DEG: EUR 3.9 million for BIO-LUTIONS
Press Release from 2019-05-16 / DEG, Sustainability
Packaging from agricultural waste instead of plastic
DEG – Deutsche Investitions- und Entwicklungsgesellschaft is investing in BIO-LUTIONS International AG (BIO-LUTIONS), Hamburg. Established in 2017, the company produces biodegradable packaging and disposable cutlery from agricultural waste. The innovative production process, which does not require any additives such as chemical binders and produces climate-friendly products, has been developed to market maturity by BIO-LUTIONS.
Equity capital for Hamburg-based startup
DEG is providing the “green tech start-up” with equity capital of EUR 3.9 million for increasing its production capacity in Asia. Total funding stands at EUR 8.3 million, with other investors also including Delivery Hero, based in Berlin.
To date, BIO-LUTIONS produces in India. The agricultural region of Karnataka produces large quantities of agricultural waste such as banana stems or sugar cane leaves. BIO-LUTIONS cooperates with a local smallholder cooperative that supplies the plant material for production and thus generates additional income. Since some Indian states already imposed a ban on certain plastic packaging, alternatives are in high demand. For example, BIO-LUTIONS was able to sign up an online supermarket as a customer.
Expansion of production in several countries
Eco-friendly substitutes for plastic products are very much in demand in developing countries as well as in industrialised nations. BIO-LUTIONS will now be expanding its production activities in India and establishing new facilities in Thailand for the Southeast Asian market. The company also intends to strengthen its activities in Europe.
Back in 2017, DEG provided EUR 500,000 under its Up-Scaling programme for the establishment of the initial industrial pilot plant in India.
“We believe that the cost-effective and eco-friendly production of packaging from agricultural waste that make plastic dispensable is groundbreaking. We therefore support the company as shareholder in its next phase,” commented Christiane Laibach, Chairwoman of DEG's Management Board.
"DEG's investment in BIO-LUTIONS reflects our common goals of achieving a sustainable combination of business, ecology and social commitment. BIO-LUTIONS offers the ecological alternative to plastic on the market. Our new partners have recognised this and want to support us with their professional expertise on our way to global expansion," said BIO-LUTIONS Founder and Managing Director Eduardo Gordillo.
Assisting German companies in their international activities in emerging and developing countries is a key aspect of DEG’s work. In addition to bespoke finance and advice, it offers corporates various promotional programmes to support them with pilot projects or to help them achieve more efficient utilisation of their resources.