EXTERNAL ENVIRONMENT ANALYSIS

PESTEL ANALYSIS

POLITICAL FACTORS

 Import duty on paper at 10% in order to save domestic paper and pulp industry.
 Concessional GST rate on paper board at 12%
 Government’s target to beat plastic pollution by replacing plastic cutleries with paper
cutleries by 2022
 Minimum support price for farmers for sugarcane production.

ECONOMIC CONDITIONS

 Enormous supply of sugarcane from states like Maharashtra and U.P which will reduce
the prices of raw materials.
 Higher GDP growth outlook enhances demand for cutlery products
 Reduced interest rates to boost consumption and a thriving ecosystem for startups.

SOCIAL CULTURAL FORCES

 Trend of urbanization and change in family structures (DINK) is paving the way for
increased demand for packaged goods and items
 Societal awareness towards depletion of forests for paper manufacturing

TECHNOLOGICAL FACTORS

 Enhanced use of CNC machines in manufacturing has lead to cost efficiency

  Shared use of technological innovations in paper industry is benefitting emerging
economies like India

ENVIRONMENTAL FORCES

 Increased pressure from international watchdogs of climatic change like IPCC has lead to
adoption of bio degradable products.
 Expanding demand for eco friendly products

LEGAL AND REGULATORY FACTORS

 UNFCCC has established legal binding obligations for developing economies to reduce
their environmental waste levels
 WTO legal regulations like FTA( MFN clause) has lead to eased export framework for
paper products