International Marketing

Business Plan By Hardik Salot S Y MMS B Roll No - 115

Product
Re-Processed various varietes of Rice. Various varietes of Rice is Processed in the State of the Art Factory at Goa. USP of Product Rice is processed to reduce the enzymes that causes sleep and laziness after eating the rice. This rice is made especially to solve grievances of the countries importing rice from Indian Rice.

Why Goa ?
Major Seaport of Panaji and Marmagoa are present in Goa. Close proximity to Karnataka, Andhra Pradesh and Tamil Nadu Some of Top Rice Producing state in India. Major Input in Factory is the Power which is relatively cheaper than other states in India. Also Distance Between India and Middle east countries is also reduced being on western seacoast of India where major ship carriers operates.

Country Of Export
The Country of export is Saudi Arabia. It is one of top Rice importing nation in the world. In the Year 2011-12, It imported 1,558,730 M.T of rice and Its Rice Imports are slated to grow @ 9-12% anually according IRRI Report 2011-12.

Top Rice Producing States

Seaports in India

Saudi Arabian Market

India Rice is already Popular in Saudi Arabia which can be seen by the fact Rice is the staple in Saudi Arabia with an annual per capita consumption of around 42 kilograms, but the country has to rely completely on rice imports to meet the domestic requirement of about 1.14 million tons per year. Overall rice consumption in Saudi Arabia is likely to increase in future, according to the USDA. While U.S. long grain rice is well known in Saudi Arabia, consumers preference has shifted to the basmati varieties in recent years, with Indian rice exports benefitting the most, says the USDA. In 2012-13, rice imports by Saudi Arabia are expected to be around 1.5 million tons, and imports are expected to increase by around 9% in 2013-14. Indias share in the Saudi market in 2012-13 increased to 72%. During January to November 2012, India exported about 796,239 tons of rice to Saudi Arabia, up about 9% from around 730,589 tons in the full year 201112, when Indias share in the Saudi rice market stood at around 64%, according to USDA data.

Competitors
Indian competitors in Saudi Arabian Markets Satnam Global, KRBL Ltd (India Gate,Nur Jahan etc), Amira foods ltd etc. Other Competitors from the world Thailand,Vietnam,Pakistan,China. However amid vast competiton Indian rice occupies mammoth 72% share in saudi arabian market.

Positioning
We would Position Our Product in Premium rice segment. Since Our Products USP is Basmati Rice without Enzymes that produces sleep on eating them Our Target customers are from age group 18 - 45 who want to be active and Fit without compromising on taste of a Basmati Rice.

Financials
Good quality Basmati rice From @ Rs 1600 per quintal Directly from the Farmers who have have agreed to sow the super specialised seeds given to them by the company which is major cost to the company. Power is also major input. We Expect to break Even In period of 3 yrs.

Cost Structure
Particulars Direct Cost
Raw material consumed Direct Wages Direct Expenses Prime Cost Indirect Cost Factory Overheads Power and fuel Factory Rent Office and Admin Overheads Selling and Distribution Overheads COGS 145 15 40 300 2400 1800 40 60 1900

Cost ( per Quintal)

Profit margin (50%) Selling Price

1200 3600

Marketing Strategy
We want to reach Major metro Cities of Saudi Arabia. Our target group includes Bulk Customers like hotels, Restaurant etc. and also individual customers who belong to affluent class and are looking for Healthy Indian Basmati Rice Brand. The Packaging will be done in packages of 5 Kg,20 Kg, 50 Kg and 100 Kg.

Distribution Strategy
We would appoint a 3 lead Overseas Distributors/ Stockist of our Product top reach all Metros at a stretch. Stockist will Supply to Various Dealers and Bulk Consumers. This Dealers will then reach Various Retail Stores and Supermarkets. These Retail Stores will reach the ultimate consumer.

Pie Chart Of Profit margin Distribution

Thank you