Volume 5: The Age of Storms Chapter 0722 Nan's Market
"I have already met with Mr. Zhang Zhifang of Garden. He is not too opposed to Fang's investment, but he requires a high premium."
"How high?"
“Forty percent.”
"Okay, how many shares can you give us?"
"At most 30%."
"Mr. Zhang is eighty years old this year, right?"
"Eighty."
"Thirty percent is thirty percent. Even if he can live longer, he probably won't live past 110. In a few years, his mind will become muddled. His children won't want to take over his business. Sooner or later, Garden will sell the entire business to us."
Garden is a company that mainly produces bread, biscuits and cakes. It not only has a high market share in Hong Kong, but also has good sales in Chinatowns overseas. It also produces and supplies , and produces various candies.
A wave of mooncakes will be produced on the eve of the Mid-Autumn Festival. Jiadun is undoubtedly the leader in the Hong Kong pastry industry.
Fang Mengyin sighed and said, "It's so sad. After working hard all my life, I have no children willing to take over my career."
" It's understandable. Garden is in the catering business. The catering business is too tiring. There are many ways to make money. Why do you have to do such a hard job? Grandma, just tell Mr. Zhang that we have no intention of taking over his family business, so that he can rest assured."
If Zhang Zhifang's children would take over Zhang Zhifang's business, Nan Yi would never have the idea of merging with Jiadun.
From "De Xian Lai Zuo" to "Longmen Zhen", and later "Pink Chrysanthemum" and "Armored Gold", including paying attention to Changtian Soy Sauce a few years ago, forcing and bribing Li Jinji to cooperate, and then entering the leather industry to create the Chongming Bird edible oil brand and so on, Nan Yi's goal is to create a "digestion" system around Shennong's southern grain, or an internal circulation system.
He wants to invest in and support downstream enterprises to ensure that the sales channels of Shennong Nanliang's agricultural and sideline products are unobstructed and to ensure that most of Shennong Nanliang's agricultural and sideline products can be sold at normal prices at all times.
By adopting the "235" principle, Nan's self-operated and controlled enterprises can digest 20% of agricultural and sideline products, enterprises with which it holds shares and has good relationships can digest 30%, and the remaining 50% can be considered for sale in the bulk commodity market.
The prices of primary agricultural and sideline products have been sluggish internationally, and the prices of most staple foods are still on a downward trend. In order to obtain more profits, Shennong Nanliang must plan secondary processing, dilute the grain attributes of most of its output, and deepen its commodity attributes.
The reason why it is most and not all is because Shennong Nanliang's land is scattered in various countries. Although the policies of each country are different, they often encourage and require the planting of certain crops. When they encourage, there will be subsidies, and when they require, the purchase price will be very guaranteed. From the perspective of a normal farmer, of course, you have to follow the policies of the country where you are.
You have to obey whoever's job is under your control. Shennong Nanliang occupies a large area of land and it is impossible for it to be free from the supervision of the country where the land is located. Relying on its strong strength, it ignores everyone and follows its own plan.
If this happens, a lot of land will be at risk of being lost.
Regardless of whether it is public or private ownership, farmland and farmers naturally carry the "obligation attribute" and must fulfill their obligations. Something must be grown on the farmland, even if it is a reinforced concrete house.
Shennong Nanliang will only start to exercise the right to operate freely after fulfilling its obligations. This is also the reason why Nanyi only arranges half of its production for secondary processing. Half of Shennong Nanliang is a traditional agricultural group, and the other half has financial attributes.
"You said you won't take it, but you still have to take action in the end, right?"
"The nature is different. It's because others don't want it, not because we are competing for it. If someone else is interested in Garden in the future and this person is ready to run Garden well, we don't necessarily have to take action. I still hope that there are common interests and differences between upstream and downstream. Only when there is confrontation in cooperation can the two sides cooperate for a long time."
If the upstream, midstream and downstream are all owned by the same boss, in the short term, the boss can make huge profits, but in the long term, the managers of the upstream, midstream and downstream will definitely fall into internal friction and blame each other.
For their own interests, the upstream naturally hopes that the midstream will accept their inferior products at a more considerable price, while the midstream naturally hopes that the upstream will provide better quality at a lower price, and so on, the relationship between the midstream and downstream is also the same.
If the boss considers the upstream, midstream and downstream as a whole, and rewards the manager from the overall perspective, then the upstream, midstream and downstream will fall into a collective mess, and everyone will be happy; if they are considered separately, then they will naturally fall into internal friction, with the upstream digging holes for the midstream and the midstream digging holes for the downstream, and no one will be full and consider the problem from the boss's perspective.
In order to avoid this problem, Shennong Nanliang will directly operate and hold controlling stakes in enterprises with a relatively large profit ratio. The main raw materials of Changtian Soy Sauce, Li Jinji and Chongmingniao are soybeans and corn. The profits of end products are far greater than those of primary agricultural products. Therefore, the upstream will give unlimited support to the downstream to increase the competitiveness of end products.
The upstream and midstream are the supporting facilities of the downstream and are the objects of sacrifice. There is no competitive relationship between them.
From wheat to flour, and from flour to bread, the relationship between upstream and midstream is relatively solidified, but there are infinite possibilities from midstream to downstream. The midstream can find countless downstreams to match. After all, flour can be made into countless end products, not just bread.
Therefore, Shennong Nanliang cannot directly intervene in the downstream and control a certain downstream. This will only narrow the choices in the midstream and lead to internal friction between the upstream, midstream and downstream.
The main raw materials that Jiadun needs on a daily basis are flour, eggs, and many other auxiliary raw materials for fillings. This kind of enterprise is suitable for cooperation with Shennong Nanliang, rather than being controlled, so Nanyi prefers to only invest in it but not control it.
However, its scale is not too large and will not affect the overall situation. If the new owner wants to change its nature in the future, Shennong Nanliang might as well take it directly under its control.
"Grandma, if no one in the Zhang family is willing to take over Garden, we have to guard against competitors who may jump out in the future to seize the controlling rights. In fact, 30% of the shares is too much for me. As long as we can guarantee that Garden will purchase our agricultural and sideline products under the same conditions, 5% of the shares will be fine."
"I will convey this to Mr. Zhang. I believe he will be very relieved after hearing this." Fang Mengyin said, looking at her watch, "It's almost time. Xianghe should be here. Let's go eat."
If there were no social events, Fang Mengyin's lunch would be delivered by Xianghe from the Fang's Manor. There was an office in the Fang Group that was converted into a dining room, and Fang Mengyin usually ate in the dining room.
When Nan Yi followed Fang Mengyin to the dining room, Xiang He had just set the table.
"Madam, Master, it's time to eat."
"Xianghe, I see there's quite a lot of rice, you can eat with us. Nanyi, are two bowls of rice enough?" Fang Mengyin said as she looked at the rice on the table.
"One and a half bowls is enough, Aunt Xianghe, you can eat with us."
In order to make up for the energy consumed in martial arts training, Nan Yi eats a large amount for breakfast and often takes supplements, but his lunch and dinner are normal amounts.
"Thank you, old lady, and thank you, young master."
Xiang He thanked her and sat down next to Fang Mengyin.
After taking a sip of soup, Fang Mengyin asked, "When is the due date in London?"
"If nothing unexpected happens, it will be in late January next year."
"Really let the child be named Bolin?"
"Nan Ruojin, if it's a girl, I'll name her this. I haven't decided on a name for the boy yet. Legally speaking, it doesn't matter what the name is, as long as it's my child."
"Ruoyin and Ruojin, both are beautiful jades. Being poor or doing nothing is a state of life. It seems that you prefer your daughter."
"Well, my daughter will get married sooner or later, and she won't be around for many years."
"You've done a great job as a parent, but you're not so good as a child. Even if she's not your biological mother, she's still your biological mother. You should visit her more often. Yi Jinru, you can be filial to her, so don't be too harsh on your biological mother."
"Yeah, I know. I'll go when I'm free."
"What is your new sister-in-law like?"
"She's pretty good. She knows how to handle things and is very capable. After a few more years of training, I'll talk to her and either she can move up or go out and work on her own."
"Forget about going it alone. A woman who focuses too much on her career will neglect her family. Wenren Lanyue is your sister-in-law, not your sister. You should sit in the right direction."
"Grandma is right. I'll remember that."
Nan Yi agreed verbally but he didn't think so in his heart. If Wenren Lanyue could be used, he would use her. A woman doesn't have to sacrifice herself for the family, she can also sacrifice for him.
In Nan Yi's plan, as long as Wenren Lanyue grows to a level that he considers qualified, he will send her to the yet-to-be-established Wuer Pharmaceutical to be responsible for business management. One will do the work and the other will receive a considerable reward. They will cooperate happily and honestly.
When selling medicine in China, efficacy is secondary, and connections are the most important. In a few years, the person in charge of purchasing in the hospital that Wenren Lanyue is in contact with now will most likely be promoted several levels, and this connection alone will be enough to push Wenren Lanyue to the position of business manager.
"You, as a woman, should calm down. Everyone has a limit to their tolerance. Don't let them get cold feet. Think more about the children."
"Grandma, I know."
During the lunch, Nan Yi was just a yes-man, agreeing with everything, but he had his own ideas about what to do.
After leaving Fang Group, Nan Yi went to the newsstand on the corner of the street. He bought a gossip newspaper and read the information about yesterday's car accident. He also knew clearly that the person who died yesterday was Zhao Shicheng. However, no newspaper was sure about who the woman was. There were all kinds of speculations, and the name of the female star Xiangzhen appeared mostly.
After calling Zhao Shixian to express his condolences, Nan Yi visited Pan Disheng again in the afternoon and talked to him about the leather goods processing for his brand. He tried to get some trial orders and try it out first. If the quality is guaranteed, Pan Disheng will give Nan Yi a large order.
After the incident in Xiangkeng, Nan Yi flew to Mumbai in the late night, slept soundly on the plane, and landed in Mumbai the next day, feeling full of energy.
"President, Sonu has returned from New York and wants to meet you." Han Zhenhe, who came to greet him, said to Nan Yi as soon as he walked out of the airport exit.
"It's a give and take, invite him and Sayila to Peacock Villa for dinner, the time is up to him. Has A-cha replied?"
"I received a phone call and was told there would be news soon."
"Okay, then wait for his news."
Acha was sent by Nan Yi to investigate Harshad Mehta. This character is very important and must be investigated thoroughly to get all the information.
After getting on the bus, Nan Yi hurried back to Peacock Villa before the morning rush hour arrived.
As soon as they entered the manor, Nan Yi took Han Zhenhe straight upstairs to check out the Mumbai Star.
The cotton is being well cared for and is growing well.
"Pollination will begin in a few days. I still hope to have bees to pollinate. I'll go buy some gauze and surround this place, and then get a box of bees."
"Okay, President."
"Campus Belle, pass it on and make sure to keep a close eye on it."
"clear."
