Reborn as the richest man in India
Chapter 457 Mergers and Acquisitions
Iron ore export is an important source of foreign exchange for India, so it has formed a relatively complete production chain, improved production efficiency and reduced costs, and the output is still very considerable.
The coal industry does not have a complete production chain like the iron ore industry. It basically relies on manual mining. Even in the previous life, it was basically still in this state. If it were placed in China, it would be called a black coal mine and all of them would be closed. .
It’s not that coal mine owners can’t afford excavation equipment, but that labor is cheap.
This leads these bosses to rather hire more workers than spend a lot of money to buy efficient and advanced machinery and equipment.
Of course, this is only one of the reasons.
Coal mines are subsidized by the state, just like food production.
By controlling the output of coal mines within a certain range, these mine owners can control the price of coal and maximize the price of government subsidies.
If production is increased, the subsidized price may be lower.
This is like starting a production of 100 tons, because the subsidy price is high, or starting a production of 150 tons and adding a low subsidy price. The final income of the two is about the same.
If it were you, would you rather start production at 100 tons or 150 tons?
This limits coal production.
There are also railway logistics transportation bottlenecks and high freight rates, which have seriously affected the transportation of coal from mines to power plants and steel plants, which has led to major related companies increasing their reliance on imported coal.
Moreover, imported coal is cheaper and more cost-effective than purchasing large quantities from domestic sources.
Because of this, when it comes to coal mines, Qiaogo will focus mainly on foreign countries.
Such as Indonesia, such as Australia, etc.
The coal mines in these countries are of good quality and have abundant reserves, and they are the main sources of coal imports in India.
Think about the past life. India was unable to effectively solve power problems and suffered frequent power outages.
Mainly because thermal power occupies the absolute main power and requires a large amount of coal.
However, domestic production is not enough. Once international coal prices rise, power plants will lack funds to purchase coal, and the power plants will have no choice but to shut down.
In the future, Qiaogo's demand for coal will not only be steel plants, but also thermal power plants, etc. The amount of coal required will be huge.
Investing in electricity seemed unreliable to people in previous lives.
The most well-known thing is probably the electricity theft in India, which is indeed outrageous.
There may only be one or two users in a village who pay the fee, and the rest can be easily solved by relying on extremely good electricians.
As a result, most power companies lose money.
But the account here cannot be just economics.
Electricity is an indispensable resource and a necessity in modern society. Mastering this resource is like mastering industries such as food.
Tata Group, Reliance Group and later Adani Group, etc., all have large investments in the power industry, and their profits are not that high, and they even suffer losses.
But this is by no means simply due to economic considerations, but also from a political level.
Once you have control over electricity, it can actually easily affect the stability of the power supply area.
If there is no electricity, the people in this area will rebel.
If it were the government, could it not coax these power plants?
Therefore, Qiaogo Electric Power will definitely be involved in not only thermal power, but also hydropower, wind power and so on.
For Qiaogo, in addition to political considerations, he still has to consider the production of his own companies.
As far as India has power outages from time to time, if you can't control the power, what's the point?
From time to time, there will be a power outage for you. Should this production continue?
In particular, some steel plants, petrochemicals and other factories are large consumers of electricity and must be equipped with their own dedicated power plants to ensure a stable supply of electricity.
The raw material for thermal power generation is coal. Qiaogo does not want the power plant to stall due to coal problems, and must ensure his own coal supply.
Qiao Ge will consider domestic coal mines as appropriate. If they are not of high quality, they will not be purchased. If the transportation is inconvenient, they will not be purchased.
Therefore, the scale of domestic coal investment is definitely not comparable to that of iron ore.
"Yes, iron ore and coal mine are what I need." Qiao Ge smiled, "Then I leave these two things to you. But you have to pay attention. When purchasing the mine, you must consider the convenience of subsequent transportation. , you can’t just look at low prices.”
"Yes, boss, I will definitely compare carefully and choose the best mines." Hamid said excitedly.
The boss agreed, which meant that he would be able to appear openly in front of everyone in the future as the person in charge of the mine.
"Another point is that the focus is on iron ore. As for coal mines, we don't need to pay so much attention for the time being." Qiao Ge said.
"Huh?" Hamid was a little confused.
"I'll tell you the truth, the situation in domestic coal mines is complicated. In the future, I will import more coal from abroad." Qiao Ge said.
"Okay, boss."
"If these two things are done well, I might be able to let you do another more important thing." Jogo said, staring at Hamid.
Hamid was stunned for a moment by these words: "Boss, I wonder what you are talking about?"
In fact, for Hamid, being in charge of mining affairs is very satisfying.
For this reason, he thought about it for a long time before he figured out that he should be competent in this industry.
"Port." Qiao Ge said leisurely, "I want to develop a port next, my own port."
Hamid couldn't help but take a breath of air.
He is very aware of his boss's actions. Developing the port will definitely not be a trivial matter.
This port is definitely not small.
"Boss, is it a large port?" Hamid asked excitedly, trembling in his heart.
"That's right, and it won't be just one. It's best to be all along the coast of the country." Qiao Ge said with a smile, "Now we have a lot of international business here, including edible oil, grain, petroleum, coal in the future, etc. It will be more efficient if we have our own port.”
In terms of ports, this reform has also liberalized and allowed private capital to enter.
Of course, Jogo would not let go of such an opportunity.
The number of good port locations is actually limited. Even if it is impossible to build them all at once, it is very important to enclose the land early, especially for those deep-water ports.
"The construction of the port will involve many negotiations with the local government. I think you should be proficient in this aspect." Qiao Ge added.
Ports mainly involve land acquisition, which requires dealing with the local government.
Of course, the more land the better, and the lower the price, the better.
Although I will find someone to handle some of the relationships at the top, someone will be responsible for the specific affairs below, and Hamid is definitely the most suitable candidate.
Of course, this still depends on Hamid's performance in the mines. If he is good enough, he is still willing to train him.
The importance of ports will become increasingly prominent in the future.
With the development of economy and the expansion of foreign trade, having its own port will have great advantages.
In particular, many of Qiaogo's next careers are related to the import and export of bulk commodities.
Needless to say, coal will be in great demand in the future.
Every large-scale power outage in India is caused by lack of coal.
At the same time, iron ore and so on can also be imported from abroad.
This is also an important reason why Qiaogo wants to build his own shipyard and build his own fleet.
Sea freight is the cheapest mode of transportation and also the mode of transportation with the largest volume.
Commodity trade between countries is inseparable from this.
Once you build enough ports, many industries can be built around the ports.
For example, steel plants, petrochemical plants, etc. can be built near ports, which can effectively reduce costs and increase the competitiveness of enterprises.
"Boss, don't worry, I will also pay attention to the ports. I heard that in this auction of state-owned companies, there may be some ports ready to be sold or leased," Hamid said.
Of course he is very concerned about these. It can be said that everyone in the country with some status and ability is paying attention to this major reform of the country.
"I will also ask some experts to inspect the coast and find some locations suitable for building ports." Hamid added.
Jogo was very pleased with Hamid's reaction.
Port construction requires a long period of time, which can take several years or even more than ten years. Of course, construction is usually divided into several phases. It is necessary to prepare now.
Qiao Ge is waiting for the auction of a state-owned company in New Delhi. This auction is very large and will be divided into several batches. It will definitely not be completed in one day.
In this, Qiao Ge mainly targets steel plants, various mines, land and other industries. If there are any, he will never show mercy and will fight for them no matter how high the price is.
This time he was confident, he had no choice but to do it because he had huge funds in his hands.
"Boss, Lakshmi is here." A security guard came in to report.
Since Qiao Ge was in New Delhi for a long time this time, Hudi did not come. He was still in charge of the company's normal affairs in Mumbai.
Lakshmi returned from Indonesia and met his father and two younger brothers first.
After learning that Qiaogo was in New Delhi, he rushed here the day after returning to China.
"Mr. Gupta, my steel plant in Indonesia is willing to be merged into your steel plant." As soon as we met, Lakshmi said, "Domestic steel plants can also be merged."
Jogo was not surprised by Lakshmi's words.
Since he is willing to come to him, this must be the case.
Because I told him this last time.
"Are you sure?" Qiao Ge asked with a chuckle.
To be honest, he was originally interested in Lakshmi's steel factory in Indonesia and his person.
Unexpectedly, he now included the Mittal family's domestic steel plants.
But Jogo also understands why the Mittal family did this.
Although the other three steel plants owned by their family were auctioned last time and the loans were repaid.
But this has done too much harm to the Mittal family, not only economic losses, but also reputational damage.
Even though their family's original steel factory still exists, they are still short of funds.
After such an auction, the reputation is greatly damaged. In this situation, it is even more difficult to continue to get loans from banks.
If this continues, their family will suffer huge losses.
The family suffered a huge loss this time, so Lal had to recall his eldest son who had split up the family to work alone to find a solution. (End of chapter)
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