Rebirth of the Industrial Tycoon - Vol 2 Chapter 584
Chapter 584 Everyone loves pandas
The Indian Nalavani never passed by, and Li Weidong immediately followed.
Narawani is definitely not coming to Dubai for vacation. Thinking of the news I heard in the bar before, India has just approved a construction machinery procurement budget of 120 million US dollars. Li Weidong immediately guessed that Narawani and this 1.2 billion in purchases.
I just don’t know what role Nalavani played in this $120 million purchase case, and whether he was the main person in charge of this purchase.
In terms of business intelligence, Li Weidong is far inferior to those international giants, and it is impossible for those international giants to tell Li Weidong important information, so Li Weidong can only follow Narawani and collect information through some clues.
Naravani wandered the venue before stopping in front of Liebherr’s booth.
A giant company like Liebherr has indoor and outdoor exhibition areas. The outdoor exhibition area is parked with various physical equipment, including several very high-end construction machinery; and the indoor exhibition area also has more than 400 square meters, arranged like It is an independent exhibition hall.
In comparison, Fukang Engineering has only one booth of more than ten square meters. Compared with Liebherr, it is probably like the gap between roadside Mala Tang and Haidilao chain stores.
In the exhibition area, there are not a few people who come to visit and negotiate. After all, Liebherr is the top construction machinery company in the world. Both technology and product quality are first-class, and it has an excellent brand reputation. Many people buy it. The first choice for construction machinery.
Liebherr brought more than a dozen employees to explain to customers and sell their products. But even so, it was a little stretched. Many customers walked around the exhibition area for a long time before a narrator came up to talk to them.
Europeans have always been more utilitarian in doing business. Those who seem to be just here to join in the fun, not serious buyers, Liebherr’s explainers are too lazy to pay attention.
After Narawani walked into your Liebherr exhibition area, no one paid any attention at first, but just over a minute later, a person who looked like an executive came out and received Nalavani in person. Nalavani chatted for a long time, and handed a business card before leaving.
And this scene was all seen by Li Weidong not far away.
“It’s interesting that Liebherr’s executives came out to receive them in person!” Li Weidong thought to himself.
Immediately afterwards, Nalavani went to the Volvo exhibition area, and Volvo executives also appeared and received Nalavani in person.
Then in the exhibition area of Caterpillar, Komatsu Production, Hitachi Construction Machinery, etc., Nalavani was all received by executives without exception.
“It seems that Nalavani has always been on the attention list of customers of large companies, so it is received by corporate executives in person. It is worthy of the executives of various large companies to personally receive them. The person in charge of the $120 million procurement in India , it should be Nalavani!” Li Weidong secretly said in his heart.
…
Narawani’s facial features are similar to those of Caucasians, and his skin color is not the dark Indian race. If it weren’t for the iconic beard, some people would really regard him as European.
What’s more, in places like Dubai, there are a lot of South Asians, second only to Arabs.
The rich countries in the Middle East that became rich by selling oil are relatively short of labor.
Due to religious culture, women there do not work, which reduces the labor force by half.
And these countries are relatively rich, and social welfare is also very good. Even if citizens do not work, they can receive welfare payments from the government, which has also spawned many people who are unwilling to work.
Even if the locals take part in the work, they do some light work. Even if they work four hours a day, it is hard work, which is equivalent to taking a half-day rest for a half-day shift. And there are holidays every year. If you count it, if you can work for eight months in twelve months a year, it is hard work.
However, such labor participation and low work efficiency cannot guarantee the normal functioning of society. Everyone is counting money at home, and no one goes to work, or only works for a short time. Isn’t the country going to be paralyzed?
So the way local tyrants thought of was to hire foreigners to work.
South Asia is relatively poor, not far from the Middle East, and many people are similar to the Middle East in religious beliefs, so South Asians have become the source of labor for the rich and powerful countries in the Middle East.
Countries such as India, Pakistan, Sri Lanka, etc., a large number of people go to the Middle East to work every year. They are engaged in the kind of jobs that local people are unwilling to do. The wages are not high, and the working environment and living environment are relatively poor. Lowest level.
The glorious life of the local tyrants in the Middle East is also obtained by exploiting these South Asian wage earners.
In a city like Dubai, it’s even more normal to see South Asian faces.
People with looks like Nawani will not receive special attention. At least Li Weidong, an East Asian face, is more conspicuous in the crowd than Naravani.
However, those big companies were able to recognize the inconspicuous Narawani among the crowd, and sent executives to receive him personally. The only explanation is that Narawani is an important customer.
In the previous life, when Li Weidong was making second-hand machinery and equipment, he had several encounters with this Nalavani.
Narawani’s cousin is a high-ranking official in India, so Narawani also got a fat job in the procurement of construction machinery.
In the international market, the Indian government has always taken advantage of people who are stupid and rich. And this Nalavani, in the eyes of many construction machinery suppliers, is also a rich man.
When the Indian government makes overseas purchases, there are two notable characteristics, either it is very willing to spend money and spends more than the normal price to buy products.
For example, when buying weapons, it is never ambiguous to pay, and often spend a lot of money to buy a bunch of shrunken weapons.
Or you spend a small amount of money and suffer a big loss. It seems to be picking up things you bought cheaply. As a result, after adding various follow-up service fees, you end up paying more.
For example, the second-hand aircraft carrier bought by India cost 974 million US dollars to buy it, which is almost like a pie in the sky.
However, the subsequent renovation and renovation costs paid are as high as 7 billion US dollars. To know that the US Nimitz-class nuclear-powered aircraft carrier, the cost is 6.2 billion US dollars.
The reason for this is not because Indian procurement personnel are stupid, but because the corruption problem in Indian government procurement is very serious.
In later generations, India spent $8.8 billion to buy 36 Rafale fighter jets, with an average unit price of $240 million per fighter jet. And this Rafale fighter is a product from the 1980s. When India bought it, it was an old fighter more than 30 years ago.
In comparison, the US F22 fighter jet was sold to the US military for only $150 million. The F35A was sold to the U.S. military for $80 million, and to U.S. allies for about $100 million.
F35A is the most advanced stealth fighter after all. India buys a product like Rafale 30 years ago, but the price is three times that of F35A.
In fact, French Dassault’s offer for the sale of Rafale fighter jets is generally around $60 million. India has to spend 240 million US dollars to buy it, where does the 180 million difference go?
The answer is that it all fell into the hands of India’s own people, and the French did not get a penny.
For an arms sale, after various price increases in various links in India, the final $60 million turned into $240 million.
The same is true when Nalavani purchases construction machinery. A piece of equipment that costs US$100,000 will cost him US$200,000 or even US$300,000.
The difference in price naturally fell into his own pocket, or the pocket of his high-ranking cousin.
So although Nalavani is a rich guy, he is a very smart guy, he knows how to use the opportunity to purchase equipment to make money.
One of the things that Li Weidong was more impressed by Narawani was that during a purchase, Nalavani deliberately bought a batch of second-hand equipment.
Then Nalavani painted the second-hand equipment and shipped it back to India as new equipment. Naturally, the price was calculated based on the new equipment, and there was even some premium. And the businessman who provided Naravani with second-hand equipment also made a fortune.
This matter was not a secret in the second-hand machinery circle at the time. Since then, Narawani has been on the priority customer list of second-hand equipment manufacturers. Everyone hopes to do business with Nalavani and use second-hand equipment as first-hand. The equipment is sold, but the oil and water are very big.
It is also because Nalavani is a well-known rich man, Li Weidong recognized Nalavani at a glance.
The current Narawani has just received the fat difference for engineering procurement. It is a fledgling, and the people in the circle still don’t know Narawani’s style of doing things.
Li Weidong knows that this guy has a big appetite, and he has a high-ranking cousin as his backer, so he is even more reckless when making money.
If Narawani is the procurement representative sent by India, this is obviously good news for Li Weidong.
The products of Fukang Engineering have no advantage in performance, the technology is two or three generations behind those international giants, and the brand has no reputation. The only advantage is probably the cheap price.
But construction machinery is not a low-end manufacturing product such as clothes and shoes. It is not competitive because of its cheap price.
If the competition is real swords and real guns, Beverly Engineering is really not the opponent of those international giants, and it will definitely be pressed to the ground and repeatedly rubbed.
But when you meet a purchasing representative who wants to make money, the situation is completely different. It is no exaggeration to say that as long as the other party is bold enough, anything is possible!
…
In the hotel suite, Naravani leaned on the sofa and sipped the coffee in his hand.
Perhaps because of the prohibition of alcohol, Arabs like to drink coffee very much. In Dubai, an international metropolis, you can find a variety of the best coffee in the world.
Opposite Nalavani, sat a European, his name is Olaf, the representative of Sweden Volvo.
Olaf said, “Mr. Nalavani, the commission for construction machinery transactions is generally 3% to 5%. I think other companies give you no more than 5%, right?
5% of $120 million is $6 million. But if the 120 million purchases are all handed over to Volvo, we are willing to pay a commission of $1,000!
Mr. Narawani, our condition has broken the unspoken rules of this industry. I think this is enough to demonstrate the sincerity of Volvo, and I hope you can seriously consider our condition! ”
Hearing the figure of 10 million US dollars, Ravani was obviously moved.
For such a large amount of machinery purchase, the manufacturer will pay an additional transaction commission, which is also a common thing. Of course, this commission will also be paid in a legal name, such as consulting fees.
The commission rate for the machinery industry is about 3% to 5% of the transaction value. Some high-end machinery and equipment, such as shield machines, gantry cranes, etc., may have higher commissions. Of course, the price of this type of machinery will be higher and the profit will be higher.
Ordinary construction machinery, the profit is not so big, the 5% commission is already capped, many companies are not even willing to give 5%, probably only 4% will be given for the sake of 120 million US dollars.
Olav proposed a commission of 10 million US dollars, which is equivalent to 8.33%, which is far more than 5%. Volvo’s willingness to give such conditions to break the unspoken rules also shows that they will win this single life.
10 million dollars is very tempting, but Narawani did not express his position immediately, but said: “Mr. Olaf, I need a few days to think about it. I think I will give you an answer before the end of the exhibition. of!”
“Well, I look forward to in-depth cooperation with Mr. Narawani.” Olaf nodded and said goodbye.
Naravani personally sent Olaf to the elevator before returning to his room.
“10 million US dollars! Volvo is a big deal. However, according to my investigation, the price of Volvo’s equipment is really expensive. It is also 120 million US dollars. If you buy Volvo’s engineering equipment, you should buy a lot less in quantity!” Ravani muttered to himself.
The world’s top construction machinery giants can be said to have their own advantages.
Caterpillar in the United States started with an internal combustion engine, and the internal combustion engine is also their advantage. Customers who are more interested in power and mechanical power tend to choose Caterpillar.
Another American company, John Deere, is also very good at engines. In addition, their hydraulic system is the best in the world.
Japan’s Komatsu Production is famous for its comprehensiveness. You can find any kind of construction machinery in Komatsu Production, and the quality is still very good, and there are no obvious shortcomings.
The characteristics of Hitachi Construction Machinery are that the products are more durable and stable. In terms of material technology, Japan is the leader, and Hitachi Construction Machinery has made full use of this advantage.
In addition, the price of Japanese products is cheaper than that of the United States and Europe, and the after-sales service is also more timely. Of course, if you return it in time, you will not lose a cent of your money.
Germany’s Liebherr is a time-honored European company. Liebherr’s business scope is very wide, not only limited to the construction machinery industry, so they have a lot of key technologies in their hands.
Liebherr’s construction machinery, the core components basically do not need to be outsourced, they can produce by themselves. In terms of speed change, transmission and control, Liebherr has a comparative advantage, which is also a traditional advantage project of German companies.
The construction machinery of Volvo, Sweden, has the advantage of quality and safety. Volvo’s construction machinery is the same as Volvo’s cars, with high safety, comfortable driving, high fuel efficiency of the engine, very good power, and very little noise.
In terms of quality, Volvo is really the best.
But there is also a disadvantage, that is, it is expensive, which is also the same as Volvo’s cars.
Volvo’s construction machinery, products of the same grade, must be more expensive than Caterpillar in the United States and Liebherr in Germany, not to mention cheaper in Japan.
And not only the price of the whole machine is high, but the price of the accessories is also high. If there is a failure, if you replace a few more parts, it is enough to buy another second-hand machine!
It is precisely because Volvo sells expensively that they have high enough profits and can also pay out 10 million US dollars in commissions.
But even with the $10 million commission, Nalavani did not agree immediately.
Indians are doing business with this virtue. It is not enough to take advantage of it. Even if you know it is the lowest price, you still look forward to something cheaper and you can take more advantage. No decision will be made until the last minute.
…
In the elevator, the assistant said with some dissatisfaction; “The conditions we offered were so good, but the Indian didn’t agree, and he had to think about it again. He really doesn’t know how to praise! Does he think that the conditions of other companies can surpass ours?”
Olaf smiled disdainfully: “Begging people are always greedy. For example, a beggar can beg for 20 yuan a day, but one day he only spent half a day begging for 20 yuan. , then will he finish work early? No, he will continue to beg, hoping that he can beg for twenty dollars for another half day!”
The two chatted first, and the elevator reached the first floor. Olaf stepped out of the elevator and walked towards the hotel door, just when he saw someone walking over.
“It’s Drizzt!” Olaf frowned slightly.
Drizzt is the representative of Caterpillar. When he appeared here, you don’t need to guess that he came to talk to Nalavani about the $120 million purchase.
Drizzt also saw Olaf, he smiled politely at Olaf, and then went straight to the elevator.
However, Olaf’s eyes were still on the beautiful female secretary in **** clothes beside Drizzt.
Bringing a beautiful, hot, and sexy-dressed female secretary to talk about business, the purpose can be imagined.
Olav was cunning and cunning, and instantly realized that this beauty was a professional female publicist.
“Damn Yankee, it’s so shameless to use this trick!” Olaf gritted his teeth and said to himself, “I hope that Rawani guy can hold on to the bottom, and don’t be tempted by beautiful women! But it seems a little difficult to let the Indians control it!”
…
In the parking lot outside the hotel, Li Weidong and Ding Youliang were sitting in a car. Ding Youliang was holding a small telescope in his hand, staring at the hotel door.
“The people from Volvo came out, he should have met the people from Caterpillar.” Ding Youliang paused, then said, “Chairman, when are we going in?”
“No hurry, just wait and see what else is there.” Li Weidong said.
Ding Youliang continued: “The girl from Caterpillar just now doesn’t seem to want to be a serious person.”
“How did you see it?” Li Weidong asked.
“Look at the clothes she’s wearing, most of her chest is exposed, more than my two-strand hurdle vest, and she’s twitching when she walks, so she’s definitely not a serious person.” Ding Youliang said.
“It’s a suspender, not a hurdle vest! Besides, you are a big man. Even if you don’t wear a hurdle vest, and your entire chest is exposed, no one will look at you!” Li Weidong said with a smile.
“Not necessarily, many people like chest hair!” Ding Youliang also joked.
“Many people like pandas!” Li Weidong laughed and continued; “But you guessed right this time, this woman should be a professional female publicist, the kind who signs contracts on the bed.”
“It turned out to be a beauty trick!” Ding Youliang paused, then said: “Heroes have been saddened by the beauty pass since ancient times, and that Nalavani is not a hero, will he fall for a beauty trick!”
“Don’t worry, this move will be useless to Nalavani!” Li Weidong said calmly.
“Why? Is there something wrong with this guy? Shouldn’t it be? Isn’t there a divine oil in India? Even if the divine oil can’t be cured, it is a bit serious. I have to see a doctor, or should I introduce him to a Chinese medicine doctor?” Ding Youliang Some talkative.
“That guy is not interested in women.” Li Weidong went on to explain.
“Is he a rabbit?” Ding Youliang asked with great interest, the fire of gossip was raging in his heart.
“Maybe it’s a rabbit who likes chest hair! Otherwise, why would I bring you here!” Li Weidong laughed maliciously.
Ding Youliang only felt that the chrysanthemum was tight, and he said quickly; “You must be mistaken, he likes pandas!”
“No, it’s chest hair! Didn’t you say just now that many people like chest hair.”
“Who likes chest hair, I’m talking about pandas! Everyone likes pandas!”
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(end of this chapter)