BBH 432 – ENTREPRENEURSHIP DEVELOPMENT

CIA III

TITLE – BUSINESS MODEL CANVAS (SHOLAPITH)

SUBMITTED TO – Dr Chandru MC

SUBMITTED ON – 4 April 2024

SCHOOL OF BUSINESS AND MANAGEMENT

CHRIST(DEEMED-TO-BE) UNIVERSITY

SUBMITTED BY –

Sanchit Maitra (2223334)

Table of Contents
Problem Statement.....................................................................................................................1

Our Solution...............................................................................................................................1

Product Description....................................................................................................................1

Deconstruction of the Business Model Canvas..........................................................................2

Comparison with a Traditional Business Model........................................................................6

Conclusion..................................................................................................................................7
Problem Statement
Harmful products like Thermocol and Styrofoam are predominantly used as fillers in the
packaging industry. They are non-biodegradable products generating large amounts of waste
every year. Most forms of disposal of these products are harmful leading to large scale
pollution and health hazards.

The shola artisans earn as low as Rs. 30 per day and with increasing prices of essential
commodities it has become extremely difficult for them to survive on their craft while
providing for their family. If their profits do not increase this age-old art may face extinction.

In addition, the United Nations has put forward 17 goals to be followed to ensure a
sustainable future, most of which is being violated by the packaging industry currently.

The goals we see being violated and wish to solve are: Goal 1(Increased Poverty), Goal
10(Increased Inequality), Goal 12(Irresponsible production and consumption), Goal 13
(Adverse Impact on Climate) and Goal 15(Adverse effect on life on land)

Our Solution
Sholapith is a fully natural product unlike Thermocol, Styrofoam and the artificially
processed starch packing material sold as biodegradable. Our business model is developed
keeping in mind the social obligation to protect the talented sholapith artisans in India. We
provide gainful employment to these marginalized craftsmen. Sholapith is also much cheaper
than the harmful Styrofoam and thermocol.

Product Description
Sholapith or Aeschynomene aspera is a milky white spongey stem plant found in abundance
in wet, marshy and waterlogged areas in states such as West Bengal, Chhattisgarh and various
parts of South India. Once dried, this stem can be cut up into small pellets and has the same,
or superior malleability, texture, durability and sponginess when compared to thermocol. This
product is an alternative to the existing packing peanuts made of wheat and starch and is
better in terms of how light it is. It doesn’t soak in water like its counterparts thus making it
ideal for transporting heat sensitive materials to account for dampness and spillage. Sholapith
also has heat insulating properties as well.

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Deconstruction of the Business Model Canvas
Key Partners

 Sholapith Artisans: The foundation of the company are these talented artisans. The
sholapith stems must be harvested, dried, and processed into packing material by
them. In addition to being morally right, paying them fairly and giving them steady
work guarantees a steady supply of high-quality products.
 Processing Facility Management: The facility where the sholapith stems are turned
into packing materials needs to be run by a team. This could entail trimming,
washing, and even measures that add value, including shaping or colouring the
sholapith to suit a particular use.
 Sholapith Sellers: These could be merchants or wholesalers who will supply your
finished product to companies in need of environmentally friendly packaging. By
collaborating with them, you may reach consumers that appreciate sustainability and
get your product in their hands.

Key Activities

 Sustainable Sourcing: We form alliances with regional groups in South India, West
Bengal, and Chhattisgarh, regions where sholapith is a plentiful crop. This guarantees
moral sourcing and gives local people a reliable source of income, empowering them.
 Processing and Production: After being gathered, sholapith stems will be dried.
Skilled craftsmen will slice them into tiny pellets when they have dried. Here, artisan
skills can be improved and consistent quality can be guaranteed by implementing
training programmes.
 Storage and Inventory Management: To preserve the quality and shield the Sholapith
pellets from moisture damage, appropriate storage facilities are required. Inventory
control solutions will make it easier to monitor production volume and effectively
satisfy client requests.
 Tailored Solutions & Eco-Friendly Delivery: We create a framework to manage
requests for specialised packaging and use trained craftsmen in manufacturing.
Collaborate with environmentally conscious logistics firms to guarantee timely and
sustainable delivery.

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Key Resources

 Physical Processing Equipment and Facilities: This refers to the real estate used for
your operations, such as workshops and drying rooms. To turn the Sholapith stems
into pellets, we need machinery, possibly incorporating cutters, grinders, or other
necessary tools.
 Financial Resources: We require financial resources to finance the establishment of
your business, which includes buying equipment and premises and paying for running
expenses like marketing and artist salaries.
 Intellectual Capital: We have significant advantages because of your comprehension
of the Sholapith processing techniques and your creative concept to use it for
environmentally friendly packaging. This expertise will provide you with a
competitive edge and direct your production process.
 Sholapith Artisans: An essential resource are the knowledgeable artists who serve as
the backbone of our manufacturing process. Their proficiency in collaborating with
Sholapith is crucial for developing superior packaging solutions. You're not only
getting a competent workforce but also helping to keep this old craft alive by giving
them work possibilities.

Value Proposition

Our product is eco-conscious. It is biodegradable while being cheaper than its counterparts.
We are also supporting craftsmen by providing them with a second livelihood. We work to
help MSMEs by reducing import on packing peanuts and supporting small-scale farmers. Our
business is also supporting Make in India by preserving Indian Heritage while providing
gainful employment to the rural population.

Channels

Our business model will initially focus on a Business-to-Business (B2B) approach, utilizing a
direct sales distribution channel. This allows for a dedicated sales team to directly interact
with potential clients in the industrial sector. The benefits of this approach are two-fold:

 Increased Customer Satisfaction: A direct sales force can cultivate more enduring
connections with customers. This helps them to comprehend certain packaging
requirements and adjust solutions appropriately. They can also guarantee customer
pleasure throughout the purchasing process and respond to client issues.

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  Increased Profit Margins: We will be able to increase the profit margins on your
Sholapith packaging solutions by getting rid of middlemen. This enables you to
reinvest in your company, possibly providing Sholapith artisans with higher prices
and expanding your brand.

In the long run, we plan to implement a Direct-to-Consumer (D2C) model as well. This
would involve selling directly to individual customers, likely through an online platform.
However, establishing a strong B2B presence and brand reputation first can be beneficial
before venturing into D2C sales.

Customer Relationships

Building Long-term Partnerships

 Pay Attention to Customer Needs: We don't just sell packaging. Collaborate with
clients to comprehend their unique requirements and create tailored Sholapith
solutions that improve their brand's reputation through environmentally responsible
actions.
 Communication and Dependability: Make sure deliveries are made on schedule, keep
lines of contact open, and be accessible to handle client problems. Relationships are
strengthened and trust is fostered by this.
 Services with Value Added: Provide extra services like advice on package design or
teaching materials regarding the environmental advantages of Sholapith. This
strengthens the relationship between us and our client and shows your dedication to
their achievement.

Customer Retention Strategies

 Sample Programme: Giving away free samples of Sholapith to prospective customers

enables them to assess the product's quality and suitability for their requirements. This
can work especially well for companies who are not familiar with Sholapith.
 Programmes for Loyalty: We create a loyalty programme that grants priority service,
early access to new products, or special discounts to loyal clients. They are
encouraged to keep utilising your Sholapith packaging solutions as a result.
 Testimonials and Case Studies: We use testimonials to highlight fruitful collaborations
with current clientele. This social proof increases confidence and draws in new
companies looking for eco-friendly packaging options.

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Customer Segments

 The industries of consumer electronics and industrial goods demand large quantities
of product protection packaging. Because of its strength, resilience to water, and
capacity to withstand heat, sholapith is a great alternative to potentially dangerous
materials like thermocol and Styrofoam.
 The food and beverage industry needs packaging that keeps goods safe from harm
while taking temperature management into account. Sholapith is a good material for
transporting food and beverages because it is lightweight and doesn't absorb water.
 Safe packaging is necessary for sensitive medical items in the healthcare industry, just
like in the food and beverage industries. In this case, the heat-insulating qualities of
sholapith can be useful for medical supplies that are temperature-sensitive.

Cost Structure

Major cost components:

 Cost of raw materials (Sholapith)

 Wages of Sholapith artisans
 Purchase value of machinery
 Rent for facility
 Rent for warehouses
 Marketing budget

Cost management strategies:

Using a cyclical costing strategy will enable us to modify your prices in response to changes
in supply and demand throughout the year. For instance, we have to raise prices during
periods of high demand or when there is a greater shortage of the raw resource.

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We use economies of scale to lower your costs per unit as your business grows. This can
entail making an automated machinery purchase or negotiating supplier bulk pricing.

Revenue Streams

At ₹148/kg, Sholapith's competitive price point is comparable to that of conventional

packaging materials such as Thermocol and Styrofoam, which varies from ₹160 to ₹3200/kg.
This makes it a desirable choice for businesses searching for affordable solutions.
Sholapith provides extra value that typical materials don't, even though the price is
comparable. It's biodegradable and environmentally benign. Customers who care about the
environment and businesses with sustainability aims will find this appealing. It offers
superior product protection while in transit. Because of this, it can be used with products in
the food and beverage or healthcare sectors that are sensitive to temperature.

Comparison with a Traditional Business Model (Synthos)

Parameter Sholapith Packaging Synthos
Value Eco-friendly, biodegradable, cost- Protects products during transport
Proposition effective and supports artisans
Raw Materials Sholapith – a renewable resource Plastic, non-biodegradable
materials
Key Partners Sholapith artisans, processing Suppliers and manufacturers
facility, sellers
Key Activities Sustainable sourcing, processing, Manufacturing, distribution

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 storage, tailored solutions
Customer Electronics, industrial goods, food May not target eco-conscious
Segment and beverage, healthcare companies
Cost Structure Raw material, artisan wages, Plastic materials, manufacturing,
processing, facility distribution
Channels B2B (Direct Sales) Wholesale, Retail

How is our business model more innovative?

 Focuses on sustainability: Sholapith offers a biodegradable alternative to traditional

packing materials, reducing environmental impact.
 Supports marginalized communities: The business model empowers Sholapith
artisans by providing them with a steady income and preserving their traditional craft.
 Socially responsible: The company promotes "Make in India" by utilizing local
resources and creating rural employment opportunities.
 Potentially cost-effective: Although Sholapith may require initial investment in
processing facilities, it can be cheaper than traditional materials in the long run.

Conclusion
Our business is sustainable in multiple ways. It improves the soil quality on plantation of
Sholapith. It helps in the transition of the packaging industry to a more sustainable and eco-
conscious version. We plan on collaborating with the Government to provide subsidies in
land acquisition for future plantation as the entire area shall be benefitted. Life in cities shall
be healthier given the shift to natural products in such a widely required industry. It will help
in the improvement of livelihood of Sholapith craftsmen and processing facility workers.
Rural areas will be uplifted and poverty will be alleviated to a certain extent.