How this company is turning India’s agri-waste into biodegradable plastic

Sandeep Kumar Tyagi, Co-Founder and COO of Ukhi India, spoke with Bizz Buzz about the company's innovative approach to bioplastics, tackling plastic pollution and global warming. Ukhi transforms agricultural waste into biodegradable and compostable biopolymers, offering a sustainable alternative to conventional plastics

"We're passionate about tackling critical challenges like plastic pollution, global warming, and waste management," Tyagi explained. Ukhi utilises readily available agricultural waste like nettle, bamboo, and hemp to develop high-performance bioplastics that are petroleum-free and decompose naturally

What sustainability measures is Ukhi India implementing in its operations and product offerings?

Ukhi India is profoundly committed to embedding sustainability in every aspect of its operations and product offerings. A significant part of this commitment is sourcing raw materials exclusively from Self-Help Groups (SHGs) and individual farmers who practice sustainable farming. This strategy ensures that our raw materials, including nettle, hemp, and rice husk, are cultivated and harvested using environmentally responsible methods. The agricultural waste materials are then transformed into biodegradable and compostable polymer granules, effectively minimizing environmental impact. This approach not only supports local farming communities by providing them with an additional income stream but also helps maintain a sustainable cycle of material use and waste reduction.

Could you provide more information about the eco-friendly packaging options offered by Ukhi India?

Ukhi India offers a range of eco-friendly, biodegradable, and compostable plastic granules derived from agricultural waste. These granules are used to manufacture various flexible packaging solutions for single-use plastic products, such as carry bags, waste bin liners, e-commerce packaging, and industrial wraps. Unlike conventional plastics that persist in the environment for hundreds of years, our products decompose into carbon dioxide and water upon contact with soil, leaving no harmful residues behind. This natural degradation process significantly reduces the environmental footprint of single-use plastics.

Moreover, regulatory mandates currently require that flexible packaging made from fossil fuel-based plastics be over 120 microns thick. In contrast, packaging made from Ukhi India’s bio-based plastic granules can be as thin as 30-40 microns. This thinner packaging not only reduces material usage and waste but also enhances economic viability by lowering production costs. As a result, Ukhi India’s solutions provide an environmentally friendly and economically advantageous alternative to conventional plastics.

Is Ukhi India considering integrating renewable energy solutions into its operations?

Ukhi India is actively pursuing renewable energy solutions as part of its operational strategy. The company is in the process of establishing a manufacturing facility in IMT Faridabad with an initial capacity of 4.0 tons per day, aiming to expand this capacity to 25-30 tons per day over the next two to three years. During this expansion phase, we plan to integrate renewable energy sources, primarily solar power, to significantly reduce our carbon footprint. This integration will not only enhance the sustainability of our manufacturing processes but also align with our broader commitment to environmental responsibility and reducing reliance on non-renewable energy sources.

Can you provide information about Ukhi India's sustainable sourcing practices, particularly regarding raw materials and ingredients used in your products?

Ukhi India adheres to stringent sustainable sourcing practices to ensure the ethical and eco-friendly procurement of raw materials. We collaborate with numerous SHGs and individual farmers in and around Uttarakhand to aggregate agricultural waste materials like nettle, hemp, and rice husk. These materials are initially processed at our facility in Kashipur, ensuring that only the highest quality raw materials are used. The processed materials are then transported to our main processing unit in IMT Faridabad. This sustainable procurement and processing cycle minimizes waste and promotes eco-friendly practices throughout our supply chain. By fostering strong relationships with local farming communities, we ensure a steady supply of sustainable raw materials while supporting the livelihoods of these communities.

How has your experience helped you in your new role as Co-Founder and Chief Operating Officer (COO) at Ukhi India?

With over three decades of experience in the manufacturing industry, particularly within the polymer sector, our Co-Founder and Chief Operating Officer (COO) brings a wealth of knowledge and expertise to Ukhi India. This extensive background has been crucial in developing our innovative vertical focused on biodegradable and compostable granules derived from agricultural waste. The COO's deep understanding of manufacturing processes and market dynamics has equipped them with the skills necessary to drive the company’s vision and contribute to addressing the urgent environmental need for sustainable plastic alternatives. This leadership ensures that Ukhi India remains at the forefront of sustainable innovation in the polymer industry.

Tell us more about your company.

Ukhi India is a pioneer in producing biodegradable and compostable polymer granules from agricultural waste. Our mission is to promote sustainable practices and significantly reduce plastic pollution. By transforming agricultural waste into eco-friendly plastic alternatives, we not only support environmental sustainability but also enhance the economic viability of sustainable farming practices. Our commitment to green technology and innovative approach positions us as a leader in the sustainable materials industry, driving positive environmental change while supporting local communities.

How profitable is the company and what are the future growth prospects?

Ukhi India is on a robust growth trajectory, poised for significant profitability. Our greenfield project for producing agricultural-based biodegradable granules is slated to become operational by October 2024. We anticipate achieving an initial efficiency rate of 30-40 per cent during the last two quarters of the fiscal year 2024-25, following the commissioning of the plant in Q2 2024-25. With strategic expansion plans over the next two years, we aim to reach profitability with a gross profit margin of 35 per cent. This projection underscores a robust and sustainable financial outlook, driven by strong market demand for eco-friendly alternatives and our innovative production processes.

Given your various expertises, is there scope to diversify your green activities?

Absolutely, there is significant scope for Ukhi India to diversify its green activities, especially by venturing into the development of additional plant-based bio-plastics. This strategic move aligns perfectly with our broader objectives of sustainability and environmental stewardship. By expanding our product portfolio to include a wider range of bio-plastics, we not only enhance our market offerings but also contribute to reducing the reliance on traditional petroleum-based plastics, which are major contributors to environmental pollution.

The global market is increasingly demanding sustainable alternatives to conventional plastics due to growing environmental concerns and stringent regulations. By developing plant-based bio-plastics, Ukhi India can tap into this expanding market, offering innovative solutions that cater to eco-conscious consumers and industries.

Plant-based bio-plastics are derived from renewable resources such as corn, sugarcane, and other biomass, which significantly reduces the carbon footprint associated with plastic production. By focusing on bio-plastics, Ukhi India can contribute to a circular economy where materials are reused and recycled, minimizing waste and environmental impact.

Our commitment to sustainability extends beyond environmental benefits to include social impact. This can lead to job creation and improved livelihoods for farmers and local communities, fostering inclusive growth and development. By continuously innovating and expanding our range of sustainable products, Ukhi India reinforces its position as a leader in the sustainable materials industry.

Can you play a more important role in improving India's green initiatives?

Ukhi India can indeed play a pivotal role in enhancing India's green initiatives through its innovative approach to bio-plastics. As the global market for fossil fuel-based polymers continues to expand, the environmental impact is becoming increasingly severe. In 2022, India generated about 3.5 million tons of plastic waste, with around 1.3 million tons consisting of single-use flexible packaging. This waste not only pollutes rivers, soil, sea beds, water, and air but also poses a significant threat to human health, as evidenced by the discovery of micro plastic traces in foetuses and new-borns.

Ukhi India's production of agricultural-based bio-plastic granules presents a sustainable alternative to conventional plastics. By utilizing renewable agricultural resources, Ukhi India helps to reduce reliance on fossil fuels and decrease the overall environmental footprint of plastic production. These bio-plastic granules are biodegradable, thus mitigating the pollution problem associated with traditional plastics.

In alignment with India's broader green initiatives, Ukhi India's efforts contribute to the country's goals of reducing plastic waste, promoting sustainability, and fostering a cleaner environment. This initiative not only supports national sustainability targets but also aligns with global efforts to combat plastic pollution and reduce carbon emissions. By leading the way in bio-plastic production, Ukhi India exemplifies how innovative solutions can drive meaningful progress in environmental protection and sustainability.

How can your greener initiatives make a cleaner India?

Ukhi India’s greener initiatives have the potential to make a profound impact on creating a cleaner India. The single-use plastic products made from our bio plastic granules biodegrade completely, leaving no harmful residues in the environment. This biodegradability helps mitigate the adverse effects of plastic pollution, ensuring cleaner soils, waterways, and ecosystems. By replacing conventional plastics with our sustainable alternatives, we are taking concrete steps towards a more sustainable and environmentally friendly future for India. Our commitment to sustainability, combined with our innovative approach, positions us as a key player in the fight against plastic pollution and the promotion of a cleaner, greener India.

In conclusion, Ukhi India is deeply embedded in the principles of sustainability, from sourcing raw materials to manufacturing eco-friendly products. By leveraging renewable energy, adhering to sustainable sourcing practices, and continuously innovating, we are not only contributing to a cleaner environment but also driving economic viability for local farming communities. Our leadership and strategic vision ensure that we remain at the forefront of the sustainable materials industry, paving the way for a more sustainable and environmentally friendly future.