1 00:00:03,320 --> 00:00:06,560 Speaker 1: This is Taking Stock with Kathleen Hayes and Pim Fox 2 00:00:06,760 --> 00:00:10,479 Speaker 1: on Bloomberg Radio. Coming up on taking Stock, we're gonna 3 00:00:10,520 --> 00:00:13,280 Speaker 1: be speaking to Robin Gandhi. He is the founder and 4 00:00:13,320 --> 00:00:18,360 Speaker 1: the chief executive of g MM non Stick Coatings. Why well, 5 00:00:18,400 --> 00:00:21,200 Speaker 1: he's gonna tell us all about doing business in China 6 00:00:21,360 --> 00:00:24,200 Speaker 1: and India. He's an American entrepreneur about his firm is 7 00:00:24,239 --> 00:00:28,200 Speaker 1: headquartered in China. We've got more details coming up right now, 8 00:00:28,520 --> 00:00:30,520 Speaker 1: Let's go to Charlie Pellett. He's in the Bloomberg Bluis 9 00:00:30,560 --> 00:00:32,720 Speaker 1: room and has a Bloomberg business flash, and I think 10 00:00:32,720 --> 00:00:36,120 Speaker 1: if him Fox. The selling continues off our session lows, 11 00:00:36,200 --> 00:00:39,199 Speaker 1: but a down day nonetheless, with the Dow Industrials now 12 00:00:39,240 --> 00:00:42,320 Speaker 1: down two hundred ninety eight points, a drop there of 13 00:00:42,400 --> 00:00:45,840 Speaker 1: one point six percent, to eighteen thousand, one hundred eighty. 14 00:00:45,960 --> 00:00:49,360 Speaker 1: The SMP five hundred index is down forty one point 15 00:00:49,440 --> 00:00:52,320 Speaker 1: cent one forty a drop of one point nine percent, 16 00:00:52,800 --> 00:00:56,200 Speaker 1: and NASDAC is down one hundred four points to fifty 17 00:00:56,280 --> 00:00:59,320 Speaker 1: one fifty four, a drop right now of two percent. 18 00:00:59,480 --> 00:01:01,480 Speaker 1: So stock were falling in the worst sell off since 19 00:01:01,480 --> 00:01:05,480 Speaker 1: Britain voted to leave the European Union. The catalyst for 20 00:01:05,560 --> 00:01:08,280 Speaker 1: much of this Today a federal Reserve officials signaling more 21 00:01:08,360 --> 00:01:11,720 Speaker 1: willingness to raise interest rates. But what about the outlook 22 00:01:11,720 --> 00:01:14,600 Speaker 1: for corporate earnings? David Joy is chief market strategist at 23 00:01:14,640 --> 00:01:18,560 Speaker 1: Amory Prize Financial. He was interviewed this morning on Bloomberg Television. 24 00:01:18,600 --> 00:01:21,120 Speaker 1: We're still hopeful that we'll see a shift to positive 25 00:01:21,160 --> 00:01:23,320 Speaker 1: earnings growth in the fourth quarter. That's, you know, sort 26 00:01:23,319 --> 00:01:26,920 Speaker 1: of the consensus view. But uh, there's no question that 27 00:01:26,920 --> 00:01:30,679 Speaker 1: those forecasts have been downgraded consistently throughout the year. No 28 00:01:30,760 --> 00:01:34,240 Speaker 1: surprise there. They're still positive, however, but that remains to 29 00:01:34,319 --> 00:01:37,520 Speaker 1: be seen. Oil is trimming its weekly gain after the 30 00:01:37,520 --> 00:01:41,319 Speaker 1: biggest US stockpile slump in seventeen years was seen as 31 00:01:41,360 --> 00:01:44,479 Speaker 1: a one off caused by a tropical storm that disrupted 32 00:01:44,520 --> 00:01:47,760 Speaker 1: imports on offshore production. Crude oil is lower now by 33 00:01:47,840 --> 00:01:51,000 Speaker 1: three point seven percent, down a dollar seventy five barrel 34 00:01:51,040 --> 00:01:54,920 Speaker 1: on West Texas Intermediate at forty five dollars and eighty 35 00:01:55,120 --> 00:01:59,960 Speaker 1: seven cents. Walmart's gonna stop selling well Spun India's one 36 00:02:00,120 --> 00:02:04,600 Speaker 1: hundred percent Egyptian cotton sheets after a controversy over the products. 37 00:02:04,640 --> 00:02:08,600 Speaker 1: Providence and people familiar with the matter say. Negotiations between 38 00:02:08,639 --> 00:02:12,360 Speaker 1: Buyer and Moncento are entering the final stretch, as both 39 00:02:12,360 --> 00:02:14,959 Speaker 1: sides moved closer to an agreement to create the world's 40 00:02:14,960 --> 00:02:19,320 Speaker 1: biggest maker of seeds and pesticides. Again, the SMP down 41 00:02:19,400 --> 00:02:23,320 Speaker 1: forty want to drop of one percent, the ten year 42 00:02:23,400 --> 00:02:27,040 Speaker 1: down twenty thirty seconds, the yield one point six seven percent, 43 00:02:27,360 --> 00:02:31,120 Speaker 1: and gold down seven thirty thirteen thirty a drop for 44 00:02:31,200 --> 00:02:34,920 Speaker 1: gold of six tenths of one percent. It is to 45 00:02:35,160 --> 00:02:38,079 Speaker 1: thirty two on Wall Street. Now, let's take a look 46 00:02:38,080 --> 00:02:40,600 Speaker 1: at some of the other news from around the world 47 00:02:41,120 --> 00:02:47,000 Speaker 1: on Bloomberg Radio. Thank you, Charlie from the Bloomberg News Room. 48 00:02:47,000 --> 00:02:50,400 Speaker 1: I'm Jill Schneider. The House has approved a bipartisan bill 49 00:02:50,440 --> 00:02:53,760 Speaker 1: that would allow families of September eleven victims to sue 50 00:02:53,760 --> 00:02:57,600 Speaker 1: the government of Saudi Arabia fifteen of the nineteen hijackers 51 00:02:57,600 --> 00:03:00,760 Speaker 1: on nine eleven. We're Saudi nationals. The will, which passed 52 00:03:00,760 --> 00:03:04,119 Speaker 1: the Senate in May, faces a likely veto from President Obama. 53 00:03:04,360 --> 00:03:07,639 Speaker 1: Pentagon officials paused this morning to remember their colleagues killed 54 00:03:07,680 --> 00:03:11,120 Speaker 1: on nine eleven. Here's Deputy Defense Secretary Bob Work. We 55 00:03:11,240 --> 00:03:15,920 Speaker 1: come here to mark the fifteen years since that September 56 00:03:16,000 --> 00:03:20,480 Speaker 1: morning when our country, our people, and our very way 57 00:03:20,480 --> 00:03:24,040 Speaker 1: of life came under attack. The NYPD marched through Lower 58 00:03:24,080 --> 00:03:27,120 Speaker 1: Manhattan this afternoon to honor the victims of September eleven. 59 00:03:27,400 --> 00:03:30,079 Speaker 1: Seventy One police officers were killed when the two World 60 00:03:30,080 --> 00:03:33,440 Speaker 1: Trade Center buildings collapsed, and dozens more have died since 61 00:03:33,480 --> 00:03:37,000 Speaker 1: then from illnesses contracted while working in the hazardous conditions 62 00:03:37,000 --> 00:03:41,080 Speaker 1: immediately following the attacks. President Obama is condemning today's North 63 00:03:41,160 --> 00:03:44,880 Speaker 1: Korean nuclear test as a grave threat to regional security. 64 00:03:44,960 --> 00:03:47,360 Speaker 1: He says the US will never accept North Korea as 65 00:03:47,360 --> 00:03:50,600 Speaker 1: a nuclear state. French authorities have made more arrests in 66 00:03:50,640 --> 00:03:54,120 Speaker 1: a possible terror plot. Bloomberg's Michael Barr has more. French 67 00:03:54,160 --> 00:03:58,240 Speaker 1: police have arrested three women accused of plotting imminent terrorist attacks. 68 00:03:58,680 --> 00:04:02,400 Speaker 1: The arrests came after a car containing gas canisters was 69 00:04:02,440 --> 00:04:06,240 Speaker 1: found near Paris's Notre Dame Cathedral earlier this week. France's 70 00:04:06,280 --> 00:04:10,680 Speaker 1: Interior minister says the women were radicalized fanatics, clearly preparing 71 00:04:10,760 --> 00:04:15,320 Speaker 1: fresh violent actions. Since more than two hundred people have 72 00:04:15,400 --> 00:04:19,240 Speaker 1: been killed in France in terrorist attacks. Michael Barr Bloomberg 73 00:04:19,360 --> 00:04:22,520 Speaker 1: Radio Global News twenty four hours a day, powered by 74 00:04:22,560 --> 00:04:25,920 Speaker 1: more than twenty journalists and analysts in more than one 75 00:04:26,120 --> 00:04:29,880 Speaker 1: d twenty countries. I'm Joel Schneider. This is Bloomberg, Charlie, 76 00:04:30,920 --> 00:04:33,440 Speaker 1: and we thank you and again recapping a three hundred 77 00:04:33,480 --> 00:04:36,200 Speaker 1: two point loss for the Dow Jones Industrial Average down 78 00:04:36,240 --> 00:04:38,640 Speaker 1: one point six percent, the S and P five hundred 79 00:04:38,640 --> 00:04:41,760 Speaker 1: index down forty a drop of one point nine percent, 80 00:04:42,160 --> 00:04:45,159 Speaker 1: and Nastack down one hundred four points, a drop of 81 00:04:45,240 --> 00:04:50,200 Speaker 1: two percent. I'm Charlie Palatin. That's a Bloomberg business flash. 82 00:04:50,680 --> 00:04:54,159 Speaker 1: You're listening to taking Stock with Kathleen and Pim Fox 83 00:04:54,279 --> 00:04:57,839 Speaker 1: on Bloomberg Radio. If you use any products from Black 84 00:04:57,920 --> 00:05:01,040 Speaker 1: and Decker or Remington or p have a crop pod, 85 00:05:01,279 --> 00:05:04,600 Speaker 1: well you've come into contact with the next company's product, 86 00:05:04,640 --> 00:05:07,039 Speaker 1: but you may not know it. Ravine Gandhi is the 87 00:05:07,040 --> 00:05:10,880 Speaker 1: founder and the chief executive of GMM Nonstick Coatings and 88 00:05:10,920 --> 00:05:13,920 Speaker 1: he joins us from Chicago. Ravine, thank you very much 89 00:05:13,920 --> 00:05:17,000 Speaker 1: for being with us. It's pleasure. Can you describe for 90 00:05:17,120 --> 00:05:21,800 Speaker 1: people the sort of history of GMM nonstick Coatings, Because 91 00:05:21,839 --> 00:05:24,279 Speaker 1: you've been in this business for a while and you've 92 00:05:24,320 --> 00:05:26,840 Speaker 1: completed several deals, Maybe just give us a little bit 93 00:05:26,880 --> 00:05:30,680 Speaker 1: of your background. Uh. Yeah, So I joined my first 94 00:05:30,720 --> 00:05:33,680 Speaker 1: I was a CPA by training, and uh I joined 95 00:05:34,120 --> 00:05:37,680 Speaker 1: what was my family's chemical manufacturing company about twenty years ago, 96 00:05:38,200 --> 00:05:40,440 Speaker 1: and we built that up in Chicago, sold it to 97 00:05:40,600 --> 00:05:43,840 Speaker 1: a giant corporation called xin Obel. I ran that for 98 00:05:43,880 --> 00:05:47,719 Speaker 1: a few years. After noncompete, a very typical story, started 99 00:05:47,760 --> 00:05:49,880 Speaker 1: a new business on my own, this time eight years ago, 100 00:05:49,920 --> 00:05:52,440 Speaker 1: and it built that up into one of the world's 101 00:05:52,480 --> 00:05:54,719 Speaker 1: large suppliers of non stick coatings. And as you said 102 00:05:54,720 --> 00:05:57,920 Speaker 1: in the intro, we supply to pretty much most of 103 00:05:58,000 --> 00:06:01,920 Speaker 1: the biggest American companies. And I think about forty million 104 00:06:01,960 --> 00:06:04,000 Speaker 1: people every day use our an non sta codings in 105 00:06:04,000 --> 00:06:07,400 Speaker 1: America when they cook. But we're we're talking or we 106 00:06:07,520 --> 00:06:09,120 Speaker 1: brought you on here to talk to us about what 107 00:06:09,160 --> 00:06:11,560 Speaker 1: it takes to succeed in China, what it's like to 108 00:06:11,600 --> 00:06:15,359 Speaker 1: do business in India. Really the overseas portion of your job. 109 00:06:15,920 --> 00:06:19,320 Speaker 1: M How how much of that do you spend time 110 00:06:19,360 --> 00:06:21,760 Speaker 1: on and how big is it for your revenues? Oh, 111 00:06:21,800 --> 00:06:24,120 Speaker 1: it's a huge part of our business. The reason why 112 00:06:24,240 --> 00:06:27,960 Speaker 1: gmm IS is located in China and in India manufacturing wise, 113 00:06:28,040 --> 00:06:32,400 Speaker 1: is that about of the nine billion dollar American cookwoar 114 00:06:32,400 --> 00:06:34,480 Speaker 1: market is made in Asia, so we need to be there. 115 00:06:34,520 --> 00:06:36,400 Speaker 1: If we weren't there, we were basically the out of business. 116 00:06:36,680 --> 00:06:38,599 Speaker 1: Beyond that, we do a lot of business in those 117 00:06:38,640 --> 00:06:41,520 Speaker 1: local markets. There's obviously a lot of people in China 118 00:06:41,560 --> 00:06:44,600 Speaker 1: who you know, cook uh, you know, rice and walks 119 00:06:44,600 --> 00:06:46,919 Speaker 1: and all that kind of stuff. So we're probably split 120 00:06:46,960 --> 00:06:52,560 Speaker 1: about thirty percent revenue x US and six here. So 121 00:06:52,640 --> 00:06:55,200 Speaker 1: tell us a little bit about some of the misconceptions 122 00:06:55,240 --> 00:06:59,120 Speaker 1: about doing business in China. Maybe start with an understanding 123 00:06:59,120 --> 00:07:02,200 Speaker 1: of the regulation that exists. Yeah, that's that's a great question, 124 00:07:02,240 --> 00:07:06,160 Speaker 1: and it's such a misunderstanding. People in the media a 125 00:07:06,200 --> 00:07:08,000 Speaker 1: lot of times saying China is sort of like the 126 00:07:08,040 --> 00:07:10,400 Speaker 1: wild West and that there's no rules and you can 127 00:07:10,440 --> 00:07:12,800 Speaker 1: do whatever you want. And I can tell you it's 128 00:07:12,800 --> 00:07:15,840 Speaker 1: absolutely not the case, particularly where we are in We're 129 00:07:15,840 --> 00:07:18,280 Speaker 1: in a city called Juhai in the Guangdong province in 130 00:07:18,280 --> 00:07:21,640 Speaker 1: the south, and the regulations there for chemical manufacturers like 131 00:07:21,680 --> 00:07:24,600 Speaker 1: me absolutely rival anything that you would see the USA. 132 00:07:24,720 --> 00:07:29,680 Speaker 1: It's extraordinarily stringent with environmental controls, and it's something that 133 00:07:29,720 --> 00:07:32,160 Speaker 1: a lot of people, frankly um make a big mistake 134 00:07:32,200 --> 00:07:34,040 Speaker 1: on when they go into China because they think they 135 00:07:34,040 --> 00:07:35,840 Speaker 1: can do whatever they want and has a lot of 136 00:07:35,840 --> 00:07:38,960 Speaker 1: businesses find out the government doesn't take that lightly. That 137 00:07:39,120 --> 00:07:42,880 Speaker 1: is fascinating and uh I stay surprising to me as well. 138 00:07:42,920 --> 00:07:45,040 Speaker 1: I would have thought that there would be ways around 139 00:07:45,080 --> 00:07:49,800 Speaker 1: those regulations, greasing the right palms, knowing the right UH 140 00:07:50,440 --> 00:07:53,720 Speaker 1: party members. But I guess that's probably not the smartest 141 00:07:53,760 --> 00:07:55,760 Speaker 1: way to do business when you're a foreigner in China. 142 00:07:56,080 --> 00:07:59,360 Speaker 1: I think it's absolutely not. I'm without question what you 143 00:07:59,400 --> 00:08:01,720 Speaker 1: decided to exist, Okay, I mean, if I'm a realist, 144 00:08:01,800 --> 00:08:04,360 Speaker 1: But in the end, that's never gonna make your business 145 00:08:04,440 --> 00:08:06,840 Speaker 1: unless you happen to be in a industry that is 146 00:08:07,360 --> 00:08:10,120 Speaker 1: very corrupt and what the government wants. But from my 147 00:08:10,200 --> 00:08:13,720 Speaker 1: perspective as an American entrepreneur, I have a business partner 148 00:08:13,760 --> 00:08:16,320 Speaker 1: who's a Hong Kong based Chinese guy, and we play 149 00:08:16,360 --> 00:08:17,920 Speaker 1: it straight. There's just no other way to do with 150 00:08:17,960 --> 00:08:21,840 Speaker 1: these days. Tell us about local customs because that also 151 00:08:21,960 --> 00:08:25,640 Speaker 1: affects how successful you can be in business. Yeah, you know, 152 00:08:26,080 --> 00:08:28,480 Speaker 1: I have found kind of painfully sometimes over the last 153 00:08:28,520 --> 00:08:31,280 Speaker 1: twenty years. For instance, in in America, you know, people 154 00:08:31,320 --> 00:08:33,360 Speaker 1: say Oh, he's a straight shooter, she's a straight shooter. 155 00:08:33,800 --> 00:08:37,120 Speaker 1: In China, that concept is a little mixed. And what 156 00:08:37,160 --> 00:08:39,839 Speaker 1: I mean by that is, if you are an authoritative figure, 157 00:08:39,880 --> 00:08:42,679 Speaker 1: if you're the boss of something, the people under you 158 00:08:42,720 --> 00:08:46,040 Speaker 1: will almost never tell you bad news, not because they 159 00:08:46,080 --> 00:08:48,840 Speaker 1: want to hide it, but just because it's considered inappropriate. 160 00:08:49,160 --> 00:08:52,000 Speaker 1: So you really have to make sure in China when 161 00:08:52,000 --> 00:08:55,160 Speaker 1: you're getting certain news that you're you're understanding the true story. 162 00:08:55,200 --> 00:08:59,240 Speaker 1: The concept of saving face or embarrassment is so big 163 00:08:59,280 --> 00:09:02,040 Speaker 1: there that I always double and triple check things to 164 00:09:02,040 --> 00:09:04,800 Speaker 1: make sure that I don't make a full paw unintentionally. 165 00:09:05,280 --> 00:09:06,520 Speaker 1: So how do you deal with that? I mean, do 166 00:09:06,559 --> 00:09:09,280 Speaker 1: you say to your employees listen, give it to me straight, 167 00:09:09,440 --> 00:09:13,120 Speaker 1: or do you find ways of understanding their body language, 168 00:09:13,160 --> 00:09:15,400 Speaker 1: figure out how to read between the lines and get 169 00:09:15,440 --> 00:09:18,640 Speaker 1: the message even when they're telling you yes, yes, yes, yeah. 170 00:09:18,640 --> 00:09:20,640 Speaker 1: It's more the ladder. It's more the ladder. It's certainly 171 00:09:20,640 --> 00:09:22,400 Speaker 1: not just you know, do this and they do it. 172 00:09:22,400 --> 00:09:25,400 Speaker 1: It's it's something that's kind of Jane's. They're genetically opposed 173 00:09:25,440 --> 00:09:27,880 Speaker 1: to I would say, so it is very much asking 174 00:09:27,960 --> 00:09:30,280 Speaker 1: sometimes the same question two times or three times in 175 00:09:30,280 --> 00:09:32,760 Speaker 1: different ways us in a little nuance knowing the people. 176 00:09:32,800 --> 00:09:35,200 Speaker 1: We have hundreds of employees, so it's hard. You know, 177 00:09:35,280 --> 00:09:37,400 Speaker 1: I don't do this with every single person, but for 178 00:09:37,400 --> 00:09:40,360 Speaker 1: the people who report to me, um, absolutely, it's it's 179 00:09:40,360 --> 00:09:42,080 Speaker 1: a little bit of art and a little bit of signs. 180 00:09:42,480 --> 00:09:45,640 Speaker 1: You also mentioned that you've got to be big. Yeah, 181 00:09:45,800 --> 00:09:48,040 Speaker 1: I mean, you know, I there's a great quote from 182 00:09:48,120 --> 00:09:52,040 Speaker 1: Jeff Mlt who runs ge saying China is big, but 183 00:09:52,160 --> 00:09:55,120 Speaker 1: China is hard. And one of the reasons why. I mean, 184 00:09:55,160 --> 00:09:57,280 Speaker 1: we all know kind of why it's hard, but it's huge. 185 00:09:57,440 --> 00:10:00,320 Speaker 1: And if you want to go into China, you you 186 00:10:00,360 --> 00:10:02,640 Speaker 1: have to understand that serving ten or twenty or even 187 00:10:02,640 --> 00:10:05,640 Speaker 1: a hundred million consumers is a rounding air. You know, 188 00:10:05,679 --> 00:10:07,600 Speaker 1: there are cities in China that aren't even on the 189 00:10:07,640 --> 00:10:11,080 Speaker 1: map in the West that are basically millions of people. 190 00:10:11,280 --> 00:10:13,760 Speaker 1: So with any business in China, you have to know 191 00:10:13,800 --> 00:10:15,720 Speaker 1: how to do one thing and that is scale. So 192 00:10:15,800 --> 00:10:18,280 Speaker 1: big and fast. Big and fast, I mean those are 193 00:10:18,320 --> 00:10:20,719 Speaker 1: two pretty good concept because speed is important there. Why 194 00:10:20,800 --> 00:10:23,520 Speaker 1: is that well, because well, I mean there's speed. I 195 00:10:23,520 --> 00:10:25,439 Speaker 1: think there's a killer. You know, in any business you 196 00:10:25,480 --> 00:10:27,760 Speaker 1: need to be fast, but in China, particularly because for 197 00:10:27,800 --> 00:10:31,040 Speaker 1: every would be entrepreneur, there's hundreds of people who want 198 00:10:31,040 --> 00:10:33,400 Speaker 1: that spot that you're just talking about the law of numbers. 199 00:10:33,520 --> 00:10:35,520 Speaker 1: Think about how many people we have in this country 200 00:10:35,600 --> 00:10:38,880 Speaker 1: versus versus China's an order of magnitude different So speed 201 00:10:38,920 --> 00:10:41,439 Speaker 1: is really a huge differentiator. All right, Hey, Rovian, really 202 00:10:41,440 --> 00:10:45,280 Speaker 1: appreciate your time. Fascinating stuff. Robby and Gandhi there, founder 203 00:10:45,320 --> 00:10:50,080 Speaker 1: and CEO of GMM non nonstick Coatings out of Chicago, 204 00:10:50,160 --> 00:10:53,320 Speaker 1: but talking to us today about doing business in India 205 00:10:53,360 --> 00:10:56,680 Speaker 1: and mainly doing business in China where they manufacture. Uh, 206 00:10:56,720 --> 00:11:02,679 Speaker 1: the industry does of worldwide cookware? Is Bloomberg coming up 207 00:11:02,679 --> 00:11:08,000 Speaker 1: on taking stock coconuts? Yes, just what the world craves coconuts, 208 00:11:08,000 --> 00:11:12,720 Speaker 1: but the Caribbean is running out. We've got details ahead.