INDUSTRIAL PROJECT REPORT
Compostable &
Biodegradable Bag
Manufacturing Unit
Capacity: 80 Metric Tons / Month | Model: Partnership Firm
Technology: DRDO-ASL, Hyderabad | Standard: ISO 17088 Compliant
100% 60 30%
Compostable Days Biodegradation Cheaper than SUP
Executive Summary
The Problem Our Technology
Conventional polyethylene bags take 200–300 years to decompose. India's
DRDO-ASL developed bio-formulation using PBAT + Starch + Vegetable Oil. Two
CPCB mandates phase-out of Single-Use Plastics (SUP). Recycling is costly and
variants: Water-Soluble (marine) & Water-Resistant (land). Certified by CIPET.
inefficient.
Financial Scope Market Opportunity
₹45 Lakhs/month working capital for 80 MT production. Plant setup ~₹300 India bans SUP across 19 categories. Growing demand in retail, agri, e-
Lakhs. Granule cost ₹2.16 Lakhs/ton. Revenue scalable via B2B and retail commerce & HORECA. 30% cost advantage over 120-micron conventional bags
channels. at scale.
INDUSTRY PROJECT REPORT | Compostable & Biodegradable Bag Manufacturing Unit 2 / 10
Product Portfolio & Technical Specifications
Product Category Variants Key Features Application
Carry Bags D-Cut (No Gusset) High load-bearing, customizable printing, Retail, Supermarkets, Shops
W-Cut (With Gusset) 20 micron+
Grocery Bags Pouches, Flat Bags Food-grade safe, FSSAI compliant, leak- Kirana, Food Delivery, FMCG
proof
Garbage Bags Rolls, Drawstring Industrial & domestic compostable, odor- Households, Hotels, Offices
safe
Mulching Films Flat Sheet Films No soil residue, fully bio-degradable in Agriculture, Horticulture
field
Max Dimensions Min Thickness Tensile Strength Printing
30" × 27" (L × W) 20 Microns Tested & Certified Up to 5 Colors (Flexo)
INDUSTRY PROJECT REPORT | Compostable & Biodegradable Bag Manufacturing Unit 3 / 10
Raw Materials & Formulation
PBAT Starch Additives
Polybutylene Adipate Terephthalate Natural Corn / Tapioca Starch Vegetable Oil + Plasticizers
Fully biodegradable >90% 100% bio-compostable Enhances processability
ISO 17088 / ASTM-D6400 / EN 13432 Provides impact strength & stiffness Controls film flexibility
Provides flexibility & resilience Improves opacity & surface gloss Food-grade grade safe
Home compostable certified Non-toxic food-grade material No harmful residue
Water Soluble Bags (Sea/Marine): PVA + Starch Polymer + Additives | Water Resistant Bags (Land Use): PBAT + Starch Polymer + Additives
INDUSTRY PROJECT REPORT | Compostable & Biodegradable Bag Manufacturing Unit 4 / 10
Manufacturing Process Flow
01 Granule 02 Blown Film 03 Corona
Compounding Extrusion Treatment
▶ ▶
Granules fed to extruder. Heated barrel + high-torque Surface discharge treatment on film. Increases surface
PBAT + Filler + RP mixed in Industrial Granule Mixer.
screw melts material. Molten plastic pushed through energy for ink adhesion. Enables high-quality multi-
Uniform density achieved. Colors added if required.
circular die. Air from compressor forms vertical bubble. color printing.
04 Flexographic 05 Cutting & 06 Waste
Printing Punching Recycling
▶ ▶
0+1 to 2+2 color configurations. Base ₹150/kg + ₹15/kg Bottom sealing + D-punch or W-cut as required. High- 100% of internal trim and scrap waste re-processed
per color. MOQ 100kg per order. High-resolution brand speed automated sealing. 7000+ pouches/minute back into granules. Zero-waste closed-loop production
printing. capacity. system.
INDUSTRY PROJECT REPORT | Compostable & Biodegradable Bag Manufacturing Unit 5 / 10
Plant Infrastructure & Machinery
Machine Cost (₹ Lakhs) Capacity Power (KW) Notes
Extruder ₹166 L 500 MT/Month ~40 KW Core machine — high-torque
screw, heated barrel
Blown Film Plant ₹24 L 150 MT/12 Hr ~15 KW Includes Corona Treater; 25 ft
height required
Flexo Printer ₹29 L 1 MT/12 Hr ~4 KW Multi-color flexographic; up to 5
colors (0+1 to 2+2)
Bottom Sealing & D-Punch ₹37 L 7000 Pcs/Min ~5 KW High-speed sealing & punching;
handles D-cut & W-cut
Transformer + Chiller ₹44 L 500 KVA ~59 KW total Closed-loop air cooling; stabilizes
film bubble
TOTAL CAPEX ₹300 Lakhs 80 MT/Month ~59–80 KW Half-acre land; 25 ft shed; 14
workers per 2 shifts
INDUSTRY PROJECT REPORT | Compostable & Biodegradable Bag Manufacturing Unit 6 / 10
Flexographic Printing & Pricing Matrix
0+1 Single side, 1 color ₹165/kg Plain Bag Base Price ₹150 / kg
0+2 Single side, 2 colors ₹180/kg Per Color Surcharge + ₹15 / kg
0+3 Single side, 3 colors ₹195/kg Minimum Order Qty 100 kg
1+1 Both sides, 1+1 color ₹180/kg Max Bag Size 30" × 27"
2+2 Both sides, 2+2 colors ₹210/kg Min Thickness 20 Microns
Note: All prices indicative and subject to order volume. Volume discounts available for B2B contracts above 1 MT/month.
INDUSTRY PROJECT REPORT | Compostable & Biodegradable Bag Manufacturing Unit 7 / 10
Quality Control, Testing & Regulatory Compliance
Quality Control Tests Regulatory Certifications
Stage: Raw Material
International standard for compostable plastics — mandatory for
ISO 17088
biodegradable bag classification.
• Moisture content • Viscosity • Ash content • Density • Melt Flow Index (MFI)
Central Pollution Control Board certification — mandatory under India's
CPCB
SUP Phase-out regulations.
Stage: In-Process (Granules)
Testing & certification by Central Institute of Petrochemicals
CIPET Engineering & Technology (CIPET, Kochi/Aurangabad). One-time cost:
~₹5 Lakhs.
• Melt point verification • MFI consistency check • Bubble stability (blown film)
Food Safety and Standards Authority of India — required for all food-
FSSAI
contact packaging (grocery bags, pouches).
Stage: Finished Product
• Tensile strength • % Elongation • Film thickness (microns) • Color delta • ASTM D6400 / EN International PBAT compostability standards — required for export
Dichloromethane solubility test 13432 market compliance.
INDUSTRY PROJECT REPORT | Compostable & Biodegradable Bag Manufacturing Unit 8 / 10
Financial Summary & Investment Economics
Monthly Working Capital (80 MT Production) Capital Expenditure & Technology Access
Raw Material (PBAT + Fillers + RP) ₹35,00,000 Plant & Machinery (New Unit) ₹3,00,00,000
QC Lab Setup (Mandatory for ToT) ₹20,00,000
Labour & Manpower (42 Staff) ₹5,00,000
CIPET Certification (One-Time) ₹5,00,000
Power & Electricity (59 KW load) ₹2,50,000
Granule Cost (DRDO Vendor) ₹2.16 L / Ton
Maintenance & Consumables ₹1,50,000 ToT Fee (Existing Firms) NIL
ToT Fee (New Firms) As per DRDO
Admin, Rent & Overheads ₹1,00,000
Royalty (Net Sales — Domestic) 2% of Invoice
TOTAL MONTHLY CAPITAL REQUIRED ₹45,00,000 License Period 10 Years
INDUSTRY PROJECT REPORT | Compostable & Biodegradable Bag Manufacturing Unit 9 / 10
Human Capital, Operations & Key Contacts
Manpower Structure (42 Total) Key Contacts & Technology Partners
MSME-DI, Karnal
12 Extrusion & Blown Film Operators
👤 Sh. M.K. Verma, Asstt. Director
📞 9729058308 / 0184-2208100
✉ dcdi-karnal@[Link]
6 Printing Machine Operators
ASL-DRDO, Hyderabad
12 Cutting, Sealing & Punching
👤 Dr. K. Veera Brahmam, Scientist-F
📞 9441426860
✉ kveerabrahmam@[Link]
6 Helpers & Material Handlers
Technology Partner
6 QC, Supervisors & Admin
👤 M/s Ecolastic Products Pvt. Ltd.
📞 Phase-I, Plot 35/2, IDA Cherlapolly
✉ Hyderabad – 500051
🔧 Monthly preventive maintenance: rotors, heaters, pneumatic systems, die heads.
Industry Reference: Gen Bhoomi ([Link]) — 100% compostable corn-starch bags, CPCB &
INDUSTRY PROJECT REPORT | Compostable & Biodegradable Bag Manufacturing Unit CIPET certified. 10 / 10