Chapter 997: 997
Chapter 997 – Business planning in Russia
Feng Yu used the excuse of not feeling well not to drink . Kirilenko can only drink by himself, while Feng Yu drinks tea .
Tea taste so much better than alcohol, why doesn’t everyone drink tea? It will make your body warm and feels better .
“Brother Ki, we had invested so much money into our supermarket chain, why you are you saying we are going to open 20 more supermarkets?” Feng Yu is puzzled . Kirilenko and Feng Yu’s investment is enough to open up 40 more supermarkets, and Russia’s property prices are not as high as China .
“That supermarket chain had high debt, and they used bank loans to develop . Part of our investments is used to repay loans . This year’s economy is not doing well, and they had to set aside a sum of money to settle the payments for their goods . ” Kirilenko bottomed up a glass of Vodka and said .
Feng Yu made a rough estimation of this supermarket chain’s scale against his investment and felt this is a good investment . Most importantly, this supermarket chain will become Russia’s biggest supermarket chain, and this status will help with its development .
“Brother Ki, do you still remember what we discussed? This supermarket chain will not only focus on Russia . We must also set up branches in other East European countries . This chain will become the world’s biggest retail corporation .
If they can set up branches in those countries, the scale will bigger and will have a wider variety of goods . Brand awareness will also be increased .
“I know . I am still negotiating with two supermarket chains in Ukraine and Belarus to acquire them . But we must work with people over there . Don’t worry . We will still be using our supermarket chain’s brand . ”
Kirilenko had wanted to set up his branches initially . But after surveying those regions, he realized it is not easy . Someone else had set up supermarket chains earlier than him, and most of the good locations were taken up . But luckily, those two supermarket chains are quite small and not expensive .
Also, the depreciation of Rubles had affected Ukraine and Belarus . These two countries’ currencies had depreciated by 35% and 70%, respectively . All the countries in the region were affected, as most of their currencies were pegged to Russia’s Rubles .
The economic impact on these countries also allowed Kirilenko to become East Europe’s biggest retailer!
Other than Ukraine and Belarus, supermarkets had just started in the rest of the countries . Kirilenko is confident he can beat these companies or acquire them easily .
Feng Yu is pleased . Kirilenko still has many capable subordinates, and they might be better at managing companies than Feng Yu . Their only flaw is they do not have the foresight like Feng Yu .
“Bother Ki, which industry is the Russian Government promoting now? I am talking about preferential policies for investors . ”
“Construction, construction materials, wood processing, food products, textile, etc . which are mostly light industries . The only industry for heavy industry is Automobile manufacturing . I think the telecommunication industry also has some subsidies . What’s wrong? Did you think of some good investments?” Kirilenko puts down his glass and looks at Feng Yu excitedly .
Feng Yu and Kirilenko had cooperated in the automobile manufacturing and telecommunications industries, and only the light industries were left . Feng Yu had already invested in the minerals and precious metal resources and does not have anything good to invest now .
Feng Yu thought for a while . Even if there are no preferential policies for investors, he still wants to invest in some industries .
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“Brother Ki, are you interested in food processing? The returns might not be high, but it will be stable . ”
“Food processing? Never mind . My men had looked into this industry before, and the return is too low . Russia is different from China . Our food is not as delicious as China . ”
If the Russian do not have demands for high-quality foodstuff, the profits will not be high .
Since Brother Ki is not interested, Feng Yu gave up on this idea . After all, this will allow Beidacang to enter the Russian market .
“What about the furniture industry?”
“Furniture? Wood processing industry? It will not work . In Russia, there are still many small local furniture factories . Although you are good at building brands, the sales might not be good . Some big furniture factories from West Europe did not do well in the East European markets . Only a few high-end brands are doing not bad, and the segment is too small for us to enter . ” Kirilenko shook his head . He had looked into this industry too .
“What about building materials?? We have so many mines, and if only extract precious metals, it will be too wasteful . We can set up a metal processing company to process our raw materials, and we also have the permits to do it . ”
“You want to increase our scale? But base on this scale, our production will exceed the demand in Russia, and we must export it . ”
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“I think this industry has high potential . After all, our automobile factory needs lots of metal, and my companies in China will take up a significant portion of our production . ” Feng Yu said . He can also sell his metals to some Chinese companies at lower rates as contributions to the nation .
“Ok . I will listen to you . I will get my men to work on this and start production next year!”
“We can also set up a chemical plant . Not only can we use it to refine our crude oil, but we can also produce daily necessities and cosmetics . You should know how much it cost for a set of branded cosmetics in the US and West Europe . The profit in cosmetics is very high . All we need is to build up a brand, and we can get a share of the market . ”
In Feng Yu’s previous life, cosmetics product sales in Asia is the highest . Just China alone, cosmetics sales are increasing every year, and China is the biggest market for cosmetics in the world!
The Chinese prefer imported goods, especially from Europe . Russia is also a European country . Once this cosmetics company occupies East Europe and China’s market, it will be one of the biggest cosmetics manufacturers in the world!
The investment for oil refinery is high . Without Feng Yu’s investment, Kirilenko will not afford to set up an oil refinery . Now, they are going to invest in daily products, and the investment will increase further .
Luckily, Russia still has lots of people trained in the chemical industry .
“Ok . I will listen to you on this too . This chemical plant must also be the biggest! But Feng, I might not have enough money to invest in this . ”
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“You can get a loan first . The profits from our mines, supermarkets, electronic factories, automobile, will be in after two years . ” Feng Yu knew Kirilenko wants more shares, but Feng Yu does not want to lose out in the venture too .
“Alright . That’s all? Do you still have other new investments you are interested in?”
“That’s all for now . I believe once these companies are developed, you will become Europe’s wealthiest man!
Kirilenko’s eyes brighten up . Europe’s wealthiest man! This title sounds terrific!
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