Building a Sustainable Food Delivery Ecosystem

#PepcomIndia #SustainableFoodDelivery #PaperPackaging

“We are not only safeguarding the environment but also ensuring the safety of food consumption, thereby mitigating potential health risks associated with the ingestion of microplastics from plastic containers.”- Sagnik Mukherjee, Founder and Director, Pepcom India.

April 2024 : In an exclusive interview with Zinnia Banerjee, Assistant Editor, Pro MFG Media, Sagnik Mukherjee, Founder and Director, Pepcom India talks about the company’s vision in building fostering a sustainable ecosystem for food delivery by replacing plastic containers with grease-proof paper alternatives.

Can you share a brief overview of Pepcom India's journey so far in its mission and vision for the future of food packaging?

The concept of Circular Economy lies at the core of our vision. The vision is two fold. Firstly, we are focused on fostering a social impact by ensuring sustainable food delivery to customers. Secondly, we are aiming at empowering individuals to become distributors, resellers, or traders supplying HoReCa establishments with eco-friendly food packaging by creating opportunities for low-investment businesses. With approximately 800,000 restaurants and over 15,000 hotels in India, our goal is to encourage HoReCa entities to transition away from plastics towards paper and other environmentally friendly alternatives.

Pepcom emphasizes a zero-waste, eco-friendly manufacturing process. Can you walk us through the key stages involved in producing your paper food containers?

The choice of raw material is crucial in our process. We procure our paper from ITC Paperboard and Specialty Papers Division. This specialty paper meets stringent criteria and is certified by ITC as food-grade paper. Utilizing this material, we manufacture our paper containers. Notably, this paper is recyclable, contributing to our commitment to an eco-friendly, zero-waste process.

In the HoReCa industry, paper containers are a concern when it comes to greasy foods. How does Pepcom address this challenge, ensuring food safety and leak-proof design?

It is important to clarify that the innovation behind our grease-proof paper containers stems from our supplier, ITC. They have developed a paper with a thin barrier coating that effectively repels oil and grease, ensuring the integrity of the packaging for several hours, typically within the time frame of food consumption. At our end, we have integrated this technology seamlessly into our manufacturing process at the machinery level. Our machines are calibrated to work with this specialized paper, ensuring they function optimally without causing any damage or issues while feeding the paper.

Can you share some success stories of transitioning restaurants and hotels to your eco-friendly packaging?

One notable success story is Rang De Basanti Dhaba, a renowned restaurant chain in Kolkata. Initially, they relied solely on plastic containers for food delivery due to a lack of suitable paper alternatives in the area. When we introduced our paper containers to them, they were eager to integrate them into their operations, provided we could consistently meet their demand. Presently, we have the capacity to supply 75,000 containers daily nationwide, and Rang De Basanti Dhaba has transitioned to delivering food using our paper containers, placing repeat orders with us.

Additionally, we have partnered with Vision Foods’ Eatverse (a Kolkata-based brand) and pan-Indian restaurant brands like Chowman assisting them in sustainable food delivery practices.Within just six months of launching our manufacturing operations, we have already replaced 25 lakh plastic containers in the food delivery ecosystem across India.

Pepcom has been recognized as the Best Rising MSME of the Year. What do you think has helped you being recognized as that?

I believe that Pepcom India’s recognition as the Best Rising MSME of the Year is largely attributed to the significant social impact we have made. Through our business, we are actively addressing environmental concerns by replacing plastic containers and promoting sustainable food delivery practices. By doing so, we are not only safeguarding the environment but also ensuring the safety of food consumption, thereby mitigating potential health risks associated with the ingestion of microplastics from plastic containers.

The paper food container industry is becoming increasingly competitive. How does Pepcom India plan to stay ahead of the curve in terms of innovation and cost-effectiveness, especially considering the price sensitivity of the Indian market?

At present, the paper food container market in India is ₹6000 crore. With the market becoming more competitive, this market size is bound to grow with the entry of new players and growing awareness. For this reason, I believe, competition is always better. Now, coming to the challenge that Pepcom may face. Manufacturing any product comprises a chain of processes. Any incumbent manufacturer like us will always have the early mover advantage as it has gone through those processes and has acquired experience to sail through such processes. On the other hand, the new entrant will require to go through similar processes and would need some time to scale up to the level of its incumbent competitors.

A recent sustainability survey(by Euromonitor) has identified reducing food waste, plastic use, and adopting sustainable packaging among top 10 green activities. Given Pepcom India is closely associated with all the three activities, what role does Pepcom India play in raising stakeholder awareness about the importance of these to build a sustainable food system?

We are actively developing a robust distribution network, which plays a pivotal role in industry transformation. With approximately 50,000 restaurants in Kolkata alone, serving them solely is not feasible. Therefore, establishing a strong distribution network is imperative. We have made substantial progress in enhancing our distribution channels in regions such as West Bengal, Delhi, Tamil Nadu, Odisha, Assam, Gujarat, Mumbai and Uttar Pradesh. Our goal is to expand this network further, aiming to enlist 200 to 250 distributors across India to effectively reach end-users. Additionally, we employ digital marketing strategies to enhance awareness of our initiatives.

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