Reborn In 17th century India with Black Technology - Chapter 1114

Chapter 1114: Automotive boom!!

Although only a few hundred to a thousand units of cars from each brand were exported into the overseas market, it immediately caused an earthquake among the kingdoms and empires of the East.

After knowing the news that the Bharatiya Empire is finally exporting cars and tractors, the Jews, the Egyptians, the Persians, the Yezidis, the Southeast Asians, the vassal kingdoms, the Chinese, the Japanese, the Korean all came rushing to the Bharatiya Empire in droves, with the ports like Tiruvanantapuram, Visakhapatnam, Chennai, Puducherry, Colombo and Nakavaram becoming the main destinations.

“Please, Manager Hari, allocate a few units to me. I’m willing to pay in advance!”

“Sir! I’m ready to take all the units. I’ll pay a 10% premium! And if that’s not enough, I’ll pay for fifty more units in advance, just tell me when they’re manufactured, I’ll come personally to collect them!”

“Don’t listen to these fellows, sir! Sell the cars to me. His Highness Kiran Poojari will be extremely pleased. And I own a small iron mine back home. If you give me the units, I’ll supply you with iron ore at twenty percent below the market price. What do you say?”

“Hari-san! We don’t ask for much. Only ten units for now. Come on, can’t we close the deal immediately?”

“Manager Hari! Please, at least three! I’ve crossed the ocean just for this!”

“Sir, my kingdom will reward you handsomely if you prioritise us! We will take whatever you can spare!”

“Manager, don’t let them cut the line! I’ve been waiting since dawn!”

Such was the situation of only one single car manufacturer in Thiruvananthapuram, and the rest of the offices of car manufacturers and tractor manufacturers were only worse. In such a situation, the stock of all the cars and tractors throughout the empire emptied out rapidly, and the manufacturers had to set up more production lines, trying to scale up their production as quickly as possible.

With the absence of stock, a black market had been formed in the empire for the sale of cars and tractors overseas, and this market was not like smuggling out the cars; no, it was more like interest groups formed by scalpers. Merchants, unable to resist the allure of money, purchased the used second-hand cars of Bharatiya citizens in order to resell them later in their own country.

This operation, which was only done by a few people in the beginning, eventually snowballed into a whole micro-industry in itself, forming a small black industry that was not regulated by the government, an industry for the sale of used cars. And the reason why it was called a black industry was that the money paid by the overseas merchants for the used cars was simply outrageous, as an old car was sold at the price of a new car.

Although a few people raised voices of discontent, believing the operation to be highly unfair to the overseas customers, the voice did not receive attention from any prominent politician, so the voice eventually drowned out.

In fact, although it did not achieve political relevance, it did reach the desks of executives of all the major manufacturers throughout the empire, and they were extremely unhappy.

After all, they are not going to profit from the sale of the second-hand cars. Though while it does free up the market within the empire, the profit margin they have in the empire was nothing compared to the profit margins they had overseas.

“No, things cannot go on like this, ” Akarsh got up from his seat with a bang.

He walked from left to right without any purpose as he thought of ways to curb the sale of second-hand cars at inflated prices.

In the end, he realised that there is actually only one thing he could do, and that was to increase the manufacturing quantity. Currently, his company is capable of manufacturing 2000 units of Aakarsh A7 and 500 units of Aakarsh A8 every week, but it looks like these numbers are nowhere near enough for the market that has been suddenly opened up.

He got an idea of what could be done, but he hesitated. The reason why the cars manufactured by his company were so sought after was not only because of their looks and performance, but also because of the excellent quality control. Now, if he implemented the idea he suddenly got, he did not know if the quality could remain the same, but at the same time, he could not watch as millions of Varaha slipped by his hands.

‘Tch!’

“Alright then, bring it on, damn it”

In the end, he decided, his eyes became determined as he called for an extraordinary executive meeting.

” From now on, for the A7, apart from manufacturing the defining features in-house, everything else will be outsourced ”

The executives were shocked, “What do you mean, sir?”

Akarsh did not change his expression as he stated his order once again, “Apart from the defining features of our car like the finely tuned engine, the body, the braking system, and the suspension, everything else will be outsourced, including the body kit, seats, wheels, everything. ” He was extremely specific, with his finger knocking on the table every time his voice rose an octave.

“Carry out transformation in all our factories,” he pointed towards the map on which all the factories were marked, and turned to look at the managers with narrowed eyes. “By the end of this quarter, I need all of them to produce only the parts I just mentioned, and the giga factory in Gangapuri will also be transformed into an assembly plant, capable of assembling at least 5,000 cars every week.”

“The procurement department will be expanded, and the department’s tasks will increase.” Aakarsh paused and looked towards a manager. The manager immediately became alert as he came to the edge of his seat and listened cautiously. Aakarsh directly pointed a finger at him, which made him take a big gulp and stressed, “I need you to find me quality manufacturers that share the same zeal for quality as we do, and make sure that the parts they make meet our standards. Oh, remember to look for companies that are or were on the military procurement list; their quality control is normally stringent.”

“Yes, sir, I will get it done!”

The air was tense for a couple of seconds before a voice from another executive cut through the atmosphere.

” What about the A8, Sir? ”

Hearing the question, Aakarsh didn’t hesitate. “Since we do not produce the 5th Gen Engine, the A8 will still be manufactured in-house, and it will naturally be sold in limited quantities. We will position the A8 as the flagship and the A7 as the frigate.”

” Now get to work! ”

—

Few weeks after the decision, the largest automobile company of the empire went on a selling spree, selling a lot of its manufacturing production lines at cheap discounts to small and medium sized companies, and after that it went on a hunt throughout the empire, to every corner of the empire, to find suitable 3rd party manufacturers, whether it is a private company, a publicly listed company, a family business, or a cooperative. For Aakarsh Industries, it did not matter, as long as the quality met their standards, they did not even hesitate to sign a deal with a newly opened company.

The retail investors who had read about the news in the newspaper panicked, and the stock of Aakarsh Mobility immediately fluctuated. For the first time ever, it began to fall by several percent, causing more people to dump the stock while they were ahead.

But the investment firms saw this as an opportunity and frantically began to buy the shares of Aakarsh Industries and other manufacturers who were doing the same thing.

Mangaluru stock exchange

“Sir, the report we received suggested that Aakarsh Industries has not stopped selling off its assets, and they are continuing to do it even more. Do we really need to buy the shares of this company? Is selling the stock while we are having some profit not the correct thing to do?” an intern suddenly asked with confusion.

The well-dressed middle-aged man who was excitedly purchasing the shares at the stock market shook his head with a smile, “You’re still too inexperienced, Bala, in this investment business; you have to see what the public can’t.”

“Everyone can see Aakarsh Industries is selling off a lot of its manufacturing equipment, but do they also see that most of this equipment is being sold to companies that are becoming its major 3rd party suppliers?”

“Also, have you noticed that while a lot of manufacturing equipment is being sold, a lot of manufacturing equipment with a specific purpose is also being purchased in large quantities?”

“You know what this means?”

The intern seemed to understand, and his eyes brightened, “Scaling up of manufacturing?”

“Haha, that’s right, scaling up of the manufacturing. Previously, Aakarsh Industries could manufacture around 2000 to 3000 units of cars per week, but if they are able to purchase the parts from 3rd party manufacturers and they only produce a few key components, the scale of manufacturing can easily reach 5000 or even more per week in a very short span.”

“Now tell me, with the demand that the empire is experiencing from the overseas market, will this company be profitable?”

The intern nodded without hesitation, “It will.”

“There you have it.”

Unfortunately, the feast of buying low for the investment banks was only a small gap, as the stock price immediately rose, and it did not stop.

After what was happening across the automotive sector was publicised through the newspapers, people quickly understood that the reason why most car and tractor manufacturers were selling off a lot of assets was not that they were experiencing losses, but because there was too much demand that they could not do everything by themselves. It’s basically losing the weights to run faster.

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