| Pub. Date | : September, 2021 |
|---|---|
| Product Name | : The IUP Journal of Entrepreneurship Development |
| Product Type | : Article |
| Product Code | : IJED40921 |
| Author Name | : Munmun Samantarai and Indu Perepu |
| Availability | : YES |
| Subject/Domain | : Management Journals |
| Download Format | : PDF Format |
| No. of Pages | : 11 |
Established in 2014, Avani Eco was spearheaded by Kevin Kumala (Kumala), an Indonesian social entrepreneur. Kumala's concern for plastic pollution and its increasing negative impact on the country drove him to look for a solution. He came up with a groundbreaking innovation with a root vegetable, cassava, to combat the plastic pollution. Avani manufactured a compostable bioplastic made from cassava starch, and also made a full range of sustainable food packaging and hospitality products from renewable resources. Its bioplastic bags gained special attention as the company claimed that the bags dissolved in water and were safe for aquatic animals and even humans. However, Avani Eco faced certain challenges. As the company did not focus much on marketing its products, not many were aware of its existence. Lack of awareness about the product made it tough for Avani to limit and replace the use of traditional plastic. Also, bioplastic was more expensive than conventional plastic, so the cost of Avani bags was higher than that of the usual plastic bags. The company was also struggling to scale up due to lack of funding. The case highlights Indonesia's fight against plastic, the journey of Avani Eco, its products, and the company's future plans to compete with traditional plastic and emerge as a 'green' replacement.
If the marine biota is destroyed, we will have to face the consequences.1
-Kevin Kumala, Chief Green Officer, Avani Eco, in 2017.
Plastic is not an intrinsically bad material, it is an invention that has changed the world. The plastic became bad due to the way that industries and governments use it.2
- World Wildlife Fund, (WWF) Report, in 2019.
As the world's population increased, there was a related problem that was spiraling out of control-that of plastic waste. On-the-go lifestyles required disposable products such as plastic bottles, disposable tumblers and plates, and so on. People seemingly could not do without plastic and their addiction to single-use or disposable plastic had severe environmental consequences. Plastic bags had become a huge nuisance and were a major contributor to environmental pollution, wildlife deaths, and human health hazards. They had other detrimental impacts as well. While plastic was an incredibly useful material, it was made from toxic compounds that caused illness, and it was not biodegradable.