Himalaya Herbal PESTLE Analysis

Published by MBA Skool Team, Last Updated: December 29, 2019

PESTLE Analysis of Himalaya Herbal analyses the brand on its business tactics. Himalaya Herbal 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 Himalaya Herbal, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.

Let us start the Himalaya Herbal PESTLE Analysis:

Political Factors:

The political factors in the Himalaya Herbal PESTLE Analysis can be explained as follows:

Himalaya Herbal is one of the leading brands in FMCG. The present political climate is favourable to the growth of Ayurveda & Ayurvedic products. In 1975, the company setup an advanced manufacturing facility in Makali, Bangalore, India, which houses the corporate headquarters. In 1991, company relocated its R&D facility to Bangalore. Company is following various government initiatives like Make in India Campaign. Since then there has been a growth in the products of Himalaya herbal thus we can say that the political factors have played a big role in the development of Himalaya.


Image: company website


Economic Factors:

Below are the economic factors in the PESTLE Analysis of Himalaya Herbal:

Increasing customer demand for natural products presents Ayurvedic brand Himalaya many opportunities in FMCG space. Himalaya has formulated popular. Global trends began to change in 90’s, people are shifting back to natural products which is helping in sale of their products. General perceptive was that products containing herbal actives was gentler on skin and safer compared to chemical products. The R&D strength that company possessed since 1991 made the move to herbal personal products easy. Since its first offering in personal care products in 1999, company has launched 63 products in personal care, nine in body care and 66 in pharmaceuticals. The fact that personal care division is growing at a rate of over 40% is a testimony that their marketing strategy is working for a better future. Internationally Himalaya has been more successful- as the 35 percent CAGR indicates some of important markets for the brand are US. Russia, South east Asia and CIS countries among others. Himalaya also partners with leading distributors and retailers like whole food, vitamin shop and GNC unite with them to help them be as local as it can with its range of organic products. Organique by Himalaya made from organic herbs was launched to tap the booming organic industry in west.


Social Factors:

Following are the social factors impacting Himalaya Herbal PESTLE Analysis:

The people of India are becoming more health conscious of organic products. There has been a rise in healthy FMCG products to 2284.4 US million. In 2016, the growth of these health conscious products was acknowledged. The affordable price also helps them to cover the whole market size. Emphasis on customer experience in the company and by the company has created good word-of-mouth marketing and this has generated good revenue. The product mix of a company like Himalaya Herbal is selected based on country’s culture & consumer needs.


Technological Factors:

The technological factors in the PESTLE Analysis of Himalaya Herbal are mentioned below:

Govt has created favourable climate for Research and Development in country. Himalayan herbal company developed in-house R&D facility in 1991 at Bangalore using which they are developing new products in an Ayurvedic way. Nine years ago, the Himalaya medicine company quietly launched a dental cream which went on to attain quite a cult following. Ayurvedic medicine company is now planning to relaunch its full range of soaps, shampoos, lotions and creams with the research they have done to create more herbal components within them. Himalaya is set to launch its range of flavoured lip balms as well. The increasing technology has helped them establish this wide range.


Legal Factors:

Following are the legal factors in the Himalaya Herbal PESTLE Analysis:

Legal factors also influenced the development of the product that is why it is important to work on the ethics and not use any illegal means to develop any product. Medicine controller of India is supported to be the gatekeeper for specified categories of medicines. Ministry of Ayush has introduced strict guidelines for ancient codified Ayurvedic preparations. Food safety & standards Authority of India (FSSAI) is regulator of herbal dietary supplements that have to be ingested. French certification body ECOCERT also has an arm in India and certifies natural/ herbal products. US food and medicine administration has imposed an import alert in 2015 on some of the personal care products manufactured by Himalayan company at its facilities in Hyderabad, Bengaluru Himachal Pradesh. The alert termed detention without physical examination of unapproved new medicines promoted in the US.


Environmental Factors:

In the Himalaya Herbal PESTLE Analysis, the environmental elements affecting its business are as below:

Himalaya Herbal is all about Ayurvedic and natural products so it has to go through various environmental laws and policies that are applicable in their processing of the products. The main problem which the company has to confront is seasonal herbs and their locations, there are many herbs, which are unavailable in winter season, autumn season or in summer season, so they it has to take care of their seasonality before it starts their manufacturing. So the operations of these products depends on these environmental factors.

To conclude, the above Himalaya Herbal PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse analysis of more brands and companies similar to Himalaya Herbal PESTLE Analysis. This section covers many brands and companies.

Search & Explore : PESTLE Analysis


The names and other brand information used in the PESTLE Analysis section are properties of their respective companies. The companies are not associated with MBA Skool in any way.
Share this Page on:
Facebook ShareTweetShare on Linkedin