Can you imagine a world where packaging is not only cost-effective but also environmentally friendly? That sounds like a dream, right?
Well, Econovus Packaging Pvt Ltd, a Pune-based company, is making that dream a reality. Founded in 2019, this company is showing the world how you can replace conventional wooden pallets with smarter, greener, and cheaper alternatives. Econovus’s eco-friendly packaging solutions are already transforming industries like automotive, renewable energy, telecom, aerospace, and defense.
What makes Econovus stand out? It’s their innovative approach, especially in the packaging sector, which, believe it or not, is a $31 trillion industry worldwide.
Stick to this article because we will be decoding how the Econovus packaging revolution is changing the game!
Ecnonovus: The Green Revolution in Packaging
In today’s world, being eco-conscious is no longer optional for businesses. Everyone’s talking about sustainability, but how many companies actually do something about it?
Here Ecnonovus makes its grand entry! It is a startup led by Ramesh Prasad, who decided to make a difference. Since its inception, this company has focused on finding ways to make packaging not only more affordable but also environmentally friendly.
What Econovus does differently is that they don’t rely on the traditional wooden pallets most companies use. Instead, they’ve created an “eco-sustainable pallet” (ESP). That’s what they call it!
This patented product is made from paper corrugated boards, which means it’s not only lighter but also far more durable than wood.
We will explain ESP in more detail in the upcoming sections.
How ESPs save the environment & money?
You’re probably thinking, “Why does this matter?” Well, first of all, these ESPs are helping businesses save a lot of money—up to 30% in packaging costs. That’s a big deal, especially for industries that ship large amounts of goods. But it’s not just about the money. These paper-based pallets are also better for the environment. They reduce carbon emissions by up to 93% compared to traditional wooden pallets. Yes, you heard that right—93%!
Go through the following points for detailed info-
(A) The Environmental Impact of Wooden Pallets
To understand why Econovus’s solution is so revolutionary, let’s look at the problem with wooden pallets. Right now, there are about 2 billion pallets in use worldwide, and 450 million new pallets are produced every year. Most of these are made from pinewood, which means cutting down an alarming number of trees—around 1,125,000 trees annually!
To put this into perspective, a mature tree can absorb about 21.7 kg of carbon dioxide each year. So, by saving over a million trees, we could prevent around 244,125,000 kg of CO2 from entering the atmosphere. That’s the equivalent of taking 52,950 cars off the road…
Now, if more companies switched to Econovus’s paper pallets, the positive environmental impact would be huge!
(B) What are ESPs and Why are they better?
Econovus’s eco-sustainable pallets (ESPs) are lighter—around 40% less than traditional wooden pallets. And guess what? They’re just as strong! According to the Indian Institute of Packaging, these pallets can hold up to 3 tonnes of weight, compared to just 1-1.5 tonnes for wooden pallets.
For industries like automotive and aerospace, which often need to transport heavy components, these ESPs are a godsend. How? Due to the following features-
- Lightweight
- Termite-free
- Water-resistant
- Fully customizable (based on the size and shape of the goods)
Thus, you can analyze how much easier and cheaper this makes things for businesses.
Global Demand for Sustainable Pallets
Now, you might be wondering, “Is there really a demand for these sustainable pallets?” The answer is a resounding yes! According to experts, the global pallet market was worth $63.2 billion in 2023. And in India alone, the market was valued at $1.3 million, with about 194 million pallets in use. This number is expected to grow to 300 million by 2028.
Prashant Gupta from Kearney, a global consultancy firm, notes that businesses are becoming more aware of sustainability. With stricter goals to reduce carbon emissions, more companies are switching to green alternatives like Econovus’s ESPs.
EU Regulations Push for Change
Guess what? The European Union is making it even harder for companies to rely on wooden pallets. New regulations, called the EU’s Deforestation-Free Products Regulation (EUDR), require that any wood used in shipping be sourced from land that hasn’t been deforested after December 31, 2020.
These strict rules mean more paperwork, more certifications, and higher costs for exporters. But Econovus’s ESPs offer a quick and cost-effective solution. No wood, no deforestation, no headaches!
Econovus’s Pallet-less Packaging
Econovus didn’t stop with just pallets. They’ve also come up with something called “pallet-less” packaging. What does that mean? Well, instead of using wood or plastic pallets, they’ve developed eco-friendly boxes that can carry products securely without any pallets at the bottom.
This pallet-less design makes the packaging even more compact and cost-effective. It’s lightweight, durable, and perfect for industries that need to save space and money.
Ramesh Prasad, the founder of Ecnonovus, mentions that they recently implemented this solution for Mahindra’s electric vehicle body, cutting packaging costs by 30% and reducing weight by 40%.
Returnable Packaging: The Future of Domestic Shipping
While Econovus primarily focuses on exports, they’re also making waves in the domestic market with their returnable packaging. This system allows companies to ship goods and then return the packaging material for recycling. Prasad calls it something similar to reverse logistics but with a bigger focus on recycling.
This concept is slowly catching on, and while it currently makes up only 5-10% of the company’s business, there’s huge potential for growth.
Clients and Certifications: Proof of Success
Econovus isn’t just talking the talk—they’re walking the walk. The company already has over 35 clients, including big names like Skoda VW, Mahindra, Stellantis, and Bajaj Auto. And it’s not just their clients that show their success.
Econovus is also certified in several international sustainability standards, including ISO 9001 and ISO 14001. They’re even India’s first packaging company to receive the GC Mark certification from Germany.
Econovus has been growing at an impressive rate of 60-80% annually (excluding the Covid-19 period). The company reported a net profit of Rs.98,43,807 in 2023-24, and they’re aiming for Rs.3,75,52,354 in 2024-25.
The Road Ahead for Econovus Packaging
Econovus started as a small bootstrapped venture, with Ramesh Prasad investing Rs 3.5 crore from his own savings. Despite early doubts from peers, Prasad’s 20+ years of experience in supply chain and purchasing functions have paid off.
Today, Econovus is a shining example of how innovation, sustainability, and business success can go hand in hand.
As the world continues to push for greener, more sustainable solutions, Econovus is leading the charge in the packaging industry. Their success offers a blueprint for other companies to follow, proving that you can be both eco-friendly and profitable at the same time.
Takeaway from Econovus Business Model
So, what’s the takeaway here? Econovus is proof that when you combine smart engineering with a passion for sustainability, you can change industries. Whether it’s their eco-sustainable pallets or their pallet-less packaging, Econovus is showing the world that paper really can beat wood.
As more companies wake up to the benefits of sustainable packaging, Econovus is poised to become a major player in the $31 trillion global trade market!
