Advances Newsletter, Q2 2017

ADVANCES

Vol. 7, #2, Q2 2017, No. 63

C.A.C in St. Petersburg, R & D in Silicon Valley...

Welcome to the Future!

1 Advanceswww.midea.com Newsletter, Q2 2017

ADVANCES Newsletter

Contents

NEWSLINE CAC Convention in Uganda PAGE 8 FUSION for Global Soccer Bonanza to Use Midea Air Brand Video Goes Viral in Conquistadores and El Con PAGE 3 Indonesia PAGE 9 Clasico: An Introduction to Spain PAGE 12 R & D Center in Austria PAGE 4 Midea, Yaskawa Release India: Cricket, Sacred Cows Silicon Valley Facility PAGE 4 First Eldercare Product PAGE 9 and a Cantering Economy PAGE 15

Celebrating 10 Years in Italy Microwave-Ovens Wow PAGE 5 Crowd at Chicago Show PAGE 10 Air Con Conference Held in Forbes Interview with Paul Nepal PAGE 5 Fang PAGE 11

JV with Electrolux-Owned German Brand PAGE 6

Kuka Shines at Hannover Messe PAGE 7

‘Brand Bus’ Tours Brazil Giving Cooking Classes PAGE 8

Midea Advances Newsletter is published quarterly Quarterly Quote: by Midea International. We welcome all comments, suggestions and contribution of articles, as well as requests for subscription to our newsletter. You can reach us by email at: [email protected] “The only strategy

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2 Advances Newsletter, Q2 2017

NEWSLINE Stadiums for Global Soccer Bonanza to Use Midea Air Con By Midea CAC

P layers will be breathing Midea-conditioned air in 11 out of 12 official stadiums at next year’s soccer tournament in , as sets about defending its title. The announce- ment, following the recent tendering process, confirms that Midea Commercial Air Conditioning (CAC) will again be a pro- vider to this soccer tournament after Brazil three years ago. The solutions provided at these venues will be a combina- tion of variable refrigerant flow (VRF) Units, Water Cooled

The Arena

Lisbon, and Malpensa Airport in Milan. Samara ’s and Spartak Arena, the Ka-

Screw Chillers and Fan Coil Units. Some projects are renewals of existing installations and others are in entirely new stadiums. Midea CAC has vast experience in providing HVAC solu- tions to sports stadiums, including those for the All-Africa

N. Novgorod Stadium

zan Arena, Yekaterinburg’s Central Stadium, and ’s First will use renewed VRF V5X units. St. Peters- burg’s Krestovsky Stadium will use retrofitted fan coil units. Meanwhile the , the Volgograd Are- na, Samara’s Cosmos Arena, the , and Sa- The Saransk Stadium ransk’s will all use newly installed products, Games and the Youth Olympics. It is also no stranger to major including water-cooled screw chillers, and fan coil units. international projects, having provided HVAC to the Winter Palace in St. Petersburg, the Banco de Portugal headquarters in

3 Advances Newsletter, Q2 2017

R & D R & D Center in Austria

By Midea

M idea Group has an- nounced the establishment of its R & D and Innovation Center Eu- rope (RDICE) in Graz, Austria. Midea will integrate world-class R & D resources through Midea Austria GmbH, to provide leading HVAC and home appliances tech- nology to the European market. The center has office, experi- ment and display areas. It has been equipped with an electrical labora- tory, chemical laboratory, applica-

tion laboratory and other research labs, focusing on smart home technology, automated manufacturing, and other core areas. It further integrates and strengthens the R & D and innovation ability in refrigerators, washing machines, kitchen appliances and other core products, as well as concentrating on exploration and development of compressor technology under Midea Com- ponent Division-GMCC.

Silicon Valley Facility

By Midea

cludes a new customer service center and expanded corporate M idea is expanding its footprint office spaces. “Technology and in Silicon Valley with the opening of an innovation never stand still, so it’s emerging technology center in San Jose, essential that Midea keeps driving California. The facility will focus primarily ahead to remain globally competi- on Artificial Intelligence (AI), robotics, tive,” said Dr. Zachary Hu, VP and chips and sensors with the goal of providing Chief Technology Officer of Midea technological support as Midea expands into Group. “The new ETC will lever- the high-tech arena. age the creative energy in Silicon The Silicon Valley technology center is Valley to help Midea to continue to also part of Midea’s expansion in North America, which in- grow and deliver innovative products to its customers.”

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NEWSLINE Celebrating 10 Years in Italy

By Matteo Griziotti

M idea marked 10 years of doing business in Italy on March 31 at the Alfa Romeo Museum in the presence of a large group of eminent clients. European Product & Marketing Man- ager Mick Ma, Manager of Midea Italy Daniele Marangoni and AC Product & Technical Manager Davide Caravatti gave presentations showing numbers, growth goals, acquisitions and latest products. Topics discussed included how Midea Group intends to build on its accession into the Fortune Global 500 in mid-2016, corporate social responsibility, and innova- tion. Mr. Ma also talked about the was also introduced. Running close to silently at only 18 Db, it intended effects of the major ac- is particularly suitable for infants and the elderly. It also spreads quisitions Midea has made in the conditioned air further and wider than its predecessors, at 110° past year in Japan, the United vertically, as opposed to 80°, and 120° degrees horizontally, as States and Germany. opposed to 90°. With its Air Magic Filtration System, both mi- The Ultimate Comfort air condi- crobes and damaging substances are eliminated. Furthermore, tioning system, designed to max- the ionization eliminates bacteria from the air, preventing and imize the cleanliness of airflow, reducing allergies. Air Con Conference Held in Nepal

By Midea

ing, Ventilation & Air conditioning (HVAC), and is the largest T he Midea Coolference was successfully held at and most popular air conditioning company in Nepal. Soaltee Crowne Plaza in Kathmandu on June Midea Vertu Plus Air Conditioner, launched 1. The event was organized as a technical at the event, is a new addition to the product presentation on residential & commercial air range and is available as a split system with conditioning, and was followed by a cocktail inverter-type compressor and high capaci- dinner at the venue to welcome distinguished ties. Its V shape stream light design and line guest Mr. Jack Ding and other delegates from design along with super large frameless Midea. The Midea Vertu Plus Split Air Condi- acrylic mirror manifests a noble character. tioner was also launched at the event. The AC is reliable and durable as its exterior Airtech Industries Pvt. Ltd., is the au- has undergone toughening treatment along thorized distributor of Midea air conditioning in Nepal. Estab- with the advanced magnetron from the sputtering process. lished in the year 2000, Airtech offers optimal engineering solu- tions for a wide spectrum of customers in areas related to Heat-

5 Advances Newsletter, Q2 2017

NEWSLINE JV with Electrolux-Owned German Brand

By MIP

M idea Group signed a joint venture with Electrolux May 2 to help grow the century -old German brand AEG in China. Majority-owned by Midea, the new partnership will see AEG benefit from Midea’s unparalleled market access and consumer insight in one of the world’s most exciting consum- er markets. Frank Zhu, Vice Presi- dent of Midea Group and Gen- eral Manager of Midea Kitchen Appliances Division, is opti- mistic for the JV. “We are delighted to establish this long-term strategic partnership and we class premium product offerings and experience but further have great confidence in the AEG brand. We believe that, with cement Electrolux’s commitment to growing our business and our help, AEG will flourish and grow into one of the top premi- the AEG brand in China,” said Ng. um brands in China.” Ken Ng, Executive Vice President, and Head of Electrolux About AEG Major Appliances Asia Pacific, also expressed excitement. “With the strengths of our esteemed organizations, this strategic joint Ever since it was founded by Emil Rathenau in 1887 in venture will not only provide Chinese consumers with best-in- Germany, AEG has pioneered advanced electrical engineering in consumer products. Acquired by Electrolux in 1994, AEG provides excellence in perfor- mance and German design. It was the first company in the industry to hire a designer to help create and develop its prod- ucts. Peter Behrens, the father of functional form in in the early 20th century, pro- foundly influenced the company’s image – from product design and advertising to the architecture of its factory buildings. Today, the essence of the AEG brand is that every one of its household appliances is “Perfect in Form and Function.” The full range of appliances allows consumers to control household tasks and represent precision, per- formance, order, confidence and pride.

6 Advances Newsletter, Q2 2017

NEWSLINE Kuka Shines at Hannover Messe

By Midea

K uka, the German robot manufacturer which was acquired by Midea last year, displayed its latest wares at the Han- nover Messe in late April, a trade fair founded in 1947 which typically attracts around 250,000 visitors.

Kuka CEO Dr. Till Reuter with Polish Prime Minister Beata Szydlo and German Chancellor Angela Merkel on the first day

solution, combining digitization, automation and customiza- tion," Dr. Gu told China's Xinhua news agency. Visitors at the fair needed only to put in a personal image

Dr. Andy Gu in an interview with Xinhua

Midea Vice President and now Chairman of Kuka's Super- visory Board Dr. Andy Gu described Midea's acquisition of Ku- ka as a win-win situation when interviewed at the fair. "It's the first time Kuka has shown the public the complete Industry 4.0

Kuka robots in action

using a smartphone and tablet and the Smart Factory handled all subsequent procedures. Kuka, as a mature factory automation solution provider, can help Midea upgrade in this regard. In return, Midea, as one of the leading players in the Chinese market, can bring Kuka many business opportunities in China's various industries, Gu told Xinhua. Midea completed its acquisition in January and now controls 94.55 percent of shares.

7 Advances Newsletter, Q2 2017

NEWSLINE ‘Brand Bus’ Tours Brazil Giving Cooking Classes By Nadia Matthias

class products. The tour got off to a successful start in Floria- A truck with a kitchen equipped with Midea applianc- nópolis, state capital of Santa Catarina. es travelled Brazil April 10 to May 7 teaching consumers how to Maurício Portella, Marketing Manager of Midea, spoke improve their lives with Midea prod- enthusiastically about the tour, ex- ucts. Chef Sérgio Rodrigues is giving plaining why the starting point of classes in the Midea Traveling Kitch- the tour has particular value: en parked outside the stores of brand "Midea has a very strong relation- partners in cities including Santo ship with Santa Catarina, because Amaro, Joinville and Brusque. our operation in Brazil started there Groups of up to 18 people at a in 2007. We also have great part- time are learning how to explore the ners who have always been with us, versatility of Midea’s kitchen appli- such as Angeloni, Casas da Água, ances and taste the recipes prepared Unilar and Havan. Therefore, the by the chef. Members of the public right thing to do is to promote the can simply show up and get lessons in action here". how to cook tasty cuisine with world- CAC Convention in Uganda

By Peck Zhao

pressed W ith an average annual temperature of 26 degrees optimism Celsius (78° Fahrenheit), Uganda is a country where air condi- about the tioning is valued. Midea Commercial Air Conditioning (CAC) technolo- held a ceremony in Uganda March 17 to launch the V5 X series gy. “I variable refrigerant flow air conditioner. have great Speaking confi- at the dence in ceremo- Midea ny, di- products. rector of There was some Midea equipment I installed about 10 years ago CAC’s and since then, I haven’t had to replace any. Midea products local give great assurance of durability. For many people, Midea distribu- might be a new product on the market, but I have personally tor Han- used their AC products for over 10 years and have never been nington disappointed. It is an honor that they have thought of bringing Nsubuga their V5 X Series VRF Systems to the Ugandan market.” ex-

8 Advances Newsletter, Q2 2017

NEWSLINE Brand Video Goes Viral in Indonesia

By MIB

Life goes on, and only nine months later, Midea now explores life’s next biggest challenge – attending a big family idea, the world’s #1 major appliances producer, M dinner with the in-laws …and a hidden secret. unveiled its new brand video for Indonesia May 27. It tells an Midea’s new film – “The Newcomer” – is about the emotional story familiar to young Indonesian up-and-comers on struggle of gaining acceptance, overcoming nerves and finding the importance of home. The video has already gone viral. a way to “feel at home”. In this set- In September 2016, Indo- ting, the film is filled with moving nesia was the first country in moments and an uplifting surprise at which Midea launched its the end. global brand positioning with While Midea’s first film focused on an emotive film titled “I’m the uniquely strong bond between a Home”. This video reached mother and her daughter, this sec- over 4.3 million views on ond film uses the suspense between YouTube alone and the entire daughter and her mother-in-law. It’s campaign achieving over 10 a tension that young people across million views. all ASEAN countries can identify To “feel at home” all The URL is: https://youtu.be/6xCaXpVTvTQ with. human beings are seeking ele- All of Midea’s products have a sur- ments they are familiar with, such as a familiar smell, a familiar prisingly-friendly angle worth discovering; and being the taste, or a familiar product e.g. a home appliance, which gives world’s largest manufacturer of major appliances, on top them the feeling of security. Midea’s price-quality ratio is simply unique. The film shows several milestones and memories between Find out more: www.Midea-ImHome.com mom & daughter - best to have a tissue at hand.

Midea, Yaskawa Release First Eldercare

By Advances Product

Yaskawa provided motor-control technology that it devel- W ith an eye on China's rapidly aging population, oped for its industrial robots, while Midea contributed to prod- Japanese robot manufacturer Yaskawa Electric uct design based on its experience with home is using its joint-venture with Midea to develop appliances. The joint venture will make use of specialized equipment for elderly people and Midea’s vast sales network. The machine is physical therapy patients. priced around 80,000 yuan ($11,600) and availa- The joint venture has begun by selling a ble to hospitals and care facilities across China. stationary bicycle-like pedaling machine Midea owns 60.1% of the Guangdong Province- through the JV. The device will let users exer- based venture, which was founded in 2016, while cise their legs and arms to rebuild physical Yaskawa owns the remaining 39.9%. The compa- functions. It will have variable resistance set- nies also have a separate joint venture in industri- tings to match the strength of the users. al robots.

9 Advances Newsletter, Q2 2017

NEWSLINE

Microwave-Ovens Wow Crowd at Chicago Show Press Release

M idea dazzled crowds at the 2017 National Restaurant Association (NRA) Foodservice Show in Chicago, USA with the launch of its new commercial food service equip- ment, highlighting its microwave -ovens that are designed to meet every demand. The four-day trade show, held from May 20 to 23 at the McCormick Center in Chicago, is the largest annual gathering of the restaurant, foodservice and hospitality industry. Midea has unveiled a product lineup that includes seven all-purpose com- mercial microwaves that are suitable for any restaurant, food establishment or catering businesses. and their stackable design allows them to fit seamlessly in any The two Midea G-Series heavy duty commercial micro- work space. waves (the 2,100-watt 2017G1A, and the 1,800-watt 1817G1A) Midea also offers two medium duty and two light duty are ideal for kitchens models with where fast turnaround different times and the ability to wattage process large portions of options that food are a must. The are great for models have a 17-liter fast reheat- oven capacity that ac- ing tasks at cepts one 6-inch (152 food stands, mm) food pan, and a in break- double rotating antenna rooms and that allows efficient en- other quick- ergy distribution and serve estab- heating. lishments. Their 100 programmable "The new series presented at the 2017 NRA show was menu items, three cook- Midea's first step in exploring global commercial markets. We ing stages and five pow- also plan to launch more product categories to complete our er levels make operation family of customer-focused professional kitchen appliances," smooth and worry-free, Boils said.

10 Advances Newsletter, Q2 2017

NEWSLINE Forbes Interview with Paul Fang

Via Forbes

tioners. F orbes Asia published a featured interview with Midea He, now Group President and CEO Paul Fang at the end of May. Here 74, re- are some highlights from the article: tired in China's miraculous growth over the past 30 years has been 2012 and propelled to a great degree by low costs, which attracted all passed those factories that churn out the clothes, toys and electronics the reins that fill the world's store shelves. But as the economy gains in to Fang. wealth, wages have increased dramatically, eating away at indus- The trial competitiveness. Meanwhile, the local market, once explod- founder ing with growth and opportunity, is maturing and slowing down. still owns That leaves Chinese companies with only one way forward-- 34% of become more innovative, produce more-advanced products and the pub- compete on a global scale. licly trad- Fang stands on the front lines of this great transformation. ed com- With $23.9 billion in sales and $2.2 billion in net profits last year, pany, and Midea is already one of China's most prominent companies, FORBES ranking No. 335 on the Forbes Global 2000. Last year, Midea ASIA sold more consumer appliances--from air conditioners to rice estimates his net worth at $13.4 billion. cookers--than any other company. Its global market share, at Fang, 50, hails from even humbler origins. Born in a ten- 5.5% last year, is up from 3.9% four years earlier, estimates re- family village in a mountainous region of impoverished Anhui search firm Euromonitor International. In fact, you may have a Province in central China, he spent his childhood fetching water Midea product in your home and not even know it. The Chinese from wells and chopping firewood. He was saved by his smarts, firm manufactures microwave ovens and other products for performing well enough on the country's tough college entrance famous brands, and it has a batch of joint ventures making air exam to gain admission to East China Normal University in conditioners with Carrier. Shanghai, where he studied history. After graduating, he landed But Fang is fully aware that this is not nearly enough. He is a job at a state-owned factory that made cars and trucks but striving to upgrade Midea's product lines, buff its brand image found the atmosphere stifling. Inspired by a 1992 tour of the and expand internationally. Though he's scored some successes-- country's south by then-paramount leader Deng Xiaoping, or- the Kuka deal, for one--Midea's experience also illuminates the chestrated to energize a new wave of economic reform, Fang challenges that await Chinese companies in their efforts to be- quit his job and moved to that region in search of opportunities. come global competitors for top U.S. and European firms. "The He discovered one at Midea, which hired him to edit the direction is very, very clear. We must transform from a labor- company newsletter. Fang describes the Midea he joined as a intensive to an innovation-driven company," he says. "We want "small village enterprise," but he found the environment much to be a global company. There is still a long way to go." more exciting. "The sense of entrepreneurship was really differ- Midea has already come quite a long way. The company ent in a private enterprise than a state-owned factory," he re- was founded in Foshan in 1968 when He Xiangjian collected calls. "There was a lot to do, and I didn't have time to do every- 5,000 yuan--the equivalent today of $725--and opened a small thing I wanted." factory making plastic and glass bottles with 23 villagers. Later, Midea didn't stay small for long. As China's economy after organizing itself into a commune, the company shifted into surged, Midea went along for the ride. Rising household in- other products: auto parts, engines, fans and, in 1984, air condi- comes gave the average Chinese family the cash to purchase

11 Advances Newsletter, Q2 2017

NEWSLINE

Forbes Interview with Paul Fang (Cont.)

Via Forbes refrigerators, washing machines and other modern convenienc- about the risks facing us down the road and what changes we es. And with a population of more than 1.3 billion, there was no should make." shortage of kitchens and living rooms in need. Midea's sales are Hu is a key part of those changes. Lured to Midea from roughly 400 times larger today than when Fang joined the com- Samsung Electronics five years ago, he is now spearheading the pany 25 years ago. company's efforts to create a more effective research-and- But as Chinese families grow richer, the market becomes development program. Since 2012, Midea has more than dou- tougher. Appliances once considered luxuries are now necessi- bled its R&D staff to 10,000 (out of 120,000 employees overall). ties, so roughly nine out of ten families have a refrigerator- In April, Midea opened a research center in San Jose, California, freezer, for instance, while more than three-fourths own air con- and plans to spend $250 million on it over the next five years. ditioners. That But Hu cautions that more means growth is resources alone don't imme- slowing. Euromoni- diately translate into innova- tor forecasts that the tion. Like many manufactur- volume of appliances ing firms, he explains, Midea sold in China will was fixated on improving increase by 3.6% a efficiency and notching quick year to 2021, much returns, a management focus less than the 6.5% ill-suited to fostering creativi- annual clip from ty. "If you try to drive prod- 2011 to 2016. Con- uct leadership, you have to sumers are also be- invest for the long term," he coming more sophis- says. "The company culture ticated and demand- was not designed that way. ing. Since many are now replacing old appliances, they are look- They built up [R&D] teams, but they were not doing much. The ing for upgrades in performance and quality. Globally, too, the company had to have a mind-set change to deal with the risk of industry is changing, with growing demand for new types of it. That was a huge challenge for us internally." products, such as Wi-Fi-connected appliances. "The market is Hu started slowly. Rather than assigning his new staff to evolving very quickly," says Dinesh Kithany, principal analyst ambitious endeavors, he first told them to find and fix problems for the home-appliance industry at -based consulting with Midea's product line. His engineers, for instance, made firm IHS Markit. "Companies need to differentiate their prod- washing machines quieter and more durable, with better capaci- ucts, and that will come only through innovation." ty for their size and an easier-to-use detergent dispenser. Such Fang has been handed the task of navigating Midea enhanced designs, added to Midea's especially wide-ranging through these new realities. Executives describe him as a hands- product offerings and some strong online distribution, has off type, who leaves the nitty-gritty details to his top lieutenants helped boost the company's market share in China in major while focusing on big-picture strategy. Zachary Hu, president of household appliances--such as washing machines and refrigera- Midea's corporate research center, says Fang has visited his of- tors--to 13% in 2016 from 8.7% four years earlier, according to fice only twice in the past couple of years, trusting him with the Euromonitor data. day-to-day management of his department. "Instead of listening You can read the whole thing at: https:// to a bunch of specialists, he will try to figure the business out by www.forbes.com/sites/michaelschuman/2017/05/30/we-must himself and set the direction of the company," says Hu. "He is -transform/#6b29c0b134fb forward-thinking. Even in the good times, we started thinking

12 Advances Newsletter, Q2 2017

FUSION Conquistadores and El Clasico: An Introduction to Spain By Kevin McGeary

highly competitive job market, an increasing number of people M idea signed an agreement this year with Frigicoll to are realizing the usefulness of a language that is spoken in so be its sole distributor of air conditioning in Spain. This will help many countries that are playing a bigger role in the global econ- establish Midea’s brand in a country that has recovered well omy, according to Luis Hu, owner of Louis International Lan- from the Global Financial Crisis of 2008 and whose economy guage Academy in Foshan, China. looks set to grow impressively. The second largest nation in western Europe, Spain is an Linguistic diversity ancient land of remarkable diversity. It contributes much to the world in cuisine, culture and many other areas. Traditionally known as Castilian, Spanish is no longer the only official language in Spain. In 1978 the Spanish Constitution Territory established that languages different from Castilian could be giv- en official status. Throughout history, the territory now known as Spain has Catalan, also a romance language descended from Latin, is been occupied by the Greeks, Carthaginians, Romans, various the official language of the principality of Andorra and the joint- Germanic tribes, and the Moors from the Middle East. Each left official language of Catalonia, an eastern region with some 10.5 its impact on areas of Spanish society including language and million inhabitants, around half of whom speak it as a mother architecture. tongue. The Romans, who used “Hispania” Moreover, some 660,000 people speak a language known to train their military, built roads as Basque. It is not known which, if any, languages Basque is and aqueducts during a period in related to. Its origins are a mystery. which Spain’s economy thrived. The Moors built the Cathedral of Conquistadores Cordoba (originally a mosque), the Alhambra Palace, and many other Spain became an independent nation state in the modern which still stand. sense in 1492 and in the following century, due to its conquest With its long history and varied cultural heritage, Spain is a of the Americas, was the most powerful nation on Earth. Con- land of evocative landscapes both manmade and natural. Poet quering ancient civilizations including the Aztec and the Inca, and playwright Federico García Lorca said: “In Spain, the dead the Spanish conquistadors colonized much of North and South are more alive than the dead of any other country in the world.” America. With superior armor and willingness to commit horrifying The Spanish language atrocities, the conquistadors acquired resources of unimaginable value from what is now Latin America. Many of the conquista- Of any language today, Spanish is the third most spoken dors were adventurous dreamers who discovered precious jew- and second most studied. It is the official language of Spain, els that enriched their country and themselves, however the nineteen countries in the Americas, and Equatorial Guinea, a most historically significant things they brought back may have small oil rich country on the west coast of Africa. been initially unpopular crops including the tomato and the Spanish evolved from several dialects which were descend- potato. ed from Latin in the Iberian Peninsula after the fall of the Ro- Due to its bland taste, the potato was originally only used man Empire in the 5th century. The Moorish invasion of the 8th as a decorative plant, but its nutritional value became apparent century meant Spanish also became highly influenced by Arabic. and its popularity gradually spread throughout Europe. It has It is anticipated that by the 2050s, 10% of the world‘s pop- been suggested that the potato has had a major impact on eve- ulation will speak it, according to the Cervantes Institute. In a

13 Advances Newsletter, Q2 2017

FUSION Conquistadores and El Clasico: An Introduction to Spain (Cont.) By Kevin McGeary rything from the Industrial Revolution (enabling nations to have ly-challenging ‘Variations on a Theme by Mozart”, remain pop- a well-fed working class) to World War 2 (enabling the Allies to ular with classical guitarists today. feed their brave men in the build up to D-Day). Composer and teacher Francisco Tarrega (1852-1909) was the first to transcribe major composers such as Bach to the six- The greatest book ever published? stringed instrument and himself composed “Recuerdos de la Alhambra”, one of the instrument’s best-known pieces. The Don Quixote, published in 1605, is known as the first tremolo finger-picking style represents the flowing fountains of modern novel, according to figures as distinguished as literary the iconic palace. critic Harold Bloom. Written by Miguel de Cervantes, who start- In the sound-recording era, the figure often credited with ed it while in debtors’ prison in , it tells the story of the establishing the guitar as a solo concert instrument in the mod- eponymous delusional nobleman and his sidekick Sancho Panza. ern sense is Andre Segovia. He is remembered for his expres- In 2002, the Norwegian Book Club polled esteemed writ- sive performances, his wide palette of tone, and his distinctive ers across 54 countries to construct a list of the 100 greatest phrasing and style. books ever published, naming the project the Bokklubben World Library. Many scholars estimate that it has reached a Football readership of 500 mil- lion. This figure would Football is the national sport of Spain, home to Real Ma- make it the best-selling drid, history’s most successful football club. Their rivalry with novel in world history Catalan giants Barcelona is one of the greatest in all sport, head- by far. to-head encounters being known as el clasico. There is one possibly The Spain of Fascist Generalissimo Franco, which major flaw with Don spanned some forty years in the mid-twentieth century, was Quixote, it is utterly based on centralization and ethnic, cultural, and linguistic ho- unreadable. At least mogenization. Rightly or wrongly, Barcelona fans have long that is according to liked to think that Real Madrid is representative of the conserva- novelist Martin Amis, tive establish- who compared the ment while book to “an indefinite they are the visit from your most plucky outsid- impossible senior rela- ers. tive, with all his Spain’s pranks, dirty habits, unstoppable reminiscences, and terrible national team cronies.” had long been known for Guitar underachieve- ment with only the 1964 European Championship to show after The guitar is one of Spain’s biggest contributions to West- producing generations of top playing talent. However, around ern music. Descended from older hand-held string instruments the end of the first decade of the twenty-first century the na- such as the lute, the guitar began to be taken seriously during the tional team went through a golden age, collecting a World Cup lifetime of Barcelona-born composer Fernando Sor (1778-1839), sandwiched between two European Championships. The heart- who was named by a prominent Belgian musicologist as “le Bee- beat of the all-conquering team was a core of Catalan players, thoven de la guitara”. His compositions, including the technical-

14 Advances Newsletter, Q2 2017

FUSION Conquistadores and El Clasico: An Introduction to Spain (Cont.) By Kevin McGeary including Xavi and Carles Puyol. His movies, including “L’age Painters D’or” (1930), “Belle Du Two of the most important painters of the twentieth cen- Jour” (1967), and tury were Spanish. Born in Malaga in 1881, Pablo Picasso was a “That Obscure co-founder of the Cubist movement. His best-known painting is Object of De- Guernica, which depicts the bombing in April 1937 by pro- sire” (1977), were Fascist forces of the Basque village of the same name. Picasso characterized by Belle du Jour completed the painting in Paris within two months of the attack. formal innovation, On the 75th anniversary of the painting’s creation in 1912, surrealism and a mockery of bourgeois values, particularly reli- author Alejandro Escalona said of Guernica: “(It) is to painting gious ones. Bunuel mostly worked in Mexico and as his what Beethoven's Ninth Symphony is to music: a cultural icon career coincided with the repressive regime of Generalissimo that speaks to mankind not only against war but also of hope Franco. and peace. It is a Franco’s death in 1975 liberated a new generation of reference when Spanish filmmakers, most famously Pedro Almodovar. Major speaking about geno- themes he is known for include fluidity of gender identity, sex, cide from El Salva- violence and empathy for even the most despicable people. He dor to Bosnia.” is known as a women’s director in the same vein as American A generation young- George Cukor (“The Philadelphia Story” (1940), “My Fair La- er than Picasso was dy” (1964), etc.). Almodóvar has said that women make better Salvador Dali, who characters: "women are more spectacular as dramatic subjects, was a leader of the they have a greater range of registers.” surrealist movement. His best-known Cuisine and wine The Persistence of Memory piece is The Persistence of Memory, completed in A 2010 economic study by 'La Caixa' reported that in 1931 when Dali was 27 and known for its iconic image of a Spain there is a ratio of one bar and/or restaurant for every 129 melting pocket watch. Spaniards. This fact, plus the country’s regional and cultural As revered as he was for his work, Dali may have been diversity, shows that Spain has a great deal to offer the adven- better known in his lifetime for eccentric and grandiose behav- turous diner. iour. He once said: "every morning upon awakening, I experi- A typical bar will boast a selection of “tapas” (small snacks ence a supreme pleasure: that of being Salvador Dalí". portions of food) that vary by region and are often discounted or even sometimes included in the drink price. Spain is famous Film for its pork products as well as its sea food. One of the most respected dishes in Spanish cuisine is paella, a rice-based dish In the early twentieth century, Spain embraced the new that originates from Valencia. medium of film as enthusiastically as any of its European coun- An important part of Spanish cuisine is wine, which is terparts. The first Spanish filmmaker to make a major impact often consumed with lunch, the biggest meal of the day. Spain is internationally was Luis Bunuel who, with Salvador Dali, re- the world’s third largest producer of wine, with leading brands leased surrealist masterpiece “An Andalusian Dog” in 1926, the including Torres Mas La Plana and Dominio de Pingus. first of dozens of Bunuel films that are now considered classics.

15 Advances Newsletter, Q2 2017

FUSION India: Cricket, Sacred Cows, and a Cantering Economy By Kevin McGeary

Though W ith its Carrier-Midea India (CMI) factory, Midea there is some has a large and ever-growing presence in the world’s seventh debate as to largest country. As we continue to grow our operations, let us what exactly take a look at the land of Gandhi and the Holy Ganges. are the holy scriptures of Territory Hinduism, ancient texts The name India is derived from Indus, which originates written in San- from the Old Persian word Hindu. India has an ancient civiliza- skrit include tion dating back to at least the Vedic Age which began in the the Upanishads second millennium BCE, when the earliest Hindu texts were and Mahabha- composed. rata are im- For much of its history, the territory that became modern- portant to Hin- day India was subject to successive invasions from Central Asian duism. Gauta- empires such as the Mongol and the Mughal and Europeans ma Buddha (c. after Vasco da Gama discovered a sea route to India at the end 563 BCE/480 of the 15th century. BCE – c. 483 BCE/400 BCE), a sage who lived in India, was The foreign power to have had the most significant impact inspired by the Upanishads. He is the central figure in Bud- on shaping modern-day India was Britain. After the East India dhism, a religion that is today practiced by some 500 million Company gained control of the Bengal region in 1765, it was people around the world. able to annex or subdue most of India and use its vast territory to supply resources to the British Empire. Languages India gained independence on July 18, 1947 when the Brit- ish parliament partitioned British India into the two new inde- With 22 languages recognised as official by the constitu- pendent dominions of India and Pakistan. As the world’s second tion, India is one of the world’s most linguistically diverse terri- most populous country, India has been able to claim to be the tories. Hindi, mostly spoken in the north, leads the way with “world’s largest democracy” since the Republic of India held its 422 million speakers, followed by the eastern language of Ben- first general election in 1951. gali with just over 83 million.

Religions Cricket

India is the birthplace of at If religion and language can least three major religions, Hin- be divisive forces, then some- duism, Buddhism and Sikhism. It thing that unites most of the has also had a significant Muslim nation is its national sport, population for most of its histo- cricket. Test cricket is regard- ry. Hinduism, which is today the ed as the highest in the sport religion of around 80 percent of and India became a test na- India’s population, is considered tion in 1932. Among many Sachin Tendulkar (c) after the 2011 World Cup final by some to be the world’s oldest other cricket achievements, religion and is currently the world’s third largest.

16 Advances Newsletter, Q2 2017

FUSION India: Cricket, Sacred Cows, and a Cantering Economy (Cont.) By Kevin McGeary

India boasts the highest ever run scorer in test cricket history in painterly silhou- Sachin Tendulkar who played from 1989 to 2013. ette with its sig- India won the Cricket World Cup in 1983 when it began nature hump, the tournament as a 66/1 outsider and again in 2011, becoming make it the most the first host nation to be crowned champion after a thrilling evolved of ani- victory over Sri Lanka. mals," writes historian Mukul Bollywood Kesavan. For this India makes more movies than any other country, 1,500 to reason, beef is banned in much of the country, a rule that has 2,000 annually, despite having just 1 screen per 96,300 residents, been criticised by many because the meat is cheaper than chick- making it the world’s most under-screened country. Films are en and fish and is a staple for the Muslim, tribal and dalit com- produced in more than 20 languages, but Indian cinema is most munities, who have historically had a low status in society. readily associated with its Mumbai-based, Hindi-language film Still, Mahatma Gandhi, one of India’s greatest historical hub colloquially figures, said: “I would not kill a human being for a cow, and I known as Bolly- would not kill a cow for a human being.” Even McDonald’s in wood. India does not sell beef. In 2015, critics at Time Cuisine Out magazine held a vote on Given the diversity in soil type, climate, culture, ethnic the 100 greatest groups, and occupations, In- Bollywood mov- dian cuisine uses a wide varie- ies. Number one ty of available spices, herbs, was the 1975 vegetables, and fruits. As a action thriller foreigner, Indian cuisine can “Sholay”. The be both exciting and intimi- film’s terrifying Biryani dating. villain Gabbar Singh (Amjad Khan) is sometimes used to scare Famous dishes include biryani, children into behaving themselves. an aromatic rice dish cooked with several spices, notably saf- Other greats of Indian cinema include the Apu trilogy di- fron, and a protein (typically rected by Satyajit Ray and released between 1955 and 1959. chicken or mutton) that's Writing in The New Yorker in 2015, Richard Brody described the been marinated. There is also movie as “the story of nothing less than the awakening of a soul, tandoori chicken, which is the rise of an artistic vocation, and a young man’s confrontation marinated for hours in a paste with the grave responsibilities of life.” of yogurt and spices, and then roasted in a clay oven called a The cow tandoor. Vegetarians are also Bhelpuri spoilt for choice in India, with In the majority Hindu culture, the cow is a sacred animal. dishes including bhelpuri, which is a type of puffed rice fried "Its large eyes, its calm, its matte skin tinted in a muted palette with vegetables, in a spicy and tangy tamarind sauce. that runs from off-white to grey through beige and brown, its

17 Advances Newsletter, Q2 2017

FUSION India: Cricket, Sacred Cows, and a Cantering Economy (Cont.) By Kevin McGeary

requires con- Tourist attractions centration and agility— From the Himalayan mountains to the Arabian Sea coast, seems un- India has too many tourist attractions for one lifetime. However, stoppable there are two spots in India that are particularly famous, one around the natural, one manmade. world, with Located in the city of Agra in Uttar Pradesh, the Taj Mahal over US $27 is perhaps India’s most famous building. Named after Mumtaz billion spent Mahal, the favorite wife of Emperor Shah Jahan, it was begun annually on upon her death in 1631 and took 20,000 men 22 years to com- yoga products plete. Incorporating many elements of Islamic design, the Taj in the United Mahal is largely constructed of white marble decorated with States alone, a country where the number of practitioners went from 20 million to 37 million between 2013 and 2016.

Economy

India is the world’s fastest-growing large economy, having outpaced China over the past two years. It ranks 39th among the world’s most competitive economies, up 16 plac- es from 2015.

The Taj Mahal is particularly stunning during sunrises and sunsets

delicate inlaid floral patterns and precious and semi-precious stones such as jade, lapis lazuli, diamonds, and mother of pearl. India’s longest river, The Ganges, is considered sacred in Hindu culture. It is the site of numerous religious events and the hub of much commercial activity. Things to do there as a tourist include rafting and dolphin spotting. The Indian economy is expected to grow at 7.6 per Yoga cent in the fiscal year 2017-18, as per the forecast by The World Bank. Foreign direct investment inflows rose 22 per Yoga, one of the world’s most increasingly popular disci- cent year-on-year to US $35.84 billion during April– plines, originates from India. The first use of the word “yoga” is December 2016. Though some 58 percent of Indians rely on found in the Rigveda, an ancient book of Sanskrit hymns and agriculture to earn a living, the country has an exciting and the practice in its current form dates back to around 500 BCE. growing tech sector that is welcoming to foreign businesses. The spread of yoga—a physical and spiritual activity that

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