Extraordinary Genius Chapter 997 - Business planning in Russia

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.
“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.”
“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.”
“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!