Let "Paper" be the deciding factor

Yesterday, I met a "would be" businessman in Packaged Drinking Water. Age : 50's. Some important Q n A between him & me ....

Q : What is the Capacity of Your Plant ?

A : 60 BPM. I'm buying an Old Machine

Q: And the RO Plant ?

A: Not a confident answer ( couldn't specify) 

Q: How much Total Investment You have decided to put-in ?

A: Whatever it comes to. Till Now, I've put in some 15 Lakhs, let it be anything. I will see to it that it succeeds. I will always be a King, and if not, drop the whole thing. ( Then he presented a so-called think big slang from his community )

 Now, he started Questioning me.

His Q: How much is the profit per bottle ?

My A: Per bottle profit is Gross. It will increase or decrease as per your daily production. You need to make at least 10,000 bottles per day & sell them for 3-4 years, then you will come out of your investments, with a minimum 25% ROI.

His Q: See ...One gentleman who asked my piece of land ( 5000 sft ) on rent has agreed to pay Rs. 30,000 per month. And he is putting a Packaged Drinking Water Plant on my land. If he is making Rs. 30,000, he's definitely making better money. Then why not me ?

From here, it was more a discussion, no QnA

Me : The logic is good. However, tell me , the person from whom you have been inspired, what is his background.

He: Prior to Covid, he was in this same line. He has been doing it for years.

Me: So, this is his another plant, right ?

He: No, first venture. All these years, he has been working for someone.

Me: Sir, with all due respects to your optimism, I suggest you to be ready with a proper financial statement for 5 years. I suggest to go for smaller but New set of machines. Start with a small distribution business first, and when you build sufficient client base, launch your own plant

Conclusions :-

• Look Carefully whom are you listening to. Follow him/her if he/she has implemented the model. 
• Working as the manager of a business, be it a CEO, still is very different from being a Business Owner.
• If it's a first gen business, learn to sell first. Start small. Build community. Learn to accept "Nos". If you still persevere, you are the right cut for Business.
• Be paper smart. Prove your credentials on paper with a financial Consultant, a CA, then venture.
• Emotions ? Yes, important, as a prime-mover. Then keep them aside. Let Paper guide you from time to time. What gets measured, gets achieved.

Tata is NOT buying Bisleri : As of Now

So, Tata Consumer has officially confirmed that they won't be buying Bisleri as of yet. And the deal is still on, for Bisleri. 

Many say that the asked price by Bisleri was not agreed upon by the Tatas.

Some say, Jayanti, daughter of Mr Ramesh Chauhan has sprung back to lead & control.

We can't exactly know these reasons. However, a profound business house like Parles, Ramesh Chouhan in particular, is well verse with game of buying-selling brands, he has already done it quite successfully with his own brands like Gold-Spot, Limca etc. He has sold these to Coca-Cola. So, the game is not at all new to him.

Have these trading skills transferred to Jayanti ? Might be. However, his wisdom & experience in this game must be in working. He knows that the 1990's Chauhan is not the same as of today, 30 years later; and the buyers are also not the same. Bisleri what it was way back in 1993, is not the same as well. It is BUILT systematically & deserves the price Chauhanji is asking for. How much is the buyer's concern, but surely there is no match to Bisleri as such. If Tatas fail to buy it, they will be loosers for sure. 

Chauhanji will find a buyer, he must be already in the game, as it's very obvious to him, and naturalistic too. Let's wait & watch for who buys out Bisleri .....