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Sambhaji

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Sambhaji
PESTEL Analysis
Political
• Brazilian and Mexican governments should be engaged on the development of incentives to bioplastics manufacturers - especially small and medium sized. The governments, together with industry associations, are expected to be involved in developing standards and certifications for bioplastics, such as the Compostability Regulation. • In Brazil, there exist public programs for recycling plastics (such as a selective collection) and the same model could be applied for compostable materials. In Mexico, there exist programs for recycling based on replacement of supermarkets biodegradable plastic handbags. • Additionally, in Brazil the current Government is taking extra efforts in ethanol production development. In 2009, the Government conceived $x billion in credit offer for the sugarcane and ethanol sector. There is an expectation that, if the current Government wins the presidential election in 2010, there is the possibility that Petrobras will increase its participation in the ethanol sector.

Economic
• The price premium required for bio-based plastics over conventional plastics will particularly be restraining market growth in Brazil and Mexico, where end users are strongly oriented to evaluate unit prices when choosing materials. • In Brazil, Braskem is well set to introduce the lowest priced bio-based plastics, which will have a premium of about xx to 50 percent over competing oil-based plastics. • Manufacturers are also looking at bioplastics and compostable plastics as competitive products from the economic point of view. Compostable plastics, for instance, reduce the need for water and fertilizers and serve as a marketable commodity.

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PESTEL Analysis (Contd…)
Social
• There are no governmental incentives to the bioplastics production in Brazil and Mexico. However, the bioplastics industry has the potential to attract public investments,

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