RNR Group is a name to think of when it comes to Dubai and the 2020 Covid-19 crisis. In 2020, RNR Group originally founded in Dubai was one of the fastest growing companies in the United Arab Emirates during one of the world’s largest pandemics – Covid-19.
During the heat of the pandemic in 2020, a large number of new trading companies have emerged in the global markets. Yet, most of the companies were not able to sustain their development due to large noise and lack of business focus in the industry. Medical trading is considered to be one of the most difficult businesses to manage because it is hyped and very responsible where a small error can cause big damage to the business and its stakeholders.
Usually, a hyped business raises important matters such as fraud and inexperience in the industry because a lot of traders and companies are trying to get into the industry without prior knowledge and ability to operate successfully and to determine proper due diligence.
However, RNR Group had a different case. The Chief Executive Officer of RNR Group, Swapnadip Roy, is a professional business negotiator and due diligence expert, with a long experience in the market and existing network, Swapnadip can almost predict when is the right time to trade and how it should be done at the best possible scenario with the best return while managing the risk to the minimum.
Persistence in negotiation, digging deep during the due diligence process and understanding limits and barriers between trust and reality is the only key to success of a well performing trading business, says Swapnadip Roy.
General trading can be tough in negotiation but it can be even more tricky when it comes to documentation and contracting with international suppliers and clients. Contracting for a deal with explicit language in terms and conditions and paying attention to every single word and a symbol is absolutely crucial to maintain security and privacy of an international trade deal, says Chief Financial Officer Paulius Stankevicius who is the head of contracting and documentation at the RNR Group.
Founded in 2020 just 1.5 year ago, RNR Group grew to $15M US in sales and is now expanding to new horizons. RNR Group is raising capital for retail distribution business with its unique technology based marketplace to disrupt Middle East e-commerce. Based on current performance and negotiating investments, the group’s valuation is now going for at least $70M US.
The group is looking to raise another round up to $100M USD in a joint venture with a top European bank just before filing for an initial public offering. Two entrepreneurs, Paulius Stankevicius and Swapnadip Roy, have pulled together their best abilities to make a unique business model and business strategy during the most difficult time of the decade, and managed successfully to grow a business significantly. RNR Group is now hiring and is expanding its global horizon.
Swapnadip Roy Tells What Is It Like to Sustain and Keep Trade Business Performing Well
Trade is people’s business, understanding their behaviour, understanding how people think and how they perform and what they do based on certain events.
When you understand what makes people tick, you control the game, and trade is a big arena where international companies try to make deals based on conversations, dialogue and promises, yet when swimming in this pool of promises you really need to think logically and rationally what promises are realistic and what is so called too much.
It’s all about managing people and it requires a specific character I would say. Managing clients and managing suppliers is not an easy task. Most importantly you do not want to be a simple broker in the trade deal simply relying on ICC documents and IMFPA. If we are being realistic most likely you will get bypassed if you would just rely only on those documents alone, and that’s just how it works. In reality people do bypass others a lot and then promises break but you never know how and when because they don’t tell you.
Sometimes it requires aggressive and harsh push because that’s what people need to hear to understand reality. Trading is absolutely nothing like signing a contract and delivering the product, I’d say more likely trading is a warzone where you fight for your piece of pie because the strategies other companies use against you are way more advanced than you could ever think of, and this requires experience to understand, and requires in depth thinking and strategic approaches on how to protect your business from incoming damage by other hungry sharks in the industry. If they can’t get the deal they will try to eat your company.
As long as you can maintain control, you can perform well, but the control has to involve everything, the client side and the supplier side. You don’t want to be stuck in the middle or just controlling one side, it will not work, you will end up losing the deal. You must have one hand on the left and one hand on the right, to really close a deal.
Paulius Stankevicius Says Managing Legal Side Is Critical
Documentation, paperwork and all legal aspects must be involved in any trade deal whether it’s local or international. Most likely companies, traders, brokers and everyone else will try to either fraud you, sabotage, lie or simply not deliver what is promised in the agreement.
When doing an international contract or signing an NDA or NCNDA it is extremely important to include lawyers and proceed accordingly and seriously from the very beginning, else you are not serious about finishing your deal in the first place.
In the current market, there are a lot of brokers and traders who spread documents such as letters of intents, sales purchase agreements and full corporate offers. These traders are not following any legal procedures nor they understand legal procedures, in fact most of them are just simply forwarding files over whatsapp and emails without having any idea what those files are, and in many cases those files are fraud and fake deals which only waste time, but if you sign on them you are in trouble.
That’s why managing documentation and contracting properly together with lawyers is the primary rule in international trade. If somebody breaks a term you will simply sue the company and they cannot defend against their own fault; making them lose the case.
In the global market, a lot of money made from trade deals in fact are not from trade deals themselves but from lawsuits. Whether you are trading medical products, petroleum or rice products, risks are the same and the idea of terms and conditions is the same which makes documentation on international standards generally understandable yet there are special points in documents with smartly modified language and those points can be damaging and require professional supervision.
RNR Group Is the Big Venture
International trade is a very large marketplace in which a single contract can stand by billions of dollars. The difference between general trade and electronic trade is that general trade involves actual product purchase and delivery. It’s not as simple as buying a stock online with a simple click, general trade requires much more than that, it includes negotiation, contracting, due diligence, logistics, security and banking. To successfully complete a trade deal you must have knowledge of all of the things which are included in the deal, else you will either lose the entire deal or you will lose a large sum of profit, and may even end up at a loss.
RNR Group is aiming for the big venture, not just playing in the trade industry alone but also connecting it to technology. By merging together trading of goods with technology, RNR Group is aiming to build a more trusted global trading platform where companies can trade actual goods at ease and also allow direct consumers to purchase goods as well. Knowing the hustle and the issues of the industry, RNR Group is aiming to solve these harsh problems with their unique marketplace with a beta release already in Q4 2021.Leave a comment