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Industrial Orientation Report - Smeet Jain

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Industrial Orientation Report Malaysia China

Hongkong

INDUSTRIAL ORIENTATION REPORT


Malaysia CHINA HONGKONG

POST GRADUATE PROGRAMME IN


MBA- FB&E
(2014-2016)

Institute of Management, Nirma University

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Industrial Orientation Report Malaysia China


Hongkong
SUBMITTED BY:
Smeet Jain
144154

Table of Content
Part

Content
Preface
Acknowledgement
Declaration
Domestic Visit
Domestic Industries Visited
1.1 Shetty Chemicals
1.2 Sunex Tubes
1.3 Sandeep Tubes
1.4 Amul Satellite Station
1.5 Mapro Satara Plant
1.5 Himcast
1.6 Sai Kartik Kaju Packing
1.7 Casino Pride Goa
International Visit
Introduction to China
2.1 Background of China
2.2 Facts about China
2.3 Industries in China
2.4 International Trade in China
2.5 Politics & Government
2.6 Observations and Learnings about China in General
Industries Visited in China
3.1 Maglev Train
3.2 Maglev Museum
3.3 Nanjing Street
3.4 Wal-Mart Shanghai
3.5 IKEA Shanghai
3.6 Silk Factory
3.7 Huangpu River Cruise
3.8 Volkswagen Shanghai
3.9 Bao Steel Plant
3.10 Lenovo Shanghai Factory
3.11 Sunqiao Modern Agriculture Development Zone
3.12 Shanghai World Financial Centre
3.13 Family Business Network

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3.14 Coca-Cola Bottling Plant Shanghai
3.15 East China Normal University
3.16 Shanghai ShenAn Textile
3.17 Yiwu Commodity Market
3.18 Keqiao Textile Market
3.19 Meijiawu Tea Village
3.20 Shenzhen RSB Full Colour Display-Tech Co. Ltd.
3.21 Louhu Market
3.22 Windows of the World
3.23 Louvre Furniture Mall
3.24 Canton Fair
Introduction to Hongkong
4.1 Introduction
4.2 Economy

4.3 Industry overview


Industries Visited in Hongkong
5.1 HKTDC (Hongkong Trade Development Council)
5.2 Ocean Park
5.3 Victoria Peak
5.4 Star Virgo Cruise

Learnings for Business Plan


6.1 Visit to Lianyoubang Machinery, Foshan
6.2 Canton Fair

References

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PREFACE

The purpose of the Industrial Orientation is to acclimatize the students


with the practical knowledge of company as a whole and the industry in which
the company is. Industrial Orientation will help the management students in
getting equipped with the exposure required for making business decisions.
Industrial Orientation provides the framework and avenues for identifying
and getting a close feel of the value chain activities and strengthening the
business networks. The main objective of this activity is to give international
exposure to the students, which will enable them to learn about the target
countries and understand the business culture. It not only provides the
opportunity for the country study alone, but also tap business opportunities
simultaneously in the country visited.
The industrial Orientation was the valuable experience in terms of
exposure & learning and I believe that in future, I will get desired results.

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ACKNOWLEDGEMENT

I take this opportunity to express my gratitude to the people who have


been instrumental in the successful completion of this project.
I express my sincere gratitude to Mr. Sanjay Jain and Ms. Reena Shah,
for providing me assistance and all the help during the international visit. I am
thankful to them for their support, cooperation, motivation and some of the
valuable industry insights.
I would like to thank Mr. Tejas Ambani, the trip coordinator from Yatra
tours and travels for organizing such a valuable trip for providing valuable
insights about Hongkong and China respectively.
Lastly, I would like to thank the lord and my parents for their moral
support and my friends with whom I shared my day-to-day experience and
received lots of suggestions that improved my quality of work and also my
personal development.

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Institute of Management, Nirma University

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Industrial Orientation Report Malaysia China


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PART A:
MALAYSIA VISIT

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Chapter 1: Malaysia Industries Visited

Day 1: September 24th, Pune India


1.1 Shetty Chemicals
Shetty Chemical & Engg works Pvt Ltd is engaged in
the business of manufacturing and selling calcined
and fused Alumina products like Refractories. They
have gained almost 50 yrs experience in
manufacturing this product of best Quality. They have
a well-developed Infrastructure and a skilful team for
meeting the clients need.
SCEW is One of the biggest Manufacturer and
exporter of a comprehensive range of refractory
castables, general refractories, cement refractory
castables. This Division Focuses on providing a wide
range of refractory products to meet the needs of
Various global factories like furnace refractories, petrochemical industry, fertilizer
industry, copper industry, glass foundries, Power plants, Coal Mines, Coke Oven
Plants, Ceramic Industries, Oil Mills & Refineries, Saw Mills, Miscellaneous
Furnaces, Ships & Marine Installations and many other areas.
1.1.1 Learnings and Observations

Established in 1952
Manufactures Refractory Cement (High Temperature Resistant Cement)
Raw Materials: Bauxite, Chrome, Silicate, Cynate, Water, Grog
Temperature Resistance range of Cement: 1250 C to 1850 C
Other Product: Lubricant used in Drawing
Bauxite is Obtained from Northern Gujarat
It contains high amount of Alumina which acts as a binder
Monopoly Product: Thermotex which withstands 1850 C
One Boiler (approx. 100 sqft area) requires 2 to 3 drums of Thermotex

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1 Drum has 40 kg Capacity


Thermotex is in form of paste having particles not more than 2-3 mm
Capacity: Thermotex 15 ton/day, Castables 27 ton/day, Lubricant 1.5
ton/day
Price of Thermotex: 23,000 to 25,000 Rs/ton
Manpower: 13 Workers, 1 manager, 1 supervisor
Refractory Cement has 4 Grades: Siscast CSD, Siscast super, Siscast super
special and thermopaste chromax
Application of Refractory Cement: Sugar Industries and Boilers
Application of Lubricant: Wire Drawing
Company has total 4 units: 3 in saraswadi and 1 in jesuri
Turnover: 4 to 5 lakh Rs/day

1.2 Sunex Tubes


Established in the year 2003, Sunex tubes is in the field of
Fabrication of MS Products and Sheet Metal Processing. It is a
family owned company located in Pune.
Products and Services offered are

Industrial Fabrication Services


Material Handling Trolleys
Storage Systems
Coveyors
Canopy
Customized Trolleys

1.2.1 Learnings and Observations

Established in 2003
Company is into Fabrication of MS products & Sheet metal processing
It manufactures trolleys, carrying Automobile parts
Durability of trolleys is 4 years
Polypropylene is used for holding the automobile parts in trolleys
Polypropylene is procured in sheet form having 8ftx4ft dimensions
Machines Used: CNC cutting, Arc Welding, Lathe, Spot Welding, Shearing
Machine, Press break bending machine, Milter saw etc.
Majority of the orders from Automobile Sector
Specifications of the trolleys are given by the manufacturer
Capacity: 40 to 45 Ton/day
Annual Capacity : 15000-20000 Trolleys

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Weight of 1 trolley: Approx. 80 kg


Allowable wastage for Sheet metal processing is 5%
Laser Cutting is Outsourced

1.3 Sandeep Tubes


Incepted in the year 1992, Sandeep Tube Cleaning
Equipment,
is
a
H.U.F
firm
engaged
in
manufacturing, exporting and supplying of a wide
array of tube cleaning equipment and machined
components that includes cleaning brushes, flexible
shafts, universal joints, directly coupled drives, inner
casing sockets, wire brushes, double spiral brushes,
single spiral wire brushes, expanding brushes,
circular wire brushes, circular wire wheels, cup
shaped wire brush, hand piece assembly, etc. to
meet the growing requirement of sugar industry.

Under the able guidance of their mentor, Mr. Sushant Kaisare, they have carved
a niche in the competitive industry and become a single window solution of
sugar mills.
The company is a family owned business in which all six brothers are partner and
actively participate in the day to day functioning of the business. Backed by
sophisticated machines, they have been able to increase their production
competence. Their ability to meet the ever-increasing demands of the clients has
enabled their company to achieve a prestigious status of export house. They
have two offices in Pune, from where they successfully conduct the business
activities.
1.3.1 Learnings and Observations

Established in 1992
Specially Designed machine imported from Germany to manufacture
Products
Products are used for mechanical cleaning of boilers
Flexible shaft machines
Carbon wires are used for descaling the boiler tubes
Dimensions of the Flexible Shaft:
o Min 25 mm ID , Max 200 mm ID
o Length: 25- 30 m long
Production capacity of shaft: 300 m/day

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Application: Sugar Industries where chemical treatment is not feasible


Water is used as a lubricant
Manpower: 25 Employees
Turnover: 4-5 Crores

Day 2: September 25th, Pune India


1.4 Amul Satellite Station
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest
food product marketing organisation with annual turnover (2013-14) US$ 3.0
billion. Its daily milk procurement is approx.
13.18 million lit per day from 17,025 village
milk cooperative societies, 17 member unions
covering 31 districts, and 3.23 million milk
producer members.
It is the Apex organisation of the Dairy
Cooperatives of Gujarat, popularly known as
'AMUL', which aims to provide remunerative
returns to the farmers and also serve the interest of consumers by providing
quality products which are good value for money. Its success has not only been
emulated in India but serves as a model for rest of the World. It is exclusive
marketing organisation of 'Amul' and 'Sagar' branded products. It operates
through 53 Sales Offices and has a dealer network of 10000 dealers and 10 lakh
retailers, one of the largest such networks in India. Its product range comprises
milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Icecream, Paneer, chocolates, and traditional Indian sweets, etc.
1.4.1 Learnings and Observations

Amul Satellite Station to cater the needs of Maharashtra


On 26th Jan 2004 all the process were converted into automatic from
manual
Milk comes to Pune Amul Satellite Station from Anand
Storage Capacity: 1,50,000 Litres/day
Milk is supplied to Aurangabad and Pune from the Pune Amul Satellite
Station
Curd is supplied to Aurangabad, Pune, Goa and Nashik from Pune Amul
Satellite Station
Milk Variants: Taaza Gold and Slim & Trim
Curd is offered in pouch and cup

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Buttermilk has seasonal demand in Maharashtra unlike uniform demand in


Gujarat
Procurement is done by Milk procurement team
They have started to develop co-operative structure
Animal Husbandry and Training and development of people
GCMMF provides order to this branch
No compromise in Quality
Manpower: 24 Technical Labour, 21 Non Tech Labour and 55 Contract
Labourers
Storage of Milk takes place at 2 to 3 C
Departments: Quality Assurance, Production Milk Processing, Production
Curd & Buttermilk, Packing, Utility & engineering, Accounts, HR & admin,
Store and Purchase
UV light used to kill mosquitoes
Provides on Job Training
Good Housekeeping
Food Quality Training

1.5 Mapro Satara Plant


Located around the idyllic hill-town of Panchgani in Western India, Mapro Foods
manufactures Fruit Jams; Fruit beverage concentrates Crushes and Squashes;
and Fruit Bars. With an annual processing capacity of around 30 thousand MT,
Mapro is a market leader in Western
India.
The
company has
grown
organically over the last five decades
with sustained profitability. Known for
its quality and innovation, Mapro has
been built on its founders philosophy
of developing products that are
wholesome,
nutritious,
value-formoney, and imaginative.
Mapros portfolio of products provides a
high quotient of natural fruit in the form of Jams, Fruit bars and chews, Syrups,
Crushes, Squashes, and Dessert Toppings. Its range of premium products such as
Thandai crush and Kesar syrup are made from the finest selection of exotic
ingredients. Mapros products are known for their wholesome taste and quality,
as also their natural goodness and nutritive value. Mapro was the pioneer of
fruit-based confectionery in India, with its first jelly sweets being made from fruit
juices and liquid glucose. The Falero pulpy fruit chews, which are better known
as pates de Fruit in the rest of the world are excellent exemplars of Mapros
very own Innovation Labs. Falero come in unique indigenous flavours that are
suited to the Indian palate, like Kacchi Kairi (Raw Mango), Alphonso Mango and

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Strawberry.
1.5.1 Learnings and Observations

Established in 1959
25 Acres of Land
4 Plants Mahabaleshwar, Panchgini , Baramati and Satara
Strawberry Jam was the first product followed by Gulab Sharbat
Fruit pulp is exported to other countries
Strawberry and Mango are grown over there
Capacity of Plant: 30,000 Litre
Products: Jams, Falero and Syrup

Day 3: September 27th, Goa India


1.6 Himcast
Himgiri Castings Private Limited was founded in the year 1993 in Goa, India.
Himgiri is currently producing about 20000 Metric Tons Castings per annum. The
product mix is about 70% Ductile Iron & 30% Grey Iron. The company is
exporting about 75% of its production to
countries like USA, Australia, New
Zealand, France, Germany, Spain, Italy,
Belgium etc.
HIMGIRI CASTINGS has two Manufacturing
locations: GOA UNIT and HALOL UNIT
(GUJARAT). With complete integration of
latest technologies and quality systems, they at Himcast strive to attain the
highest level of customer satisfaction. To become customers' first choice
perpetually, Himcast team is aligned to provide best solutions to its valued
customers in terms of quality, cost, development and delivery. They have
adopted customer centric strategies and believe that this would ensure the
satisfaction of all the Customers, Employees, etc. Their customers include
several prominent companies in India and abroad. We have extensive experience
in manufacturing and supplying components to various standards and
specifications.
They can produce castings in the weight range of 5kg 250kg single part piece.
Production facility include Induction & Gas Fired Cupola Furnace, High Pressure
line, Arpa1300, Arpa900, Arpa450,Core shooters, Sand Plant, Sand Cooler, Knock
out, Heat Treatment, Shot Blasting, Powder Coating, Chemical Lab, Physical Lab
and Machine shop with CNC, VMC, HMC, VTL etc.

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1.6.1 Learnings and Observations

Established 1995
20% of the Production is consumed locally whereas rest 80% is Exported
Raw Material: Grey Cast Iron, Spheroidical Cast Iron, Scrap, Charcoal and
Pig Iron
Capacity: 700 ton/month
Export Region: America, Australia, Japan
Manpower: 400 Workers
Plant operates in 3 shifts with 100-150 workers in each shift

Process
1.
2.
3.
4.
5.
6.
7.
8.
9.

Knockout
Decoring
Shot Blasting
Finishing
Grinding
Testing
Drilling
Painting
Dispatch

Day 4: September 29th, Goa India


1.7 Sai Kartik Kaju Packing

The cashew tree is a tropical evergreen that produces the cashew nut and the cashew apple.
The cashew nut is served as a snack or used in recipes, like other nuts, although it is actually
a seed. The cashew apple is a fruit, whose pulp can be
processed into a sweet, astringent fruit drink or
distilled into liqueur. The shell of the cashew nut
yields derivatives that can be used in many
applications from lubricants to paints, and other parts
of the tree have traditionally been used for snake-bites
and other folk remedies.
Originally native to north-eastern Brazil, the tree is
now widely grown in tropical regions, Vietnam and
Nigeria being major producers, in addition to India, the Ivory Coast, and Indonesia. The
cashew apple, also called cashew fruit, is the fleshy part of the cashew fruit that is attached to
the cashew nut. The top end of the cashew apple is attached to the stem that comes off the
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tree. The bottom end of the cashew apple attaches to the cashew nut, which is encased in a
shell. In botanical terms, the cashew apple is an accessory fruit that grows on the cashew seed
(which is the nut).
The cashew apple is a soft fruit, rich in nutrients, and contains five times more vitamin C than
an orange. It is eaten fresh, cooked in curries, or fermented into vinegar, as well as an
alcoholic drink. It is also used to make preserves, chutneys, and jams in some countries such
as India and Brazil. In many countries, particularly in South America, the cashew apple is
used to flavour drinks, both alcoholic and non-alcoholic
1.7.1 Learnings and Observations

Mango & kaju are brothers-sisters

Kaju tree requires low plantation

It is the only fruit which has seed outside fruit.

Only one kaju in one fruit

Weight of 700 Kaju is 1 kg

India has only 30% kaju with Goa having only 2% kaju

Goa kaju just has status & is sold only because people believe goa kaju
brand and are sweeter in test

Kaju Skin has acidic oil

Shell has Non edible oil which is used in marine paints

Shell protects kaju while boiling at 100 degree.

Kaju fenni is a by-product which helps in reducing the price of original


'Kaju' product.

1 kg kaju consumption will increase your weight by half kg.

Only 10 kaju advisable in day - 5 morning, 5 evening

Kaju has more calories than ghee & cheese

So, cashew nut is body builder

Kaju is more preferred by soldiers as it can easily replace the food (being
light in weight & high in calories)

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1.8 Casino Pride Goa

Casino Pride Goa is a best premium floating casino in Goa, perhaps one of the casinos in
India that offers the best gaming in India. Casino Pride built upon the vessel MV the Pride of
Goa and berthed on the River Mandovi, is one of Goa's latest and most luxurious offshore
casinos.
1.8.1 Learnings and Observations

Owner: Mr. Nitin

No of Casinos owned by Pride group: 5


o

Cruise based Casinos: 2

Land based Casinos: 3

Common floor: Normal gaming zone, Roulette, card table, poker room

Second floor: VIP table

Facilities: Restaurant, kids room, Dance, Bars

Starting Date: Aug 2008 (Casino Pride 2)

No of Customer Daily: 700-800 Approx.

Timings: 247 working

Single entry for both casino

Morning time only running table are continued, Rest are balanced for
accounting

Shifts: Gaming 4 Shifts, Food & beverage 3 shifts

Approx. 80-90 staff each shift

Games: Roulette, mini backard, casino war, black jack, 3 card poker, 5
card poker, mini flush, slot machine, alpha roulette (machine roulette),
poker, teen Patti.

Each table: Dealer, Watch guard, Inspector


o

Card game:3 people

Roulette game: 2 people.

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Training on the job,

Foreign currencies are accepted till $ 1000.


o

Licence fees:

Land - 25 lakh

Boat - 1.25 crore

Licence issue is at discretion of govt.

Licences cant be sold to other companies unless the whole


company is taken over

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PART B:
CHINA VISIT

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Chapter 2: Introduction to China

2.1 Background of China


The People's Republic of China (PRC), commonly known as China, is the most
populous state in the world with over 1.3 billion people. Located in East Asia,
China is governed by the Communist Party of China (CPC) under a single-party
system. The PRC exercises jurisdiction over 22 provinces, five autonomous
regions, four directly administered municipalities (Beijing, Tianjin, Shanghai, and
Chongqing), and two highly autonomous special administrative regions (SARs) Hong Kong and Macau. Its capital city is Beijing.
At about 9.6 million square kilometres (3.7 million square miles), the PRC is the
world's third- or fourth-largest country by total area and the second largest by
land area. Mainland China's eastern seaboard is low-lying and has a 14,500-

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kilometre (9,000 mi) long coastline bounded on the southeast by the South China
Sea and on the east by the East China Sea beyond which lies Taiwan, Korea, and
Japan.
The ancient Chinese civilizationone of the world's earliestflourished in the
fertile basin of the Yellow River which flows through the North China Plain. For
more than 6,000 years, China's political system was based on hereditary
monarchies (also known as dynasties). The last dynasty, the Qing, ended in 1911
with the founding of the Republic of China (ROC) by the Kuomintang (KMT), the
Chinese Nationalist Party. The first half of the 20th century saw China plunged
into a period of disunity and civil wars that divided the country into two main
political camps the Kuomintang and the communists. In 1949, the communists
won the civil war and established the People's Republic of China in mainland
China. The KMT-led Republic of China relocated their capital to Taipei on Taiwan,
its jurisdiction is now limited to Taiwan, Kinmen, Matsu and several outlying
islands. Since then, the People's Republic of China (PRC) has been involved in
political disputes with the Republic of China over issues of sovereignty and the
political status of Taiwan.
China had the largest and most complex economy in the world for most of the
past two thousand years, during which it as seen cycles of prosperity and
decline. Since the introduction of economic reforms in 1978, China has become
one of the world's fastest-growing major economies. As of 2013, it is the world's
second-largest economy by both nominal total GDP and purchasing power parity
(PPP), and is also the world's largest exporter and importer of goods. China is a
recognized nuclear weapons state and has the world's largest standing army,
with the second-largest defence budget.
2.2 Facts about China

The third most visited country in the world for tourism, despite its
separation from most high-disposable-income countries.
The worlds largest population and third largest area.
One of the longest national histories in the world: 3,000 years of
documented history.
A great array of historical relics including: the worlds longest wall, the
Great Wall of China, the worlds largest collection of 2,000-year-old life-size
figurines, the Terracotta Army, and the worlds largest ancient palace, the
Forbidden City
The worlds fastest growing economy for the last 30 years (10% or more
per year).
Fastest urbanization: 300 million people have moved from rural areas to
cities in the last 30 years, and the same is predicted for the next 30
years..
Most construction: Half of the worlds concrete and a third of the worlds

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steel is used annually in China.

2.3 Industries in China


China is known to the world as an economic superpower. Most of the worlds
trade and economic activities are highly dependent on the industries within
China and the products that come out of them. The business that China brings to
countries all over the world is only a testament to its strength and resilience as
an industrial country after having gone through several economic and industrial
reforms to stabilize its nation. The reforms took years and years to establish and
secure, but its results are nothing short of remarkable. What with China being the
leading provider of some of the worlds most demanded resources such as steel,
coal, etc., it is only fitting that its major industries be looked at more closely in
order to have an initial image of what China has been doing right with regards to
its industries and how they develop such a strong economy.

Following are the major industries in China


1.
2.
3.
4.

Power Industry
Manufacturing and Automobiles
Energy Industry
Steel Industry

2.4 International Trade in China


The socialist market economy of China is the world's second largest economy by
nominal GDP and by purchasing power parity after the United States. It is the
world's fastest-growing major economy, with growth rates averaging 10% over
the past 30 years.
China is a global hub for manufacturing, and is both largest manufacturing
economy in the world and the largest exporter of goods. China is also the worlds
fastest growing consumer market and second largest importer of goods. China
plays a vital role in international trade, and has increasingly engaged in trade
organizations and treaties in recent years. China became a member of the World
Trade Organization in 2001, and concluded a trade agreement with the ASEAN
nations in 2010. China also has free trade agreements with several nations,
including Switzerland and Pakistan
Chinas international trade has experienced rapid expansion together with its
dramatic economic growth which has made the country target the world as its
market. The stable political system, vast natural resources and abundant skilled
labour in China have made it a modern global factory. Discussions of the role that

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international trade plays in promoting economic growth and productivity in
particular, have been ongoing since several decades ago. Due to liberalization
and globalization, a country's economy has become much more closely
associated with external factors such as openness.

2.5 Politics & Government

The People's Republic of China is one of the world's few remaining socialist states
openly endorsing communism. The Chinese government has been variously
described as communist and socialist, but also as authoritarian and corporatist
with heavy restrictions in many areas, most notably against free access to the
Internet, freedom of the press, freedom of assembly, the right to have children,
free formation of social organizations and freedom of religion. Its current political,
ideological and economic system has been termed by its leaders as the "people's
democratic dictatorship", "socialism with Chinese characteristics" and the
"socialist market economy" respectively.
The country is ruled by the Communist Party of China (CPC), whose power is
enshrined in China's constitution. The Chinese electoral system is hierarchical,
whereby local People's Congresses are directly elected, and all higher levels of
People's Congresses up to the National People's Congress (NPC) are indirectly
elected by the People's Congress of the level immediately below. The political
system is decentralized, and provincial and sub-provincial leaders have a
significant amount of autonomy. There are other political parties in China,
referred to in China as democratic parties, which participate in the National
People's Congress and the Chinese People's Political Consultative Conference
(CPPCC).
The President of China is the titular head of state, serving as the ceremonial
figurehead under National People's Congress. The Premier of China is the head of
government, presiding over the State Council composed of four vice premiers
and the heads of ministries and commissions. The incumbent President is Xi
Jinping, who is also the General Secretary of the Communist Party of China and
the Chairman of the Central Military Commission, making him China's paramount
leader. The incumbent Premier is Li Keqiang, who is also a senior member of the
CPC Politburo Standing Committee, China's de facto top decision-making body.
There have been some moves toward political liberalization, in that open
contested elections are now held at the village and town levels. However, the
Party retains effective control over government appointments: in the absence of
meaningful opposition, the CPC wins by default most of the time. Political

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concerns in China include the growing gap between rich and poor and
government corruption. Nonetheless, the level of public support for the
government and its management of the nation are high, with 8095% of Chinese
citizens expressing satisfaction with the central government, according to a 2011
survey.
2.6 Observations and Learnings about China in General

Economy Capitalist
More than 95 % of Companies are Private owned or Corporate
Feudalist Country
Secretary General of Chinese Communist party and General Commander
of Army Mr. Xi Jinping
Politically it is Dictatorship (Only one voice)
No debate in making decisions
One birth policy to curb the population
1.5 billion population of China
In 1991 Socialism to Capitalism
Before 1991, everything was state owned
Rent 80 cents per month before 1991
Every inch of land is state owned
Land is given on lease
o Living : 70 year lease
o Factory : 40 year lease
o Shop : 20 year lease
Average salary of blue collar worker in Shanghai is 600 1000 USD
including bonus
Working System: 40 hours a week, 8 hours a day, 8x5 system
Extra Wages paid for doing work on
o Extra time : 1.5 times
o Weekend : 2 times
o Holiday : 3 times
Average Salary of White collar worker in metro cities is 1500-2000 USD
Smaller cities average salary is 20% lower
Gasoline and diesel are almost at same rate
Power Cost
o Residential : Day Rs 6/KW , Night Rs 3.5/KW
o Industry and Agriculture : Rs 5.5/KW
o Commercial: Rs 12/KW
Major Reasons for Low Cost Manufacturing
o Productivity
o Proper Planning
o Proximity to Supplies
o Land at Cheaper rate from Government
o Slight variations in specifications within the tolerance limit
Religion: Taoism

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Taoism: Co-operation between human being
and mother nature
o Universe is made up of Yin and Yang
o Yin is Black fish and Yang is white fish
o Balance of Human Body
o 3- 5 million Chinese follow Taoism
Before 1949, people followed Buddhism
No specific religion in China
Muslims and Christians are less than 1%
Food they eat: Pork, Chicken, Lamb, Beef, Sea Food
o

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Chapter 3: Industries Visited in China

Day 1: October 6th, Shanghai China


3.1 Maglev Train
The Shanghai Maglev Train or Shanghai Transrapid is a magnetic levitation train,
or maglev line that operates in Shanghai, China. It is the first commercially
operated high-speed magnetic levitation line in the world and only the third
Maglev line to be operated. The train line was designed to connect Shanghai

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Pudong International Airport and the outskirts of central Pudong where
passengers could interchange to the Shanghai Metro to continue their trip to the
city center.
Construction of the line began in March 1, 2001, and public commercial service
commenced on 1 January 2004. The top operational commercial speed of this
train is 431 km/h (268 mph), making it the world's fastest train in regular
commercial service since its opening in April 2004. During a non-commercial test
run on 12 November 2003, a maglev train achieved a Chinese record speed of
501 km/h (311 mph).
It cost $1.2 billion to build. The train set was built by a joint venture of Siemens
and ThyssenKrupp in Kassel. The track (guideway) was built by local Chinese
companies who, as a result of the alluvial soil conditions of the Pudong area, had
to deviate from the original track design of one supporting column every 50
meters to one column every 25 meters, to ensure that the guideway meets the
stability and precision criteria. Several thousand concrete piles were driven to
depths up to 70 meters to attain stability for the support column foundations. A
mile-long, climate controlled facility was built alongside the line's right of way to
manufacture the guideways.
The electrification of the train was developed by Vahle, Inc. Two commercial
maglev systems predated the Shanghai system: the Birmingham Maglev in the
United Kingdom and the Berlin M-Bahn. Both were low-speed operations and
closed before the opening of the Shanghai Maglev Train.
The line is not a part of the Shanghai Metro network, which operates its own
service to Pudong Airport from central Shanghai and from Longyang Road
Station.

3.1.1 Speed Profile

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3.1.2 Learnings

Maglev trains use magnets to levitate and propel the trains forward.
The propulsion system consists of aluminum three-phase cable windings in
the stator packs that are on the guideway.
When a current is supplied to the windings, it creates a traveling
alternating current that propels the train forward by pushing and pulling.
When the alternating current is reversed, the train brakes.
Different speeds are achieved by varying the intensity of the current.
Only the section of track where the train is traveling is electrified.
Since there is no friction these trains can reach high speeds.
It is a safe and efficient way to travel.
Governments have mixed feelings about the technology. Some countries,
like China, have embraced it and others like Germany have balked at the
expense.

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3.2 Maglev Museum

Shanghai maglev museum is located at the first floor of Maglev Longyang Rd


station, 1250 square meters, which containing most of the history and
technology of maglev train. The museum is composed of Birth of Maglev,
Maglev Shanghai Line, Maglev Technology, Maglev Superiorities and
Prospects for Maglev, totally five sections.

3.2.1 Learnings

Electromagnetic levitation: Controllable electromagnetic field is generated by exciting the


on-board levitation magnets and the magnets and stator packs of long stator linear motor
along the guideway attract each other, thus pulling the train upward and a stable levitation
gap being guaranteed by controlling the levitation excitation current. Levitation gap between
magnets and guideway is normally controlled to the range between 8 and 12mm.
High-speed maglev system consists of four major components, i.e. guideway, vehicle, power
supply and operation control system.

Guideway: the guideway guides the direction of the trains movement and bears the load of
the train and transmits it to the sub grade. The superstructure of the guideway comprises
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precisely welded steel or reinforced concrete guideway beams for connecting long stators and
substructure constituted by the reinforced concrete piers and foundations.

Vehicle: vehicle is the most important part of the high speed maglev system, comprising
levitation chassis and the magnets mounted on the chassis, secondary suspension system and
vehicle section. Besides it includes such electrical appliances as on-board batteries,
emergency braking system, levitation control system.

Power supply: The power supply system includes substations, trackside feeder cables, switch
stations and other power supply equipment. Power supply system feeds the train with the
power required for the train operation by energizing the long stator windings on the
guideway. First, high voltage alternating current is taken from the 110KV public power grid,
stepped down to 20KV and 1.5KV via step-down transformer, then converted into direct
current via rectifier, then converted back to variable frequency a c current between 0 and
300Hz via rectifier. After step-up, the current will be fed to longstator winding on the
guideway via guideway cables and switch stations, generating propulsion force between the
stator and on-board magnets. The rectification equipment, conversion equipment and motor
stators etc. of the maglev system are all installed on the ground. No strict requirements for the
volume, weight, and anti-vibration of the equipment are available.

Operation control system: It is the fundamental guarantee for the normal operation of the
entire maglev system. It includes all the equipment to be used in security guarantee control,
execution and plan and also includes the equipment to be used in communication among the
equipment. Operation control system consists of operation control center, communication
system, decentralized control system and on-board control system.

3.3 Nanjing Street

Nanjing Road is the main shopping street of Shanghai, China, and is one of the
world's busiest shopping streets. Nanjing Road is the world's longest shopping
district; around 5.5km long, and attracts over 1 million visitors daily.
East Nanjing Road is a dedicated commercial zone. At its eastern end is the
central section of the Bund, featuring the Peace Hotel. Immediately west of the
Bund precinct was traditionally the hub of European-style restaurants and cafes,

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although in recent years these have become less of a feature as the
demographics of visitors to Nanjing Road have shifted from affluent local
residents to visitors from around the
country. Close by is the Central
Market,
a
century-old
outdoor
market
today
specialising
in
electronic components and digital
media. Further west is the Nanjing
Road pedestrian mall. Located here
are most of Shanghai's oldest and
largest department stores, as well as
a variety of domestic retail outlets,
and some traditional eateries with a
long history.
East Nanjing Road ends at People's
Park, formerly the Shanghai Race Course. Opposite the park are some of
Shanghai's prestigious historic hotels, including Park Hotel. West Nanjing Road
begins here, and features a number of upmarket malls, office buildings, the
Shanghai Exhibition Centre, and shops. This area also previously featured a
number of large mansions and estates, most of which are today either
demolished or used by the government. West Nanjing Road, near Jing'an Temple,
has witnessed constant development over the past ten years. This area is now
host to several five star hotels, upscale shopping centres, restaurants and prime
office buildings.
China's premier shopping street, 3.4-mile-long Nanjing Road, starts at the Bund
in the east and ends in the west at the junction of Jing'an Temple and Yan'an
West Street. Today Nanjing Road is a must-see metropolitan destination
attracting thousands of fashion-seeking shoppers from all over the world. After
the Opium War (1839-1842), Shanghai became a treaty port. Nanjing Road was
first the British Concession, then the International Settlement. Importing large
quantities of foreign goods, it became the earliest shopping street in Shanghai
Over time, Nanjing Road has been restructured, undergoing significant change.
For shopping convenience, its eastern end has an all-weather pedestrian arcade.
Big traditional stores no longer dominate the market since modern shopping
malls, specialty stores, theaters, and international hotels have mushroomed on
both sides of the street. Today over 600 businesses on Nanjing road offer
countless famous brands, superior quality, and new fashions. KFC, McDonald's,
Pizza Hut, and other world-famous food vendors line both sides of the street.
Upscale stores include Tiffany, Mont Blanc, and Dunhill. In addition,
approximately a hundred traditional stores and specialty shops still provide
choice silk goods, jade, embroidery, wool, and clocks.

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Open-air bars, abstract sculptures, and lingering sounds from street musicians
enhance evening strolls. A trackless sightseeing train provides a comfortable
tour of the night-transformed pedestrian street. Flashing neon signs illuminate
the magnificent buildings and spangle the night skyline of this lively city. Nanjing
Road is the world's longest shopping district; around 6 km long, and attracts over
1 million visitors daily.
3.3.1 Observations

You have not ever been to Shanghai unless you go to the Nanjing Road
China's premier shopping street - extends westwards from the Bund to the
junction of Jing'an Temple and the West Yan'an Road
First choice for many fashion-seeking shoppers
Large shopping malls, time-honoured stores, famous stores and specialty
shops cluster along both sides of the road
You can find whatever you want - commodities, home appliances,
communication equipment, photographic equipment, fitness equipment,
clothing, shoes, fabrics, cosmetics, jewelleries, watches, glasses, books,
food, medicine and children's needs.
3.4-mile-long road has two sections of East Nanjing Road and West Nanjing
Road

Day 2: October 7th, Shanghai China


3.5 IKEA Shanghai

China is host to eight of Ikea's 10


largest stores, which come with extra
room
displays
given
visitors'
tendencies to spend all day at the
store.
Unusually,
these
stores
encourage customers to sleep on the
furniture, placing signs authorizing
them to do so. And after a hard day's
shopping and eating meatballs, many
seem to have taken up the offer
3.5.1 Learnings
At IKEA they recognize that their business has an impact on social and

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environmental issues, in particular peoples working conditions, as the
environment, both locally and globally. They also strongly believe that they can
do good business while being a good business. This is a pre-condition to their
future growth, a growth that will be achieved along with suppliers that share the
same vision and ambition.

Their guiding principles when working with these issues are:

What is in the best interest of the child?


What is in the best interest of the worker?
What is in the best interest of the environment?

Through these principles they continue to follow their sustainability direction;


the IKEA business shall have an overall positive impact on people and the
environment.

3.7 Huangpu River Cruise


Huangpu River, a symbol of Shanghai, originates in Dianshan Lake and
empties into the Yangtze River at Wusongkou. It is 114 kilometres long
and 400 meters wide. It is ice-free year round. The river divides Shanghai
into east and west. It is a silent eyewitness to Shanghai's history and its
development.

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A spectacular sight is that the two suspension bridges, Nanpu Bridge and
Yangpu Bridge, appear to arch over the Oriental Pearl TV Tower,
resembling 'Two dragons playing with a ball'. The west bank (Puxi) of the
Huangpu
River
is
the
cultural,
residential and entertainment center of
Shanghai. The Bund, Monument to the
People's Heroes, Waibaidu Bridge and
the oldest park in Shanghai - Huangpu
Park, are located on the west bank. In
addition, many historical buildings left
over from Shanghai's colonial days
have been preserved. The east bank of
the river (Pudong) is the newer district
of Shanghai and its financial and commercial hub. Steel and glass
structures are abundant here. The Oriental Pearl TV Tower, Jin Mao Tower,
skyscraper hotels, offices and malls of the Lujiazui Financial Zone are
located on this side of the river.
When the sun sets, the river is veiled in the glittery neon lights on its
banks. Cruising on the river in the evening, visitors can experience its
silence and beauty under the moonlight.

Day 3: October 8th, Shanghai China


3.8 Volkswagen Shanghai
Shanghai Volkswagen is an automobile manufacturing company headquartered
in Anting, China and a joint venture between Volkswagen Group and SAIC Motor.
It
was
founded
in
1984
and
produces
cars
under
the Volkswagen and kodamarques. The joint venture is made up of equity from
(as of 2008) - Volkswagen AG (40%), Volkswagen (China) Invest (10%), SAIC
(50%), with a fixed-term venture for 45 years. It will run until 2030.

Shanghai Volkswagen was formed in 1984, as a joint venture between Volkswagen and SAIC.
This was a 25-year contract to make passenger cars in Shanghai with a limit of 50 per cent
foreign ownership.
Shanghai Volkswagen's Shanghai plant was by the far the winner among all new JVs, as it
produced cars that could function as taxis, vehicles for government officials and transport for
the newly emerging business elite. Shanghai Volkswagen began automobile production in
1985. As car imports fell to some 34,000 in 1990, Shanghai Volkswagen's production of
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its Santana models reached nearly 19,000 vehicles
that year. By 1993, Shanghai Volkswagens output
had reached 100,000 vehicles. Volkswagen was aided
by some Shanghai municipal efforts. Various
restrictions on engine size, as well as incentives to
city taxi companies, helped ensure a safe market in
the companys relatively wealthy home arena.
Volkswagen also encouraged its foreign parts
suppliers to create joint ventures in China, and their
resulting product helped Shanghai Volkswagen
achieve an 85 per cent local content rate by 1993.
Volkswagen Group China enjoys sales of about 2.81 million cars (2012) in the
Chinese market and is the second-largest foreign carmaker after General Motors.
The Chinese market is one of the main markets of the Group. Operations of
Volkswagen in China include the production,
sales and services of whole cars, parts and
components,
engines
and
transmission
systems, and the sales and service of
imported
cars.
The
company's
locally
manufactured and imported vehicles are sold
under various brand names such as
Volkswagen, Audi, SEAT, koda, Bentley, and
Lamborghini in China. Volkswagen Group
China is the largest, earliest, and the most
successful international partner in China's
.
Automotive Industry It started its connection with China as early as in 1978, and
has been taking the leading position in the Chinese automotive market for more
than 25 years. Its first joint venture in China, Shanghai Volkswagen Automotive
Co., Ltd., was established in October 1984. The second joint venture, FAWVolkswagen Automotive Company Ltd. was established in Changchun in February
1991.
3.8.1 Learnings and Observations

Assembly line of Automobile


Main Products of Volkswagen brand: Santana, Passat, Polo, Touram, Lavida,
Tiguan
Main Products of Skoda Brand: Octavia, Fabia, Rapid, Superb, Yeti
First Car was Santana in 1983
They follow Lean Production Technology
15th November 2013, they exceeded 10 million mark
Annual Capacity: 1,72,000 Units
Total Employees: 30,900

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Total Area: 96,10,000 m3


Registered Capital: RMB 11.5 Billion

3.12 Shanghai World Financial Centre

Standing in the center of Lujiazui Finance & Trade Zone in Pudong, Shanghai
World Financial Center (SWFC) was completed in August 28, 2008, being the
tallest skyscraper in China. Having 101 floors with a height of 492 meters (about
1,614 feet), it ranked the top in the heights of roof and usable floor by the time
when it was built, announced by the Council on Tall Buildings and Urban Habitat
(CTBUH).

Aiming to be a magnet of the world's


finance,
the
building
boasts
functions of first class financial
centers, able to showcase monetary
talents, cultural and art exhibitions
and information from all over the
world.
Modern
office
facilities,
sightseeing floor at 474 meters
(about 1,555 feet) above the ground,
luxury
hotel
and
multifunction
meeting facilities are all available
here, and over twenty multinational
financial institutions will move into
the ultra-modern building. More than
forty enterprises from Japan and
American invested together to
construct this high-rises building. The sightseeing hall was opened to public on
August 30. It ranked the tallest sightseeing hall in the world by the time it was
built.

Like all skyscrapers in the world, security is a major issue of particular concern.
The capability to withstand fire, wind, impacts, earthquakes and thunder is
considered thoroughly at the very beginning of the design. SWFC can survive a
massive 8 magnitude earthquake. There are fireproofed floors for escape; a
dozen sets of obstacle indicator lights to warn low flying aircraft, as well as two
wind dampers to reduce wind acceleration by 40%. In addition to lightning

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conductors covering the building, its glazed glass skin also protects against
lightning and looks good too.

3.12.1 Observations

3 observation decks in Shanghai World Financial Center.


The height of its lowest observation deck is 423m on the
94th floor, the second is 439m high, on the 97th floor,
named "Observatory Bridge, and the highest is 474m high,
on the 100th floor
Architects: Kohn Pedersen Fox & East China Architecture
and Design Institute.

Developer: Mori Building Corporation.

Contractors: China State Construction Engineering Corporation &


Shanghai Construction General Company.

Cost Management: Davis Langdon & Seah International.

Day 5: October 10th, Shanghai China


3.13 Shanghai Indian Business Association
is a not-for-profit international network that is run by Indians in China, with the
aim of strengthening success over generations. Shanghai Indian Business
Association was developed in shanghai. Today with over 8,363 individual
members from 2,869 family businesses across 58 countries, FBN is continually
increasing its ability to help family businesses grow, succeed and prosper
through the exchange of best practices, new ideas and the peer-to-peer learning
activities within its network.

Shanghai Indian Business Association

Is a not for profit and non-solicitation organization

Includes business personnel across shanghai

Supports the Next Generation (aged 18-40) of business-owning families

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Shares best practice and knowledge within a worldwide network at global and local
levels

Fosters intimate exchange and inspirational peer to peer learning

Sponsors value added research

Promotes the case for family business towards a more sustainable future

3.13.1 Learnings

Reasons of Business Mortality


o Sale of business
o Loss of Family Interest
o Unpredictable Challenges
o Industry Changes
o Missed Opportunities
o Family conflict
o Succession Problems
o Mismanagement
Road Blocks to Business
o Family
No existing Family management system
Balancing family and professional relationship
Lack of family workforce
Different family value
o Industry & Market
World economy changes
Increasing labour and raw material cost
Diversification & Investment options
o Politics
Between the family members
Between the members and non-members
Relationships are more valuable than money (Intangible Asset)
Wealth can be divided but control of business cannot be divided

3.14 Coca-Cola Bottling Plant Shanghai


Established in 1886, The Coca-Cola Company operates in more than 200
countries and markets over 500 brands and more than 3,000 beverage products.
These products include sparkling and still beverages, such as waters, juices and
juice drinks, teas, coffees, sports drinks and energy drinks. Company has four of
the worlds top five non-alcoholic sparkling beverage brands: Coca-Cola, Diet
Coke, Sprite and Fanta.

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Coca cola history in China dates back to 1927
when company first officially entered the Chinese
market with the opening of two bottling plants,
one in Shanghai and another in Tianjin these
two plants were among The Coca-Cola
Companys first international plants. And in 1979,
just one day after China and the United States
established formal diplomatic relations; The
Coca-Cola Company announced its return to the
Chinese market. Shanghai plant is established on 28/3/1998 which is largest in
Asia-Pacific region. Plant is established in 100,000 m 2 area. It has 14 production
lines.
Coca-Cola has established a total of 43 plants in China. The Coca-Cola system
employs more than 50,000 people, virtually 99 per cent of who are local hires.
Coca-Cola and its bottlers have always been active corporate citizens in China,
promoting sustainable environmental projects and development of local
communities through education and cooperative public-private endeavours with
a total contribution of over RMB 200 million in China. Coca-Cola Co reported
better-than-expected quarterly revenue as it ramped up spending on marketing
and advertising, boosting sales in emerging markets such as China. The
company plans to invest $8 billion in China over the five years through 2017 as it
focuses on emerging markets to boost revenue.
3.14.1 Learnings and Observations

Can Line : Volume of Can 330ml, Capacity1500 Cans/minute


PET1 Line : Volume of PET bottle 300ml, Capacity 1500 bottles/minute
PET2 Line : Volume of PET bottle 2L/2.5L, Capacity 200 bottles/minute
PET3 Line : Volume of PET bottle 600ml/500ml, Capacity 700
bottles/minute
PET4 Line : Volume of PET bottle 1.25L/1.5L, Capacity 500 bottles/minute
Coca Colas Shanghai plant produce different product such as- Coca cola,
Diet Coke, Fanta, Sprite, Coca Cola Zero, etc.
Coke Umbrella: 200 Countries, 500 Brands, 2500 Products
Coca cola is each plant is a having individual selling areas. One bottling
plant is not allowed to sell their product outside their area.
CSR Activities
o Protection of Water Resources
o Energy Saving and Emission Reduction
o Women Support System
o Project Hope - Children
Water System Final Syrup Drying SystemLabeling Auto Checking
Packaging Ware House

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Day 6: October 11th, Shanghai China
Day 7: October 12th, Yiwu China
Day 11: October 16th, Guangzhou China

3.24 Canton Fair


The Canton Fair is a trade fair held in the spring and autumn seasons each year since the
spring of 1957 in Guangzhou, China. Its full name since 2007 has been China Import and
Export Fair, renamed from Chinese Export Commodities Fair also known as Canton Fair. The
Fair is co-hosted by the Ministry of Commerce of China and People's Government of the
Guangdong Province, and organized by China Foreign Trade Centre. The Fair is the largest
trade fair in China. Among China's largest trade fairs, it has the largest assortment of
products, the largest attendance, and the largest number of business deals made at the fair.
Like many trade fairs it has several traditions and functions as a comprehensive event of
international importance.
Canton Fair is a platform for import and export mainly, with various and flexible patterns of
trade. Beside traditional way of negotiating against samples, the Fair holds Canton Fair
Online. Various types of business activities such as economic and technical cooperation and
exchanges, commodity inspection, insurance, transportation, advertising, consultation, etc,
are also carried out in flexible ways. Business people from all over the world are gathering in
Guangzhou, exchanging business information and developing friendship.
3.24.1 Learnings and Observations
Phase 1

Electronics & Household Electrical Appliances

Lighting Equipment

Vehicles & Spare Parts Machinery

Hardware & Tools

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Energy Resources

Chemical Products

Building Materials

Phase 2

Consumer Goods

Home Decorations

Gifts

Phase 3 Office Supplies

Cases & Bags

Recreation Products

Food

Medicines, Medical Devices and Health Products

Textiles & Garments

Shoes

Highlights of the Fair

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Chapter 4: Introduction to Hongkong

4.1 Introduction

Hong Kong is one of two special administrative regions (sars) of the people's republic of
china (prc), the other being macau. Situated on china's south coast and enclosed by the pearl
river delta and south china sea, it is renowned for its expansive skyline and deep natural
harbour. With a land mass of 1,104 km2 (426 sq mi) and a population of seven million people,
Hong Kong is one of the most densely populated areas in the world. Hong Kongs population
is 95 percent ethnic Chinese and 5 percent from other groups.
Hong Kong became a colony of the British Empire after the first opium war (183942).
Originally confined to Hong Kong Island, the colony's boundaries were extended in stages to
the Kowloon peninsula and the new territories by 1898. It was occupied by japan during the
pacific war, after which the British resumed control until 1997, when china regained
sovereignty. The region espoused minimum government intervention under the ethos of
positive non-interventionism during the colonial era. The time period greatly influenced the
current culture of Hong Kong, often described as "east meets west", and the educational
system, which used to loosely follow the system in England until reforms implemented in
2009.
Under the principle of "one country, two systems", Hong Kong has different political system
from mainland china. Hong Kong's independent judiciary functions under the common law
framework. The basic law of Hong Kong, its constitutional document, which stipulates that
Hong Kong shall have a "high degree of autonomy" in all matters except foreign relations
and military defence, governs its political system. Although it has a burgeoning multi-party
system, a small-circle electorate controls half of its legislature. An 800-person election
committee selects the chief executive of Hong Kong, the head of government.
4.2 Economy

Hong Kong was once described by Milton Friedman as the worlds greatest experiment in
laissez-faire capitalism. It maintains a highly developed capitalist economy, ranked the freest
in the world by the index of economic freedom for 15 consecutive years. It is an important
centre for international finance and trade, with one of the greatest concentrations of corporate
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headquarters in the Asia-pacific region, and is known as one of the four Asian tigers for its
high growth rates and rapid development from the 1960s to the 1990s.
The Hong Kong stock exchange is the seventh largest in the world, with a market
capitalisation of us$2.3 trillion as of December 2009. In that year, Hong Kong raised 22
percent of worldwide initial public offering (ipo) capital, making it the largest centre of ipos
in the world. Hong Kongs currency is the Hong Kong dollar, which has been pegged to the
US Dollar since 1983.
The Hong Kong government has traditionally played a mostly passive role in the economy,
with little by way of industrial policy and almost no import or export controls. Market forces
and the private sector were allowed to determine practical development. Under the official
policy of "positive non-interventionism", Hong Kong is often cited as an example of laissezfaire capitalism. Following the Second World War, Hong Kong industrialised rapidly as a
manufacturing centre driven by exports, and then underwent a rapid transition to a servicebased economy in the 1980s.
Hong Kong matured to become a financial centre in the 1990s, but was greatly affected by
the Asian financial crisis in 1998, and again in 2003 by the sars outbreak. A revival of
external and domestic demand has led to a strong recovery, as cost decreases strengthened the
competitiveness of Hong Kong exports and a long deflationary period ended. Government
intervention, initiated by the later colonial governments and continued since 1997, has
steadily increased, with the introduction of export credit guarantees, a compulsory pension
scheme, a minimum wage, anti-discrimination laws, and a state mortgage backer.
4.3 Industry overview
Industry has experienced a slow decline over the last 2 decades. Its contribution to GDP was
15.2 percent in 1998, a significant decrease from its 1990 contribution of 17.7 percent. Its
share of the workforce, which was 28 percent in 1990, dropped to about 15 percent in 1998.
The decline of industry has been the outcome of a steady contraction in manufacturing, the
result of the continued relocation of manufacturing establishments to mainland china.
Manufacturing's share of GDP sharply fell from 24.3 percent in 1984 to 6.2 percent in 1998.
The constant expansion of the service sector has also contributed to the process of decline.
Other activities, such as construction, energy, and mining, are not significant enough to stop
the steady decline of the industrial sector.
Certain factors have created "natural" barriers to the growth of the manufacturing sector and
have forced a peculiar pattern of development on it. Scarcity of land, the absence of mineral
resources, the high cost of labour, and the close proximity to china have ruled out the
establishment of heavy industry or other land-and labour-intensive industries in Hong kong.
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Prior to the 1980s, Hong Kong produced mainly labour-intensive consumer products,
including food, beverages, clothing, textiles, printed products, and fabricated metal products.
Being a resource-and land-rich country with a very low-wage labour force, china became a
"natural" place for Hong Kongs manufacturing in the 1980s. Improved relations between the
2 sides made the relocation of major industries to china feasible. China's growing interest in
foreign investment facilitated the process.
The existing Hong Kong industries are small-scale operations. They are involved mainly in
certain manufacturing processes pertaining to re-exporting goods produced in china by Hong
kong-owned establishments. These processes can involve the packaging of goods produced
on the mainland, for instance. However, there are still export-oriented industries that produce
textiles, electronics, plastics, and watches and clocks. The textile industry is the largest
industrial employer and accounts for the bulk of annual domestic industrial exports,
accounting for 45 percent (US $11.3 billion) and 49 percent (US $10.79 billion) of those
exports in 1998 and 1999, respectively.

Day 13: October 18th, Hongkong


5.2 Ocean Park
Ocean Park Hong Kong, commonly known as Ocean Park, is a marine mammal
park, oceanarium, animal theme park and amusement park, situated in Wong
Chuk Hang and Nam Long Shan in the Southern District of Hong Kong. It is,
together
with
Hong
Kong
Disneyland, one of the two large
theme parks in Hong Kong. Opened
in 1977 by the Governor of Hong
Kong Sir Murray MacLehose, Ocean
Park has grown to over 80
attractions and rides after the
completion of a HK$5.5 billion
Master Redevelopment Plan (MRP)
begun in 2005. The park has won several awards, including The World's Seventh
Most Popular Amusement Park and one of the "50 Most Visited Tourist Attractions
in the world" by Forbes. In November 2012, Ocean Park became the first theme
park in Asia to win the Applause Award from the International Association of
Amusement Parks and Attractions.
Ocean Park received 7.45 million visitors in 2013, awarding it the position of the
world's 12th most visited theme park, and the largest Theme Park in all of Asia
followed behind by Hong Kong Disneyland. Covering an area of 91.5 hectares,
the park is separated by a large mountain into two areas, The Summit

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(Headland) and The Waterfront (Lowland). These areas can be reached by a 1.5
kilometres cable car system, or the Ocean Express funicular railway. As the
Headland comprises several hills, visitors can also opt to use Hong Kong's second
longest outdoor escalator.
The theme park currently has a wide array of attractions and rides, including 4
roller coasters, and also animal exhibits with different themes, such as a giant
panda habitat, a jelly fish and Chinese sturgeon aquarium, as well as a worldclass aquarium featuring the world's largest aquarium dome which displays more
than 5,000 fish. Besides being an
amusement park, Ocean Park Hong
Kong is also committed to merging
entertainment and education, while
inspiring
lifelong
learning
and
conservation advocacy. This is done
by
operating
observatories,
laboratories,
an
education
department, and the Ocean Park
Conservation Foundation, Hong Kong
(OPCFHK), a fund which advocates,
facilitates and participates in the conservation of wildlife and habitats, with an
emphasis on Asia, through research and education. In 2011/2012, the Foundation
funded 42 conservation projects, covering 27 species in 10 Asian countries for a
total of HK$5 millionall record highs. Ocean Park Hong Kong was the first
institution in the world to have success in artificial insemination of bottlenose
dolphins, and developed numerous new breeds of goldfish.
Ocean Park has directed much effort into education and research about animal
conservation. Ocean Park established the Ocean Park Conservation Foundation
(OPCF) in 1993 and The Hong Kong Society for Panda Conservation (HKSPC) in
1999. In July 2005, the two merged to form the Ocean Park Conservation
Foundation, Hong Kong, a registered charitable non-governmental organisation.
With the ambition to advocate, facilitate and participate in the conservation of
wildlife and habitats, OPCFHK has funded a total of HK$9 million to 90 local and
overseas projects since 2005, including various research projects on dolphins,
horseshoe crabs, porpoises, giant pandas, snakes and birds in various Asian
countries.
Since 2006, OPCFHK has been collaborating with the Agriculture, Fisheries and
Conservation Department to handle cetacean stranding cases within Hong Kong
waters. After the 2008 earthquake in Sichuan, OPCFHK established a Giant Panda
Base Rebuilding Fund and donated equipment to the affected nature reserves. In
2011/2012, the Foundation funded 42 conservation projects, covering 27 species
in 10 Asian countries for a total of HK$5 millionall record highs. Ocean Park has
also facilitated learning through education programmes throughout the years.

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The Park established the Ocean Park Academy (OPA) in 2004 to dedicate further
efforts in education. Through OPA, the Park runs educational tours for school
children and workshops for teachers from the Hong Kong Institute for Education.
Every year, the Park offers over 35 core courses for around 46,000 students on
six big topics: giant pandas and red pandas, dolphins and sea lions, birds, fishes,
plants, and mechanical rides.
The Marine Mammal Breeding and Research Centre (MMBRC) set up by Ocean
Park serves as a centre to house 9 dolphins and conduct research on the
breeding of dolphins. MMBRC is divided into 6 separate activity zones, and
provides behavioural training and basic husbandry to the dolphins. It also plays a
part in research work on the echolocation capabilities of dolphins. From 29 March
to 4 May 2013, MMBRC was open for public visits. To promote the idea of
conservation to public, the official website of Ocean Park now features a
"Conservation session which introduces the importance of conservation and
some current conservation issues related to daily life. It also offers funny facts
about some wildlife species, as well as environmental threats and conservation.

Day 15: October 20th, Hongkong


5.4 Star Cruise

Superstar is a Leo class cruise ship owned and operated by Star Cruises. She was built in
1999 by the Meyer Werft shipyard in Papenburg, Germany. The 13-storey high SuperStar
Virgo is equipped with 935 cabins, a full range of facilities, including restaurants and bars
offering various cuisines and beverages, performing arts theatre, karaoke, swimming pool,
water fun pool and Jacuzzi, beauty salon, kids climbing wall, gym and meeting rooms. The
endless entertainment on-board guarantees a spectacular cruising experience for cruisers of
all ages, as well as meeting participants and incentive groups.

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5.4.1 Decks and Facilities

Medical center
Outside and inside cabins
Main dining room, Chinese restaurant (The Pavilion Room), outside and
inside cabins
Casino, cafeterias, karaoke bar, reception, Chinese and Italian restaurants,
showroom (lower level), promenade deck
Meeting rooms, cinema, shops, Japanese and Indian restaurants,
showroom (upper level)
Suites, outside and inside cabins
Children's center, games arcade, sun deck, swimming pool, jacuzzi, suites,
outside and inside cabins
Bridge, sundeck, outside and inside cabins
Observation lounge/nightclub, card room, mahjong room, library, activity
center, beauty salon, saunas, gym, sundeck, swimming pool, buffet
restaurant

Discothque, deck bar, sundeck

5.4.2 SuperStar Ship Fact

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