In the bustling city of Bengaluru, a family-run startup is proving that sustainability and profitability can go hand in hand. Aecoz, founded by Dhanvita Sathyanand, Srinidhi Rajaram, and Bharath Sathyanand, has revolutionized the food packaging industry with its biodegradable and durable paper-based alternatives. Their innovation not only addresses the growing plastic waste crisis but has also led to an impressive annual revenue of Rs 5.2 crore.
The Plastic Problem in the Food Industry
Have you ever wondered what happens to the plastic bowl your favorite takeout comes in? The global food delivery industry, while convenient, generates an estimated 3,50,000 tonnes of single-use plastic waste every year. The durability and cost-effectiveness of plastic have made it the default choice for food packaging, but its environmental impact is devastating.
Aecoz offers a game-changing solution: paper-based packaging that is heat-resistant, spill-free, and 98% biodegradable within 180 days. Their product line includes cups, bowls, containers, lids, and boxes, all designed to withstand high temperatures while remaining eco-friendly.
A Journey from Corporate Success to Sustainable Entrepreneurship
Before launching Aecoz, the three founders had successful corporate careers at firms like Infosys, Tesco, and JP Morgan. In 2015, they ventured into the hospitality industry with Cartier Hotels, a four-star establishment in Bengaluru. While managing the hotel, they encountered inefficiencies in food procurement and supply chain management, which led them to launch their second venture, Agrainz—a digital platform to streamline restaurant supply chains.
Although Agrainz initially flourished, the COVID-19 pandemic halted their operations, leading to significant losses. Determined to create something meaningful, the team pivoted to sustainable food packaging, launching Aecoz in 2020.
From Concept to Reality: Aecoz’s Paper-Based Packaging
The 2019 plastic ban in India may not have been entirely successful, but it catalyzed innovation in biodegradable packaging. Aecoz received its first breakthrough when health-focused food brand EatFit requested a sustainable alternative for their food packaging. Through rigorous research and development, Aecoz successfully created a durable paper-based product that met industry standards.
Aecoz sources its raw materials from ITC, which supplies about 85-90% of the paper used in their products. These paper reels are coated with a water-based barrier, making them suitable for food storage. The manufacturing process involves cutting paper into blanks, shaping them into bowls, and treating them with high-temperature coils (up to 350°C) to create a heat-resistant, spill-proof structure. The Central Institute of Petrochemicals Engineering & Technology (CIPET) has certified Aecoz products as food-grade, pollution-free, and plastic-free.
With a production speed of 40-45 units per minute, Aecoz has sold over 4.5 crore products to date, significantly reducing plastic waste in the food industry.
Overcoming Challenges and Building a Rs 5 Crore Business
Despite their success, Aecoz faces challenges in making biodegradable packaging mainstream. Plastic remains a cheaper option, and many businesses hesitate to pay the 35% premium for sustainable alternatives. To address this, Aecoz targets high-end clients who prioritize sustainability and branding.
One of their biggest hurdles was convincing food brands that paper-based containers could withstand high temperatures. MTR, a well-known Indian food brand, was skeptical about using paper packaging for its 90°C hot rasam and sambar. To prove their product’s reliability, the Aecoz team conducted rigorous stress tests, even filling containers with hot liquid and having delivery executives carry them around for hours. Their persistence paid off—MTR became a loyal client.
Expanding Reach and Global Presence
Aecoz has attracted major clients, including Lulu Hypermarkets, Magnolia Bakery, Ritz-Carlton, and Milano Ice Creams. The latter has been using Aecoz packaging for over three years, praising its durability and leak-proof design.
The company has also made inroads into international markets, particularly the UK, where 50% of food packaging is already paper-based. “We are working to showcase Indian products in the United Kingdom,” says Dhanvita.
A Sustainable Future
While Aecoz understands that small-scale food businesses may struggle with the higher costs of paper packaging, they have reduced their prices by 30% to make their products more accessible. In some cases, their 50ml paper containers are now cheaper than plastic alternatives.
Beyond business, the founders emphasize the long-term impact of their work. Exposure to microplastics from conventional packaging has been linked to severe health risks, including cancer. “We encourage everyone to consider the long-term health implications and make conscious choices towards sustainable alternatives whenever possible,” says Srinidhi.
Dhanvita calls for stricter enforcement of plastic bans, especially in urban centers like Bengaluru, where 20,000 tonnes of plastic waste are discarded every month. Meanwhile, Aecoz continues its mission to create a cleaner, greener future.
Their journey is proof that sustainability isn’t just a responsibility—it’s an opportunity to innovate and thrive in a changing world.