Reborn as the richest man in India.

Chapter 359: It feels good to default on the debt, but the consequences will be serious
"Asshole, no wonder these guys are so concerned about the palm oil import policy. It turns out they have already planned it in Malay," Rab said angrily.

Regarding the liberalization of palm oil imports before, of course they launched a sniper attack on the government.

It succeeded once, but failed this time.

They know that many people and other forces are lobbying the government to liberalize imports, and they also know that many of these people are related to the Sharma and other families.

Labu was angry and knew that no matter how angry he was, it would not help.

Sharma and other families are now increasingly tied to that kid Qiaogo.

This is for sure. With the relationship of interest, the relationship will definitely be different.

Now Qiaogo has really become a climate.

Rab has been having trouble sleeping and eating recently. He knows very well that what he will face next is not Qiaogo alone, but a group headed by him and supplemented by the Sharma and other families.

This is a war between them and Qiaogo's group.

For now, it occupies the traditional edible oil market and seems to have a huge advantage.

But facing Qiao Ge, their offense seems to have to be defensive, and the pressure will be increasing.

It is too difficult to open up the market, increase edible oil consumption and increase growth.

For example, it may be okay to increase cooking oil consumption by 5% every year, but it would be too difficult to increase it by 20% or 30% all at once.

However, if this increase cannot be allowed to grow rapidly, it will not be able to offset the edible oil market squeezed by palm oil imports.

"Yes." Rab's eyes lit up.

He hurriedly called Kehas and told him his plan.

"In this case, our profits will be too low, right?" Khas said hesitantly.

"Yes, the profit is less, but we can recover several months, half a year or even a year's sales at once. This profit margin is completely acceptable," Rab said.

Rab’s plan is to pre-sell cooking oil.

He can sign a contract with the customer, and the customer pays the cost of cooking oil for the next few months at once, for example, in three months, half a year, nine months, or one year.

The longer the time, the greater the quantity of cooking oil purchased and the lower the unit price.

For example, if a customer signs a one-year supply of cooking oil, Labu will deliver the oil to them every month, in twelve installments.

Rab came up with this plan and found inspiration from the organic produce delivery in Qiaogo.

This can effectively lock in your customers.

If they buy oil from themselves, they will naturally stop buying palm oil from there.

Moreover, recovering several months or even a year's worth of funds at once can greatly alleviate the financial pressure on your side.

The loan repayment pressure on their side is still very high.

He previously thought about increasing people's consumption of edible oil, but after much thought, he couldn't find a good method.

The current pre-sale system can be regarded as a variant of increasing consumption.

In fact, the actual consumption has not changed, except that the money has been collected in advance.

"It makes sense. This can not only withdraw funds at once, but the most important thing is to attract these customers." Kehas thinks this is feasible.

Because of this long-term supply contract and favorable prices, I believe it can still attract many customers.

After all, not everyone can accept new things.

Especially regarding palm oil, there are always some people who are worried about the claims that it is harmful to health.

When the Sitharaman family's counterattack method came out, Qiaogo got the news immediately.

"Boss, this is not a good thing for us." Hudi said.

"Jena, what do you think?" Qiao Ge asked Jena.

Jena is now in charge of the edible oil market, so he naturally has to be present for this kind of thing.

"Actually, our palm oil imports are not enough," said Jena. "If we can import more than 10 tons per month, the Sitharaman family will be struggling no matter what they do. But what they are doing now is actually the same. They can escape. The final defeat is inevitable. Although a large amount of money can be recovered in the short term, the oil still needs to be sent to customers in the future. Overall, their profits are still low. Boss, as long as we are prepared for long-term competition, it will be fine. It’s so scary, we will definitely have the last laugh.”

"Yes, yes, they are struggling to their death." Hudi agreed with Jena's words.

Qiao Ge smiled. What the Sitharaman family did was really like drinking poison to quench thirst, just eating what you eat.

Originally, there was definitely no problem with this approach. By offering profits, we could attract more long-term customers.

Qiao Ge believes that the Sitharaman family is drinking poison to quench their thirst, mainly because their selling price is not enough to cover the cost.

Regarding information about his opponents, Qiao Ge had already asked Tulu to collect information in various ways.The loan pressure on the Sitharaman family is extremely high. According to the preferential selling price they are offering, after deducting various costs, the profit will definitely not be enough to cover the interest on the loan.

Maybe in the short term, the Sitharaman family can still support it with its strong foundation.

But over time, no one can bear this kind of continuous losses, especially since they are so large and lose huge amounts of money every day.

Of course, without the impact of palm oil on their side, they would indeed be able to make huge profits in the traditional edible oil market without having to worry about too many loans.

Unfortunately, everything changes and there are always surprises.

To put it bluntly, the Sitharaman family expanded too fast, took too big steps, and borrowed too much money. It is very likely that they will not even be able to pay back the interest.

"I will let Fayez handle the import of palm oil. Purchase as much palm oil as possible in Malaysia. 10 tons per month is definitely not possible, but 5 tons should still be feasible." Qiao Ge said.

After all, if you wait a minute, the palm oil exported per year is only more than 600 million tons.

If you alone produce 10 tons a month, that would be 120 million tons a year. Add in the scattered imports from others, and I'm afraid it will be more than 150 million tons a year.

How can you have so much oil for yourself?

The limit of Binlin Company is 2 tons per month. As for the other [-] tons, they can only buy it from other companies.

Regarding this, Qiao Ge is still confident.

I am also a member of the Malaysian palm oil industry, and my market does not overlap with theirs. I believe I can still get some oil from other palm oil companies.

Of course, the price will definitely refer to the international palm oil price. There is no situation like Manti being extorted by various price increases.

"5 tons, the others should add up to [-] to [-] tons." Jena sighed, "Although it is still a bit small, this is just the beginning after all. We are going to fight a protracted war with them, so there is no rush."

"That's right, I believe that the import volume will become larger and larger in the future." Qiao Ge laughed and said, "Of course, I will also ask Indonesian people how much they can import."

Jena smiled, this is true, no matter how little it is, it is still palm oil.

As long as more palm oil is imported, it will squeeze out one more share of the traditional edible oil market.

"Actually, I think these are minor. Have you noticed that they withdraw from the palm oil market and no longer import palm oil? This is a breach of contract against Malay Palm Oil Company. They cannot afford the liquidated damages." Qiao Ge said.

"Breach of contract? How much is the liquidated damages?" Jena asked.

Genna knew that Manti had found many palm oil suppliers in Malaysia, but he did not know the specific contents of the contracts.

However, he believes that his boss must understand. After all, the boss is a big boss in the Malaysian palm oil industry and is well-informed.

"I don't know exactly. According to the information I got, if they really break the contract, they will have to pay at least more than 5 million, ah, not rupees, but US dollars." Qiao Ge said with a smile.

Jena's eyes widened. Is the price so high?

How did that guy Manti sign the contract, even with such harsh conditions?

But he quickly realized that the Sitharaman family was trying their best to import palm oil, so Manti also did this to ensure their palm oil supply.

But when they knew that Binlin Company belonged to their boss, they were completely desperate.

All previous plans were obviously scrapped.

The prerequisites have changed, and some of the good methods before have naturally turned into stupid operations.

"There's no way they can pay this money," Jena said.

"You said they won't pay liquidated damages?" Hu Di was stunned for a moment and said.

"5 million U.S. dollars, where did they get so many U.S. dollars?" Jenner said, "In rupees, at least 70 billion rupees. In their current situation, if they really want to spend 70 billion, they can almost withdraw it all at once. Fuck their liquidity."

Hu Di thought about it. His opponent didn't hold huge liquidity like his boss.

"So they will default on their debts, hehe. If you default on your debts, it feels good for a while, but the consequences will be serious." Qiao Ge said with a smile.

"Boss, they will no longer interfere in the palm oil market, and they will no longer have anything to do with the company in Malay. There is probably nothing the Malay side can do against them, right? This matter must be dragging on like this, dragging on If we drag it on, it will probably be settled," Hudi said.

"Yeah, that's what they must be thinking, to use this method to get rid of this debt, but this is related to international credibility. If credibility is gone, many things will not be good." Qiao Ge said, "There are many of them. Traditional cooking oil is also imported in large quantities, right?”

These words made Hu Di's eyes light up and he understood a little bit.

"Boss, do you mean that their foreign traditional edible oil partners will make some changes in payment methods?" Jena asked.

"If it were you, would you still accept the current payment method? Pay a small deposit first, and then pay the balance after the goods arrive?" Qiao Ge laughed and said, "Aren't they afraid of not receiving the balance?"

"Yes, Malay's liquidated damages have been defaulted. What can't they do next?" Hudi said.

"If it were me, I would ask them to pay in full, or even if it doesn't work, I would ask them to increase the deposit ratio." Jenner said, "In this way, their financial pressure will be even greater."

"So, as long as we continue to put pressure on the palm oil market, their persistence will definitely be much shorter than we expected." Qiaogo said with great confidence, "Jena, don't we still have many traditional food products here? Oil? Sell them all at low prices. Also, you can find a way to contact foreign suppliers of traditional edible oils. We also need to import traditional edible oils. If the import quantity of palm oil is not enough, then just import it directly on traditional edible oils. A price war with them may not necessarily be comprehensive, but at least we can seize some of their market share.”

(End of this chapter)