Element Factor Business Impact

Government The Indian government imposes regulations on the food and

Regulations beverage industry, including labeling, quality standards, and
advertising restrictions. Adherence to these regulations is
essential for PepsiCo's operations.

Political Taxation Tax policies, including excise duties and GST rates, can impact
pricing and profitability for PepsiCo's products.

FDI Foreign Direct Investment (FDI) regulations in India can

Regulations influence PepsiCo's ability to invest and expand its operations in
the country.

Economic India's growing economy and rising disposable incomes have

Growth contributed to increased consumer spending on beverages and
snacks, providing growth opportunities for PepsiCo.

Fluctuations in currency exchange rates can impact PepsiCo's

Economic
Exchange import costs and pricing strategies.
Rates
Inflation rates can affect production costs, pricing, and
Inflation profitability for PepsiCo in the Indian market.

Cultural India's cultural diversity influences consumer preferences for

Diversity flavors, tastes, and packaging, requiring PepsiCo to offer a
diverse product portfolio.

Health The increasing health-consciousness among Indian consumers

Sociological Consciousness has led to a shift in preferences towards healthier beverage and
snack options.

Urbanization The rapid urbanization in Delhi/NCR has increased the demand

for convenient and on-the-go products, including PepsiCo's
beverages and snacks.
Manufacturing Advancements in manufacturing technology have allowed
Technology PepsiCo to optimize production processes and reduce costs.
Technological
E-commerce The growth of e-commerce platforms in India has opened new
distribution channels for PepsiCo's products.

Advertising The Indian government regulates advertising and marketing

Legal
Regulations practices, affecting how PepsiCo can promote its products.
Water availability and sustainability are critical for PepsiCo's
Water Scarcity operations, as it requires significant water resources for
production.
Environmental
Waste Environmental concerns about plastic waste require PepsiCo to
Management address packaging and waste management practices.