PESTEL

political:

India stable government provides a positive impact on Pidilite business. At the same time, Policies on
chemical usage are questionable, which can impact negatively on the Pidilite business. Initiatives like
make in India give boost to the adhesive business. Infrastructure development will increase demand for
the construction chemicals can Increase demand for Pidilite.

Economic:

Indian economy is growing at rapid phase, these growing economy supporting people to construct the
house, buildings, offices, etc. Which will give rise to the demand of the chemical construction, which will
be beneficial for Pidilite business.

Social:

Urbanization is main cause for the construction and home improvement products, can benefit the
Pidilite business. People are preferring interior design, high end furniture can boost the demand for
adhesive, which will benefits Pidilite.

Technological:

Implementation of the advance technology like Automations, Artificial Intelligence, Machine learning
can increase the efficiency in the operation of the Pidilite. Growing e-commerce also helps the Pidilite
add another distribution channels. Pidilite still prefer old distribution system, adding e-commerce will
give boost the sale of the Pidilite.

Environmental:

The climate change, growing pollution and high amount of wastage, make Pidilite to research and
develop eco-friendly process to manufacture adhesive. Recycle of waste is important to save the
environment. Even government is taking initiative to protect the environment, Pidilite can also join
hands with government to find better solutions.

Legal:

Labour Laws and Law related to the chemical and production usage can impact the operations of the
Pidilite to Higher extended. The Pidilite must hire a professional team to look after the rules and
regulations.
Porter’s Five forces:

Porter’s Five for is the tool to analyse the industry attractiveness for investment. The Porter’s Five forces
analyse the industry based on 5 Factors are Threats of new entrants, Bargaining power of buyer,
Bargaining power of suppliers, Threats of substitutes, and Intensity of the rivalry among existing players.

Porter’s Five forces model:

Threats of new entrants: The treats of new entrants is moderate in the Adhesive industry. The existing
players have well established plans, they have large operation, which gives them economies of scale.
Well established distribution network gives the adhesive industry a barrier to enter in the industry.

Bargaining power of Suppliers: It is low, as there are high number of suppliers. International suppliers
also supplies raw material to India. These give the power in the hands of the organisation to negotiate
with them.

Bargaining power of Buyers: the bargaining power of buyers are high in the adhesive industry. There are
well established brands like 3M, Henkel, etc. Which makes the bargaining power of the buyers high in
the adhesive industry.

Threats of Substitutes: In case of stationary products, there is only one high established player Pidilite.
The customers have the option to shift from one brand to other and on top of that shifting cost is least,
which enable buyers to shift from one brand to other. This makes this industry price sensitive and cost
advantage must exist to get success in this industry.

Intensity of Rivalry among existing players: There are well established player in the industry such as 3M,
Henkel, and local competitor make the intensity higher in the adhesive market.

Over all attractiveness of the Adhesive industry is Neutral. The established brand like Pidilite the
industry is highly attractive as it have more than 70% of the market share. The Adhesive industry is
highly beneficial for the Pidilite.
BCG Matri