Agricultural giant since 1983

Chapter 354
There are many local places in Shandong who want Huinong to buy local companies. In fact, they had similar ideas as early as when the Zhucheng reform was in progress, but they didn’t dare to follow up for various reasons. Now the investigation team has affirmed Chen Guang’s Reform means that the higher authorities support this kind of behavior. The leaders of Shandong have always listened to the higher authorities, and Huinong is still an enterprise that has been commended by the upper authorities. If this is the case, why should we worry about it?So they approached Li Lei one after another and asked him to buy them in the past.

Among these enterprises, some are related to agriculture, such as the oil extraction plant needed by Luhua, and the grain processing plants, beverage factories, food factories, agricultural machinery factories, wineries, etc. needed by Huinong, and some have nothing to do with the business of Huinong. For example, machinery factories, steel pipe factories, hotels, etc., and even a nightclub called Buckingham, the locals are willing to sell it to Huinong at a lower price, and the bank can also help with the funds needed for the acquisition. Huinong only needs These high-quality assets can be obtained for a small price.

"Mr. Li, these are good companies. They can make profits when they are acquired, and they can also turn Huinong into an aircraft carrier like Daewoo Group! Such a good opportunity must not be missed!" Seeing this scene, many executives of Huinong I'm all tempted, who doesn't want to pick up money for nothing?

After the reform and opening up, many domestic enterprises have regarded international giants as idols to learn from, and now Daewoo Group in South Korea is a model for domestic enterprises to learn from, because the history of Daewoo Group is exactly the same as that of many domestic enterprises today. Founded, he has a good relationship with South Korean President Park Chung-hee. Park Chung-hee once studied under his father. With this relationship, Park Chung-hee handed over a heavy machinery factory that had been losing money for a long time to Kim Woo-jung for management, and Kim Woo-joong did not disappoint him. Looking forward to turning this company into a profit soon, Park Zhengxi saw that he was indeed capable, so he continued to hand over the loss-making state-owned enterprises to Jin Yuzhong. Daewoo Group successively took over enterprises such as shipyards and automobile manufacturers. The entrance ticket of the financial industry, Daewoo Group is out of control. Relying on the two-wheel drive of the financial industry and the manufacturing industry, it has rapidly grown into a large-scale enterprise with an amazing scale and successfully ranked among the top [-] in the world.

Last year, Daewoo Group was named the fastest growing company in Asia by the American "Business Magazine". Jin Yuzhong's autobiography "Great Achievement" was also translated into 21 countries and sold well all over the world. This phenomenon quickly attracted domestic attention. They found that the history of the Daewoo Group's fortune was too much in line with the domestic situation, so no matter the company or the country, they all strongly supported this model.

In particular, Haier, Changhong, Jiangnan Shipyard and other six companies included in the key list of the top [-], the state tried to push them to quickly grow themselves through mergers and acquisitions like Daewoo Group; and many private companies also followed suit, trying to use Diversify to make yourself stronger. For example, the Sanjiu Group, which was the first to go down the mountain to pick peaches, has changed from a pure pharmaceutical company to a simultaneous involvement in eight major fields of medicine, automobiles, food, wine making, tourist restaurants, commerce, agriculture and real estate. diversified company.

These companies have achieved great success in a short period of time, which made those companies who made it late regret it, and made those companies who still have the opportunity to make a move eager to try. However, Li Lei was not dazzled by the good situation, "Acquisitions must be acquired. But we, Huinong, will only acquire companies that are related to agriculture and meet the strategic development needs of the group, and we don’t want other companies even if they make more money!”

"Actually, this happened before. Vanke hesitated between diversification and a single business model back then. In the end, Wang Shi chose a single business model to focus on the real estate field. Now Vanke is developing very well. Most of them have gradually fallen behind! Few companies can catch up with Vanke’s market capitalization! This shows the truth that an enterprise must have its own core competitiveness. What is the core competitiveness of Huinong? Naturally, it is agriculture. The strategic development of the group must focus on agriculture, and we will not participate in other fields even if they make more money!"

"Because these industries can make money in the short term, but compared with other companies, Huinong does not have an advantage. We may still be able to make profits when the competitive environment is not so fierce. When other companies start to increase competition When the time comes, these enterprises will become a drag! Moreover, the business models of enterprises such as steel pipe factories and nightclubs are different from our existing enterprises, and directly absorbing them will only increase our management costs! In fact, the current management costs of Daewoo Group It is much higher than the management cost of a single multinational giant! Multiple mergers and acquisitions have also made their capital chain very tense. It is good to say that the financial market is in a stable state. Once there is a storm, Daewoo Group will definitely have a hard time!" Li Lei warned.

In fact, Daewoo Group really did not survive the financial crisis in Southeast Asia, and soon embarked on the road of bankruptcy and liquidation. Now Kim Woo-jung, who is regarded as a national hero in South Korea, also stepped down and was sentenced to ten years in prison and up to 200 In China, companies such as Haier and Changhong also developed and expanded after they gave up their diversified operations and only focused on a single field.

Of course, there are many companies that can do a good job in diversification. The most famous of these companies is Yamaha. Yamaha, the father of Yamaha, was originally engaged in medical equipment maintenance. By chance, he took over a piano repair job. After dismantling the piano, Yamaha felt that he could do it himself, so he began to produce pianos and quickly occupied the Japanese market.

During World War II, because some people thought that pianos and aircraft propellers were carpentry, they asked Yamaha to produce propellers, and they did a good job. Then they took this opportunity to start producing aircraft engines; after the war, they used their excellent engine technology to create After buying the famous Yamaha motorcycle, their tentacles stretched out a few times, from sports bows and arrows, snowboards, fiberglass bathtubs to fishing boats, fishing boats, resorts, hotel tourism, and then playground equipment, furniture, Electronic piano and so on, this wonderful company gives people the feeling that no one knows which field they will set foot in next, but they are living well.

However, Yamaha's diversification has its own lines to follow. It basically extends the previous success and enters the field where it can give full play to its own technological advantages. It grows like a vine. Nowadays, the diversification of many domestic companies Global expansion is a leap-forward development, lacking core competitiveness, and the current prosperity is nothing more than a castle in the air. It looks good now, but it cannot withstand the storm.

Li Lei persuaded the employees of Huinong to give up those industries that seemed to bring huge profits at first glance, and only focus on the development of the agricultural field. Acquisition of food processing factories, grain processing factories, wineries and other agricultural-related enterprises, after successful acquisitions, rapid transformation, introduction of new equipment, and training of old employees, these are all familiar to Huinong. Like entering other industries, you need to learn. Most of the companies burst into vitality soon after the acquisition and realized the turnaround. The most rare thing is that they did not increase too much management cost.

Sun Mengquan also took Luhua to buy up the peanut oil-rich cities in Shandong. At the same time, Kerry Grain and Oil was also doing the same. They tried to use orchid flowers as an entry point to compete with Luhua for this important grain and oil city in Shandong; because Kerry Grain and Oil has As a brand of foreign capital, it has advantages over Luhua in many places. In this war of grabbing territory, Luhua temporarily lags behind.

But it doesn’t matter, Luhua’s strong support came soon. Guo Kongfeng said that COFCO wanted to invest in Luhua. Now COFCO has sent a vice president to Shandong to discuss the matter. Li Lei showed his sincerity as soon as he came up. He took Guo Kongfeng and Sun Mengquan to hold a reception banquet for him.

"Speaking of which, COFCO and Huinong have been cooperating for many years! I hope we can have more in-depth cooperation this time!" The vice president named Ning Hao was very happy to see this scene, although the executives of state-owned enterprises I have never looked down upon the boss of a private enterprise, but it also depends on who the other party is. As the richest man in the country, the vice chairman of the Federation of Industry and Commerce, and the deputy director of Minsheng, Li Lei was a little flattered to come to talk to him in person.

"Yes, many of us were thanks to COFCO's help!" Li Lei echoed. COFCO's previous name was China Cereals, Oils and Foodstuffs Import and Export Corporation. Raw materials such as palm oil have to deal with COFCO. At the end of the 80s, COFCO was reorganized into a business enterprise and began to get involved in edible oil, flour, rice, wine, malt, beverages, metal packaging, financial services and other fields. At this time, Huinong and They have more opportunities to deal with each other. Feed mills, flour mills, and food factories need to purchase raw materials from COFCO.

"Hui Nong also has a place to compete with COFCO, but in general, cooperation is greater than competition. Even if competition is healthy competition! It is all for the domestic people to eat better grain and oil!" Li Lei did not avoid competition, Huinong In many fields such as rice and flour processing, food and beverage production, it has a competitive relationship with COFCO. As a company of the same type, these are unavoidable.

"We, COFCO, have our own advantages, and Huinong also has a place ahead of us. I feel that the two of us can cooperate in many places! For example, the rice industry in Wuchang, the apple industry in Luochuan, etc., the geographical indication of the cooperation between Li Dong and the local area The products are very promising! We at COFCO feel that this model can be expanded to other places, such as the fragrant pears in Korla, the watermelon in Daxing, the mutton in NMG, etc.!" Ning Hao talked enthusiastically. He mainly came to Shandong this time. I want to talk about buying shares in Luhua, but COFCO's purpose is by no means limited to this.

"That's natural. Geographical indication products are indeed a good business model, which is worth promoting in China. Although Huinong also wants to do it, it is not enough to rely on our own ability. If we can do this with COFCO , the efficiency must be much higher!" Li Lei echoed, although COFCO also has various problems with state-owned enterprises, they are the largest agricultural enterprise in China after all, and they have unparalleled policy advantages compared to other enterprises, so we can promote geographic products with them The logo is definitely much better than Huinong going it alone.

"We can cooperate far more than this. When I was chatting with Mr. Wang Dadong Wang of KFC some time ago, I heard him talk about one thing. KFC now relies on imports for all its ketchup, and the cost is very high. Is there any domestic ketchup? Is it possible to replace imported tomato paste? Naturally, there is. The quality of the tomatoes produced by our XJ is very good, which is very suitable for processing into tomato paste, but it has not been developed due to various reasons! If Mr. Ning is interested, we Huinong can contact us COFCO partnered to set up a new company to be responsible for this business, and the tomato paste produced would not only be supplied to KFC and McDonald’s in China, but also exported to earn foreign exchange!" Li Lei also mentioned a project that COFCO was destined to be interested in.

In the future, after the downfall of Tang Wanxin's Delong family, COFCO took over and reorganized Tunhe Shares, which was once controlled by Tang Wanxin, and formally intervened in the field of tomato paste and beet sugar production. The time has been moved forward by ten years; XJ's situation is quite special. Huinong can open a tomato paste factory by himself, but it is definitely not as efficient as cooperating with COFCO.

"In addition, Mr. Ning, you just mentioned NMG's mutton. NMG not only produces mutton, but also produces milk. We can also cooperate, right? What do you think of building the largest dairy company in the country? Our Huinong has been doing this In terms of preparations, I have accumulated a lot of technical reserves, and when this factory opens, it may not be able to surpass Yili!" Li Lei continued, now Yili is the largest milk powder company in China, and Niu Gensheng will leave Yili in a few years Mengniu has been established, and Mengniu's growth is also inseparable from COFCO. Li Lei felt that instead of letting Niu Gensheng and COFCO do this, it would be better to let Huinong do it. At least he would not add melamine to milk, would he?

"Mr. Li, COFCO is very interested in the projects you mentioned! But with COFCO's capabilities, I'm afraid there's no way to do it now!" The industrial company only has a short period of six or seven years. Although it has engaged in some large projects before, the experience and talent pool in this area are not enough.

"With our Huinong's ability, it is also difficult to complete these two large projects, but if only our two companies cooperate, these are not problems!" Huinong's ability to influence policies is not enough, COFCO has more than enough, and COFCO lacks experience Talents, Huinong talents are plentiful, just forming a complementarity.

"That's for sure, but I'm here this time mainly to talk about Lu Hua!" Ning Hao felt that this cooperation will definitely go smoothly.

(End of this chapter)