Team Eco-strategists

IIM Bangalore

“Saviours of the environment”

Aniket | Prasad | Vaibhav | Atharv

 Industry Overview:- Mushroom (Mycelium) Packaging

Market Size (Global) Industry Forces Analysis

Substitutes Threat High Cheaper, Faster plastic alternatives

US$ 74 CAGR 9.7% US$ 187
Mn. Mn. New Entrant Medium Requires High Setup cost

2023 2033 Buyers Power High Fragment mycelium market

Market Insights Suppliers Power Low Ability to produce raw materials

Sustainable Demand: Rising need for Competition Medium Multiple startups in early stage
biodegradable mycelium packaging.

Innovation: Early-stage market with Value Chain and Stakeholders

potential for new applications.
Cultivation
Raw Material Manufacturin
Regulations and Incentives: Government R&D and Distribution
Sourcing g
support promotes sustainable practices. processing

Upstream Downstream
Partnerships: Opportunities for
collaborations to create closed-loop systems. •
Roha’s •
Stakeholders-Researchers, scientist, logistics division,
packaging
Mushroom growers/ farmers, Suppliers etc. Sales & Marketing
Business •
• High lead time lead time-low
 Target Market Segment

Target Industries Value proposition Competitor

India
Sustainability: 100%
biodegradable and BIO-LUTIONS (Bangalore)
compostable. This Bangalore-based firm is one of the
Electronics Luxury Cosmetics Beverage leading developers of mycelium-based
packaging products in India. Their
 Electronics: Eco-friendly packaging for delicate products can be used for food
components. Protection: Durable and
shock-absorbing. packaging as well as cushioning and
 Luxury Goods: Sustainable, premium packaging for high- insulation in electronic items.
end brands.
 Cosmetics: Organic and environmentally conscious
Global
packaging.
 Beverage: Biodegradable packaging to reduce waste. Innovation: Unique eco-
friendly technology. Ecovative (Saranac Lake, NY, USA)
This company is a global leader in
mycelium packaging solutions. They
Industry applications
offer a variety of products, including
Customization: Tailored protective packaging, inserts, and even
Electronics: Protects components, reduces e-waste. industry-specific insulation materials.
solutions.
Luxury Goods: Premium feel, aligns with brand sustainability.
Zotepack (Maarheeze, Netherlands)
This Dutch company offers a range of
Cosmetics: Safe, non-toxic, eco-friendly. Brand Image: sustainable packaging
Enhances corporate
solutions, including mycelium-based
Beverage: Maintains freshness, reduces plastic use. responsibility.
products.
 How to reduce High Upfront Costs?

Small orders (samples)  3D Printers Modularity  Late Customization  Reduced Costs

 Mold costs constitute significant part of the initial
setup cost (Fixed Cost).
“Become IKEA of mycelium packaging”
 Mycelium 3D printer can produce samples without
creating a permanent mold Flat Panels with Various Sizes
 Roha can invest in or buy this technology to reduce  Basic building blocks of system
entry barrier.  Different shapes and thickness
 Ideal for large packages
Dies Vs 3D Printer [Cost Analysis]:
Costs 3D Printer Die-based Developing standards:
Fixed Cost : Die Mfg. 0 Higher  Develop system of grooves, ridges.
 Creating standards for industry
Variable Costs Higher Lower Inflection Point  Train customer for end customizations
Per Unit Cost: qty < inflection Low Very High
Low (Half of
Per Unit Cost: qty > inflection Higher 3D) L-shaped & Interlocking corners:
 Initially for sample creation use 3D printer and once you
 Connect with flat panels for joints
receive bulk order manufacture using dies in batches
 Allows 90o & interlocking blocks
 Wide range of box config can be made
Large Orders  Economies of Scale
 Establishing long term relationships with large electronics OEMs and e-commerce Benefits of having modular packaging:
companies can help Roha get the bulk orders.  Roha can implement “Made to Stock” strategy for inventory.
 Developing standardized methods for mycelium growth, reducing waste by batch  Reduce mold costs for non-complex packages
production & backward integration can help Roha reduce costs.  Increases design flexibility and reduces lead time

Note: Cost analysis graph is plotted for understanding purpose by approximating variable & fixed costs.
 Generating business awareness via marketing

Product Price Place Promotion

Mycelium is eco- Premium value-based pricing is Offline sales team to engage Content marketing using
friendly(biodegradable), justified by environmental benefits enterprise customers and online infographics, customer testimonials
customizable(shapes and sizes) and and improved brand loyalty presence to capture sustainability and offline promotion at trade
durable(protective) trend shows

Identify specific customers with premium positioning Increased brand value by sustainable practices

• Mycelium packaging is 200-250 times expensive than similar • 60% of Indian consumers are willing to pay premium for
plastic-based packaging. sustainable products according to Bain and company.
• Industries with premium positioning to be targeted because • Eco-friendly brands can extend brand identity by being
increased packaging cost is lesser barrier for them. consistent with product and packaging

Mycelium is aesthetically better than Thermocol Adhere Extended producers’ responsibility

Mycelium packaging is
superior in terms of texture
and feel providing product a
premium feel.
• According to plastic waste management rules 2016, Brands are
responsible to track, manage and recycle plastic waste generated
by them.
• Brands can avoid this compliance by using sustainable
packaging.
How to reduce lead times?
Modularity in Design / Production
 Develop a library of pre-designed,
standardized mycelium modules in
various shapes and sizes
 Invest in modular moulds and
tooling that can be easily
reconfigured to create different
packaging shapes
 Minimize mould waste by utilizing
reusable and reconfigurable
components
Leverage customers logistics infra
 Customers with existing packaging
assembly lines can receive pre-
assembled components
 Roha can manage pre-determined stock
levels of mycelium modules
at customer's warehouse
Future Scope
Accelerated R&D Growth
• Develop faster-growing mycelium strains or optimize
environmental factors for quicker growth cycles
• Combine Roha’s expertise with innovative ideas of
other startups / institutes for cross pollination of
knowledge
DIY Mycelium Art Kits
• Introduce B2C "Grow It Yourself" kits for artistic
creations using mycelium
• Engage a newer target segment of people who like
creative exploration
Sustainable Furniture & Design
• Expand product offerings to include furniture and
interior design solutions
• Cater to a growing market for sustainable home
decor
Eco-Idols
• Develop eco-friendly Ganesh and other idol options
using mycelium
• Address environmental concerns during festivals
and provide consumers with sustainable alternatives
 3D Printing Traditional
Appendix Order Qty Cost per Unit Cost per Unit
1 360 2222
3D Printer Traditional Die Approach 2 260 1122
Design Cost 200 200 3 227 755
4 210 572
Die Manufacturing Cost 0 2000
5 200 462
Variable Cost 160 22
6 193 389
7 189 336
8 185 297
9 182 266
10 180 242
11 178 222
12 177 205
13 175 191
14 174 179
15 173 169
16 173 160
17 172 151
18 171 144
19 171 138
20 170 132
21 170 127
22 169 122