ECOWRAP’S JOURNEY TOWARDS

SUSTAINABILITY
Ananya Mehta and Rohan Kapoor, the visionary co-founders of EcoWrap, found themselves at a crossroads
as they pondered the long-term viability of their business model. EcoWrap, a budding start-up in the
competitive packaging industry, had initially carved out a niche for itself by offering cost-effective
traditional plastic packaging solutions to small and mid-sized businesses. This approach had driven the
company’s early success, earning it a loyal client base that valued affordability and reliability. However, the
tides of the industry were rapidly shifting, presenting challenges that could no longer be ignored.

A surge in environmental awareness among consumers and the introduction of stricter government
regulations on single-use plastics called for transformation in the packaging sector. EcoWrap’s reliance on
traditional plastics, once its greatest strength, now poses a significant risk to its future. Faced with the reality
of these changes, Ananya and Rohan knew that clinging to their existing model would jeopardize the
company’s growth and reputation in an increasingly eco-conscious world.

Determined to stay relevant in a marketplace evolving towards sustainability, the co-founders embarked on a
bold and transformative journey. They transitioned EcoWrap’s product offerings to sustainable packaging
options, including cardboard, paper, and biodegradable materials. This decision marked a strategic pivot, a
deep commitment to environmental responsibility, and a recognition of the shifting market dynamics. For
Ananya and Rohan, this was about more than adapting to regulations—it was about positioning EcoWrap as
a leader in sustainable innovation aligned with the values of a changing society.
This shift, however, was not without its challenges. Transitioning to eco-friendly solutions required a
complete overhaul of their business operations, from sourcing raw materials to redesigning production
processes. It also involved navigating the financial implications of higher material costs and convincing
skeptical clients of the long-term value of sustainable packaging. Yet, for Ananya and Rohan, these obstacles
were part of a larger vision—a vision to redefine EcoWrap as a purpose-driven company that thrived in the
evolving packaging industry and contributed meaningfully to the planet’s well-being. Their journey was a
testament to the power of resilience, adaptability, and a shared commitment to a sustainable future.

The Stakeholders
EcoWrap's client base relied on it to provide durable plastic films at prices lower than the prevailing market
price. Resistance from some of their existing clients, who feared the increased costs associated with
sustainable materials, presented an immediate hurdle. Moreover, finding reliable suppliers for eco-friendly
raw materials proved daunting, leading to occasional disruptions in the supply chain. EcoWrap’s production
processes required significant revamping to handle the new materials, creating operational inefficiencies that
initially slowed their output. Despite these difficulties, the co-founders remained resolute, viewing
sustainability as not just a compliance requirement but an opportunity to future-proof their business and
create long-term value.

Overview Of Finances

The cost of sustainable raw materials was approximately 30% higher than traditional plastics, putting
pressure on the company’s procurement budget. EcoWrap also had to invest ₹50 lakhs in upgrading its
production lines to accommodate the new materials. To secure a consistent supply of high-quality eco-
friendly materials, the company entered long-term contracts with suppliers, which included advance
payments. These measures, while necessary, caused a temporary dip in profit margins by 15% as EcoWrap
absorbed a portion of the increased costs to retain price-sensitive clients. To mitigate these financial
pressures, the company applied for green business subsidies, renegotiated loan terms with banks, and
attracted investor funding by emphasizing the growing market demand for sustainable solutions.

Moving Towards Sustainable Solutions

While EcoWrap moved away from single-use plastics, the company recognized the importance of
addressing the waste generated by its previous products. To tackle this, EcoWrap needs to forge partnerships
with local recycling cooperatives, sourcing recycled plastics for reusable packaging solutions. The company
also developed hybrid packaging designs that combined recycled plastics and biodegradable materials to
reduce waste while maintaining durability. Additionally, EcoWrap introduced a take-back program,
encouraging businesses to return used packaging for recycling or repurposing, thus creating a circular
economy model.

Overcoming Workforce Challenges

A significant portion of the workforce was resistant for the changes in production processes and the
introduction of eco-friendly product lines. Many employees lacked the technical skills required to operate
new machinery or develop innovative packaging solutions. These issues, coupled with increased workloads
and uncertainty about the company’s direction, led to a dip in morale and a slight increase in attrition rate by
10% in key departments. To address these challenges, EcoWrap implemented a comprehensive HR strategy
that included upskilling programs to train employees on sustainable materials and new machinery. Town
halls and workshops were organized to engage employees and foster a sense of ownership in the company’s
mission. Additionally, the company hired sustainability experts and experienced operators to bridge critical
skill gaps.
Devising a New Strategy

To further support its transition, EcoWrap devised a plan to partner with local recycling cooperatives for
sourcing materials and developed innovative packaging designs to reduce waste. By collaborating with
cooperatives, EcoWrap could procure recycled paper and plastics at competitive rates while promoting
sustainable practices in the community. The company’s R&D team focused on designing modular packaging
solutions that could be reused or repurposed, and lightweight materials were introduced to reduce both
transport costs and environmental impact. These measures not only enhanced EcoWrap’s sustainability
credentials but also improved its profit margins by 8% over the long term.

EcoWrap’s transition to sustainability presented an opportunity to position sustainable packaging as a

valuable proposition for businesses. The marketing campaign, titled “The Green Edge,” reframed eco-
friendly packaging as a means for businesses to enhance their brand image, attract environmentally
conscious customers, and comply with evolving regulations. The campaign included video testimonials from
businesses thriving after adopting EcoWrap’s solutions, an interactive web tool for calculating carbon
footprint reductions, and a social media challenge using #EcoWrapGreenEdge to encourage sustainable
practices. The company plans to launch an annual Sustainability Award program to recognize clients leading
in eco-friendly initiatives.

The Way Ahead

EcoWrap’s journey ahead remains uncharted, presenting both opportunities and challenges for the company
as it strives to carve out its path in a competitive and ever-evolving market. Recognizing the importance of
proactive planning, the founders are now preparing to tackle these challenges head-on with a clear focus on
their vision and goals. With renewed determination and a shared sense of purpose, they have scheduled a
strategic meeting to deliberate on key priorities, explore innovative solutions, and outline actionable next
steps. This meeting marks a pivotal moment in their journey, as they seek to not only navigate uncertainties
but also position EcoWrap for sustainable growth and long-term success.

CASE STUDY QUESTIONS

Q1. As EcoWrap faced financial strain from the 30% higher cost of sustainable raw materials, co-founders
Ananya and Rohan turned to their Finance Manager, Rahul, for solutions. To explore strategies, Rahul
consulted Jyoti, a sustainability finance expert and long-time advisor to Ananya. Jyoti recommended cost
optimization, securing long-term supplier contracts, and leveraging subsidies, loans, and investor funding to
manage the transition effectively.

As Rahul, how would you address these financial challenges while ensuring EcoWrap’s profitability and
long-term stability?

The solution should prioritize - On reducing costs, securing long-term supplier contracts, and leveraging
subsidies, loans, and investor funding. Insource production - leverage investor funding - use social media to
generate income
Q2. To strengthen EcoWrap’s market position after the transition to eco-friendly packaging, the co-founders
tasked Neha, their Marketing Lead, with developing a campaign that highlighted the business value of
sustainability. Collaborating with Rohan’s mentor Priya, a branding expert, Neha launched "The Green
Edge" campaign, incorporating client testimonials, interactive carbon footprint tools, and a social media
movement (#EcoWrapGreenEdge) to promote sustainable packaging as a branding advantage.

How did Neha’s campaign successfully reposition sustainable packaging as a strategic branding tool for
businesses?

The solution should prioritize- On highlighting how “The Green Edge” campaign used testimonials,
interactive tools, and social media to position sustainable packaging as a valuable branding advantage for
businesses.

Q3. During EcoWrap’s transition to sustainable packaging, a 10% increase in the attrition rate and employee
resistance posed challenges. Concerned about morale and skill gaps, Rohan sought guidance from Priya, a
trusted HR strategist. Priya recommended proactive strategies including upskilling workshops, regular town
halls for open dialogue, and hiring external sustainability experts to support the transition.

As Rohan, what HR strategies would you implement to address employee resistance, reduce attrition, and
ensure a smooth transition?
The solution should prioritize- On Emphasizing how EcoWrap addressed employee resistance and skill
gaps through upskilling programs, town halls, and hiring experts, ultimately reducing attrition and boosting
morale.