Banking on the Centre's new plastic waste management rule, Gujarat based Greendiamz Biotech, which has set up the country's first dedicated bio-plastic manufacturing facility, is aiming to take its turnover close to Rs 600 crore in a span of few years.
"There is huge potential in sectors spanning agriculture, retail, packaging, solid waste management and hospitality. We are already supplying to the Forest departments in Gujarat, Delhi and Pondicherry, and are coming up with new channel partners in Uttar Pradesh and Goa next month. We already have channel partners in Rajasthan, and Gujarat," said Dipack Sangghvi, director of Greendiamz. The bio-plastic product has been named 'Truegreen'.
It has also received an order from Tirupati Temple in Andhra Pradesh to supply 25 lakh bags per month. "Other temples in Andhra Pradesh are also floating tenders for bio-plastic bags to give 'prasad', and we are hoping to get a significant chunk of these orders. Gujarat based milk major, Amul has also done testing with our product,"he added.
The company has entered into an exclusive supply agreement with France's Limagrain Cereales Ingredients that produces a biodegradable polymer called biolice.
After use and disposal, biolice products are broken down by micro-organisms, which produces humus suitable for use in gardening or agriculture. The material takes 180 days to decompose completely.
Biolice is around three times more expensive than conventional plastic bag grade polymer which now costs between Rs 90-110 per kg. A 14 X 18 inches carry bag made from biolice would cost around Rs 5-7. "But, if we laminate the bag with paper, that is combine biolice and paper to make the carry bag, we can then use 15 micron thickness plastic to get the same tensile strength at much cheaper costs. The price of the bag would then be down to Rs 4, in comparison to a conventional plastic carry bag of the same size that costs around Rs 3 now. We have been doing research and development (R&D) on the product for the last one year," said Sangghvi. Moreover, now with the minimum thickness for plastic carry bags raised to 40 microns, conventional carry bags are set to become more expensive.
The company is betting big on states like Rajasthan which has already removed VAT from such biodegradable plastic products, as it declared the state plastic-free from last year. "A bag that would cost around Rs 6-7 in other states, would be cheaper at Rs 3 in Rajasthan.", Sangghvi said.
David Pearson, marketing director of Limagrain Cereales, pointed out that biolice could also be used to manufacture rigid applications like trays, containers, plant pots etc.
While Greendiamz is not manufacturing moulded bio-plastics products now, it, however, has a plan to take it up in the second phase of its production, around six-seven months later.
The company's Bavla plant that started commercial production in January this year has a capacity of around 5000 tonnes per annum. Greendiamz has invested Rs 30 crore in the plant, funded by a mix of debt-equity.
