Andhra Pradesh High Court’s ruling inspires green business

Mumbai: Entrepreneurs get business ideas typically from thin air. Yamini Koganti, an LIC agent, is one of those who got inspired from unexpected quarters, The Andhra Pradesh High Court.

“After reading about the AP High Court’s directions on the use of plastic bags in newspapers in 2005, I realised the potential of bio-degradable paper bags business. This led to the idea of setting up an enterprise, Jagisa Packaging Industry in 2006,” Ms Koganti told this newspaper.

She raised Rs 25 lakh in loan from Khadi and Village Industries Board to buy the required machinery. “Currently, I employ around 20 underprivileged women, including daily labour, for my firm, which aims to promote the use of paper bags,” Ms Koganti, the promoter of Jagisa Packaging Industry, said.

She claims that her company has the ability to provide 132 different size variables in 40 different shades of colours. The minimum size of a bag is 3 inch by 4 inch and the maximum 14 inch by 19 inch. The bags can carry a weight from a diagnostic report of 0.5 kg to a rice bag weighing 10 kg.

It was rather a difficult journey for me establish Jagisa as a brand, claims Ms Koganti. “Before starting off, I had done the market survey, which presented quite a rosy picture for paper bags. But after the launch, customers demanded 50 per cent discount, which was not at all viable for me as I had just 10 per cent margin. Without losing heart, I slowly approached niche clients who value the environment and was willing to pay the price.”

Jagisa had broken even after five years in 2011.

The main challenges of the industry, as Ms Koganti explains, is that polythene bags can be bought at Rs 2 but paper bags at Rs 4 which is viability.
Ms Koganti was trained at ISB under Goldman Sachs 10,000 women programme, with the help of Association of Lady Entrepreneurs of AP (ALEAP).

“After my initial hard work,” Ms Koganti says, “I understood the importance of creating awareness about the environment protection and the role that paper bags could play in that. So I thought who can be the best learners than school children. So I approached some schools for bring their students to our workshop as a study tour. Till now, almost 22 schools and over 3,600 children were taught about the benefits of paper bags and the devastating effects of polythene.”

Going forward, she plans to start another unit at Vijayawada and toys with the idea of starting creative packing of gift items for weddings. Ask her about the success mantra, she smiles and says that it is nothing but loads of patience, marketing and customer satisfaction.