't understand anything, just ask." Shakru said in a very grand manner, and then changed the topic and said: "But to be honest, investment here in India The environment is really different from other places, so if you want to invest here, you really have to be prepared.”

"Mr. Pandit, I heard that South Korea's POSCO canceled its long-planned plan to build a factory in your country half a year ago. It is said that it was due to some off-site factors. Is that true?" Lao Wang asked cautiously.

Shakru pondered for a moment, and then replied: "To be honest, as an Indian, I shouldn't speak ill of my country, but some problems are indeed facts on the surface, so there is no need to hide their illness and avoid treatment.

There are many problems in India's current investment environment, such as poor infrastructure and slow construction, especially the unstable power supply, which is a very troublesome thing. But this is not the most troublesome thing. The government's various approvals are extremely cumbersome and inefficient. It may take several years or even more than ten years from approval to final implementation of a foreign investment.

Posco's experience is the most obvious example. Posco originally wanted to build a steel plant, but the land acquisition alone was delayed for several years. In the end, Posco couldn't afford to delay, so it had to Plans to build a factory were cancelled.

There was also an Australian company that undertook a highway project contracting project. In the end, it was tortured by the approval and almost collapsed, because after getting the project, it had to register a project office in India, and only after it had an entity could it open a bank account. Because if you don’t have a bank account, the Indian owner won’t be able to call you whether it’s advance payment or project payment, but the application process for the project office will take two years or even longer. In this way, all your expenses in India within two years will be Whether it is its own operating costs or the design and construction costs subcontracted to Indian suppliers, the parent company must advance, which brings huge cash flow pressure and financial risks to the parent company.

Of course, since it is this business meeting organized by Mr. Singer, the approval process should be better. "

After hearing Shakru's answer, Lao Wang and Xiao Wang looked at each other, and both felt that Mr. Pandit was really a real person who was rare to meet. His answer to Posco was similar to the results of his own investigation. So I started to ask the question I really wanted to consult: "Mr. Pandit, which industry do you think is better to invest in India now? Which one is better, power equipment or raw material import and export?"

“Don’t do electrical equipment, or in other words, don’t get involved in all electricity-related industries in India. It’s not that the government doesn’t allow it, it’s mainly because it won’t make money, and it may even cost you your life.

India's infrastructure industry is very unhealthy now. The reason is that India's current system makes products and services related to people's livelihood too cheap, which makes the entire supply chain of these industries not profitable. For example, electricity prices. Because politicians have to reduce the cost of living of ordinary people in order to win votes, the electricity prices are extremely low, which makes the power grid companies not profitable. If the power grid companies do not make money, they naturally cannot give money to downstream companies, so the entire industry does not make money. Huawei and ZTE are stuck in the investment quagmire in India for this reason. I have talked about the power problem separately in the previous chapter.

As for the import and export of raw materials or primary processing, I think it is good and there should be a certain profit margin. But remember that there are hidden costs in doing business in India, and you should be prepared for at least 5%. "To be continued.

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