DEG invests in packaging made of plants

German company offers alternative to plastic

Plastic packaging waste is one of the largest problems worldwide. The Indian government reacted to this problem by banning certain types of plastic packaging. However, a suitable alternative is not yet available on the Indian market. This offers an opportunity for Bio-Lutions, a company in Hamburg, who just realized an investment of 500,000 Euros from DEG, the German development and investment association. These investments are available as a part of the Up-Scaling program of the German Federal Ministry for Economic Cooperation and Development.

Packaging made out of plant waste replaces plastic

Bio-Lutions produces biodegradable packaging and disposable tableware from plant waste, for instance bananas, pineapples or tomatoes. First the plants are dried and then mechanically pulped into micro- or nanofibers. When these fibers are mixed with water, it can be processed in various forms without the need for additional chemical binders. It can be shaped into packaging and disposables.

This method, developed by Bio-Lutions, has only been tested in a pilot. In Bangalore, in the Indian state of Karnataka, a major industrial plant will be built for the almost CO2-neutral production of packaging and disposables.

DEG supports the growth of the new company

In Cologne, during the signing of the contract DEG managing director Christiane Laibach stated: “We are very happy that we can support Bio-Lutions, a young and innovative company to achieve growth. With its novel method of producing packaging material, Bio-Lutions offers a sustainable and environmentally-friendly alternative to plastic packaging.”

“After a constructive and accurate review, without bureaucracy, of our business plan and innovation, we are now supported by DEG in the Up-Scaling program. In India Bio-Lutions can significantly increase its production capacity in order to make an important contribution to sustainable development,” added Eduardo Gordillo, Managing Director of Bio-Lutions.

Together with small farmers cooperatives

The Bangalore region is very fertile and achieves four harvests per year. This means abundant plant waste so additional production of plants is not necessary. Bio-Lutions will work together with cooperatives of small farmers who supply the material for the production and so generate additional income.

An Indian online supermarket is already a customer. Their customers can buy, for example, bananas in banana plant packaging. Bio-Lutions aims to offer its products in Europe within a few years.

With the Up-Scaling program DEG promotes start-up investments in small and medium-sized enterprises (SMEs). This way enterprises can expand their innovative business models, especially models that generate positive effects on development. Together DEG and the German Federal Ministry for Economic Cooperation and Development will provide 4.5 million Euros for the program in 2017.