INTERNATIONAL MARKETING

“Country Notebook”
Export of cardamom to Saudi Arabia
BY
Vinayak .P 780
Radhika .D 855
Sagar.P 862
 INDIAN SCENARIO
PRODUCTION & CONSUMPTION OF cardamom

• India consumes almost 90% of the domestic production.

• As India’s production is capable of satisfying the domestic
consumption demand, it does not import any cardamom
from outside countries.
• The cardamom produced in the country is exported every
year that makes India a net exporter in the world market.
India exports 5-8% of its total production, mostly the premium
grade.
• Following are the major countries that import cardamom and its by-products from
India:
• Saudi Arabia is the largest market for Indian cardamom.
• It gets a share of around 60% followed by Japan with 26% of
the total India exports. Belgium, South Africa, Oman,
Bahrain, UAE, Greece, New Zealand and Italy are other
important buyers of Indian cardamom.
• Guatemala reduces India’s export market competitiveness
by providing cardamom at cheaper rates thanks to their high
productivity.
 Cultural Analysis the Kingdom of Saudi Arabia

• The history of the Kingdom of Saudi Arabia dates back to about

1747 when the ruler of the central Arabian Peninsula, Muhammad
Bin Saud, formed an alliance with the Muslim scholar and reformer
Muhammad Bin Abdul Wahab, a partnership that led to the
founding of the modern state.
• The Al-Saud family ruled much of the Arabian Peninsula throughout
the 19th century.
• In 1902, Abdul Aziz Bin Abdul Rahman Al-Saud succeeded in
recapturing Riyadh from the Al-Rashid and in the following thirty
years united the numerous and disparate tribes into one nation.
• The foundation of the modern Kingdom of Saudi Arabia took place
on September 23, 1932, a day that is commemorated as National
Day.
 Geography
• Geography Location: Middle East, bordering the Arabian Gulf and the Red
Sea, north of Yemen
• Area: 
total: 1,960,582 sq km 
land: 1,960,582 sq km 
water: 0 sq km
• Land boundaries: 
total: 4,415 km 
border countries: Iraq 814 km, Jordan 728 km, Kuwait 222 km, Oman 676
km, Qatar 60 km, UAE 457 km, Yemen 1,458 km
• Coastline: 2,640 km
• Maritime claims: 
contiguous zone: 18 nm 
continental shelf: not specified 
territorial sea: 12 nm
• Climate: harsh, dry desert with great extremes of temperature
• Terrain: mostly uninhabited, sandy desert
• Natural resources: petroleum, natural gas, iron ore, gold,
copper
• Land use: 
arable land: 2% 
permanent crops: 0% 
permanent pastures: 56% 
forests and woodland: 1% 
other: 41% (1993 est.)
• Irrigated land: 4,885,000 hectares under cultivation, and a
further 53 million hectares that could be prepared for
cultivation.
• Geography—note: extensive coastlines on Arabian Gulf and
Red Sea provide great leverage on shipping (especially crude
oil) through Persian Gulf and Suez Canal
 Political system:
• Government type: Monarchy
• National capital: Riyadh (Estimated population February
1998: 3.1 million)
• Administrative divisions: 13 provinces 
• Independence: 23 September 1932 (unification)
• Constitution: governed according to Shari'a (Islamic
law); the Basic Law that articulates the government's
rights and responsibilities was introduced in 1993
• Legal system: based on Islamic law, several secular
codes have been introduced; commercial disputes
handled by special committees.

• Legislative branch: a consultative council (90

members and a chairman appointed by the king for
four-year terms)
• Judicial branch: Supreme Council of Justice
Economic Analysis
• EconomyEconomy—overview: This is an oil-based economy with
strong government controls over major economic activities.
• Saudi Arabia has the largest reserves of petroleum in the world
(26% of the proved total), ranks as the largest exporter of
petroleum, and plays a leading role in OPEC.
• The petroleum sector accounts for roughly 75% of budget
revenues, 40% of GDP, and 90% of export earnings. About 35% of
GDP comes from the private sector.
• Roughly 4 million foreign workers play an important role in the
Saudi economy, for example, in the oil and service sectors.
• The government is expected to continue calling for private sector
growth to lessen the kingdom's dependence on oil and increase
employment opportunities for the swelling Saudi population.
Shortages of water and rapid population growth will constrain
government efforts to increase self-sufficiency in agricultural
products.
• GDP—real growth rate: 15.5% IN CURRENT PRICES(4.11%) 
• GDP—per capita: purchasing power parity—$9,890 (2000 est.)
• GDP—composition by sector:
agriculture: 6%
industry: 47%
services: 47% (1998 est.)
 People 
• Population (est): 22,023,506
• Age structure:
0-14 years: 43% (male 4,781,695; female 4,607,038)
15-64 years: 55% (male 7,093,567; female 4,969,848)
65 years and over: 2% (male 309,638; female 261,720) (2000 est.)
• Population growth rate: 3.28% (2000 est.)
• Sex ratio:
1.05 male(s)/female
under 15 years: 1.04 male(s)/female
15-64 years: 1.43 male(s)/female
65 years and over: 1.18 male(s)/female
total population: 1.24 male(s)/female (2000 est.)
• Life expectancy at birth:
total population: 67.77 years
male: 66.11 years
female: 69.51 years (2000 est.)
• Ethnic groups: Arab 90%, Afro-Asian 10%
• Religions: Muslim 100%
• Languages: Arabic
• Literacy:
definition: age 15 and over can read and write
total population: 62.8%
male: 71.5%
female: 50.2% (1995 est.)
• Inflation rate (consumer prices): -1.2% (1999)
• Labor force: 7 million
note: 35% of the population in the 15-64 age group is non-national (July
1998 est.)
• Labor force - by occupation:
Agriculture 12%, industry 25%, services 63% (1999 est.)
• Agriculture—products: wheat, barley, tomatoes, melons, dates, citrus;
mutton, chickens, eggs, milk
statistical statement on agriculture and water for the year 2000
• Most of the basic consumer products are duty free, e.g., sugar, rice, tea,
unroasted coffee, cardamom, barley, corn, livestock and meat (fresh or
frozen).
• Exports: $48 billion (f.o.b., 1999)
• Exports—commodities: petroleum and petroleum products 90%
• Exports—partners: Japan 17%, US 15%, South Korea 11%,
Singapore 8%, India 4%, France 4% (1998)
• Imports: SR 105 billion, $28 billion (f.o.b., 1999)
• Imports—commodities: machinery and equipment, foodstuffs,
chemicals, motor vehicles, textiles
• Imports—partners: US 21%, UK 9%, Japan 9%, Germany 6%,
France 5%, Italy 4% (1998)
• Currency: 1 Saudi riyal (SR) = 100 halalah
• Exchange rates: 
• Saudi riyals (SR) per US$1—3.7450 (fixed rate since June 1986)
Exchange rate of US dollar in India
1 US Dollar = 44.4302 INR
• Transportation Railways: 
total: 1,390 km 
standard gauge: 1,390 km 1.435-m gauge (448 km double track)
(1992)
• Highways: 
The total length of the Kingdom's roads 106,000 kms (1998 est.)
• Pipelines: crude oil 6,400 km; petroleum products 150 km;
natural gas 2,200 km (includes natural gas liquids 1,600 km)
• Ports and harbors: 
Ad Dammam, AlJubayl, Duba, Jiddah, Jizan, Rabigh, Ra's al Khafji,
Al Mishab, Ras Tanura, Yanbu' al Bahr, Yanbu' al Sinaiyah
• Merchant marine: 
Total: 70 ships (1,000 GRT or over) totaling 1,071,003 GRT/1,388,802 DWT
ships by type: cargo 12, chemical tanker 7, container 5, liquefied gas 1, livestock
carrier 3, passenger 1, petroleum tanker 17, refrigerated cargo 4, roll-on/roll-off
12, short-sea passenger 8 (1999 est.)
• Airports: 205 (1999 est.) 
• Airports—With paved runways:
Total: 72
over 3,047 m: 31
2,438 to 3,047 m: 13
1,524 to 2,437 m: 23
914 to 1,523 m: 3
under 914 m: 2 (1999 est.)
• Airports—With unpaved runways: 
total: 133
2,438 to 3,047 m: 4
1,524 to 2,437 m: 77
914 to 1,523 m: 39
under 914 m: 13 (1999 est.)
• Heliports: 4 (1999 est.)
 International trade statistics
Major exports Major imports
• Mineral products • Vegetable products
• Food stuff • Beverages
• Chemical products • Spice
• Plastic products • Tobacco
• Base metal& articles of base • Live animals & products
metal • Rubber
• Trends
Market Audit & Competative
market Analysis
 Introduction to the product
Relative advantage & compatibility
• India has traditionally been associated with providing spices
such as cloves to the rest of the world.
• Appropriate climatic conditions for spice .
• India is now emerging as one of the leading exporters
Market-RIYADH
Transportation- road, rail & water ways
Product usage-food, medicines,
 Market information
• Riyadh is the capital and largest city of Saudi Arabia
• Home to 4,854,000 people, and the urban center of a region
with a population of close to 7 million people. The city is
divided into 15 municipal districts.
• Transportation –Airports, Highways, Railway, Public transport.
• The population of Riyadh is 60% Saudi and 40% of the
population is made up of foreigners
REACHING THE SAUDI ARABIAN MARKET

•  Saudi Arabia is a country full of actual and potential business and investment
opportunities. However, it should be noted that the Saudi Arabian market is
highly competitive and business transactions take place on the basis of
quality and cost. In addition to the availability of an advanced and
continually upgraded infrastructure, the following factors facilitate foreign
investments in Saudi Arabia:
• Free entrepreneurial spirit, respect for private ownership and an energetic
private sector.
• Availability of capital, convertibility of the Saudi Riyal to hard currencies and
stability of exchange rates.
• Protection of trade marks, patents and copy rights.
• Absence of controls on capital movement and repatriation of profits.
• Availability of an advanced and excellent banking system.
• A liberal tax system
Why Riyadh? Advertisement & promotion
• One, because there is no •  Riyadh is served by four
sales tax Riyadh can be a Arabic, two English and one
shopper's paradise; Urdu language newspapers.
• Two, all the major shops are • Trade fairs that operate on
there; large scale.
• Three, a lot of those shops
are found in the most
luxurious, beautiful and
modern, air-conditioned
shopping malls.
 Product

CARDAMOM-(SMALL) INDIAN (AGEB) 34.51 MONTH (US$/KG)

 Documents required for exports

• Commercial Invoice.
• Certificate of Origin.
• Insurance Certificate.
• Bill of Lading (or airway bill).
• Steamship (or airline company certificate).
• Packing List.
• Special documents.