Ecovative report updated

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Social Enterprise Report On SUSTAINABLE PACKAGING BY- JHANVI DHORDA UGFMC 5000013730 2|Page

I would like to express my sincere thanks and gratitude to my mentors, Ms Anita Bora, Mr Rahul Jain and Ms Sonika Tewari for providing me an opportunity to work on this project. Guiding me throughout the journey by giving their feedback and helped me pursue this topic. Furthermore I would also like to thank my friends and peers who pushed me and helped me improvise my project. 3|Page

1. About us _____________________________________________________7 2. Mission & Vision ______________________________________________7 3. Brand Philosophy _____________________________________________7 4. Brand Prism __________________________________________________8 5. Core Team ___________________________________________________8 6. Problem & solution statement __________________________________9 7. Need for sustainability _________________________________________10 8. Market opportunities ___________________________________________11 9. Survey Conducted______________________________________________12 10. USP___________________________________________________________13 11. Macro Trends __________________________________________________14 12. Marketing Growth Strategy ______________________________________15 13. Competitors Analysis ___________________________________________17 14. Revenue Model ________________________________________________20 15. Value chain ____________________________________________________20 16. Merchandise Mix _______________________________________________21 17. Core Team Bios ________________________________________________21 18. Sales Budgeting & Analysis ______________________________________22 19. Business Landscaping ___________________________________________22 20. Legal requirements _____________________________________________22 21. Client Summary ________________________________________________24 22. Value Proposition ______________________________________________27 23. Client Relationship model _______________________________________28 24. Operational Model _____________________________________________28 25. Business canvas model _________________________________________29 26. Value proposition diagram _____________________________________30 27. Bibliography _________________________________________________31 4|Page

Figure 1. Ecovative logo _________________________________________________________________2 Figure 2. Brand prism___________________________________________________________________2 Figure 3. Solution ______________________________________________________________________2 Figure 4. Data_________________________________________________________________________2 Figure 5. Marketing strategy _____________________________________________________________2 Figure 6. Ecovative promise______________________________________________________________2 Figure 7. Our Product___________________________________________________________________2 Figure 8. Sales Budgeting________________________________________________________________2 Figure 9. Business canvas model __________________________________________________________2 Figure 10. Value proposition _____________________________________________________________2 5|Page

It’s in our hands, at ecovative we believe if we want to see a change it is in our hands to be the change. We provide innovative sustainable solutions for brands who want to kick start their sustainable journey and be a part of our team. It is important for our team to stay true to the cause and also be honest with our clients. Making sure our process is as sustainable as possible. 6|Page

About us An innovative sustainable packaging company to help provide business a way to connect with their consumers at the same time help contribute in saving the environment by keeping track of sustainable packaging trends and implementing them. Ecovative offers innovative solutions to enable recycling and reuse of product packaging. At the same time the goal is to shift the conversation towards the need for sustainability, not just in our packaging but in our everyday lives. Figure 1. Ecovative logo Mission Ecovative is committed to helping companies adopt sustainable ways of packaging along with educating our customers and embed sustainable practices to contribute to saving our environment and spread the word. Vision To strive to create a world with minimal waste and bridge the gap between consumers and brands. This idea is at the heart of the circular economy model: A way of thinking that seeks to gather materials after they have been used and process them so they can be reused or recycled over and over again. This eliminates waste and reduces the environmental impact of packaging – as long as strong recycling and waste management systems are in place. 7|Page

Figure 2. Brand prism 1. Sustainability consultant – Aimen Tamboowala 2. Creative Director – Kshitij Shetty 3. Finance consultants – Darshan Parekh , Darsh Motiwala 4. Business operations – Jhanvi Dhorda 8|Page

Problem The problem statement here is that there exists a huge knowledge gap between the consumers and the brands. Consumers expect transparency and honest claims from brands about them being sustainable which brands sometimes fail to deliver directly affecting their revenue. Research also shows that a knowledge gap also exists among retailers and manufacturers who think shoppers know more than they do. - 65% of executives said their customers are very aware of their sustainability initiatives. - But 49% of consumers said they do not have enough information to verify the sustainability claims of products. -And 44% said they do not trust product sustainability claims. Solution To provide business a way to connect with their consumers at the same time help contribute in saving the environment by keeping track of sustainable packaging trends and implementing them. Ecovative offers innovative solutions to enable recycling and reuse of product packaging. Below is also a diagram to further explain about three promises made by ecovative. Figure 3. Solution 9|Page

- Green is the new black, the demand for more efficient and environmentally friendly packaging is increasing. Many businesses are getting rid of trash-bound products, like packing slips and third-party marketing materials. - Large amounts of packaging produced today cannot be recycled in existing recycling systems. This is especially true for multi-material packaging, which today poses a significant and unresolved challenge in recycling. - Global leakage or unmanaged dumps of all plastic Figure 4. Data material flows (both durable and non-durable) is estimated to be around 19% out of which only 16% is re- processed to make new plastic. - Most of the global waste goes into incineration or ends up in landfills, meaning those materials are lost forever as a resource despite plastic’s potential use of reuse and recycle. 1. Between 2021 and 2026, India’s packaging sector is predicted to grow by 27% 2. Packaging consumption in India has surged by 200% in the last decade 3. Growing from 4.3 kilograms per person per annum (pppa) 4. To 8.6 kg pppa, according to the Indian Institute of Packaging. 5. Packaging materials constitute about 65% of the global solid waste - Keeping these numbers in mind, getting sustainable packaging into the picture becomes a very important step. With more goods being distributed directly to customers, e-commerce pack recyclability and reuse has become more important. - Approximately 380 million tons of plastics are produced every year across the globe as of 2018, and a total of about 6.3 billion tons of plastics have been produced over the last 68 years. Of the 6.3 billion tons of plastic, only an estimated 9% has been recycled, - This huge amount of plastic invariably impacts the environment (both land and ocean), affecting each and every life form. This implies the imminent need for sustainable packaging to save the environment. 10 | P a g e

Sustainability is a fast gaining importance among companies, as consumers increasingly look for products that are ‘green’. The reason simply can be credited to the growing awareness around health and environmental issues Increasing demand for environment friendly packaging is contributing to the growth of other segments as well. These include industries such as paper-based machinery, paper manufacturing, recyclers, and other start-ups in the segment - Sustainability has risen with consumers. 79 percent of consumers are changing their purchase preferences based on social responsibility, inclusiveness or environmental impact. - 67 percent of consumers said they would be more cautious about the scarcity of natural resources due to COVID-19, and 65 percent said they would be more mindful about the impact of their overall consumption in the “new normal”. - Sustainability concerns are now influencing consumer behaviour among more than half the population: 53 percent of consumers overall and 57 percent ages 18- to-24 switched to lesser-known brands because they were sustainable. - More than half of consumers, 52 percent, said they share an emotional connection with products or organizations that they perceive as sustainable. 64 percent said that buying sustainable products makes them feel happy about their purchases (this reaches 72 percent in the 25-to-35 age group).- - The study further found consumers and retail organizations understand the benefits sustainability has on its relationship with consumers: 77 percent indicated sustainability leads to increased customer loyalty, while 63 percent said it increases brand revenue. Of those who have changed preferences, the primary motivations are: • Wanting to make a difference in saving the planet for future generations (80%) • Concerns about fair workforce treatment (77%) • Concerns about issues like poverty and hunger (76%)\\ 11 | P a g e

To further understand the communication gap, i conducted a survey where in I listed down questions related to sustainability and packaging and how important it is. How old are you? Would you consider yourself to be an environmentally consciousness person? Are you familiar with the concept of sustainable packaging? How likely are you to buy a more expensive product if its packaging is more environmentally-friendly than its competitor's product? 12 | P a g e

Yes No Would you be interested in knowing more about sustainable packaging and that there was a design firm dedicated only to work with sustainable brands? Do you think there is a knowledge gap between consumers and sustainable brands? Do you agree that brands should take an initiative and adopt sustainable packaging? 13 | P a g e

Keeping up with sustainable packaging trends and incorporating them in value proposition to deliver best and sustainable packaging solutions for businesses. To provide customised sustainable packaging at comparable prices and durability as traditional packaging. Bio plastics Bio plastics are prepared from biodegradable, renewable resources such as starch, proteins, and polylactic acid (PLA). The number of available products and suppliers has exploded in recent years and bioplastics are being used today in commercial markets across the globe. Post-Consumer Recycle Resin Post-consumer recycled (PCR) resin is a recycled plastic used for making packages like water bottles, sheets, films, and other containers. PCR is now in high demand as many companies have set goals for PCR content in their packaging. Industries rapidly adopting it include electronics, retail, pharmaceutical, and medical packaging. Edible Films Different natural products can create edible packaging, but the most effective one is chitosan. It is a polysaccharide that possesses natural antibacterial activities and is present in ample amount. The edible films are used for fruits and vegetable packaging. But food scientists believe that by the end of 2021, it will be adopted by restaurants for packaging takeaways. Wood Based Plastic It is a renewable raw material that transforms into a variety of recyclable products that retain carbon throughout their lifecycle. Products such as pulp, paper, labels, timber, plywood, biocomposites, biochemicals, and biofuels. From wood to products with respect for nature. It is a new trend to use in labels as polypropylene material. 14 | P a g e

Traditionally, the actions taken to manage plastic waste in India have largely been focused on post-consumer plastic packaging waste collection. However, this represents just a part of the overall solution. Moreover, with an increased pressure from regulations and consumers there is a need for a strategic plan to implement the use of sustainable packaging. Along with traditional practises such as: - Improve packaging recyclability. - Increase usage of recycled content in packaging. - Scale up usage of compostable packaging. - Introduce reusable and returnable packaging. - Develop next-generation lightweighting - Lower overall CO2 footprint and make the carbon intensity of materials, packaging, and products more transparent. This calls for a holistic end-to-end circular approach to sustainable packaging, one that spans across upstream design and production actions, use phase interventions, and post- consumer collection and recover. In line with the principles of circular economy, the study outlines a three-pronged approach: (i) Dematerialize & design out barriers to recyclability (ii) Extend the useful life of plastic packaging through reuse, (iii) Improve collection and recycling systems. Figure 5. Marketing strategy 15 | P a g e

How will we attract consumers The first stage of packaging development is research. We have a dedicated team that spends much of their time exploring every avenue they can to discover our next packaging innovation. From scouring the internet, from networking with packaging suppliers to keeping an eye on packaging-related news articles and store-level displays, there are plenty of sources for sustainable packaging inspiration and ideation. When we find a packaging concept or sustainable material option that piques our interest or shows potential, we start the trialing process. After samples of the packaging arrive, we begin testing for shelf-life endurance, quality assurance, supply chain compatibility, and transport durability. We also conduct rigorous cost analysis research to ensure the packaging is sustainable for long-term production. It is also essential that our team reviews all sustainability claims associated with the packaging materials. Checking for proper certifications awarded by recognized organizations that oversee packaging sustainability management is an extremely important part of the packaging development process. During this test period, there is a lot of trial and error, all to develop the best package for our company, our products, our customers, and our planet. With so much testing to be done, it can take months – even years – to reach the end of the trial stage and be ready to introduce a new package to the marketplace. Figure 6. Ecovative promise Achieveing the Target Growth rate: - Being updated with the latest sustainability trends. - Research, trial, and implement innovative packaging solutions that strike a balance between being good for both our customers and for the environment. - The design is optimized for maintaining product quality. 16 | P a g e

- Collaborating with organizations who share the same interest to further spread awareness about the cause. - Delivering the promised sustainable packaging while maintaining its durability and aesthetics of the brand. Current Competition: 1. THE MEND The Mend is a sustainable packaging company committed to creating less waste in the world – one package at a time. It is co-founded by Rhea Kothari, Rishika Reddy, and Prianka Jhaveri. They work closely with waste management partners, packaging manufacturers, and vendors all across India to provide an authentic product and a seamless service to their clients. The Mend’s hope to dispel the four myths of sustainable packaging: 1. That sustainable packaging is not as aesthetically pleasing. 2. That it’s more expensive. 3. That it doesn’t have the same durable properties as traditional packaging. 4. That there’s a loss of branding opportunities with eco-friendly packaging. The team works hard to introduce materials that are both good for the people and the planet. Whether it’s the eCommerce mailers made from bioplastic, shopping bags made from newspapers, or drawstring pouches made from recycled cloth and printed with toxin- free ink, they have something for everyone. 2. ECOWARE It is a one stop shop for eco-friendly products that are 100% natural, bio-degradable, and easily affordable. All our products are made from the waste of common agricultural crops such as sugarcane and wheat. Eco-ware provides a sustainable and affordable alternative to plastic and foam disposables. Ecoware products do not contaminate the food it contains unlike traditional plastic and styrofoam and our range of tableware is 100% biodegradable and compostable. Ecoware products are made from plant biomass. The biomass pulp is produced from plant residue and is defined in such a manner that no chemical or pesticide residue is present. 17 | P a g e

3. PACKMILE Packmile is a sustainable supply-chain packaging company. They pioneer in eliminating the use of single use plastic, thermocol, Styrofoam and replacing them with eco-friendly packaging material. Their products are used in various industries ranging from automobile, electronics, spare parts and ecommerce. They primarily focus on green packaging and reusable packaging solutions. The current product portfolio includes, CORM™ - that converts scrap material into useful packaging fillers for wrapping or void filling; BHIVE, a design patented paper bubble wrap solution; Water-activated Paper tape that uses starch- based adhesives; and re-usable, customized pallet-wraps and pallet-straps. Packmile’s work has seen broad recognition from customer and industry partners. Current Competitive Advantage: We recognize our responsibility related to packaging. We’re committed to promoting sustainability and bring this commitment to life through a set of ambitious targets. Our strategy is built around the circular economy concept and focuses on including materials from sustainable sources and using a smart design to close the loop – for the benefit of people and the planet. We deliver durable affordable and aesthetic sustainable packaging for your business to grow. Along with a hardworking dedicated team we plan and execute the strategy that fits you the best. Our Product At ecovative we work to closely follow the smart loop design, which are: - MATERIALS FROM SUSTAINABLE SOURCES We constantly work on increasing the share of recycled content in its packaging. While many of our brands already offer products with packaging made from recycled material, we have set the ambitious target to increase the proportion of recycled plastic globally to more than 30 percent. - SMART PACKAGING DESIGN Reducing packaging material by offering smart solutions is the best way to minimize waste and the related negative environmental effects. We have been striving to reduce the quantity of packaging material in the entire product life cycle without impacting the quality, performance, or safety of our products. We will continue to do so in the future. - CLOSING THE LOOP 18 | P a g e

To enable a circular economy, we are striving to make sure our product packaging can be recycled after the product has been consumed. Our aim is that 100 percent of Henkel’s packaging will be recyclable or reusable by 2025. At the end of 2020, we had achieved this for around 89 percent of our packaging. - In particular, we work with our retail partners to help consumers understand how to use and dispose of our products correctly. Among other things, special recycling symbols on our products help us to do this. We aim to enable contact with more than 2 billion consumers per year by providing targeted information about recycling. Figure 7. Our Product 19 | P a g e

Revenue generation and pricing model Revenue generation would be by charging the brands, businesses for our services and products provided. Researching, designing manufacturing process and other services. From types of pricing model, ours would be penetrative pricing. Key Revenue Streams - Branding - Brand strategy - Brand logo - Brand packaging - Consultation fees - Competitors Research Consultation - Following a proper procedure, first we have a consultation session with the brand. Study its current product and discuss about the brands likes and preferences. Also address any doubts or concerns that may hinder brands sustainability journey. Second stage would be complete research based on information given by the brand. Follow up on latest trends to meet their requirements and curate processes that fit the brand the best. When we find a packaging concept or sustainable material option that piques our interest or shows potential, we start the trialing process. After samples of the packaging arrive, we begin testing for shelf-life endurance, quality assurance, supply chain compatibility, and transport durability. We also conduct rigorous cost analysis research to ensure the packaging is sustainable for long-term production. Once everything is approved we start the manufacturing process but also keeping in mind not to over- produce. 20 | P a g e

Merchandise Mix Ecovative helps brand or small business kick start their sustainable journey. By consulting and helping them develop a trustworthy relationship with their consumers. Branding and strategizing – we help brands cater to the audience in their most authentic element. Develop ideas that fir their brand image and improvise on the current methods to make it more sustainable. Help the brand with their brand image, brand story and give them a platform to tell their story. Follow up with a thorough competitor’s research and make use of the smart loop design system to come up with the most satisfactory results. SUSTAINABILITY CONSULTANT – AIMEN TAMBOOWALA She is a hardworking important member of the team who provides innovative solutions for brands. CREATIVE DIRECTOR – KSHITIJ SHETTY With his creative and technical skills he designs and plans out the creative to be printed on the packages. FINANCE CONSULTANTS DARSHAN PAREKH DARSH MOTIWALA Their knowledge about finance and accounts they are a huge asset to the company to keep all the finance in check and create plans for the future. BUSINESS DEVELOPMENT AND OPERATIONS – JHANVI DHORDA Looks over the business for its smooth functioning and acts as a communication channel for clients. Her organizational skills keeps everything time bound and hence results in better results for the company 21 | P a g e

Figure 8. Sales Budgeting Barrier Consumers are more informed and engaged. They are increasingly interested in packaging materials and designs that demonstrate a commitment to the environment. Companies who are more transparent about their supply chains have reaped the benefits from consumers who are willing to spend more for products that are more ethical. Opportunities A design house dedicated to promote sustainability and work with brands with same motives, this increases focus on corporate social responsibility. The importance of communicating CSR practices stands out as significant opportunity for expansion and improvement. With sustainability more in focus and consumers constantly getting educated about social responsibility it creates new market opportunities to tap into. Companies who are more transparent about their supply chains have reaped the benefits from consumers who are willing to spend more for products that are more ethical 22 | P a g e

Competitors who? Existing packaging brands like, Ecoware, The mend and pack mile own a huge chunk of share in sustainable packaging industry. What do they do well? These companies already have a working sustainable business model that gives them an advantage. They provided their clients with sustainable packaging that is durable cheap and also customizable. This gives them an upper hand in the market. Customer Needs Consumers are more informed and engaged. They are increasingly interested in packaging materials and designs that demonstrate a commitment to the environment. Companies who are more transparent about their supply chains have reaped the benefits from consumers who are willing to spend more for products that are more ethical. What do I Do well? Helping companies achieve that transparency level and create a faithful relationship with their consumers. Providing the companies with recourses and help them reach their sustainable goal. What makes me stand out Very few organisations are completely dedicated to promote the cause of sustainability, being an outlet of sustainable resources and even helping different organisations join the sustainable race is what makes me stand out. 1. Water (Prevention and Control of Pollution) Act, 1974 (Water Act) 2. Air (Prevention and Control of Pollution) Act, 1981 (Air Act). 3. Environment (Protection) Act, 1986 (EP Act) – This is the umbrella act which entails the following rules: a) E-Waste (Management) Rules, 2016; b) Bio-Medical Waste Management Rules, 2016; c) Construction and Demolition Waste Management Rules, 2016; d) Hazardous and Other Waste (Management and e) Transboundary Movement) Rules, 2016; f) Manufacture, Storage and Import of Hazardous Chemicals Rules, 1989; g) Coastal Regulation Zone Notification, 2011; h) Environment Impact Assessment Notification, 2006; and i) Plastic Waste Management Rules, 2016). 23 | P a g e

These products and services are designed for brands or small business who want to contribute and play a part in community by saving the environment. Those who want to have a meaningful relationship with their consumers by adopting sustainable and ethical business ways. Characteristics of the consumers: Currently, organizations that exhibit a broad-based commitment to sustainability on the basis of their original corporate DNA are few and far between. Instead, most companies become sustainable through conscious and deliberate efforts to show how the transformation. Main characteristics of a sustainable business: 1. Right sustainability goals 2. Governance led by the board 3. Technology across value chain 4. They are transparent with their manufacturing process and true to their sustainability claims. 5. Leaders at 72% of the sustainable companies are willing to take measured risks in pursuit of sustainability, in contrast to 40% at traditional companies. 6. Sustainable companies encourage their supply chains to adopt sustainable strategies (83% vs. 20% for traditional companies). 24 | P a g e

Type of Market It is a business to business type of market. (b2b) Unmet needs of the selected Segment Businesses often tend to forget that being sustainable include a lot of variables. External and internal factors can affect your value chain. By claiming being sustainable it does not solve the problem hence they sometimes fall into malpractices such as green washing. Ecovative provides them with a learning opportunity wherein they can also consult about their ongoing sustainable practises and also learn about new trends they can adopt to be more relatable. Benefits of our Product and services 1. A clear methodology on how to truly benchmark your packaging products in terms of sustainability, cost, and convenience 2. An understanding of the full opportunity and value at stake across your product portfolio resulting from increasing sustainability requirements 3. Clarity and innovation in your packaging and technology road map, along with having the right partnerships in place to respond to consumer and customer packaging demands going forward Best ways to communicate the product Best ways to communicate our product would be through sustainability campaigns. Messages on packaging and by building a platform for everything related to all sustainable businesses. Keeping up with the trends and implementing them having first mover advantage so the word of mouth spreads. 25 | P a g e

Main activities used to interact with the clients would be through follow a design process which include – Research, Ideate, Prototype, Select, Implement and learn. Each stage of the process hold at most importance in the sense that attention is paid to minute details for best result. Along with keeping up with the ecovative’s promise and keeping the process as sustainable as possible. Key Cost Drivers - Salaries - Material Sourcing - Utilities - Rent - Software 26 | P a g e

Figure 9. Business canvas model 27 | P a g e

Figure 10. Value proposition 28 | P a g e

Figure 11. Business Card Figure 12. Stationery set 29 | P a g e

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https://ficci.in/spdocument/23348/FICCI-Accenture-Circular- Economy-Report1.pdf https://ficci.in/spdocument/23348/FICCI-Accenture-Circular- Economy-Report1.pdf https://www.henkel.com/sustainability/sustainable-packaging https://www.mckinsey.com/industries/paper-forest-products-and- packaging/our-insights/the-drive-toward-sustainability-in-packaging- beyond-the-quick-wins https://smefutures.com/indias-sustainable-future-lies-in-green- packaging/ https://www.packagingdigest.com/sustainability/7-sustainable- packaging-trends-2021 https://www.mordorintelligence.com/industry-reports/green- packaging-market https://sgbonline.com/sustainability-is-good-for-business-new-survey- finds/ 31 | P a g e