Ties up with French company for biodegradable polymer
Ahmedabad-based Greendiamz Biotech Pvt. Ltd., which launched the country's first fully bioplastic dedicated sheets and bags manufacturing unit, is in talks with Reebok for packaging of products. The company intends to provide packaging products made out of fully biodegradable and compostable bioplastic material to the sports brand.
"Apart from marketing bioplastic sheets and bags on a B2B basis, we are also in talks with retail brands including Reebok. While the talks are in early stages, we are hoping to provide packaging products using the bioplastic material," said Dipack Sangghvi, director, Greendiamz Biotech Pvt. Ltd. The company has also signed a memorandum of understanding (MoU) with the government of Gujarat for the project.
Greendiamz Biotech has tied up with French company Limagrain for sourcing 'Biolice', a biodegradable polymer used as a raw material, to manufacture bioplastic products. According to Sangghvi, the company will be selling bioplastic products under the brand name of 'Truegreen'.
Talking about the new manufacturing unit, Ronnie Khajotia, chief operating officer, Greendiamz Biotech said, "Spread across an area of 7,200 sq yard, the manufacturing unit has a capacity to produce 4,000-5,000 tonnes of dedicated bioplastic film, sheets and other products. The unit has been set up at an investment of Rs 40 crore."
By the end of the financial year 2010-11, the company expects to sell around 1,500 tonnes of bioplastic products through B2B and B2G model. According to Sangghvi, the company may also provide bioplastic products to the state government. "While the central government has removed the 10 per cent custom duty on bioplastic products for agriculture purpose, we are also expecting some subsidies from the state government. Meanwhile, we will be supplying Truegreen products to the forest department of the government," he added.
Currently the company imports Biolice raw material from France, by next year Greendiamz Biotech plans to manufacture the biodegradable polymer in India.
"Once the raw material manufacturing technology of Limagrain is transferred to India, the production cost will come down by 40 per cent," said Khajotia.
While Truegreen bioplastic products are priced 3-4 times higher than plastic products, Khajotia said the former's dart strength is three times higher than the latter.
