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  • Writer's pictureDivyesh Dadhaniya

How to start a compostable product business in India?

I've noticed many entrepreneurs on the lookout for fresh business ideas, often dreaming of starting their own production houses. However, uncertainty about which product segment to dive into leaves many stuck in traditional businesses with lower margins and higher effort. To help you break free from this cycle, I'd like to introduce an exciting, forward-thinking business segment poised for rapid growth in the near future.

Currently, the compostable product manufacturing business is growing significantly in India. A major group of people are starting with compostable carry bag manufacturing for easy market entry with lower investment and end up within that only. There are various categories of compostable product manufacturing. For example, compostable products can be divided by their processing types as follows.

1.     Blown film extrusion (monolayer or multilayer)

  • Flexible products of all kinds can be made using a blown film extrusion machine.

  • With just a few minor adjustments, existing plastic processing blown film extrusion machines can also produce compostable items.

  • By adding the right cutting and sealing equipment, the same machine can create a wide variety of compostable products, including carry bags, garment bags, garbage bags, D-cut bags, courier bags, grocery bags, laundry bags, shopping bags, mulch film, stretch film, cling film, shrink film, hand gloves, caps, and more. Both opaque and transparent variants can be produced.

  • This is currently the largest and most competitive market in the compostable industry, making it easier to enter and succeed in this space.

  • The cost of the machine is approximately INR 25-30 Lakhs, offering an affordable entry point into the booming eco-friendly market.

Monolayer blown film extrusion machine with its product portfolio
Blown film machine and products

2.     Injection molding

  • All kind of rigid compostable products can be made from injection molding machine with adequate mold arrangements.

  • The existing plastic molding machine can be used for compostable products with minor modifications.

  • Compostable products like, spoon, fork, knife, candy stick, toothbrush, comb, cups, containers, gift articles, pens, bottles, etc. can be made. Moreover, durable products like, automobile interiors, parts of all electronic items, toys, etc. can be made from compostable materials.

  • This market segment is broad and emerging, with few competitors, offering a significant opportunity to transition all plastic products to compostable alternatives.

  • The market is growing rapidly and is poised to become well-established soon. This is the perfect time to enter and gain an early mover advantage.

  • The cost of the machine is approximately INR 15-20 Lakhs, making it an affordable investment for those looking to tap into the booming compostable market.

Injection molding machine and its products
Inection molding products

3.     Profile extrusion

  • Compostable products like straws, U-bend straws, candy sticks, flag sticks, and 3D printing filaments can be created using profile extrusion machines.

  • With just a few minor modifications, existing plastic profile extrusion machines can be adapted to produce these eco-friendly items.

  • As the demand for sustainable alternatives grows, these compostable products are becoming increasingly popular, especially as replacements for paper straws. Unlike paper straws that get soggy and disintegrate in beverages, compostable straws remain sturdy and reliable, making them a much more appealing choice for everyday use.

  • The cost of these machines is approximately INR 50-70 Lakhs, making it an affordable investment for those looking to capitalize on the booming compostable industry.

Profile extrusion machine with its product portfolio
Straw making machine & products

4.     Cast film extrusion and thermoforming

  • Forming and sheet-cutting products like cups, glass, lids, clamshells, fruit/vegetable boxes, shirt packing accessories, etc. can be made from a combination of cast film extrusion and thermoforming machine.

  • Existing plastic (PET/PP) cast film extrusion and thermoforming can be used with minor changes.

  • This segment in the compostable industry is a high-cost segment compared to other alternatives available in the market. Hence, the market is growing slowly.

  • The cost of the combined machine would be approximately INR 1.5-2 crores with high volume production speed.

Cast sheet extrusion and thermoforming machine with its product portfolio
Thermoforming machine & products

Recent developments are painting a promising picture for the future of the compostable industry in India. Balrampur Chini's announcement of a new PLA production plant with a capacity of 75,000 MT per annum and a significant investment of INR 2,000 crores is a testament to this bright outlook. Additionally, Reliance Industries has developed PBAT manufacturing technology and may soon introduce PBAT materials to the Indian market. PLA and PBAT are cornerstone materials in the compostable industry, and India is currently importing them in significant volumes. Domestic production will reduce costs and drive exponential growth in the compostable market.


Given the current market scenario, investing in and expanding manufacturing capabilities in this field is an ideal business move. This forward-thinking industry promises substantial growth in the near future, offering a lucrative opportunity for early adopters.


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