Shockingly, a counterfeit factory has produced a 3-nanometer chip.

Chapter 296 The Reliance Group: A Very Sincere Enterprise

"Mr. Lei, building a factory in India is no small matter. It requires an investment of at least two hundred million US dollars to build an SMT production line plus an assembly line."

From site selection to production, it takes at least eight months, and that's based on China's infrastructure. In India, this cycle could be stretched indefinitely...

This questioning doesn't stem from a lack of understanding of the Indian market; rather, it's precisely because of this understanding that such a question has been raised!

"Moreover, building factories is only one aspect. India's electricity, logistics, and labor quality are all problems."

It's hard to say whether the yield rate can reach the domestic level; the cost might even be higher than in China.

"I don't think electricity and logistics should be a problem. After all, they've said they want to build an Indian-made brand. Even if the plan is implemented, no matter how badly it falls apart, the first batch should still fail, right?"

Lin Bin had a very clear understanding of the local situation from his visits over the past few days, and he knew that what Zhang Feng said was true.

"What Lao Zhang said is true, and the situation is even more serious than he described."

After considering it for a moment, Wang Xiaoyan said, "But if we don't build the factory, the 10% tariff difference will be the death of us."

Sansang will definitely lower its price, and Transsion will definitely follow suit in retaliation.

"What if their costs are 15% lower than ours? What are we going to do then?"

As the voices advocating for building the factory grew louder, Lin Bin became more cautious.

"The risk is too high. Policy stability in India has always been a problem."

Today it's the Singh government, but tomorrow it might change. What if the new government changes its policies?

Besides, you all know Anil; he wouldn't help for nothing.

Regarding the matter of building the factory, the group had their own ideas and discussed it for more than an hour, but they still couldn't come to a conclusion.

Lei Jun sat there listening to everyone's speeches, and then, combining his own thoughts, quickly calculated the accounts in his mind.

The cash flow of rice, the potential of the Indian market, the speed of action of Transsion and Sanson, and Anil's execution plan.

He waited until everyone had finished speaking before revealing his own thoughts.

"If we don't build it, how long can rice withstand a 10% tariff difference?"

"At most three quarters. After that, prices will have to be raised, and once prices rise, sales will drop. After they drop to a certain level, distributors will start to defect."

"At that point, it won't just be a matter of losing money; it will be a matter of losing all market share."

Lin Bin had already prepared an answer to this question, and he even had more than one plan.

Before Lei Jun could speak again, he had already explained his ideas for building the factory.

"If it is built, it will be put into production in a year at most, and the cost will be reduced by 20%. But this year is our opportunity. The tariffs saved may be more cost-effective than building the factory."

Lei Jun suddenly had an idea.

"Build it!" He looked at Lin Bin beside him, "but not by ourselves. We'll find Anil; hasn't he always been thinking about building a factory?"

"Then let's just go along with him; we'll only be responsible for investing the money."

But Lin Bin frowned... Was it really reliable to hire him?

"Old Lin, I know you're worried."

He's a local bigwig; contacting the relevant departments is definitely more reliable than us, and we can get more favorable terms.

Since he wants our technology, then we'll use our technology, funding, and management to jointly build this factory.

Maybe we can even get some subsidies.

"Will they make moves regarding the equity?"

"Don't worry, if they don't agree, we'll just delay it for a while longer."

Wang Xiaoyan raised a new question: "What if we don't spend a single penny, but only provide technical support and corresponding management?"

Then we'll split the factory's equity 50/50, and outsource the mobile phone business to the factory. Would they agree to that?

"Probably not?"

As soon as Lin Bin finished speaking, Lei Jun glared at him and said, "We can give it a try. He can get a factory for free. Why not agree?"

Perhaps Reliance has already stockpiled the land years ago, just waiting for us to fall into their trap.

Moreover, what they want is the technology for rice, and this is the best opportunity.

Hong Feng, who had been silent until now, suddenly said, "President Lei, you knew that Anil wanted the technology, yet you still cooperated with them."

"I know," Rebus nodded, "but this is our last hope, we have to try."

Everyone sighed and finally reached a decision.

I agree with the plan, but technological security must be safeguarded.

After the meeting, Rebus picked up his phone and dialed Anil's number.

Less than five seconds later, Anil's voice came from the other end of the phone, his usual laughter.

"Mr. Lei, have you heard about the 'Made in India' policy?"

"I've heard. Mr. Anil, I was waiting for your call, but unfortunately... but that's not important."

Anil smiled as well: "Mr. Lei, we're on the same page. Let's discuss this in detail in my office tomorrow."

After hanging up the phone, Lei Jun had another unexpected feeling.

He knew Anil was no pushover, and he knew that a joint venture to build a factory would be problematic, but he had no other choice.

Either drink this poison and become the king of India, or drink nothing and wait for the next opportunity to enter the Eastern European market.

He chose the former.

…………

Lei Jun went to the Reliance Building once again.

This time, a huge map of India appeared in the office, marking the land reserves of the Xin Group in various gangs.

It was densely packed, covering the entire India.

From Gujarat to Maharashtra…faithful red markers are found all over India.

"Mr. Lei, look."

Anil pointed to a piece of land in Gujarat.

"This land is only 50km from the port of Ahmedabad and 3 miles from the highway."

With an area of ​​500 square miles, it's more than enough to build a mobile phone factory with an annual production capacity of 5000 million units.

"If we build a factory here, the government can help us with the other infrastructure."

Leibusi looked at the map but didn't answer the question. He wondered if Xinshi had been waiting for this day all along, having brought so much land with him.

However, these lands are likely intended for real estate development.

Anil continued his presentation, as if he were promoting a product, but his earnest attitude also made it seem like he was doing it for himself.

But it seems he was right; he was indeed planning for himself.

"We can provide the land, and we'll be responsible for building the factory."

We can advance the funds, and we'll work on getting things done with the government.

"We'll apply for the subsidies from the Fang government and the central government. Mr. Lei, you only need to do one thing."

He held up one finger, and his smile deepened.

"Bring the rice production line and technical management here, and we'll make money together in the Indian market, then split the profits according to the agreed-upon ratio."

Rebus looked at Anil's expression with surprise for a few seconds; this was actually more suitable than the plan they had discussed yesterday.

But with such sincerity, his suspicions were no longer just suspicions.