PATANJALI PESTLE ANALYSIS

POLITICAL

1.The present political environment is conducive to the growth of Patanjali Ayurved in

the Country.

2.Taxation Policy: Governments taxation policies impact on the cost of the input
products and hence impact on the final price of the products. PAL input costs increase
or decrease based on the taxation policies of the government.

3.Government Support: The Central Government is promoting Ayurveda and Yoga. The
Government of India has a separate “Ayush – Ministry” to promote Yoga, Ayurved and
other traditional and complementary medicines.

4.Union cabinet decision of approving 11040 outlay to promote domestic cultivation

5.Make in india program

6.A challenge faced by PAL from the state government is that they are expanding
operations out of Uttarakhand due to lack of cooperation(ARADHAK 2017).

TECHNOLOGICAL

1. The Indian govt has estd. A favorable R and D environment. Through Patanjali Yogpeeth
Trust at Haridwar, PAL is involved with the R and D of different herbal and ayurvedic products;
there are claims that some PAL products have the capacity of curing even cancer.

2.With adoption of latest technology and innovation, the Patanjali Ayurved Limited has
emerged as the strongest force in the FMCG sector.

3.Bharuwa Solutions – an IT solutions company, set-up by Patanjali Ayurved Limited is

credited with developing & implementing the Distribution Management Software system.

4.Strict Quality Control procedures and a dedicated R&D department.

5.The inclusion of automation in drug production has helped in the mass production of
different ayurvedic drugs,all the while maintaining efficacy.
6.Better means of communication( GHOSH 2015)

7. Fintech for msmes and banks and collaborate with pnb to improve the same.

ECONOMIC

1.Increasing inflation rate in India in a moderate dose is there in the customers minds
while looking out for value for money products.

2.The increased income of the middle class has been a big advantage for Patanjali.

3.PAL procures their raw materials locally and there is minimal thrust on export, so a
significant impact is felt on currency exchange rates.

4.The decision to impose a 12 percent tax rate under the new structure, Goods and Services
Tax (GST). Patanjali requested the government to reconsider the GST rate suggested for the
ayurvedic products. The rate on the medicines needs to be decided in a way that it reaches
consumers at affordable prices. This increase in the GST rate is quite disappointing.

5.Patanjali foods will take price cuts as commodity prices decline.

6.Claims to provide 500000 ppl emp in the next 5 yrs.

Another fact that adds a social appeal to Patanjali products is, as stated by
Mr. Yadav, Patanjali aims to utilize the profits earned to construct schools
for children in poor villages across the country where the basic education
needs are yet to be met.

The primary reason for the high acceptance of Patanjali products among the
masses is for its Cost and Marketing innovations. During the interview with
Mr. S. S. Yadav, he emphasized that Patanjali products carry a profit margin
of a mere 2%. As a result, most of the products are cheaper than their
competitors.