A sustainable business model?
As population grows, so does dependence on natural resources. Resources are dwindling. The planet can no longer support ‘take-make-dispose’ industrial models.
To restore balance, researchers propose a circular economy. Here, resource input, waste production, and energy leakage are minimised. A circular economy suggests slowing, closing and narrowing energy and material loops to allow the system to regenerate.
Researchers from the Institute for Competitiveness, India and the Grenoble Ecole de Management, France examined how feasible circular economy would be in India. With 17% of global population, India has a well-balanced population pyramid. The researchers evaluated the business models of three companies, Goonj, Attero and HaathiChaap, as
case studies.
HaathiChaap, based in Rajasthan, makes paper products out of elephant dung. The manure is disinfected, dried, beaten to pulp, and drawn to sheets of paper. Water from
the treatment is used as fertiliser. Elephant dung has, thus, created employment opportunities for tribal communities in the region. The researchers laud HaathiChaap for removing taboos associated with using animal waste.
Goonj, a Delhi-based NGO, collects unused clothes, sorts and distributes them to weaker sections. Goonj also trains women from rural communities to make sanitary pads and mattresses with unused clothes – a parallel economy for weaker sections, drawing resources from urban communities. The researchers found Goonj successful in creating a trash to cash system.
Noida-based Attero is an electronic waste management enterprise. Tonnes of electronic waste go untreated in India. Attero extracts metals of value from waste. The metals are
then used as raw material in the electronics industry. Attero has also launched an online platform to directly sell refurbished products. With Attero, the researchers identify efficient management of waste.
The researchers highlight the importance of entrepreneurs in value creation and value delivery. For a more sustainable future, industries would do well to adopt circular economy models.
Thunderbird Int. Bus. Rev., 60(5): 729–740
Science Last Fortnight, CURRENT SCIENCE, VOL. 115, NO. 5, 10 SEPTEMBER 2018