Pestel Analysis

Political:
Tax policies -: In India Goods and service tax will be implemented from March it will affect industries a lot. Or any other changes in tax policies like change in vat or tax slots affect industries lot. International trade regulation -: Like policies about Fdi in retail in India that currently has taken place can change scenario for Fmcg industry. Political stability -: Even stability in political situation has a huge impact on Fmcg. Employment Laws-: Employment laws in India for any Fmcg company is very important factor to observe because it has a huge impact on their company performance.

Economic:
Interest rates and monetary policies-: interest rates and monetary policies in India have huge impact on any companies business so that is very imp factor. Government spending-: government spending in industry is very potent factor to know how industry will be in future.

Social:
Income distribution-: This will help companies to know the demand for products. In Fmcg it is very imp to know income distribution in India. Demographics, population, growth rates, age distribution-: This all factors will help company to know about how products should be distributed amongst different area.

 Technological:
Industry focus on technological effort-: this is about industries focus on new technological which can help in knowing new technological changes. Internet And mobile technology-: this are very important factors in this era of technology to understand for any country. Technology has been simplified and available In industry

Environment:
Rules of government for environment protection in India are very important factor for fmcg companies to know because they will get them knowledge about where they can have manufacturing unit and other things.

Legal
Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.

 Swot Analysis

Strengths:
Presence of establish distribution network in both urban and rural area distribution network in India is established enough so that companies can do business well. Presence of well-known brands in India gives people options for all products so people will get good products at competitive prices. Also low operational costs will give companies benefit to sell products at lower prices.

Weakness:
Other companies that produce counterfeit product are having benefit in rural area were people are not too literate. Also in India export levels for such products is very low. In small sectors its very hard to invest much in technology and finally creates economics of scales.

Opportunities:
Untapped rural Market is also very important point for opportunity in this market. Now income levels in India are increasing which indeed increases the purchasing power of the people. As population in India is increasing at a fast rate which has increased the market for industry. Even consumer good spending is increasing.

 Threat:
Removal of important restriction resulting in removal of domestic brand as in case of retail fdi it will so much affect local vendors Tax and regulatory system in India is such that it doesnt allow companies to have good margins.