1 Reliance Industries PESTLE Analysis

PESTLE Analysis of Reliance Industries analyses the brand on its business tactics.
Reliance Industries PESTLE Analysis examines the various external factors like
political, economic, social, technological (PEST) which impacts its business along
with legal & environmental factors. The PESTLE Analysis highlights the different
extrinsic scenarios which impact the business of the brand.

PESTLE analysis is a framework which is imperative for companies such as

Reliance Industries, as it helps to understand market dynamics & improve its
business continuously. PESTLE analysis is also referred to as PESTEL analysis.

Let us start the Reliance Industries PESTLE Analysis:

2 Political Factors:
The political factors in the Reliance Industries PESTLE Analysis can be explained as
follows:

Reliance Industries Limited is the biggest Indian conglomerate. Its business is varied
in multiple sectors including telecom, power, retail, cash and carry, petroleum,
fashion, mobile etc. Political stability is essential for flow of raw materials and to
maintain best in class supply chain efficiency. With political instability the laws
change more frequently. It becomes difficult for Reliance Industries to adjust to such
frequent law changes considering the massive size of business. Also, the countries
in which Reliance Industries has setup its product base in the form of supermarket,
product development etc. should not be prone to military invasion. The government
laws related to contract, taxation, intellectual property protection is necessary to be
in place. Some of the laws that are launched to promote the telecom sector like the
unified access services scheme and 100% foreign direct investment in some of the
business fragments that Reliance Industries operates in helps to scale the business
profitably. Level of government intervention in free market and capital goods is also a
decisive political factor.
 3 Economic Factors:
Below are the economic factors in the PESTLE Analysis of Reliance Industries:

There are multiple economic factors that impact business of Reliance Industries
Limited.

Inflation rate in the country decides as to buying capacity of the public in the market.
Too high inflation rate is not preferred for business to be profitable because then the
raw material procurement becomes costly resulting in rise in the final product. High
interest rates are bad for both business and the customer. Business like Reliance
Industries take up loan from various banks to support their financials over the year
and the customer to buy high end quality products takes up loans. But when the
interest rates shoot up both the level of production and buying strength hampers.
The stability in the economic market and exchange rates is important factor to grow
the business at desired pace. GDP of the country reflects how the business is going
to grow in future.
 4 Social Factors:
Following are the social factors impacting Reliance Industries PESTLE Analysis:

This 21st century has seen tremendous increase in the spending power of
consumer. That has led to business like Reliance Industries to give a large variety of
product base with both extreme end of pricing. People these days are society
conscious and thus they are inclined towards fashionable brands in apparel,
technology fields. Internet these days has become a necessity. Providing the most
accessible, reliable and affordable internet was the opportunity that Reliance
Industries fetched via Jio product launch. The economic class distribution in that
respective area needs to be taken care of. There is no point in promoting premium
product to the public who do not have the capability to pay for it. The public these
days is more aware of the hazardous effects of consumables on their health as well
as on environment.

5 Technological Factors:
The technological factors in the PESTLE Analysis of Reliance Industries are
mentioned below:

Technology is ever changing. The involvement of technology is effective in every

business of Reliance Industries limited. Be it retail and the improved ERP
functioning, advance social media marketing or be it advancements in telecom
sector like 5G network and fibrenet broadband. The operations and supply chain are
getting disrupted with advanced technology.

The huge cash and carry stores of Reliance Industries have robots and machine in
place to move huge and heavy chunk of material.

6 Legal Factors:
Following are the legal factors in the Reliance Industries PESTLE Analysis:

There are strict laws that govern Reliance Industries’ business in every field. Labor
laws which protect basic rights of every labor including minimum wages are to be
aligned with the company’s legal framework. Environment protection laws for the
manufacturing units and their industrial waste disposal standards govern their overall
activity. Contract laws, corporate laws and their adherence with company’s rules is
mandatory. There is separate legal team which looks after all kinds of laws which are
to be aligned and incorporated in their business. Health and safety laws are strict
these days since along with the government the public is also becoming conscious
about consumables content and quality.

7 Environmental Factors:
In the Reliance Industries PESTLE Analysis, the environmental elements affecting its
business are as below:

Reliance Industries Limited has diverse business. But each of those businesses, be
it petroleum, fashion retail outlet, agricultural products, foot ware have to be
monitored in terms of its environmental factors. The emissions that are given out into
the air has to be regulated under the norms prescribed by the government. Excess of
carbon emissions add to the ozone layer depletion and resulting in global warming in
the world. The plastic waste generated cannot be dumped in the water bodies.

All of India is running ‘Swatch Bharat Abhyan’ where in the cleanliness of India is
restored back to its original state. The carbon footprints generated by the company
are to be minimized as much as possible. There are laws which protect animal life
from being killed for business purpose.