UKHI: India’s Biopolymer Pioneer Turning Agricultural Waste Into Sustainable Packaging— And Backed by Fresh Funding to Scale a Plastic-Free Future

Imagine a world where plastic packaging is replaced not by another petrochemical product — but by compostable materials made from farm residues. UKHI’s vision isn’t just ambitious — it’s already becoming reality. Renewed investor confidence and recent strategic expansion set the stage for one of India’s most consequential climate-tech success stories.

 From Farm Waste to High-Performance Materials

Established in 2019 by Vishal Vivek, Priyanka Chauhan, and Sandeep Kumar Tyagi, UKHI operates at the intersection of materials science, sustainability and circular manufacturing. Rather than accepting plastic pollution as an intractable problem, the founders sought to develop alternatives that align with both commercial demands and environmental necessity.

Their goal: turn agricultural residues and lignocellulosic biomass (such as rice stubble, hemp stalks, and flax) into an industrially viable material that replaces petroleum-based plastics in packaging — one of the most persistent sources of global waste and pollution.

This effort led to the creation of EcoGran, a patent-pending compostable biopolymer designed to be both biodegradable and compatible with existing plastic processing infrastructure — a key factor in overcoming one of the biggest hurdles facing sustainable materials today.

 Fresh Fuel: ₹10.5 Crore Seed Funding to Accelerate Scale

In February 2026, UKHI announced a ₹10.5 crore (~$1.25M) seed funding round* led by Venture Catalysts, with participation from 100 Unicorns, 888 VC, and DCG Pack — a strategic industrial partner.

This latest funding milestone reflects growing investor confidence in India’s climate tech and sustainable manufacturing sectors — areas that are increasingly gaining attention from both public and private capital due to regulatory pressures and consumer demand for eco-friendly alternatives.

 Use of Seed Capital

UKHI plans to deploy this new capital to:

• Scale production of EcoGran

• Enhance its intellectual property portfolio

• Bolster R&D capabilities

• Strengthen partnerships with converters, brands, and packaging value chain participants

With these priorities, UKHI is positioning itself not as a niche supplier but as a platform capable of enabling ecosystem-wide adoption of biodegradable packaging solutions.

 Commercial Traction and Market Fit

Early market traction suggests UKHI’s innovation isn’t just technically intriguing — it’s commercially viable. The company reports having sold over 200,000 kilograms of its biopolymer material to early customers, with a trial-to-commercial conversion rate exceeding 90%. These metrics indicate both strong product performance and increasing acceptance among brand owners and packaging converters.

UKHI has set an ambitious near-term goal: to replace up to 2.4 million kilograms of single-use plastic within the next 12 months, a number that underscores the scale potential of its materials platform.

This demand spans sectors such as FMCG, food packaging, cosmetics, e-commerce and retail — signaling that EcoGran’s performance and cost characteristics are aligning with diverse commercial needs.

 Technology That Meets Industrial Expectations

A key differentiator for UKHI’s biopolymer platform is its industrial compatibility. Unlike many biodegradable materials that require specialized equipment or degrade only under lab conditions, EcoGran is engineered to work within existing processing lines — a critical consideration for brands that cannot overhaul production systems just to adopt sustainable materials.

Recent product iterations have also targeted specific applications such as biodegradable fashion packaging and e-commerce mailers. EcoGran maintains the strength, durability and barrier properties expected of traditional plastics, while offering complete biodegradability in industrial composting environments.

This compatibility means converters and manufacturers can transition to UKHI’s materials without prohibitive capital expenditure — a major advantage when scaling sustainable alternatives across supply chains.

 Strategic Partnerships: A Collaborative Growth Play

UKHI’s scale-up strategy isn’t limited to funding and technology — it also relies on ecosystem partnerships that expand reach and operational capability.

One significant development is the collaboration with DCGpac, a major packaging distribution platform. As part of a five-year strategic partnership, DCGpac is building out smart manufacturing infrastructure in Noida, a 20,000 ft² facility capable of producing up to 250 tonnes per month of biodegradable packaging products derived from UKHI’s biopolymers.

This plant serves multiple functions:

• Raw material processing

• Quality assurance

• Distribution for domestic and international markets

• Export-grade sustainable packaging manufacturing

The partnership strengthens supply chain control and accelerates UKHI’s ability to service large enterprise customers — both in India and overseas.

 Positioned at a Sustainability Inflection Point

UKHI’s growth trajectory aligns closely with broader regulatory and market dynamics:

• India’s increasingly stringent policies against single-use plastics

• Heightened corporate ESG commitments demanding credible alternatives

• Rising consumer awareness of environmental impact

• Global momentum toward circular economy solutions

These macro tailwinds create a fertile environment for companies that can deliver performance-compatible, cost-efficient, and scalable material solutions. UKHI’s EcoGran, derived from agricultural waste, matches this demand while also helping to mitigate issues such as crop residue burning — a persistent environmental and public health challenge in India.

 Scaling Challenges and Competitive Landscape

Despite early success, UKHI operates in a highly competitive and capital-intensive space. Challenges ahead include:

• Scaling manufacturing infrastructure cost-effectively

• Maintaining consistent material performance at higher volumes

• Demonstrating lifecycle impact through third-party certifications

• Navigating supply chain logistics and raw material variability

Additionally, while many sustainable materials companies have emerged globally, UKHI’s advantage lies in focusing on affordability, supply consistency and ecosystem integration — essential factors for adoption in cost-sensitive markets.

 The Path Forward

As UKHI continues commercial traction and partnerships, its vision extends beyond domestic impact. The Noida smart manufacturing hub and distribution frameworks suggest readiness for international expansion, with potential customers across Europe, the Middle East, Southeast Asia and beyond — markets where sustainability regulations are rapidly tightening.

By coupling materials innovation with practical adoption pathways, UKHI is poised to play a defining role in global sustainable packaging transitions.

 Conclusion — A Material Shift Toward Planet-Friendly Packaging

UKHI’s journey from laboratory concept to commercial deployment illustrates the transformative potential of materials science aligned with market logic. With fresh funding, strong early traction, industrial partnerships and regulatory momentum on its side, UKHI is not just replacing bits of plastic — it’s architecting a circular materials infrastructure with global relevance.

In an era where environmental stewardship and commercial performance must coexist, UKHI’s story shows that sustainable innovation can be both purpose-driven and pragmatically scalable.