Following his undying entrepreneurial spirit, Mohammed Azhar Mohiuddin’s startup Bio Reform manufactures biodegradable, compostable, and eco-friendly bags. These bags can decompose within 180 days and he has replaced more than 6 million bags in the past 2 years. Inspiring!
Startup Name | Bio Reform |
Founders | Mohammed Azhar Mohiuddin |
Industry | Chemical and petrochemical industries |
Company Classification | Private Limited Company |
Headquarters/based-in | Hyderabad, Telangana, India |
Idea | To manufacture 100% eco-friendly and compostable bags alternative to plastic bags. |
Revenue | Rs I.8 crore in FY 2023, projecting Rs 3-3.5 crore in FY 24-25 |
Date of Commencement | 2022 |
Investments | Rs 1 crore funding from the Adventure Park incubator program. Not much information on other investors and investments. |
The Problem: Why Does This Matter?
Azhar found that top global environmental issues are related to plastic pollution. There are several awareness campaigns and protests around the world on plastic pollution.
But without a proper alternative, it is not possible to reduce the usage of plastic. These bags are lightweight, durable, resistant, and thermal with good tensile strength.
Big brands can afford jute and cloth bags. However, small and medium businesses don’t have the budget to do the same. Thus, a major part of the Indian market continues to use plastic bags.
The Solution: Bio Reform
In 2022, he finally inaugurated his Bio Reform factory in Hyderabad. He manufacture compostable bags from corn waste, cellulose, sugar, and other natural components. In the past 2 years, the company has replaced more than 6 million plastic bags in India.
It was during the COVID-19 pandemic, Mohammed Azhar Mohiuddin’s friends were engaging themselves in making social media content. But Azhar decided to take up entrepreneurship to find a solution to make an eco-friendly alternative to plastic bags.
While researching, Azhar came across a research paper from 1800, and this is where he got his inspiration from. He wants the product to be cheaper than cloth, jute, and paper alternatives. Thus, he started studying more about biodegradable polymer and PBAT (Polybutylene adipate-co-terephthalate). It is a plant-based source derived from corn and potato. This became the base of his new business venture.
Business Model: How Do They Make Money?
Today, Bio Reform manufactures 4 to 5 lakh biodegradable bags to be used in different fields: carry bags, biomedical waste bags, food pouches, book wraps, and garbage bags.
These bags can be decomposed within 180 days and in the last 2 years he has commercialized the B2B chain. Thus, replaced more than 6 million plastic bags from the market. He follows a comparative pricing technique offering 1 kg bio bags at Rs 180-190. Though, it is a bit more than usual plastic bag prices, but the result is worth the price.
A medium-sized Bio Reform bag is Rs 0.80, which is almost double that of the plastic bags. But on the contrary Bio Reform’s bags are 40% to 50% more cost-effective than other eco-friendly alternatives including paper and cloth. Thus, these are the most affordable options in this industry.
In FY 22-233, the revenue was around Rs 16 lakh.
In 2023, his revenue was around Rs 1.8 crore.
The founder of Country Chicken Co., Mohd Sami Uddin was also looking for cost-effective eco-friendly alternatives to plastic bags when he came across Bio Reform. He has been a Bio Reform client for more than 1 year. Now, his customers do not complain about sharp chicken bones popping out from low-grade plastic bags.
Currently, Bio Reform operates in a 2500 sq ft factory, and in the past 2 years, Azhar has built a team of 10–11 people. Now, he don’t have to manage things alone.
Challenges/Struggles: What Roadblocks Are They Facing?
Pandemic Lockdown and Machinery Demo
The 1st challenge was to find the right machine but he was scammed by a fraud and then several operational difficulties were setbacks for him in the early stages.
Then a contact from Gujarat came with its own set of challenges. As everything was during the lockdown curfew, Azhar had spent most nights stranded on the road as hotels denied check-in without an RT-PCR report (which was a mandatory thing during that period).
After difficult times, finally they get to witness the machine and its demo. It was worth every hardship they faced. Moreover, they received Rs 1 crore funding from the Adventure Park incubator program. His undying dedication at the age of 22 changed every adversity into opportunity.
Challenges with Manufacturing Unit
Obviously, starting a manufacturing unit from scratch was challenging as he had to manage the intricacies of the business. Moreover, he had to balance academic commitments as he was a 3rd year college student.
His uncle, who was the co-founder of his company, left his position on the inauguration day due to personal reasons. Now, everything fell on his shoulders: collecting raw materials, assisting workers, and delivering the products to the market. He did not go home to sleep and slept in a corner in his factory.
Facing the Failures
The 1st year went in losses leading to shutting down the factory. Moreover, his studies also suffered a lot. With 14–15 backlogs in engineering, it was a stressful situation for him.
He decided to focus on completing his engineering. Finally, this civil engineer cleared all exams. He never gave up on his company and at the same time secured funding from an investor. Eventually, he revived the company within a couple of months after that.
Future Vision: What’s Next?
Individually, Azhar has spearheaded a step towards making India a plastic-free nation. He is happy with his work but strives to achieve more to carry on his mission. He knows much more is needed to be done to fulfill his mission, and he strives for it. Moreover, Azhar aims to increase his revenue in FY 24-25 to Rs 3-3.5 crore.
Key Takeaways: Why Should Users Care?
Azhar teaches us to be patient and dedicated towards our dreams. We know we are doing the right thing. Struggles and challenges are a part of the journey. However, we should not overstretch ourselves trying to manage multiple things at a time. It will only slow us down and reduce our morale. Thus, we should carefully manage things and seek help, if possible.
Picture Credits: Bio Reform