24YO Creates Compostable Bags from Agriwaste, Earns ₹1.3 Cr in Revenue

A student-run startup in Hyderabad is taking a revolutionary approach to tackling plastic pollution. BioReform, a biotechnology company launched in 2022, is creating a wave of change by developing biodegradable and compostable alternatives to single-use plastic and paper bags. 

Since its inception, BioReform, incubated by India's first student-focused incubator, Adventure Park, has replaced over 6 million plastic bags and expanded its operations to 8 cities.

But how are they achieving this feat? By using waste.

BioReform utilizes innovative biotechnology processes to transform corn waste – sugars, cellulose, and other natural components – into a sustainable alternative: biopolymers. 

This eco-friendly solution is not only capturing the attention of consumers but also paving the way for a future free from plastic's harmful footprint.

Beyond the Hustle: How Azhar Found Purpose in Sustainability

Mohammed Azhar Mohiuddin, a 24-year-old master's student, embarked on his entrepreneurial journey at the age of 14. With a hustler's spirit, he started by selling insurance policies using a borrowed identity. 

Over the years, he ventured into various fields, including logo design, website development, and cleaning services, always on the lookout for new opportunities. His path to sustainability has been far from straightforward, marked by a continuous quest for new ventures.

“What started as earning pocket money at an early age to gain independence from my family led to earning good money, especially by providing cleaning services to houses and flat owners,” says the founder of BioReform during an exclusive interview with Startup Pedia. 

However, a turning point arrived at 20 with the onset of the COVID-19 pandemic. Confined by lockdowns, Azhar's focus shifted from chasing money to creating impact. 

A 2019 speech from the Prime Minister calling for India to be free of single-use plastic by 2025 resonated deeply. But awareness campaigns, Azhar realized, were only half the battle. Without genuine alternatives, plastic would remain king.

Existing options like paper and jute bags had limitations. Paper lacked water resistance, hindering restaurant deliveries. Jute proved too expensive for most businesses. Food packaging also presented a challenge – paper couldn't handle storage needs. 

“I recognized the core strengths of plastic – lightweight, durable, and water-resistant. The key was to replicate these properties while remaining environmentally friendly and cost-effective,” says the young entrepreneur while talking to Startup Pedia. 

This quest led Azhar to biopolymers, a product of the burgeoning biotechnology revolution. By harnessing biology to create sustainable solutions, biopolymers offered a glimmer of hope. 

This was the genesis of BioReform, an eco-friendly startup born from a desire to find a better way, a testament to Azhar's evolution from a hustler to a sustainability champion.

Product and Pricing:

BioReform's eco-bags aren't simply a visual substitute for plastic. They boast a silky, smooth texture that surpasses the rigidity of traditional plastic bags. This translates to a user experience superior to both plastic and paper. 

Unlike paper, BioReform's bags are remarkably durable and tear-resistant. But where they truly shine is in their end-of-life cycle. In a landfill, these bags biodegrade with the help of bacteria and microorganisms, transforming not into harmful microplastics but into valuable manure that nourishes the soil. 

This innovation has earned BioReform the approval of local and central environmental bodies, solidifying its position as a champion for sustainable alternatives.

Despite initial concerns about cost, BioReform has strategically positioned their product for affordability. Government regulations banning thin plastic bags have limited options, often leading to pricier alternatives. 

While BioReform's price per kilogram sits at Rs. 190 compared to plastic's Rs. 130, the key lies in the number of bags per kilogram. 

BioReform's bags translate to a cost-per-piece that rivals plastic, clocking in at Rs. 0.80 for a medium-sized bag versus plastic's Rs. 0.41. In fact, BioReform boasts a 40-50% price advantage over paper, cloth, and other eco-friendly alternatives, making them the most affordable option for businesses transitioning away from traditional plastic.

Journey to Sustainability Miracle:

Though fueled by research during the pandemic, the initial steps were met with challenges.

“As a student with no prior experience in manufacturing, I had to navigate everything from finding the right machinery to securing funding”, adds Azhar, Founder of BioReform.

Eventually, securing a place in the Adventure Park incubator program with a funding of Rs. 1 crore provided a much-needed boost. He set up the factory in Hyderabad and began the production of biodegradable polymer bags.   

The initial response from the market was encouraging. Sustainability resonated with customers, defying Azhar's initial perception that cost would be the sole concern. 

Yet, the early days were gruelling. Balancing college classes with pitching products, managing factory production at night, and sleeping in the factory itself took a toll. By December of the first year- 2022, the working capital was depleted, forcing a shutdown.

Faced with mounting pressure from family questioning his choices and his academic performance plummeting, Azhar persevered. He cleared a staggering 14-15 engineering backlogs with the help of friends Abdul Rab & Omer who helped him with exam preparations all night and secured a new investor who, impressed by Azhar's tenacity, overlooked the company's financial state. 

Discussing the company’s growth, during the conversation with Startup Pedia, Azhar explains, “With the factory back in operation and studies back on track, BioReform has not only grown to operate in 8 cities but is also on the cusp of exporting its eco-friendly alternative to plastic bags.”

The initial struggles have become valuable lessons, shaping BioReform's journey from a fledgling idea to a company poised for international expansion.

Revenue and Growth:

BioReform's financial trajectory reflects its impressive growth. The first year was about learning the ropes, generating a respectable revenue of Rs. 16 lakhs in 2022-23. Year two saw that figure soar to a commendable Rs. 1.3 crores in 2023-24, solidifying eco-bag startup BioReform's position in the market. 

“Now with a focus on scaling and expansion, we are projecting a revenue of Rs. 3-3.5 crores for the current year- 2024-25,” adds Azhar while discussing BioReform's revenue growth with Startup Pedia.

BioReform has grown significantly in its two years of operation. Initially a one-man show, Azhar has built a team of 10-11 people. The eco-bag startup currently operates a 2500-square-foot factory in Hyderabad with dedicated staff for factory operations, social media management, back-end operations, and sales.

Customer Category:

BioReform's customer base is a diverse mix, driven by a variety of factors. Price remains a consideration, but BioReform's competitive pricing strategy attracts cost-conscious buyers. However, a significant portion of their clientele is motivated by more than just economics. 

Some customers, like hotels, see BioReform's bags as an aspirational choice, a way to showcase their commitment to environmental responsibility and hygiene. Others, seeking differentiation in a crowded market, use BioReform's bags as a way to stand out from competitors.

Sustainability also plays a role, with companies like organic milk producers and cow shelters choosing BioReform to maintain the integrity of their organic products. Beyond these motivations, BioReform caters to a wide range of businesses, from restaurants and resorts to bakeries and laundry services, offering a solution that is both environmentally friendly and cost-effective.

Fundings:

BioReform's funding journey reflects both challenges and triumphs. They secured an undisclosed amount, estimated at around Rs. 1 crore, through their incubation program at Adventure Park. However, a factory shutdown led to a significant loss of equity in a subsequent seed funding round. 

Despite this setback, BioReform has secured crucial support through grants from the Atal Incubation Center, totaling Rs. 6 lakh rupees. These grants, unlike traditional funding, are equity and loan-free. BioReform's financial picture is steadily improving.

“After a year with negative EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), we are projecting profitability for the current year”, adds Azhar in an interview with Startup Pedia.

This shift reflects a growing focus on monthly cash flow management, a strategy that has yielded positive results in recent months.

Vision and Mission:

Azhar's vision for BioReform extends far beyond simply his own company. While becoming India's leading manufacturer of biodegradable products is a significant goal, his ultimate mission is to eradicate plastic use throughout the country. He recognizes the power of collaboration and hopes to inspire a wave of entrepreneurs to join the fight against plastic pollution.

Azhar's vision for the future is clear – to see BioReform become a major player in the eco-friendly packaging industry, a vision fueled by the company's impressive financial growth.

Looking outward, Azhar sees an opportunity to position India as a global leader in sustainable solutions. He believes that India's high-quality products and competitive pricing can win over customers currently reliant on Chinese alternatives.

BioReform's mission is more than just a business venture; it's a movement for a healthier planet.