Hyderabad: Singapore-based Eaglesford Group is in talks with Bengaluru-based Biogreen to set up biodegradable products making unit in Patancheru, Hyderabad with a capacity to make 1,000 tonnes of products. The company is going to talk to Telangana government to identify a suitable land. The unit could attract an investment of about Rs 15 crore and could be operational by end of 2019.
The plant which is likely to create 150-200 jobs to start with, is going to cater to both domestic and overseas markets. The unit will serve export markets such as Singapore, Indonesia and Philippines.
Sharing the joint venture plans, Eaglesford director Aaryan Kunder, told Telangana Today, “Our group has realised the need to bring out environment-friendly bags/packaging to replace plastic and polythene bags. We have identified Biogreen as an Indian partner with whom we intend to make products in India to meet the needs of domestic market as well as catering to the overseas markets. We are finalising the modalities of the joint venture and investment contribution. While a major portion of investment could come from us, Biogreen will offer its technology expertise and know-how. The revenue sharing is still being worked out.”
Eaglesford which started its operations in Singapore in 2008 has deep interests in biodegradable bags and products and has established manufacturing arrangement in Mumbai to cater to Singapore market and with the joint venture shaping up with Biogreen now, Eaglesford is planning to shift its production base completely to Hyderabad.
Biogreen CEO Mohammed Sadiq said, “We had been investing in emerging technologies. Since 2001, we had been working on biodegradable products and have come out with final products after nine years of research. We have contract manufacturing arrangement with 6-7 facilities across India. We are also developing a large facility in Chandrapur, Maharashtra in partnership mode.”
At Patancheru, the unit will be making carry bags and garbage bags besides spoons and cutlery. The facility will also make bubble bags. The products will use starch as a key raw material. About 60 per cent of the raw material is currently imported and by blending the remaining 40 per cent of raw material sourced from within India, final products are being developed.
“Though we will experience competition from the plastic bags on the price front, we plan to ramp up our R&D activity to bring the biodegradable bags on a par with the plastic bags. We are working with IIT-Madras and Manchester University for research. Going forward, Biogreen will explore new avenues in the biodegradable space. We are in talks with Airbus (for first-in-class products) and Tata Group (for bubble sheeting and packaging rap),” Sadiq informed.
Biogreen is currently developing biodegradable water bottles. Almost 90 per cent of R&D is done and in the next 2-3 months, the bottles could be commercially rolled out in India. The company is applying patent for this technology.
Eaglesford has also interests in media and entertainment. The group is co-producing a Marathi movie along with Mumbai-based film production house V-Rock Daddy. The group is also planning to facilitate Singapore-based Tech Storm to bring its satellite/pay-TV services to India soon. Eaglesford is actively seeking opportunities in the animation space as well.